[Federal Register Volume 85, Number 16 (Friday, January 24, 2020)]
[Notices]
[Pages 4276-4278]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01177]
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DEPARTMENT OF COMMERCE
Bureau of Industry and Security
[Case No. 18-BIS-0002]
Order Relating to Marjan Caby
In the Matter of: Marjan Caby, 8500 SW 109th Avenue, Apt. 211,
Miami, FL 33173, et al., Respondents.
The Bureau of Industry and Security, U.S. Department of Commerce
(``BIS''), has notified Marjan Caby, of Miami, Florida, that it has
initiated an administrative proceeding against her pursuant to Section
766.3 of the Export Administration Regulations (the
``Regulations''),\1\ through the issuance of a Charging Letter alleging
that Marjan Caby, Ali Caby, Arash Caby, AW-Tronics LLC, (``AW-
Tronics'') and Arrowtronic, LLC (``Arrowtronic'') (collectively,
``Respondents'') violated the Regulations as follows:
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\1\ The Regulations originally issued under the Export
Administration Act of 1979, as amended, 50 U.S.C. 4601-4623 (Supp.
III 2015) (``the EAA''), which lapsed on August 21, 2001. The
President, through Executive Order 13222 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until modified, superseded, set aside, or revoked through action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. The
Regulations are currently codified in the Code of Federal
Regulations at 15 CFR parts 730-774 (2018). The charged violation
occurred in 2013-2014. The Regulations governing the violation at
issue are found in the 2013-2014 versions of the Code of Federal
Regulations (15 CFR parts 730-774 (2013-2014)). The 2019 Regulations
set forth the procedures that apply to this matter.
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Charge 1 15 CFR 764.2(d)--Conspiracy
Beginning as early as in or about September 2013, and continuing
through in or about March 2014, Respondents conspired and acted in
concert with others, known and unknown, to bring about one or more acts
that constitute a violation of the Regulations. The purpose and object
of the conspiracy was to unlawfully export goods from the United States
through transshipment points to Syria, including to Syrian Arab
Airlines (``Syrian Air''), the flag carrier airline of Syria and a
Specially Designated Global Terrorist (``SDGT''), and in doing so evade
the prohibitions and licensing requirements of the Regulations and
avoid detection by U.S. law enforcement.
Pursuant to Section 746.9 of the Regulations, a license is required
for the export or reexport to Syria of all items subject to the
Regulations, except food and medicine classified as EAR99. Furthermore,
pursuant to Section 744.12 of the Regulations, a license is required to
export or reexport items subject to the Regulations to SDGTs. Syrian
Air was designated as an SDGT on May 16, 2013 (see 78 FR 32304, May 29,
2013), under authority granted to the Department of the Treasury by
Executive Order 13,224, and was at all times pertinent hereto (and
remains) listed as an SDGT. At all pertinent times, AW-Tronics and
Arrowtronic were active limited liability companies incorporated in the
State of Florida. Documentary evidence and
[[Page 4277]]
email correspondence shows that AW-Tronics personnel represented to
various transaction parties that AW-Tronics and Arrowtronic
(collectively, ``AW-Tronics/Arrowtronic'') were the same company. Arash
Caby was listed on Florida corporate records as a Managing Member of
AW-Tronics at the time of the violations. From January 2014 until its
most recent annual report in January 2017, Ali Caby was listed on
Florida corporate records as the registered agent of AW-Tronics. AW-
Tronics/Arrowtronic has maintained offices in Miami, Florida and Sofia,
Bulgaria, as well as other locations.
As part of the conspiracy, the co-conspirators used electronic mail
(email) and other forms of communication to communicate with each other
between the United States, Bulgaria, United Arab Emirates (UAE), and
Syria. Under their scheme, co-conspirators would purchase from U.S.
suppliers or vendors items subject to the Regulations for export to
Syrian Air in Syria, including aircraft parts and equipment, and would
provide materially false or misleading documents and information to
conceal the illegal exports. In furtherance of the conspiracy, they
also would arrange for payment for the illegal exports to be made using
third-party companies to transfer payments between the co-conspirators.
Overall, between in or about September 2013 and in or about March 2014,
Respondents engaged in multiple transactions with Syrian Air involving
the export of aircraft parts and equipment subject to the Regulations
from the Miami office of AW-Tronics/Arrowtronic to Syrian Air's
transshipment point in Dubai, United Arab Emirates. These items were
actually intended for, and some or all were ultimately delivered to,
Syrian Air in Syria.
During the conspiracy, Ali Caby managed the Bulgaria office of AW-
Tronics/Arrowtronic, while Arash Caby managed its Miami office, and
Marjan Caby was its internal auditor. In furtherance of the conspiracy,
each of these respondents exchanged numerous emails with other AW-
Tronics/Arrowtronic employees authorizing or otherwise discussing the
above-described exports to Syrian Air. These email communications
included, for example, instructions that were designed to prevent U.S.
law enforcement from detecting the unlawful exports to Syria and to
allow them to continue by changing the routing of exports from AW-
Tronics/Arrowtronic's Miami, Florida office. In March 2014, United
States Customs and Border Protection seized a shipment of micro
switches that, according to Electronic Export Information (EEI) filed
in the Automated Export System, was destined for Syrian Air in the UAE,
when, in fact, the ultimate destination was Syria. On March 5, 2014,
Marjan Caby sent an email to AW-Tronics/Arrowtronic logistics
employees, copying Alex Caby, that explained, ``We will . . . have
packages stopped by the US Customs and Border Control [and] have a case
file like this for the same client[,]'' and provided instructions
stating, ``NOTHING WILL BE SHIPPED TO CLIENTS IN THE MIDDLE EAST FROM
THE USA OFFICE. WE HAVE TO SEND TO BG [Bulgaria] THEN TO CLIENT.''
(Emphasis in original). ``SYRIA'' was specifically listed as one
country for which Respondents would use Bulgaria as a transshipment
point. (Same). doing, Ali Caby, a/k/a Alex Caby, Arash Caby, a/k/a
``Axel'' Caby, Marjan Caby, AW-Tronics, LLC, and Arrowtronic, LLC
violated Section 764.2(d) of the Regulations, for which they are
jointly and severally liable.
Whereas, BIS and Marjan Caby have entered into a Settlement
Agreement pursuant to Section 766.18(b) of the Regulations, whereby
they agreed to settle this matter in accordance with the terms and
conditions set forth therein;
Whereas, I have taken into consideration the plea agreement entered
into by Marjan Caby with the U.S. Attorney's Office for the Southern
District of Florida, and the sentence imposed against her following or
upon the entry of her guilty plea and conviction (``the plea agreement
and sentence''); and
Whereas, I have approved of the terms of the Settlement Agreement;
It is therefore ordered:
First, for the period of four (4) years from the date of this
Order, Marjan Caby, with a last known address of 8500 SW 109th Avenue,
Apt. 211, Miami, FL 33173, and when acting for or on her behalf, her
successors, assigns, representatives, agents, or employees (hereinafter
collectively referred to as 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 to or to be exported from the United States that
is subject to the Regulations, or in any other activity 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, any licenses issued under the Regulations in which Marjan
Caby has an interest as of the date of this Order shall be revoked by
BIS.
Fourth, after notice and opportunity for comment as provided in
Section 766.23 of the Regulations, any person, firm, corporation, or
business organization related to the Denied Person by affiliation,
ownership, control, or position of responsibility in the conduct of
trade or related services
[[Page 4278]]
may also be made subject to the provisions of the Order.
Fifth, Marjan Caby shall not take any action or make or permit to
be made any public statement, directly or indirectly, denying the
allegations in the Charging Letter or this Order.
Sixth, the Charging Letter, the Settlement Agreement, and this
Order shall be made available to the public.
Seventh, this Order shall be served on Marjan Caby and shall be
published in the Federal Register.
This Order, which constitutes the final agency action in this
matter related to Marjan Caby, is effective immediately.
Issued this 17th day of January, 2020.
Douglas R. Hassebrock,
Acting Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2020-01177 Filed 1-23-20; 8:45 am]
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