[Federal Register Volume 75, Number 44 (Monday, March 8, 2010)]
[Notices]
[Pages 10462-10463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4776]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Mohamad M. Elkateb; In the 
Matter of: Mohamad M. Elkateb, 29256 Marilyn Dr., Canyon Country, CA 
91387. Respondent; Order Relating to Mohamad M. Elkateb

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has notified Mohamad M. Elkateb (``Elkateb'') of its 
intention to initiate an administrative proceeding against Elkateb 
pursuant to Section 766.3 of the Export Administration Regulations (the 
``Regulations''),\1\ and Section 13(c) of the Export Administration Act 
of 1979, as amended (the ``Act''),\2\ through issuance of a Proposed 
Charging Letter to Elkateb that alleged that he committed one violation 
of the Regulations. Specifically, the charge is:
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR Parts 730-774 (2009). The charged 
violation occurred in 2004. The Regulations governing the violation 
at issue are found in the 2004 version of the Code of Federal 
Regulations (15 CFR Parts 730-774 (2004)). The 2009 Regulations set 
forth the procedures that apply to this matter.
    \2\ 50 U.S.C. app. 2401-2420 (2000). 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 
most recently by the Notice of August 13, 2009 (74 FR 41325 (Aug. 
14, 2009)), has continued the Regulations in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.).
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Charge 1 15 CFR 764.2(d)--Conspiracy

    Between on or about July 9, 2004, and continuing through on or 
about August 16, 2004, Elkateb conspired and acted in concert with 
others, known and unknown, to violate the Regulations and to bring 
about an act that constituted a violation of the Regulations. The 
purpose of the conspiracy was to cause the export of U.S.-origin lab 
equipment from the United States to Syria, via Indonesia, without 
the required U.S. Government authorization. Pursuant to General 
Order No. 2 of May 14, 2004, set forth in Supplement No. 1 to Part 
736 of the Regulations, authorization was required from BIS before 
the lab equipment, items subject to the Regulations,\3\ could be 
exported from the United States to Syria. In furtherance of the 
conspiracy, Elkateb and his co-conspirators devised and employed a 
scheme to purchase U.S.-origin lab equipment for a customer in Syria 
from a foreign distributor of the U.S. manufacturer. This scheme was 
developed after Elkateb was informed by the U.S. manufacturer that 
there were restrictions on exporting to Syria. By engaging in this 
activity, Elkateb committed one violation of Section 764.2(d) of the 
Regulations.
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    \3\ EAR99 is a designation for items subject to the Regulations 
but not listed on the Commerce Control List. 15 CFR 734.3(c) (2004).

    Whereas, BIS and Elkateb have 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
    Whereas, I have approved of the terms of such Settlement Agreement; 
It is therefore ordered:
    First, that for a period of one year from the date of issuance of 
the Order, Mohamad M. Elkateb, 29256 Marilyn Dr., Canyon Country, CA 
91387, and when acting on behalf of Elkateb, his representatives, 
assigns, or agents (``Denied Person'') may not participate, directly or 
indirectly, 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, 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 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 in any other activity subject to the Regulations.
    Second, that no person may, directly or indirectly, do any of the 
actions described below with respect to an item that is subject to the 
Regulations and that has been, will be, or is intended to be exported 
or reexported from the United States:
    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

[[Page 10463]]

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, that, after notice and opportunity for comment as provided 
in Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to Elkateb by affiliation, ownership, 
control, or position of responsibility in the conduct of trade or 
related services may also be made subject to the provisions of the 
Order.
    Fourth, that the proposed charging letter, the Settlement 
Agreement, and this Order shall be made available to the public.
    Fifth, that this Order shall be served on the Denied Person and on 
BIS, and shall be published in the Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Issued this 26th day of February 2010.
David W. Mills,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 2010-4776 Filed 3-5-10; 8:45 am]
BILLING CODE 3510-DT-P