[Federal Register Volume 78, Number 125 (Friday, June 28, 2013)]
[Notices]
[Pages 38922-38924]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-15253]


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 DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Relating to Billy L. Powell, Sr.

    In the Matter of: Billy L. Powell, Sr., 1911 Hickory Creek, 
Kingwood, TX 77339, Respondent.

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS''),

[[Page 38923]]

has notified Billy L. Powell, Sr. of Kingwood, TX (``Powell''), of its 
intention to initiate an administrative proceeding against Powell 
pursuant to Section 766.3 of the Export Administration Regulations (the 
``Regulations''),\1\ and Section 13(c) of the Export Administration Act 
of 1979, as amended (the ``Act''),\2\ through the issuance of a 
Proposed Charging Letter to Powell that alleges that Powell committed 
fifty violations of the Regulations. Specifically, the charges are:
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR Parts 730-774 (2013). The charged 
violations occurred in 2006-2008. The Regulations governing the 
violations at issue are found in the 2006-2008 versions of the Code 
of Federal Regulations (15 CFR Parts 730-774) (2006-2008)). The 2013 
Regulations set forth the procedures that apply to this matter.
    \2\ 50 U.S.C. app. Sec. Sec.  2401-2420 (2000). Since August 21, 
2001, the Act has been in lapse and the President, through Executive 
Order 13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which 
has been extended by successive Presidential Notices, the most 
recent being that of August 15, 2012 (77 FR 49699 (Aug. 16, 2012)), 
has continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701, et seq.) (2006 & 
Supp. IV 2010).
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Charges 1-50 15 CFR 764.2(e)--Acting With Knowledge of a Violation

    On fifty occasions, between on or about January 14, 2006, and on or 
about February 23, 2008, Powell violated the Regulations by selling or 
transferring various oil and gas equipment parts, items subject to the 
Regulations \3\ and the Iranian Transactions Regulations,\4\ that were 
exported or to be exported from the United States to Iran via 
transshipment through the United Arab Emirates, with knowledge that a 
violation of the Regulations was occurring, was about to occur, or was 
intended to occur in connection with the items. Specifically, Powell 
sold or transferred the items with knowledge that licenses were 
required for such exports and that no licenses had been obtained. 
Pursuant to Section 560.204 of the Iranian Transactions Regulations 
administered by the Department of the Treasury's Office of Foreign 
Assets Control (``OFAC''), an export to a third country intended for 
transshipment to Iran is a transaction that requires OFAC 
authorization.\5\ Pursuant to Section 746.7 of the Regulations, no 
person may engage in the exportation of an item subject to both the 
Regulations and the Iranian Transactions Regulations without 
authorization from OFAC. No OFAC authorization was obtained for the 
exports described herein.
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    \3\ These items were designated as EAR99, which is a designation 
for items subject to the Regulations but not listed on the Commerce 
Control List. 15 CFR 734.3(c) (2006-2008).
    \4\ 31 CFR Part 560 (2006-2008). Administered by the Treasury 
Department's Office of Foreign Assets Control (``OFAC''), the ITR 
were renamed the Iranian Transactions and Sanctions Regulations 
(``ITSR'') and reissued in their entirety by OFAC on October 22, 
2012. See 77 FR 64,664 (Oct. 22, 2012). Section 560.204 remains 
unchanged in pertinent part. See 31 CFR 560.204 (2006-2008 and 
2012).
    \5\ See also 15 CFR 734.2(b)(6).
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    Powell knew or had reason to know that he was violating the 
Regulations by engaging in these transactions, because prior to 
engaging in these transactions, Powell had knowledge of the U.S. 
Government's embargo on exports to Iran based on, inter alia, multiple 
outreach visits and contacts by U.S. law enforcement agents between 
2000 and 2007, regarding the licensing requirements for exports to 
embargoed destinations, including Iran. In engaging in this activity, 
Powell committed fifty violations of Section 764.2(e) of the 
Regulations.
    Whereas, BIS and Powell have entered into a Settlement Agreement 
pursuant to Section 766.18(a) of the Regulations, whereby they agreed 
to settle this matter in accordance with the terms and conditions set 
forth therein; and
    Whereas, I have approved of the terms of such Settlement Agreement;
    It is therefore ordered:
    First, Powell shall be assessed a civil penalty in the amount of 
$100,000, the payment of which shall be made to the U.S. Department of 
Commerce within 30 days of the date of this Order.
    Second, that, pursuant to the Debt Collection Act of 1982, as 
amended (31 U.S.C. 3701-3720E (2000)), the civil penalty owed under 
this Order accrues interest as more fully described in the attached 
Notice, and if payment is not made by the due date specified herein, 
Powell will be assessed, in addition to the full amount of the civil 
penalty and interest, a penalty charge and an administrative charge, as 
more fully described in the attached Notice.
    Third, that for a period of five (5) years from the date of this 
Order, Billy L. Powell, Sr., with a last known address of 1911 Hickory 
Creek, Kingwood, TX 77339, and when acting for or on his behalf, his 
successors, assigns, representatives, agents, or employees (hereinafter 
collectively referred to as ``Denied Person''), may not, directly or 
indirectly, participate in any way in any transaction involving any 
commodity, software or technology (hereinafter collectively referred to 
as ``item'') exported or to be exported from the United States that is 
subject to the Regulations, or in any other activity subject to the 
Regulations, including, but not limited to:
    A. Applying for, obtaining, or using any license, License 
Exception, or export control document;
    B. Carrying on negotiations concerning, or ordering, buying, 
receiving, using, selling, delivering, storing, disposing of, 
forwarding, transporting, financing, or otherwise servicing in any way, 
any transaction involving any item exported or to be exported from the 
United States that is subject to the Regulations, or in any other 
activity subject to the Regulations; or
    C. Benefitting in any way from any transaction involving any item 
exported or to be exported from the United States that is subject to 
the Regulations, or in any other activity subject to the Regulations.
    Fourth, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of the Denied Person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Denied Person of the ownership, possession, or 
control of any item subject to the Regulations that has been or will be 
exported from the United States, including financing or other support 
activities related to a transaction whereby the Denied Person acquires 
or attempts to acquire such ownership, possession or control;
    C. Take any action to acquire from, or to facilitate the 
acquisition or attempted acquisition from, the Denied Person of any 
item subject to the Regulations that has been exported from the United 
States;
    D. Obtain from the Denied Person in the United States any item 
subject to the Regulations with knowledge or reason to know that the 
item will be, or is intended to be, exported from the United States; or
    E. Engage in any transaction to service any item subject to the 
Regulations that has been or will be exported from the United States 
and which is owned, possessed or controlled by the Denied Person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by the Denied Person if such service involves the use of any 
item subject to the Regulations that has been or will be exported from 
the United States. For purposes of this paragraph, servicing means 
installation, maintenance, repair, modification or testing.
    Fifth, that, after notice and opportunity for comment as provided 
in Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to the Denied Person by affiliation, 
ownership,

[[Page 38924]]

control, or position of responsibility in the conduct of trade or 
related services may also be made subject to the provisions of the 
Order.
    Sixth, that the Proposed Charging Letter, the Settlement Agreement, 
and this Order shall be made available to the public.
    Seventh, that this Order shall be served on Powell, and shall be 
published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Issued this 19th day of June, 2013.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2013-15253 Filed 6-27-13; 8:45 am]
BILLING CODE M