[Federal Register Volume 86, Number 85 (Wednesday, May 5, 2021)]
[Notices]
[Pages 23922-23923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09500]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Mehmet Hakan Atilla, Millet Cad. No: 26 D:15, 
Fatih Istanbul, Turkey and Molla Seref Mah Hikayeci Sok AZ, Fatih 
Istanbul, Turkey

Order Denying Export Privileges

    On May 16, 2018, in the U.S. District Court for the Southern 
District of New York, Mehmet Hakan Atilla (``Atilla'') was convicted of 
violating the International Emergency Economic Powers Act (``IEEPA''), 
50 U.S.C Sec.  1701, et seq.,by knowingly and willfully conspiring with 
others known and unknown to provide financial services to Iran and to 
the Governement of Iran, without obtaining the required approval from 
the Office of Foreign Assets Control. Atilla was sentenced to 32 months 
in prison and a special assessment of $500.
    The Export Administration Regulations (``EAR'' or ``Regulations'') 
are administered and enforced by the U.S. Department of Commerce's 
Bureau of Industry and Security (``BIS'').\1\

[[Page 23923]]

Section 766.25 of the Regulations provides, in pertinent part, that the 
``Director of [BIS's] Office of Export Enforcement, in consultation 
with the Director of [BIS's] Office of Exporter Services, may deny the 
export privileges of any person who has been convicted of a violation 
of any of the statues set forth at 50 U.S.C. 4819 (e)(1)(B),'' \2\ 
including IEEPA. 15 CFR 766.25(a).\3\ 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). In addition, pursuant to 
Section 750.8 of the Regulations, BIS's Office of Exporter Services may 
revoke any BIS-issued licenses in which the person has an interest at 
the time of his/her conviction.\4\
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    \1\ 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 IEEPA. On August 13, 
2018, the President signed into law the John S. McCain National 
Defense Authorization Act for Fiscal Year 2019, which includes the 
Export Control Reform Act of 2018, 50 U.S.C. 4801-4852 (``ECRA''). 
While Section 1766 of ECRA repeals the provisions of the EAA (except 
for three sections which are inapplicable here), Section 1768 of 
ECRA 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.
    \2\ The Director, Office of Export Enforcement, is now 
authorizing official for issuance denial orders, pursuant to recent 
amendments to the Regulations (85 FR 73411, November 18, 2020).
    \3\ As codified at the time of the underlying conviction at 
issue, Section 11(h)(1) of the EAA, as amended, provided that: '' No 
person convicted of a violation of this chapter (or any regulation, 
license, or older issued under this chapter), any regulation, 
license, or order issed under the International Emergnecy Economic 
Powers Act [50 U.S.C. 1701, et seq.], section 793, 794 or 798 of 
title 18, section 783(b) of this title, or section 2778 of title 22 
shall be eligible, at the discretion of the Secretary, to apply for 
or use any export license under this chapter for a period of up to 
10 years from the date of conviction. The Secretary may revoke any 
export license under this chapter in which such person has an 
interest at the time of conviction.'' 50 U.S.C. 4610(h)(1).
    \4\ See notes 1 and 3, supra.
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    BIS received notice of Atilla's conviction for violating IEEPA, and 
pursuant to Section 766.25 of the Regulations, has provided notice and 
an opportunity for Atilla to make a written submission to BIS. BIS has 
received and considered a written submission from Atilla.
    Based upon my review of the record, including Atilla's written 
response, and consultations with BIS's Office of Exporter Services, 
including its Director, and the facts available to BIS, I have decided 
to deny Atilla's export privileges under the Regulations for a period 
of 10 years from the date of Atilla's conviction. The Office of 
Exporter Services has also decided to revoke any BIS-issued license in 
which Atilla had an interest at the time of his conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until May 16, 2028, Mehmet Hakan 
Atilla, with last known addresses of Millet Cad. No: 26 D:15, Fatih 
Istanbul, Turkey and Molla Seref Mah Hikayeci Sok AZ, Fatih Istanbul, 
Turkey, 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, 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 Atilla 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, Atilla 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 Atilla and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until May 16, 2028.

John Sonderman,
Director, Office of Export Enforement.
[FR Doc. 2021-09500 Filed 5-4-21; 8:45 am]
BILLING CODE 3510-DT-P