[Federal Register Volume 79, Number 205 (Thursday, October 23, 2014)]
[Notices]
[Pages 63379-63380]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-25221]


=======================================================================
-----------------------------------------------------------------------

 DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Relating to Borna Faizy, Touraj Ghavidel, and Signal Micro 
Systems, Inc.

    In the Matter of:

Borna Faizya/k/a Brad Faizy, 4405 Newcastle Drive, Frisco, TX 75034
Touraj Ghavidel, a/k/a Brent Dell, 6617 Tamarron Lane, Plano, TX 
75024
Signal Micro Systems, Inc., d/b/a Techonweb, 16837 Addison Road, 
Addison, TX 75001;

Respondents

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS''), has notified Borna Faizy a/k/a Brad Faizy, Touraj Ghavidel 
a/k/a Brent Dell, and Signal Micro Systems, Inc. d/b/a Techonweb 
(collectively, the ``Respondents'') of its intention to initiate an 
administrative proceeding against Respondents 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 
Respondents that alleges that each Respondent committed one violation 
of the Regulations. Specifically, the charge is:
---------------------------------------------------------------------------

    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR Parts 730-774 (2014). The charged 
violation occurred between 2005 and 2012. The Regulations governing 
the violation at issue are found in the 2005-2012 versions of the 
Code of Federal Regulations (15 CFR Parts 730-774). The 2014 
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 7, 2014 (79 Fed. Reg. 46959 (Aug. 11, 
2014)), has continued the Regulations in effect under the 
International Emergency Economic Powers Act (50 U.S.C. Sec.  1701, 
et seq.) (2006 & Supp. IV 2010).
---------------------------------------------------------------------------

Charge 1 15 CFR Sec.  764.2(d)--Conspiracy

    Beginning at least in 2008, and continuing through in or about 
January 2012, Faizy, Ghavidel and Techonweb conspired and acted in 
concert with others, known and unknown, to bring about an act that 
constitutes a violation of the Regulations. The purpose of the 
conspiracy was to bring about the export of computers, items 
classified as 5A992 on the Commerce Control List and valued at 
$1,015,757, by Techonweb from the United States through the United 
Arab Emirates (``UAE'') to Iran, without the required U.S. 
Government authorization.\3\ Items classified as 5A992 are subject 
to control for Anti-Terrorism reasons, and, pursuant to Section 
742.8 and 746.7(a) of the Regulations, a license was required to 
export these items to Iran at all times pertinent hereto. The items 
were also subject to the Iranian Transaction Regulations (``ITR'') 
\4\ administered by the Department of the Treasury's Office of 
Foreign Assets Control (``OFAC''). The Regulations also prohibited 
the export or reexport to Iran, whether directly or transshipped 
through a third country, of any item subject to both the Regulations 
and the ITR, if the transaction was not authorized by OFAC.\5\ In 
order to avoid duplication, exporters and reexporters were not 
required under the Regulations to seek authorization from both BIS 
and OFAC for exports or reexports subject to both the EAR and the 
ITR, and accordingly an authorization granted by OFAC was considered 
authorization for purposes of the EAR as well. However, Faizy, 
Ghavidel, and Techonweb did not seek or obtain authorization from 
BIS, or from OFAC, in connection with any of the activities or 
transactions alleged herein.
---------------------------------------------------------------------------

    \3\ Pursuant to Section 734.2(b)(6) of the Regulations, the 
export of an item from the United States to a second country 
intended for transshipment to a third country is deemed to be an 
export to that third country.
    \4\ 31 CFR Part 560 (2008-2012). Subsequent to the violation 
charged herein, OFAC changed the heading of 31 CFR Part 560 from the 
Iranian Transactions Regulations to the Iranian Transactions and 
Sanctions Regulations (``ITSR''), amended the renamed ITSR in part, 
and reissued them in their entirety. See 77 Fed. Reg. 64,664 (Oct. 
22, 2012). 31 CFR Part 560 remains the same in pertinent part.
    \5\ Pursuant to Section 560.204 of the ITR, an export to a third 
country intended for transshipment to Iran was a transaction that 
required OFAC authorization at all times pertinent hereto. See also 
notes 3 and 4, supra.
---------------------------------------------------------------------------

    Specifically, in furtherance of the conspiracy, Faizy, Ghavidel 
and Techonweb, which was owned by Faizy and Ghavidel and for which 
Faizy served as President and Director and Ghavidel served as Chief 
Financial Officer and Director, participated in a scheme to export 
computers to Iran without the required licenses. In or about 2008, 
Faizy and Ghavidel attended a computer trade show in Dubai, UAE, to 
recruit and obtain contact information from potential customers in 
Iran. After forming the conspiracy, Faizy and Ghavidel then 
communicated with their co-conspirators through electronic mail, 
instant messaging and other forms of electronic communication, using 
fictitious names and coded language to obscure the true identities 
and locations of the ultimate consignees. Faizy and Ghavidel, 
through Techonweb, obtained computers from various suppliers in the 
United States for the purposes of selling and exporting the 
computers to Iran. Additionally, in furtherance of the conspiracy, 
from December 2009 through March 2011, Faizy and Ghavidel, through 
Techonweb, exported 1,038 computers,

[[Page 63380]]

valued at $1,015,757, from the United States through the UAE to 
Iran. Faizy and Ghavidel, through Techonweb, filed or caused to be 
filed Electronic Export Information falsely stating that the 
computers were destined for ultimate consignees in Dubai, UAE. As 
alleged above, Faizy, Ghavidel, and Techonweb did not seek or obtain 
the required U.S. Government authorization in connection with any of 
---------------------------------------------------------------------------
the activities or transactions alleged herein.

    Whereas, BIS and Respondents 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;
    Whereas, I have approved of the terms of such Settlement Agreement; 
and
    Whereas, in doing so, I have taken into consideration the plea 
agreement that Faizy and Ghavidel have entered into with the U.S. 
Attorney's Office for the Northern District of Texas;
    It is therefore ordered: FIRST, that for a period of ten (10) years 
from the date of this Order, Borna Faizy a/k/a Brad Faizy, with a last 
known address of 4405 Newcastle Drive, Frisco, TX 75034, and when 
acting on his behalf, his successors, assigns, employees, agents or 
representatives, Touraj Ghavidel a/k/a Brent Dell, with a last known 
address of 6617 Tamarron Lane, Plano, TX 75024, and when acting for or 
on his behalf, his successors, assigns, employees, agents or 
representatives, and Signal Micro Systems, Inc. d/b/a Techonweb, with a 
last known address of 16837 Addison Road, Addison, TX 75001, and when 
acting for or on its behalf, its successors, assigns, directors, 
officers, employees, agents or representatives (each a ``Denied 
Person'' and collectively the ``Denied Persons''), 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.
    SECOND, that no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of any of the Denied Persons 
any item subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by any of the Denied Persons 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 any of the Denied 
Persons 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 any of the Denied Persons of any item 
subject to the Regulations that has been exported from the United 
States;
    D. Obtain from any of the Denied Persons 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 any of the Denied 
Persons, or service any item, of whatever origin, that is owned, 
possessed or controlled by any of the Denied Persons 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.
    THIRD, 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 any of the Denied Persons by 
affiliation, ownership, control, or position of responsibility in the 
conduct of trade or related services may also be made subject to the 
provisions of the Order.
    FOURTH, Respondents shall not take any action or make or permit to 
be made any public statement, directly or indirectly, denying the 
allegations in the Proposed Charging Letter or the Order. The foregoing 
does not affect Respondents' testimonial obligations in any proceeding, 
nor does it affect their right to take legal or factual positions in 
civil litigation or other civil proceedings in which the U.S. 
Department of Commerce is not a party.
    FIFTH, that the Proposed Charging Letter, the Settlement Agreement, 
and this Order shall be made available to the public.
    SIXTH, that this Order shall be served on Respondents and shall be 
published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Issued this 16th day of October, 2014.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2014-25221 Filed 10-22-14; 8:45 am]
BILLING CODE P