[Federal Register Volume 82, Number 10 (Tuesday, January 17, 2017)]
[Notices]
[Pages 4842-4844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-00893]


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 DEPARTMENT OF COMMERCE

Bureau of Industry and Security


 Order Relating To Berty Tyloo

    In the Matter of: Berty Tyloo with last known addresses of: Rue 
du Pont Nerf 2, Morges, Switzerland and Rue du Centre, 2, 1131 
Tolochenaz, Morges, Switzerland, Respondent

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS''), has notified Berty Tyloo, of Morges, Switzerland 
(``Tyloo''), of its intention to initiate an administrative proceeding 
against Tyloo 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 Tyloo that alleges that Tyloo 
committed one violation of the Regulations. Specifically, the charge 
is:
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2016). The charged 
violation occurred in 2013. The Regulations governing the violation 
at issue are found in the 2013 version of the Code of Federal 
Regulations (15 CFR parts 730-774). The 2016 Regulations set forth 
the procedures that apply to this matter.
    \2\ 50 U.S.C. 4601-4623 (Supp. III 2015). Since August 21, 2001, 
the Act has been in lapse and the President, through Executive Order 
13,222 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 4, 2016 (81 FR 52,587 (Aug. 8, 2016)), has 
continued the Regulations in effect under the International 
Emergency Economic Powers Act (50 U.S.C. 1701, et seq. (2012)).

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[[Page 4843]]

Charge 1 15 CFR 764.2(g): Misrepresentation and Concealment of Facts in 
the Course of an Investigation

    On or about June 14, 2013, Tyloo made false or misleading 
statements to BIS in the course of an investigation. Specifically, 
Tyloo was interviewed by two BIS supervisory special agents on or about 
June 14, 2013, in relation to an investigation of unlicensed exports 
and reexports to Syria of items subject to the Regulations and 
manufactured by Agilent Technologies, Inc. (``Agilent''), a U.S. 
company. As early as 2001, Tyloo was the area sales manager or 
distribution channel manager for the Middle East and Africa for Agilent 
products for European subsidiaries or affiliates of Agilent, including 
with regard to the sale and distribution of Agilent products to Syria 
through a Lebanese distributor or reseller, Technoline SAL 
(``Technoline'').\3\ In addition, upon information and belief, Tyloo 
had an ownership interest in Technoline from at least March 2003 until 
at least the spring of 2008, as demonstrated, inter alia, by 
correspondence between Tyloo and Technoline management or ownership 
during this time period in which Tyloo sought information regarding his 
``share'' and ``assets'' and ``profit'' in or from Technoline.
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    \3\ From in or about November 1999, until in or about May 2011, 
Tyloo was employed first by Agilent Technologies Europe B.V. and 
then Agilent Technologies International SARL. Tyloo was based in 
Switzerland. Agilent was spun off in 1999 from Hewlett-Packard 
(``HP''). Tyloo was employed by HP from in or about April 1990, 
until in or about November 1999, at which time he was transferred to 
Agilent, within the international distributor operation at Agilent 
Technologies Europe B.V.
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    During the June 2013 interview, Tyloo stated that he had ``no 
idea'' how Agilent products had ended up in Syria and that, as far as 
he knew, all such products had stayed in Lebanon. Similarly, when asked 
if Technoline had ever shipped U.S.-origin items to Syria, Tyloo 
stated, ``No, not to my knowledge.'' At the time he made these 
statements, Tyloo knew they were false or misleading and that, in fact, 
Technoline had sold and distributed Agilent items to Syria beginning in 
at least 2004. Between at least November 2004 and December 2010, 
Technoline served as a distributor/reseller of Agilent products to 
several countries in the Middle East region pursuant to an 
International Designated Reseller Program Agreement (``reseller 
agreement'') entered into annually with Agilent's Swiss affiliates.\4\ 
Each of these reseller agreements explicitly stated that Technoline's 
territory included Syria. Moreover, on or about January 1, 2010, Tyloo 
electronically signed the 2010 version of the reseller agreement on 
Agilent Switzerland's behalf. Nonetheless, during the June 2013 
interview, Tyloo falsely or misleadingly omitted any mention of Syria 
in describing the countries in Technoline's territory under the 
reseller agreements.
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    \4\ Between on or about November 1, 2004, and on or about 
December 31, 2007, Technoline acted as a distributor/reseller of 
Agilent products through reseller agreements it executed with 
Agilent Technologies Europe B.V. Technoline signed the 2008-2010 
versions of the reseller agreement with Agilent Technologies 
International SARL. See also note 3, supra.
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    Tyloo's role as the area sales manager or distribution channel 
manager for Agilent products in the Middle East provided Tyloo access 
to information about Technoline's sale and distribution of Agilent 
products to Syria. Upon information and belief, his ownership stake in 
Technoline also provided him with access to such information. In 
addition, consistent with the longstanding reseller arrangement 
described above, on various occasions Tyloo acknowledged Technoline's 
Syria business involving Agilent products. For example, in a November 
14, 2004 message captioned ``Agilent sales in Technoline,'' Tyloo 
informed two Technoline officials that he ``kept on Syria'' in a 
``contract'' for Fiscal Year 2005 between Technoline and Agilent, 
noting further that even if the Agilent contract administrator removed 
the reference, ``THIS SHOULD NOT STOP US SELLING THERE (capitalization 
in the original).'' \5\ On or about March 31, 2009, Tyloo thanked 
Technoline's area sales manager for his ``continuous support and all 
the orders that you [and] your team delivers every month,'' citing 
``your tough territories like Lebanon, Syria, Iraq . . . .'' 
Additionally, on or about November 23, 2009, Technoline's area sales 
manager provided Tyloo with business plans for several countries in the 
Middle East, including Syria, and noted in the accompanying message 
that the ``main focus'' for 2010 would include ``Pharma[ceuticals] in 
Syria'' and ``Mid Range products in Academia (Syria and Iraq).'' 
(Parenthetical in original). Tyloo requested these business plans in 
preparation for his upcoming performance evaluations at Agilent 
Switzerland. Similarly, in December 2010, Tyloo gave a presentation at 
a meeting in Spain involving multiple Agilent European affiliates, in 
which he highlighted sales of Agilent products to Syria.
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    \5\ In May 2004, six months prior to Tyloo's November 14, 2004 
message, the U.S. Government implemented restrictions on the export 
and reexport to Syria of U.S.-origin items (with the exception of 
food and certain medicines). General Order No. 2 of May 14, 2004, 
Supp. No. 1 to part 736 to the Regulations, was issued pursuant to 
the Syria Accountability and Lebanese Sovereignty Restoration Act of 
2003, enacted on December 12, 2003, and Executive Order 13338 of May 
11, 2004. In December 2011, the controls on exports and reexports to 
Syria were moved from General Order No. 2 to Section 746.9 of the 
Regulations. The licensing requirements continued unchanged. See 76 
FR 77,115 (Dec. 12, 2011). During the June 2013 interview, Tyloo 
admitted that he had received regular training on U.S. export 
controls from Agilent's legal department during his tenure with the 
Agilent subsidiaries or affiliates, including regarding embargoed 
and sanctioned destinations, and that he knew that U.S.-origin items 
could not be shipped to, inter alia, Syria. Tyloo also stated that 
he had received annual export controls training while he was 
employed by HP.
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    As alleged herein, Tyloo made false or misleading statements to BIS 
in the course of an investigation, in violation of Section 764.2(g) of 
the Regulations. Tyloo did so even though he acknowledged during the 
June 2013 interview that providing false or misleading information to 
the BIS agents was unlawful.
    Whereas, BIS and Tyloo 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; and
    Whereas, I have approved of the terms of such Settlement Agreement; 
it is therefore ordered:
    First, for a period of three (3) years from the date of this Order, 
Berty Tyloo, with last known addresses of Rue du Pont Nerf 2, Morges, 
Switzerland, and Rue du Centre, 2, 1131 Tolochenaz, Morges, 
Switzerland, and when acting for or on his behalf, his successors, 
assigns, representatives, agents, or employees (hereinafter 
collectively referred to as ``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, 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

[[Page 4844]]

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 person, firm, corporation, or 
business organization related to the 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.
    Fourth, Tyloo 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 this Order. The 
foregoing does not affect Tyloo's testimonial obligations in any 
proceeding; nor does it affect his 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, the Proposed Charging Letter, the Settlement Agreement, and 
this Order shall be made available to the public.
    Sixth, this Order shall be served on Tyloo, and shall be published 
in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

     Issued this 10th day of January, 2017.
Richard R. Majauskas,
Acting Assistant Secretary for Export Enforcement.
[FR Doc. 2017-00893 Filed 1-13-17; 8:45 am]
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