[Federal Register Volume 87, Number 166 (Monday, August 29, 2022)]
[Notices]
[Page 52739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18549]



[[Page 52739]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges; In the Matter of: Irina 
Morgovsky, Currently Incarcerated at: Inmate Number: 24239-111, FCI 
Dublin Federal Correctional Institution, 5701 8th St--Camp Parks, 
Dublin, CA 94568 and With an Address at: 1423 Avondale Road, 
Hillsborough, CA 94010

    On October 31, 2018, in the U.S. District Court for the Northern 
District of California, Irina Morgovsky was convicted of violating 
section 38 of the Arms Export Control Act (22 U.S.C 2778) 
(``AECA'').\1\ Specifically, Irina Morgovsky was convicted of, among 
other things, knowingly and willfully and intentionally conspiring to 
export components for the production of night-vision and thermal 
devices designated as defense articles on the United States Munitions 
List from the United States to Russia, without having first obtained 
from the Department of State a license for such export or written 
authorization for such export. As a result of her conviction, the Court 
sentenced Irina Morgovsky to 18 months in prison, three years of 
supervised release, a criminal fine of $15,000 and a $100 assessment.
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    \1\ The U.S. Court of Appeals for the Ninth Circuit affirmed the 
conviction on September 22, 2020.
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    Pursuant to section 1760(e) of the Export Control Reform Act 
(``ECRA''), the export privileges of any person who has been convicted 
of certain offenses, including, but not limited to, section 38 of the 
AECA, may be denied for a period of up to ten (10) years from the date 
of his/her conviction. See 50 U.S.C. 4819(e). 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.
    BIS received notice of Irina Morgovsky's conviction for violating 
section 38 of the AECA. BIS provided notice and opportunity for Irina 
Morgovsky 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 Irina Morgovsky.
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    \2\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2022).
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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 Irina Morgovsky's export 
privileges under the Regulations for a period of 10 years from the date 
of Irina Morgovsky's conviction. The Office of Exporter Services has 
also decided to revoke any BIS-issued licenses in which Irina Morgovsky 
had an interest at the time of her conviction.\3\
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    \3\ The Director, Office of Export Enforcement, is 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 October 31, 2028, Irina 
Morgovsky, with last known addresses of: currently incarcerated at: 
Inmate Number: 24239-111, FCI Dublin, Federal Correctional Institution, 
5701 8th St--Camp Parks, Dublin, CA 94568, and with an address at: 1423 
Avondale Road, Hillsborough, CA 94010, and when acting for or on her 
behalf, her 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, reexport, or transfer (in-country) 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 ECRA (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 Irina Morgovsky 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, Irina 
Morgovsky 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 Irina Morgovsky 
and shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until October 31, 2028.

John Sonderman,
Director, Office of Export Enforcement.
[FR Doc. 2022-18549 Filed 8-26-22; 8:45 am]
BILLING CODE 3510-DT-P