[Federal Register Volume 71, Number 151 (Monday, August 7, 2006)]
[Notices]
[Pages 44612-44614]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-6716]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Asher Karni; Pakland PME 
Corporation and Humayun Khan; In the Matter of: Asher Karni, Federal 
Inmate Registration Number: 32338-016, Fort Dix FCI, Fort Dix, NJ 
08640, Respondent: and Pakland PME Corporation, Unit 7&8, 2nd Floor, 
Mohammadi Plaza, Jinnah Avenue, Blue Area, F-6/4, Islamabad-44000, 
Pakistan; Humayun Khan, Unit 7&8, 2nd Floor, Mohammadi Plaza, Jinnah 
Avenue, Bule Area, F-64, Islamabad-44000, Pakistan, Related Persons; 
Order Denying Export Privileges

A. Denial of Export Privileges of Asher Karni

    On August 4, 2005, in the U.S. District Court in the District of 
Columbia, Asher Karni (``Karni'' or ``Respondent'') was convicted of 
violating the Export Administration Act of 1979, as amended (currently 
codified at 50 U.S.C. app. Sec. Sec.  2401-2420 (2000)) (the 
``Act'').\1\ Karni was found guilty of willfully exporting and 
attempting to export two oscilloscopes and triggered spark gaps from 
the United States to Pakistan via South Africa without having first 
obtained the required export licenses from the Department of Commerce.

[[Page 44613]]

Karni was sentenced to three years imprisonment and two years of 
supervised release following imprisonment. He is scheduled to be 
released on August 12, 2006.
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    \1\ From August 21, 1994 through November 12, 2000, the Act was 
in lapse. During that 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. Sec. Sec.  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 2, 2005 (70 FR 45273, August 5, 
2005), has continued the Regulations in effect under IEEPA.
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    Section 11(h) of the Act and Section 766.25 of the Export 
Administration Regulations (``Regulations'') \2\ provide, in pertinent 
part, that ``([t]he Director of Exporter Services, in consultation with 
the Director of the Office of Export Enforcement, may deny export 
privileges of any person who has been convicted of a violation of * * * 
the Act,'' for a period not to exceed 10 years from the date of 
conviction. 15 CFR Sections 766.25(a) and (d). In addition, section 
750.8 of the Regulations states that BIS's Office of Exporter Services 
may revoke any BIS licenses previously issued in which the person had 
an interest in at the time of this conviction.
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    \2\ The Regulations are currently codified at 15 CFR Parts 730-
744 (2006).
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    I have received notice of Karni's conviction for violating the Act, 
and have provided notice and an opportunity for Karni to make a written 
submission to the Bureau of Industry and Security as provided in 
section 766.25 of the Regulations. I have also received a written 
submission from Karni and have decided, following consultations with 
the Office of Export Enforcement, including its Director, to deny 
Karni's export privileges under the Regulations for a period of 10 
years from the date of Karni's conviction.

B. Denial of Export Privileges of Related Persons

    In addition, pursuant to Sections 766.25(h) and 766.23 of the 
Regulations, the Director, Office of Exporter Services, in consultation 
with the Director, Office of Export Enforcement, may take action to 
name persons related to the Respondent by ownership, control, position 
of responsibility, affiliation, or other connection in the conduct of 
trade or business in order to prevent evasion of the Order. I gave 
notice to Parkland PME Corporation (``Pakland'') and Humayun Khan 
(``Khan'') by Federal Express, notifying them that their export 
privileges under the Regulations could be denied for up to 10 years as 
BIS believes that these entities are related to Karni and including 
them in the Karni Order is necessary to prevent evasion. The basis for 
naming these entities to the Karni order include the fact that Karni, 
and his company, Top Cape Technology, acted in concert with Khan and 
Pakland to divert U.S. origin goods to Pakistan.
    Having received no submission from Khan and Pakland, I have 
decided, following consultations with the Office of Export Enforcement, 
including its Director, to name Khan and Pakland as related persons to 
the Karni Denial Order, thereby denying their export privileges for 10 
years from the date of Karni's conviction.
    I have also decided to revoke all licenses issued pursuant to the 
Act or Regulations in which Karni, Khan and Pakland had an interest at 
the time of Karni's conviction. The 10-year denial period ends on 
August 4, 2015.
    Accordingly, it is hereby Ordered:
    I. Until August 4, 2015, Asher Karni, Federal Inmate Registration 
Number: 32338-016, Fort Dix FCI, Fort Dix, NJ 08640, and when acting 
for or on his behalf, his employees, agents or representatives, (``the 
Denied Person'') and the following persons related to the Denied Person 
as defined by Section 766.23 of the Regulations, Pakland PME 
Corporation, Unit 7&8, 2nd Floor, Mohammadi Plaza, Jinnah Avenue, Blue 
Area, F-6/4, Islamabad-44000, Pakistan and Humayun Khan, Unit 7&8, 2nd 
Floor, Mohammadi Plaza, Jinnah Avenue, Blue Area, F-6/4, Islamabad-
44000, Pakistan, and when acting for or on their behalf, their 
employees, agents or representatives, (``The Related Persons'') 
(together, the Denied Person and the Related Persons are ``Persons 
Subject To This Order'') 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, 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.
    II. No person may, directly or indirectly, do any of the following:
    A. Export or reexport to or on behalf of the Persons Subject To 
This Order any item subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by the Persons Subject To This Order 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 Persons 
Subject To This Order 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 Persons Subject To This Order of any 
item subject to the Regulations that has been exported from the United 
States;
    D. Obtain from the Persons Subject To This Order 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 Persons Subject To 
This Order, or service any item, of whatever origin, that is owned, 
possessed or controlled by the Persons Subject To This Order 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.
    III. In addition to the Related Persons named above, 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 Karni 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 this Order if necessary 
to prevent evasion of the Order.
    IV. 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.
    V. This Order is effective immediately and shall remain in effect 
until August 4, 2015.
    VI. In accordance with Part 756 of the Regulations, Karni 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.

[[Page 44614]]

    VII. In accordance with Section 766.23(c), Khan and Pakland may 
file an appeal with the Administrative Law Judge.
    VIII. A copy of this Order shall be delivered to Karni and the 
Related Persons. This Order shall be published in the Federal Register.

    Dated: August 1, 2006.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 06-6716 Filed 8-4-06; 8:45 am]
BILLING CODE 3510-DT-M