[Federal Register: November 18, 2003 (Volume 68, Number 222)]
[Notices]
[Page 65032-65033]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18no03-35]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
Action Affecting Export Privileges; Ralph Michel
In the Matter of: Ralph Michel, Vice President, Omega
Engineering, Inc., One Omega Drive, Stamford, Connecticut 06907,
Respondent.
Order
The Bureau of Industry and Security, United States Department of
Commerce (``BIS''), having notified Ralph Michel of its intention to
initiate an administrative proceeding against him pursuant to Section
13(c) of the Export Administration Act of 1979, as amended (50 U.S.C.
app. Sec. Sec. 2401-2420 (2000)) (``Act''),\1\ and the Export
Administration Regulations (currently codified at 15 CFR parts 730-774
(2003)) (``Regulations''),\2\ based on allegations in a proposed
charging letter issued to Ralph Michael that alleged that Ralph Michel
committed six violations of the Regulations. Specifically, the charges
are:
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\1\ From August 21, 1994 through November 12, 2000, the Act was
in lapse. During the period, the President, through Executive Order
12924, which had been extended by successive Presidential Notices,
the last of which was August 3, 2000 (3 CFR, 2000 Comp. 397 (2001)),
continued the Regulations in effect under the International
Emergency Economic Powers Act (50 U.S.C. 1701-1706 (2000))
(``IEEPA''). On November 13, 2000, the Act was reauthorized and it
remained in effect through August 20, 2001. Since August 21, 2001,
the Act has been in lapse and the President, through Executive Order
13222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), as extended
by the Notice of August 7, 2003 (68 FR 47833, August 11, 2003)), has
continued the Regulations in effect under IEEPA.
\2\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR parts 730-774 (2003). The current
version of the Regulations govern the procedural aspects of this
case. The charged violations occurred in 1997. The Regulations
governing the charged violations are found in the 1997 version of
the Code of Federal Regulations (15 CFR parts 730-774 (1997)).
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1. Four Violations of Sec. 764.2(a): Prohibited Conduct: Ralph
Michel made or caused to be made a series of exports of laboratory
equipment, including shipments on or about June 25, 1997, July 3, 1997,
July 11, 1997, and July 16, 1997, that were routed from Omega
Engineering, Inc. (Omega) in the United States to Pakistan via Newport
Electronics GmbH (Newport) in Germany. This laboratory equipment
included load cells, load bolts, strain gauges and related parts. By
that means, Ralph Michel conducted or caused to be conducted the same
export transaction for which the Department of Commerce had denied
authorization in response to an export license application previously
submitted by Omega. On or about April 9, 1997, the Department of
Commerce denied export license application Z097230, which Omega had
submitted for the export of certain laboratory equipment from the
United States to Pakistan. Omega appealed this denial pursuant to
Section 756.2 of the Regulations. On or about May 5, 1997, the Under
Secretary of Commerce for Export Administration sustained the denial of
the license application. In making or causing to be made the shipments
on the dates specified above, Ralph Michel engaged in conduct
prohibited by or contrary to the denial of export license application
Z097230 and the Under Secretary's upholding of that denial, thereby
committing four violations of Section 764.2(a) of the Regulations.
2. One Violation of 15 CFR 764.2(e): Acting With Acknowledge of a
Violation: In making or causing to be made the above-described exports,
Ralph Michel acted with knowledge that such exports were prohibited by
or contrary to the Department of Commerce's denial of Omega's export
license application and the Under Secretary's sustaining of that
denial, as described above. By selling and transferring the items
described above with knowledge that such violation was about to occur
and was intended to occur in connection with the items, Ralph Michel
violated Section 764.2(e) of the Regulations.
3. One Violation of 15 CFR 764.2(b): Causing False Statement
Violations: On or above June 25, July 3, July 11, and July 16, 1997,
and in connection with each of the shipments described above, Omega,
through an employee, submitted or caused to be submitted a Shipper's
Export Declaration (SED). Ralph Michel knew that items ultimately
destined for Pakistan were included in such shipments to Newport in
Germany, and then were to be shipped from Germany to Pakistan. Each
such SED falsely identified Newport as the ultimate consignee and
Germany as the country of ultimate destination. It also stated that the
export qualified for export pursuant to ``NLR'' (no license required),
when in fact a license was required for this export, as the Department
of Commerce had previously advised Omega. Ralph Michel knew of the
applicable license requirement and of the actual ultimate destination
and ultimate consignee, but
[[Page 65033]]
caused, induced, and permitted the submission of the SED's containing
these false statements. By so doing, Ralph Michel violated Section
764.2(b) of the Regulations.
BIS and Ralph Michel having 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 the terms of the Settlement Agreement having been
approved by me;
It is therefore ordered:
First, that for a period of five years from the date of this Order,
Ralph Michel, and when acting for or on behalf of him, his
representatives, agents, assigns or employees (``Denied Persons'') may
not, directly or indirectly, participate in any way in any transaction
involving any commodity, software, or technology (hereinafter
collectively referred to as ``item'') that is subject to the
Regulations and that is exported or to be exported from the Untied
States to Pakistan, or in any other activity subject to the Regulations
that involves Pakistan, including, but not limited to:
A. Applying for, obtaining, or using any license, License
Exception, or export control document that involves export to Pakistan;
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 that is subject to the Regulations
and that is exported or to be exported from the United States to
Pakistan, or in any other activity subject to the Regulations that
involves Pakistan; or
C. Benefitting in any way from any transaction involving any item
exported or to be exported from the United States to Pakistan that is
subject to the Regulations, or in any other activity subject to the
Regulations that involves Pakistan.
Second, that no person may, directly or indirectly, do any of the
following:
A. Export or reexport to or on behalf of a Denied Person any item
subject to the Regulations to Pakistan;
B. Take any action that facilitates the acquisition or attempted
acquisition by a 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 to Pakistan, including financing or
other support activities related to a transaction whereby a 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 a Denied Person of any item subject to
the Regulations that has been exported from the United States to
Pakistan;
D. Obtain from a 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 to
Pakistan; 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 to
Pakistan and that is owned, possessed or controlled by a Denied Person,
or service any item, of whatever origin, that is owned, possessed or
controlled by a 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 to Pakistan. For purposes of this paragraph,
servicing means installation, maintenance, repair, modification or
testing.
Third, that after notice and opportunity for comment as provided in
section 766.23 of the Regulations, any person, firm, cooperation, or
business organization related to Ralph Michel by affiliation,
ownership, control, or position of responsibility in the conduct of
trade or related services may also be subject to the provisions of this
Order.
Fourth, that this Order does not prohibit any export, reexport, or
other transaction subject to the regulations where the only items
involved that are subject to the Regulations are the foreign-produced
direct product of U.S.-origin technology.
Fifth, that the proposed charging letter, the Settlement Agreement,
and this Order shall be made available to the public.
This order, which constitutes the final agency action in this
matter, is effective immediately.
Entered this 12th day of November 2003.
Julie L. Myers,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 03-28795 Filed 11-17-03; 8:45 am]