[Federal Register Volume 80, Number 153 (Monday, August 10, 2015)]
[Notices]
[Pages 47898-47899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19570]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Peter Gromacki, 88 White Bridge Road, 
Middletown, NY 10940; Respondent; JEN Fibers, LLC, 88 White Bridge 
Road, Middletown, NY 109400; Performance Engineered Nonwovens, LLC, 88 
White Bridge Road, Middletown, NY 10940; Related Persons

Order Denying Export Privileges

A. Denial of Export Privileges of Peter Gromacki

    On November 26, 2013, in the U.S. District Court for the Southern 
District of New York, Peter Gromacki (``Gromack''), was convicted of 
violating the International Emergency Economic Powers Act (50 U.S.C. 
1701, et seq. (2006 & Supp. IV 2010)) (``IEEPA''). Specifically, 
Gromacki unlawfully, willfully and knowingly exported, and caused to be 
exported from the United States T700 carbon fiber, an item subject to 
the Export Administration Regulations, to China without obtaining the 
required approval from BIS. Gromacki was sentenced to three months of 
imprisonment, three years of supervised release, a $300 assessment, and 
a $5,000.00 criminal fine.
    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 EAA, the EAR, 
of 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. 2410(h). 
The denial of export privileges under this provision may be for a 
period of up to ten (10) years from the date of the conviction. 15 CFR 
766.25(d); see also 50 U.S.C. app. 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.
---------------------------------------------------------------------------

    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2015). The Regulations 
are issued pursuant to the Export Administration Act of 1979 (50 
U.S.C. app. 2401-2420 (2000)) (``the EAA'' or ``the Act''). 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 7, 2014 (79 FR 46959 
(August 11, 2014)), has continued the Regulations in effect under 
the International Emergency Economic Powers Act (50 U.S.C. 1701, et 
seq. (2006 & Supp. IV 2010)).
---------------------------------------------------------------------------

    BIS received notice of Gromacki's conviction for violating the 
IEEPA, and has provided notice and an opportunity for Gromacki to make 
a written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS received a submission from Gromacki. Based upon my 
review and consideration of that submission, and consultations with 
BIS's Office of Export Enforcement, including its Director, and the 
facts available to BIS, I have decided to deny Gromacki's export 
privileges under the Regulations for a period of ten (10) years from 
the date of Gromacki's conviction. I have also decided to revoke all 
licenses issued pursuant to the Act or Regulations in which Gromacki 
had an interest at the time of his conviction.

B. Denial of Export Privileges of Related Persons JEN Fibers LLC and 
Performance Engineered Nonwovens, LLC

    Pursuant to Sections 766.25(h) and 766.23 of the Regulations, the 
Director of BIS's Office of Exporter Services, in consultation with the 
Director of BIS's Office of Export Enforcement, may, in order to 
prevent evasion of a denial order, make a denial order applicable not 
only to the respondent, but also to other persons related to the 
respondent by ownership, control, position of responsibility, 
affiliation, or other connection in the conduct of trade or business.
    As provided in Section 766.23 of the Regulations, BIS gave notice 
to JEN Fibers, LLC (``JEN Fibers'') and Performance Engineered 
Nowovens, LLC (``Performance Engineered'') that its export privileges 
under the Regulations could be denied for up to ten (10) years due to 
its relationship with Gromacki and that BIS believed that naming JEN 
Fibers and Performance Engineered as persons related to Gromacki would 
be necessary to prevent evasion of a denial order imposed against 
Gromacki. In providing such notice, BIS gave JEN Fibers and Performance 
Engineered an opportunity to oppose their addition to the Gromacki 
Denial Order as related parties.
    Having received and reviewed a submission from Gromacki, I have 
decided, following consideration of that submission and consultations 
with BIS's Office of Export Enforcement, including its Director, to 
include name JEN Fibers and Performance Engineered as Related Persons 
and make this Denial Order applicable to JEN Fibers and Performance 
Engineered, thereby denying their export privileges for ten (10) years 
from the date of Gromacki's conviction. I have also decided to revoke 
all licenses issued pursuant to the Act or Regulations in which JEN 
Fibers and Performance Engineered had an interest at the time of 
Gromacki's conviction. The 10-year denial period is scheduled to end on 
November 26, 2023.
    Gromacki is the owner of JEN Fibers and Performance Engineered and 
operates both businesses from his home. Therefore, JEN Fibers and 
Performance Engineered are related to Gromacki within the meaning of 
Section 766.23. BIS also has reason to believe that JEN Fibers and 
Performance Engineered should be added as a related persons in order to 
prevent evasion of this Denial Order.

[[Page 47899]]

    Accordingly, it is hereby ORDERED:
    First, from the date of this Order until November 26, 2023, Peter 
Gromacki, with a last known address of 88 White Bridge Road, 
Middletown, NY 10940, and when acting for or on his behalf, his 
successors, assigns, employees, agents, or representatives, and JEN 
Fibers LLC and Performance Engineered Nonwovens, LLC, with a last known 
address of 88 White Bridge Road, Middletown, NY 10940, and when acting 
for or on their behalf, their successors, assigns, directors, officers, 
employees, agents, or representatives (each as ``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, no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of a Denied Person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a 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 a 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 a Denied Person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from a 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 a Denied Person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by a 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.
    Third, in addition to the Related Person named above, after notice 
and opportunity for comment as provided in section 766.23 of the 
Regulations, any other individual, firm, corporation, or other 
association or organization or other person related to a Denied Person 
by ownership, control, position of responsibility, affiliation, or 
other connection in the conduct of trade or business may also be made 
subject to the provisions of this Order if necessary to prevent evasion 
of this Order.
    Fourth, in accordance with Part 756 and Section 766.25(g) of the 
Regulations, Gromacki may file an appeal of the issuance of this Order 
against him 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.
    Fifth, in accordance with Part 756 and Section 766.23(c) of the 
Regulations, JEN Fibers and Performance Engineered may file an appeal 
of their naming as related persons in this Order with the Under 
Secretary of Commerce for Industry and Security. This 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.
    Sixth, a copy of this Order shall be provided to Gromacki, JEN 
Fibers and Performance Engineered and shall be published in the Federal 
Register.
    Seventh, this Order is effective immediately and shall remain in 
effect until November 26, 2023.

    Issued this 23 day of July, 2015.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2015-19570 Filed 8-7-15; 8:45 am]
 BILLING CODE P