[Federal Register Volume 81, Number 46 (Wednesday, March 9, 2016)]
[Notices]
[Pages 12459-12461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-05218]


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 DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Amended Temporary Denial Order

Ribway Airlines Company Limited, 54 Kairaba Avenue, Kanifing 
Municipality, WRC, The Gambia
John Edward Meadows, 50 St. Leonards Road, Bexhill on Sea, East 
Sussex, TN40 1JB, United Kingdom
Jeffrey John James Ashfield, 50 St. Leonards Road, Bexhill on Sea, 
East Sussex, TN40 1JB, United Kingdom
moreJet Ltd., 60 Brackendale Road, Bournemouth, BH8 9HZ, United 
Kingdom, and Castle Malwood, Minstead, Lyndhurst, Hampshire, SO43 
7PE, United Kingdom
Stefan Piotr Kondak, a/k/a Stefan Peter Kondak, 150 Broadway, 
Bournemouth, Dorset, BH6 4EC, United Kingdom, and 60 Brackendale 
Road, Bournemouth, BH8 9HZ, United Kingdom
Castle Malwood, Minstead, Lyndhurst, Hampshire, SO43 7PE, United 
Kingdom
AC AVIATIE UK Limited, f/k/a Bin Vali Aviation Limited, 50 St. 
Leonard's Road, Bexhill On Sea, East Sussex, TN40 1JB, United 
Kingdom

    Respondents.

    Pursuant to Section 766.24 of the Export Administration Regulations 
(the ``Regulations'' or ``EAR''),\1\ I hereby grant the request of the 
Office of Export Enforcement (``OEE'') to modify the January 19, 2016 
Order Temporarily Denying the Export Privileges of Ribway Airlines 
Company Limited, John Edward Meadows, Jeffrey John James Ashfield, Af-
Aviation Limited, and Andy Farmer, as I find it necessary to amend this 
temporary denial order (``TDO'') to add three parties and also to 
remove two parties named in the TDO as issued on January 19, 2016.
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    \1\ The EAR are currently codified at 15 CFR parts 730-774 
(2015). The EAR issued under the Export Administration Act of 1979, 
as amended 50 U.S.C. 4601-4623 (Supp. III 2015 (available at http://uscode.house.gov) (``EAA'' or the ``Act''). 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, 2015 (80 FR 48,223 (Aug. 11, 2015)) 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 find it necessary in order to prevent an imminent violation of 
the Regulations and the TDO to add the following persons as 
respondents:

moreJet Ltd., 60 Brackendale Road, Bournemouth, BH8 9HZ, United 
Kingdom
Castle Malwood, Minstead, Lyndhurst, Hampshire, SO43 7PE, United 
Kingdom
Stefan Piotr Kondak, a/k/a Stefan Peter Kondak, 150 Broadway, 
Bournemouth, Dorset, BH6 4EC, United Kingdom
60 Brackendale Road, Bournemouth, BH8 9HZ, United Kingdom
Castle Malwood, Minstead, Lyndhurst, Hampshire, SO43 7PE, United 
Kingdom
AC AVIATIE UK Limited, f/k/a Bin Vali Aviation Limited, 50 St. 
Leonard's Road, Bexhill On Sea, East Sussex, TN40 1JB, United 
Kingdom

    I also find based upon OEE's request and evidence obtained by OEE 
after issuance of the TDO on January 19, 2016, that the following 
parties should be removed from the TDO:

AF-Aviation Limited, Sebring House, 4 Newbridge Drive, 
Wolverhampton, WV6 ODF, United Kingdom
Andy Farmer, Sebring House, 4 Newbridge Drive, Wolverhampton, WV6 
ODF, United Kingdom

I. Procedural History

    On January 19, 2016, I signed the TDO, denying for 180 days the 
export privileges of Ribway Airlines Company Limited (``Ribway 
Airlines''), John Edward Meadows, Jeffrey John James Ashfield, Af-
Aviation Limited, and Andy Farmer (Af-Aviation's director). The TDO was 
issued ex parte pursuant to Section 766.24(a), and went into effect 
upon issuance on January 19, 2016. The TDO was published in the Federal 
Register on January 26, 2016. 81 FR 4251 (Jan. 26, 2016).
    The TDO issued based upon evidence presented by OEE concerning an 
attempt to ferry or reexport two Boeing 737 aircraft, with manufacturer 
serial numbers 26444 and 26458, respectively, from Romania to Iran 
without the U.S. Government authorization required by Sections 742.8 
and 746.7 of the EAR.\2\ As discussed further below, since the TDO 
issued on January 19, 2016, OEE has obtained evidence regarding the 
involvement of moreJet Ltd., Stefan Piotr Kondak (moreJet Ltd.'s 
director and co-founder), and AC AVIATIE UK Limited in the attempted 
reexport of the aircraft to Iran.
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    \2\ Both Boeing 737s are subject to the EAR and are classified 
under Export Control Classification Number (``ECCN'') 9A991.b and 
are controlled for anti-terrorism reasons.
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II. Temporarily Denying Export Privileges

A. Legal Standard

    Pursuant to Section 766.24(b) of the Regulations, BIS may issue an 
order temporarily denying a Respondent's export privileges upon a 
showing that the order is necessary in the public interest to prevent 
an ``imminent violation'' of the Regulations. 15 CFR 766.24(b)(1). ``A 
violation may be `imminent' either in time or degree of likelihood.'' 
15 CFR 766.24(b)(3). BIS may show ``either that a violation is about to 
occur, or that the general circumstances of the matter under 
investigation or case under criminal or administrative charges 
demonstrate a likelihood of future violations.'' Id. As to the 
likelihood of future violations, BIS may show that ``the violation 
under investigation or charges is significant, deliberate, covert and/
or likely to occur again, rather than technical or negligent

[[Page 12460]]

[.]'' Id. A ``lack of information establishing the precise time a 
violation may occur does not preclude a finding that a violation is 
imminent, so long as there is sufficient reason to believe the 
likelihood of a violation.'' Id.

B. OEE's Request To Add moreJet Ltd., Stefan Piotr Kondak, and AC 
AVIATIE UK Limited to the TDO

    OEE has requested the addition of moreJet Ltd.--a United Kingdom-
based company that holds itself out as providing flight operation 
services, ferry flights, airworthiness review certificates, flight 
crews, navigation, and fuel--and its director and co-founder Stefan 
Piotr Kondak (``Kondak''). OEE has presented evidence demonstrating 
that Kondak and his company were involved with the attempted reexports 
described in the TDO. The on-going investigation indicates that moreJet 
Ltd. was providing the aircrew, including Kondak as a pilot, that was 
to ferry or reexport the aircraft from Romania. Moreover, moreJet Ltd. 
and specifically Kondak acted as the aircraft owner's agent and/or 
representative in facilitating the attempted reexport of the aircraft 
from Romania.
    Additionally, the January 19, 2016 TDO named John Edward Meadows as 
a denied person based upon his involvement with the attempted 
reexports. Evidence obtained subsequent to the issuance of the TDO has 
confirmed OEE's suspicions that John Edward Meadows' actions were taken 
in his capacity as a director of AC AVIATIE UK Limited. Multiple 
sources, including but not limited to the insurance policies and bills 
of sale for the aircraft, indicate AC AVIATIE UK Limited's ownership of 
both subject aircraft.\3\
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    \3\ AC AVIATIE UK Limited was formerly known as Bin Vali 
Aviation Limited. The aircraft insurance policies referenced in the 
January 19, 2016 TDO listed Bin Vali Aviation Limited, a United 
Kingdom-based company, as an insured party. United Kingdom corporate 
registration documents indicate that Bin Vali Aviation Limited 
changed its corporate name to AC AVIATIE UK Limited. Additional 
evidence now confirms that AC AVIATIE UK Limited/Bin Vali Aviation 
Limited purchased both aircraft from Malaysian Airlines.
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    Prior to issuance of the TDO, OEE did not have evidence 
establishing moreJet Ltd.'s or Kondak's relationship to the aircraft or 
role in the transaction. If the evidence presented in support of this 
modification had been available during consideration of the TDO, OEE 
would have sought to include moreJet and Kondak as denied persons at 
that time. Similarly, OEE also would have requested that AC AVIATIE UK 
Limited's export privileges be denied in its original request. Lastly, 
OEE has presented evidence that despite knowing of the TDO, moreJet 
Ltd. and Kondak have, as recently as February 26, 2016, continued their 
efforts to ferry or reexport the subject aircraft from Romania in 
violation of Regulations and the TDO.
    Given the foregoing, the evidence presented by OEE supports its 
position that, absent the TDO and its inclusion of the three additional 
respondents, further attempts likely will be made to reexport the 
aircraft from Romania.

C. Findings

    I find that the evidence presented by OEE demonstrates that a 
violation of the Regulations and TDO is imminent in both time and 
degree of likelihood and that adding moreJet Ltd., Stefan Piotr Kondak, 
and AC AVIATIE UK Limited to the TDO is needed to give notice to 
persons and companies in the United States and abroad that they should 
cease dealing with these additional parties in export and re-export 
transactions involving items subject to the EAR or other activities 
prohibited by the TDO. Doing so is consistent with the public interest 
to preclude future violations of the EAR. moreJet Ltd., Stefan Piotr 
Kondak, and AC AVIATIE UK Limited's export privileges are being 
temporarily denied on an ex parte basis without a hearing based upon 
BIS's showing of an imminent violation in accordance with Section 
766.24 of the Regulations.
    Finally, I find that Af-Aviation Limited and Andy Farmer should be 
removed from the TDO, based upon evidence obtained by OEE after 
issuance of the TDO on January 19, 2016.
    It is therefore ordered:
    First, that RIBWAY AIRLINES COMPANY LIMITED, 54 Kairaba Avenue, 
Kanifing Municipality, WCR, The Gambia; JOHN EDWARD MEADOWS, 50 St. 
Leonards Road, Bexhill on Sea, East Sussex, TN40 1JB, United Kingdom; 
JEFFREY JOHN JAMES ASHFIELD, 50 St. Leonards Road, Bexhill on Sea, East 
Sussex, TN40 1JB, United Kingdom; MOREJET LTD., 60 Brackendale Road, 
Bournemouth, BH8 9HZ, United Kingdom, and Castle Malwood, Minstead, 
Lyndhurst, Hampshire, SO43 7PE, United Kingdom; STEFAN PIOTR KONDAK, A/
K/A STEFAN PETER KONDAK, 150 Broadway, Bournemouth, Dorset, BH6 4EC, 
United Kingdom, and 60 Brackendale Road, Bournemouth, BH8 9HZ, United 
Kingdom, and Castle Malwood, Minstead, Lyndhurst, Hampshire, SO43 7PE, 
United Kingdom; and AC AVIATIE UK LIMITED, F/K/A BIN VALI AVIATION 
LIMITED, 50 St. Leonard's Road, Bexhill On Sea, East Sussex, TN40 1JB, 
United Kingdom, and when acting for or on their behalf, any successors 
or assigns, agents, or employees (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 Export Administration Regulations (``EAR''), or in any 
other activity subject to the EAR 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 EAR, or in any other activity 
subject to the EAR; 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 EAR, or in any other activity subject to the EAR.
    Second, that 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 EAR;
    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 EAR 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 EAR that has been exported from the United States;
    D. Obtain from a Denied Person in the United States any item 
subject to the EAR 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 EAR 
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 EAR 
that has been or will be exported from the United States. For purposes 
of this paragraph, servicing

[[Page 12461]]

means installation, maintenance, repair, modification or testing.
    Third, that, after notice and opportunity for comment as provided 
in section 766.23 of the EAR, any other person, firm, corporation, or 
business organization related to a Denied Person 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 
this Order.
    In accordance with the provisions of Section 766.24(e) of the EAR, 
the Respondents may, at any time, appeal this Order by filing a full 
written statement in support of the appeal with the Office of the 
Administrative Law Judge, U.S. Coast Guard ALJ Docketing Center, 40 
South Gay Street, Baltimore, Maryland 21202-4022.
    In accordance with the provisions of Section 766.24(d) of the EAR, 
BIS may seek renewal of this Order by filing a written request not 
later than 20 days before the expiration date. The Respondents may 
oppose a request to renew this Order by filing a written submission 
with the Assistant Secretary for Export Enforcement, which must be 
received not later than seven days before the expiration date of the 
Order.
    A copy of this Order shall be served on Ribway Airlines Company 
Limited, John Edward Meadows, Jeffrey John James Ashfield, moreJet 
Ltd., Stefan Piotr Kondak, AC AVIATIE UK Limited, Af-Aviation Limited, 
and Andy Farmer, and shall be published in the Federal Register.
    This Order is effective immediately and shall remain in effect 
until July 17, 2016, unless renewed in accordance with Section 
766.24(d) of the Regulations.

    Dated: March 1, 2016.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2016-05218 Filed 3-8-16; 8:45 am]
 BILLING CODE P