[Federal Register Volume 85, Number 186 (Thursday, September 24, 2020)]
[Notices]
[Pages 60131-60132]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21113]


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 DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges

In the Matter of: Walid Chehade, 4855 Hawthorn Lane, Unit 20, 
Westlake, OH 44145.

    On May 8, 2019, in the U.S. District Court for the Western District 
of Michigan, Walid Chehade (``Chehade''), was convicted of violating 18 
U.S.C. 371. Specifically, Chehade was convicted of knowingly and 
willfully conspiring to export from the United States to Lebanon guns 
and gun parts designated as defense articles on the United States 
Munitions List, without first obtaining the required licenses from the 
U.S. Department of State. Chehade was sentenced to time served, one 
year of supervised release, a $5,000 fine, and a $100 special 
assessment.
    Pursuant to Section 1760(e) of the Export Control Reform Act 
(``ECRA''),\2\ the export privileges of any person who has been 
convicted of certain offenses, including, but not limited to, 18 U.S.C. 
371, may be denied for a period of up to ten (10) years from the date 
of his/her conviction. 50 U.S.C. 4819(e) (Prior Convictions). In 
addition, any BIS licenses or other authorizations issued under ECRA in 
which the person had an interest at the time of the conviction may be 
revoked. Id.
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    \2\ ECRA was enacted as part of the John S. McCain National 
Defense Authorization Act for Fiscal Year 2019, and as amended is 
codified at 50 U.S.C. 4801-4852. Chehade's conviction post-dates 
ECRA's enactment on August 13, 2018.
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    BIS received notice of Chehade's conviction for violating 18 U.S.C. 
371, and has provided notice and opportunity for Chehade to make a 
written submission to BIS, as provided in Section 766.25 of the Export 
Administration Regulations (``EAR'' or the ``Regulations''). 15 CFR 
766.25.\3\ BIS

[[Page 60132]]

has received a written submission from Chehade.
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    \3\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2020). The Regulations 
originally issued under the Export Administration Act of 1979, as 
amended, 50 U.S.C. 4601-4623 (Supp. III 2015) (``EAA''), which 
lapsed on August 21, 2001. The President, through Executive Order 
13,222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which was 
extended by successive Presidential Notices, continued the 
Regulations in full force and effect under the International 
Emergency Economic Powers Act, 50 U.S.C. 1701, et seq. (2012) 
(``IEEPA''). Section 1768 of ECRA, 50 U.S.C. 4826, provides in 
pertinent part that all rules and regulations that were made or 
issued under the EAA, including as continued in effect pursuant to 
IEEPA, and were in effect as of ECRA's date of enactment (August 13, 
2018), shall continue in effect according to their terms until 
modified, superseded, set aside, or revoked through action 
undertaken pursuant to the authority provided under ECRA. See note 
1, supra.
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    Based upon my review of the record, including Chehade's written 
submission from Counsel, and consultations with BIS's Office of Export 
Enforcement, including its Director, and the facts available to BIS, I 
have decided to deny Chehade's export privileges under the Regulations 
for a period of seven years from the date of Chehade's conviction. I 
have also decided to revoke any BIS-issued licenses in which Chehade 
had an interest at the time of his conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until May 8, 2026, Walid 
Chehade, with a last known address of 4855 Hawthorn Lane, Unit 20, 
Westlake, OH 44145, 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 engaging 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 from 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, pursuant to Section 1760(e) of the Export Control Reform Act 
(50 U.S.C. 819(e) and Sections 766.23 and 766.25 of the Regulations, 
any other person, firm, corporation, or business organization related 
to Chehade 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, Chehade 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 Chehade and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until May 8, 2026.

    Issued this 21st day of September, 2020.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2020-21113 Filed 9-23-20; 8:45 am]
BILLING CODE 3510-DT-P