[Federal Register Volume 81, Number 120 (Wednesday, June 22, 2016)]
[Notices]
[Pages 40658-40659]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14745]



[[Page 40658]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Ismael Reta, Register Number: 78795-379, 
Federal Correctional Institution, P.O. Box 4200, Three Rivers, TX 
78071; Order Denying Export Privileges

    On June 15, 2015, in the U.S. District Court for the Southern 
District of Texas, Ismael Reta (``Reta''), was convicted of violating 
Section 38 of the Arms Export Control Act (22 U.S.C. 2778 (2012)) 
(``AECA''). Specifically, Reta intentionally and knowingly conspired 
and agreed together with other person or persons known and unknown to 
the Grand Jurors, to knowingly and willfully export, attempt to export, 
and cause to be exported into Mexico from the United States defense 
article, that is, to-wit: a Colt, Model M4, 5.56mm rifle; a Romarm, 
Model WASR-10, 7.62x39mm rifle; a Berretta, Model 92FS, 9mm pistol, two 
hundred sixty-two (262) rounds of 5.56mm ammunition; and fifty (50) 
rounds of 7.62x39mm ammunition, which were designated as defense 
articles on the United States Munitions List, without having first 
obtained from the Department of State a license for such export or 
written authorization for such export. Reta was sentenced 37 months of 
imprisonment, three years of supervised release, and a $100 assessment.
    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. 4610(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. 
4610(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 (2015). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. 4601-
4623 (Supp. III 2015) (available at http://uscode.house.gov)). 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 48,233 
(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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    BIS has received notice of Reta's conviction for violating the 
AECA, and has provided notice and an opportunity for Reta to make a 
written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has not received a submission from Reta.
    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 Reta's export privileges under the Regulations for 
a period of 10 years from the date of Reta's conviction. I have also 
decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Reta had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until June 15, 2025, Ismael 
Reta, with a last known address of Register Number: 78795-379, Federal 
Correctional Institution, P.O. Box 4200, Three Rivers, TX 78071, and 
when acting for or on his behalf, his successors, assigns, employees, 
agents or representatives (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.
    Second, 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.
    Third, 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 Reta 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 in order to prevent evasion of this Order.
    Fourth, in accordance with Part 756 of the Regulations, Reta 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.
    Fifth, a copy of this Order shall be delivered to the Reta. This 
Order shall be published in the Federal Register.

[[Page 40659]]

    Sixth, this Order is effective immediately and shall remain in 
effect until June 15, 2025.

    Issued this 15 day of June 2016.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2016-14745 Filed 6-21-16; 8:45 am]
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