[Federal Register Volume 86, Number 35 (Wednesday, February 24, 2021)]
[Notices]
[Pages 11223-11224]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-03823]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Fahad Saleem Kharbey, Inmate Number: 66834-018, 
FMC Lexington, Federal Medical Center, P.O. Box 14500, Lexington, KY 
40512; Order Denying Export Privileges

    On May 31, 2019, in the U.S. District Court for the Middle District 
of Florida, Fahad Saleem Kharbey (``Kharbey''), was convicted of 
violating 18 U.S.C. 554(a). Specifically, Kharbey was convicted of 
fraudulently and knowingly exporting firearms and magazines, designated 
as defense articles on the United States Munitions List, from the 
United States to Dubai, United Arab Emirates, without having first 
obtained a license or other approval from the United Department of 
State, in violation of 18 U.S.C. 554. Kharbey was sentenced to 36 
months in prison, supervised release for three years, a $200 special 
assessment and restitution of $755,281.13.
    Pursuant to Section 1760(e) of the Export Control Reform Act 
(``ECRA''),\1\ the export privileges of any person who has been 
convicted of certain offenses, including, but not limited to, 18 U.S.C. 
554(a), 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 Bureau of Industry and Security (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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    \1\ 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. Kharbey's conviction post-dates 
ECRA's enactment on August 13, 2018.
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    BIS received notice of Kharbey's conviction for violating 18 U.S.C. 
554(a), and has provided notice and opportunity for Kharbey 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.\2\ BIS has not received a written submission from Kharbey.
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    \2\ 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 
above.
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    Based upon my review of the record and consultations with BIS's 
Office of Exporter Services, including its Director, and the facts 
available to BIS, I have decided to deny Kharbey's export privileges 
under the Regulations for a period of seven years from the date of 
Kharbey's conviction. The Office of Exporter Services has also decided 
to revoke any BIS-issued licenses in which Kharbey had an interest at 
the time of his conviction.\3\
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    \3\ The Director, Office of Export Enforcement, is now the 
authorizing official for issuance of denial orders, pursuant to 
recent amendments to the Regulations (85 FR 73411, November 18, 
2020).
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    Accordingly, it is hereby Ordered:
    First, from the date of this Order until May 31, 2026, Fahad Saleem 
Kharbey, with a last known address of Inmate Number: 66834-018, FMC 
Lexington, Federal Medical Center,
    P.O. Box 14500, Lexington, KY 40512, 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,

[[Page 11224]]

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. 4819(e)) and Sections 766.23 and 766.25 of the Regulations, 
any other person, firm, corporation, or business organization related 
to Kharbey 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, Kharbey 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 Kharbey and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until May 31, 2026.

John Sonderman,
Director, Office of Export Enforcement.
[FR Doc. 2021-03823 Filed 2-23-21; 8:45 am]
BILLING CODE 3510-DT-P