[Federal Register Volume 78, Number 244 (Thursday, December 19, 2013)]
[Notices]
[Pages 76814-76815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-30211]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Mohammed Soroush Mahalaty, a/k/a Mohammad 
Soroush, a/k/a Mike Soroush, 18 Clinton Lane, Jericho, NY 11753; Order 
Denying Export Privileges

    On October 3, 2012, in the U.S. District Court, Southern District 
of New York Mohammed Soroush Mahalaty, a/k/a Mohammad Soroush a/k/a 
Mike Soroush (``Mahalaty''), was convicted of violating the 
International Emergency Economic Powers Act (50 U.S.C. 1701, et seq. 
(2006 & Supp. IV 2010)) (``IEEPA''). Specifically, Mahalaty was 
convicted of violating IEEPA by unlawfully, willfully, and knowingly 
exporting, selling, and supplying financial services from the United 
States to and in Iran, by among other things, conducting financial 
transactions for the purpose of, and which had the effect of, 
violating, and which facilitated the violation of, the prohibitions set 
forth in the Executive Orders and the Regulations issued under the 
IEEPA, including the Iranian Transaction Regulations set forth in 31 
CFR part 560, including specifically using the hawala system to 
transfer money into Iran which money Mahalaty believed was intended for 
investment in Iran. Mahalaty was sentenced to time served, three years 
of supervised release, a $400 assessment, $5,000 fine and restitution 
of $739,377.31.
    Section 766.25 of the Export Administration Regulations (``EAR'' or 
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director 
of the Office of Exporter Services, in consultation with the Director 
of the Office of Export Enforcement, may deny the export privileges of 
any person who has been convicted of a violation of the Export 
Administration Act (``EAA''), the EAR, or any order, license or 
authorization issued thereunder; any regulation, license, or order 
issued under the International Emergency Economic Powers Act (50 U.S.C. 
1701-1706); 18 U.S.C. 793, 794 or 798; section 4(b) of the Internal 
Security Act of 1950 (50 U.S.C. 783(b)), or section 38 of the Arms 
Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a); see also 
Section 11(h) of the EAA, 50 U.S.C. app. Sec.  2410(h). The denial of 
export privileges under this provision may be for a period of up to 10 
years from the date of the conviction. 15 CFR 766.25(d); see also 50 
U.S.C. app. Sec.  2410(h). In addition, Section 750.8 of the 
Regulations states that the Bureau of Industry and Security's Office of 
Exporter Services may revoke any Bureau of Industry and Security 
(``BIS'') licenses previously issued in which the person had an 
interest in at the time of his conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2013). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. app. 
Sec. Sec.  2401-2420 (2000)) (``EAA''). Since August 21, 2001, the 
EAA 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 8, 2013 (78 FR 49107 (August 12, 2013)), 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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    I have received notice of Mahalaty's conviction for violating the 
IEEPA, and have provided notice and an opportunity for Mahalaty to make 
a written submission to BIS, as provided in Section 766.25 of the 
Regulations. I have not received a submission from Mahalaty.
    Based upon my review and consultations with BIS's Office of Export 
Enforcement, including its Director, and the facts available to BIS, I 
have decided to deny Mahalaty's export privileges under the Regulations 
for a period of five years from the date of Mahalaty's conviction. I 
have also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Mahalaty had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered
    I. Until October 3, 2017, Mohammed Soroush Mahalaty, a/k/a Mohammad 
Soroush, a/k/a Mike Soroush, with a last known address at: 18 Clinton 
Lane, Jericho, NY 11753, and when acting for or on behalf of Mahalaty, 
his representatives, assigns, agents or employees (the ``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, 
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.
    II. 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.
    III. After notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any other person, firm, corporation, 
or business organization related to Mahalaty by affiliation, ownership, 
control or position of responsibility in the conduct of trade or 
related services may also be subject to the provisions of this Order if

[[Page 76815]]

necessary to prevent evasion of the Order.
    IV. This Order is effective immediately and shall remain in effect 
until October 3, 2017.
    V. In accordance with Part 756 of the Regulations, Mahalaty may 
file an appeal of this Order with the Under Secretary of Commerce for 
Industry and Security. The appeal must be filed within 45 days from the 
date of this Order and must comply with the provisions of Part 756 of 
the Regulations.
    VI. A copy of this Order shall be delivered to the Mahalaty. This 
Order shall be published in the Federal Register.

    Issued this 13th day of December 2013.
Eileen M. Albanese,
Acting Director, Office of Exporter Services.
[FR Doc. 2013-30211 Filed 12-18-13; 8:45 am]
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