[Federal Register Volume 84, Number 237 (Tuesday, December 10, 2019)]
[Notices]
[Pages 67428-67429]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-26486]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
In the Matter of: Paul Stuart Brunt, 3457 108th Ave SE, Bellevue,
WA 98004; Order Denying Export Privileges
On March 1, 2019, in the U.S. District Court for the Western
District of Washington, Paul Stuart Brunt (``Brunt'') was convicted of
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778
(2012)) (``AECA''). Brunt was convicted of violating Section 38 of the
AECA by knowingly and willfully exporting firearms designated as
defense articles on the United States Munitions List from the United
States to Turkey and Iraq, without the required U.S. Department of
State licenses. Brunt was sentenced to three years of probation, 200
hours of community service, a fine of $20,000, and a $300 assessment.
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\ Section 766.25 of the
Regulations provides, in pertinent part, that the ``Director of [BIS's]
Office of Exporter Services, in consultation with the Director of
[BIS's] Office of Export Enforcement, may deny the export privileges of
any person who has been convicted of a violation of . . . section 38 of
the Arms Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a). 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).\2\ 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 had an interest at the time of his/her conviction.\3\
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\1\ The Regulations are currently codified in the Code of
Federal Regulations at 15 CFR parts 730-774 (2019). 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''). 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\ See also Section 11(h) of the EAA, 50 U.S.C. 4610(h) (Supp.
III 2015); Sections 1760(e) and 1768 of ECRA, 50 U.S.C. 4819 and
4826; and note 1, supra.
\3\ See notes 1 and 2, supra.
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BIS received notice of Brunt's conviction for violating Section 38
of the AECA, and pursuant to Section 766.25 of the Regulations, has
provided notice and an opportunity for Brunt to make a written
submission to BIS. To date, BIS has not received a written submission
from Brunt.
Based upon my review and consultations with BIS's Office of Export
Enforcement, including its Director, and the facts available to BIS, I
have decided to deny Brunt's export privileges under the Regulations
for a period of 10 years from the date of Brunt's conviction. I have
also decided to revoke any BIS-issued licenses in which Brunt had an
interest at the time of his conviction.
Accordingly, it is hereby ordered:
First, from the date of this Order until March 1, 2029, Paul Stuart
Brunt, with a last known address of 3457 108th Ave SE, Bellevue, WA
98004, 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
[[Page 67429]]
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 Brunt 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, Brunt 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 Brunt and shall
be published in the Federal Register.
Sixth, this Order is effective immediately and shall remain in
effect until March 1, 2029.
Issued this 3rd day of December, 2019.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2019-26486 Filed 12-9-19; 8:45 am]
BILLING CODE 3510-33-P