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[Federal Register Volume 71, Number 183 (Thursday, September 21, 2006)]
[Notices]
[Pages 55161-55163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-7877]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

Action Affecting Export Privileges; Ghashim Group, Inc. and Mazen 
Ghashim and Related Person MNC Group International, Inc.; In the Matter 
of: Mazen Ghashim, 3334 Walnut Bend Lane, Houston, TX 77042, 
Respondent; Order Relating to Mazen Ghashim and Related Person MNC 
Group International, Inc. d.b.a. Wear form d.b.a. Sports Zone d.b.a. 
Soccer Zone

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has notified Mazen Ghashim (``Ghashim''), of its intention to 
initiate an administrative proceeding against him pursuant to Section 
766.3 of the Export Administration Regulations (currently codified at 
15 CFR Parts 730-774 (2006)) (the ``Regulations''),\1\ and Section 
13(c) of the Export Administration Act of 1979, as amended (50 U.S.C. 
app. 2401-2420 (2000)) (the ``Act''),\2\ through the issuance of a 
proposed charging letter to Ghashim that alleged that Ghashim committed 
99 violations of the Regulations. Specifically, the charges are:
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    \1\ The charged violations occurred during 2003 and 2004. The 
Regulations governing the violations at issue are found in the 2003 
and 2004 versions of the Code of Federal Regulations (15 CFR Parts 
740-774 (2003-2004)). The 2006 Regulations established the 
procedures that apply to this matter.
    \2\ 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 successive Presidential 
Notices, the most recent being that of August 3, 2006 (71 FR 44,551 
(Aug. 7, 2006)), has continued the Regulations in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701-1706 
(2000)) (``UEEOA''). The Act and the Regulations are available on 
the Government Printing Office Web site at: http://www.access.gpo.gov/bis/.
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Charge--15 CFR 764.2(d)--Conspiracy To Export Items From the United 
State to Syria Without the Required License

    Beginning in or about February 2003 and continuing through in or 
about June 2004, Ghashim conspired and acted in concert with others 
known and unknown, to violate the Regulations and to bring acts 
constituting violations of the Regulations. The purpose of the 
conspiracy was to export computers from the United States to Syria 
directly and by transshipment through the United Arab Emirates 
(``U.A.E.''). The computers were items subject to the Regulations 
and classified under Export Control Classification

[[Page 55162]]

Number (``ECCN'') 4A003 ECCN 4A994. As set forth in Section 742.9 of 
the Regulations, a Department of Commerce export license was 
required before the computers could be exported to Syria. To 
accomplish the conspiracy, the conspirators, including Ghashim, 
participated in a scheme to have Ghashim purchase the computers from 
U.S. distributors and manufacturers and to have Ghashim export of 
the items to Syria directly or by transshipment through the U.A.E. 
without a Department of Commerce export licenses. In so doing, 
Ghashim committed one violation of Section 764.2(d) of the 
Regulations.

Charges 2-15--15 CFR 764,2(a)--Engaging in Prohibited Conduct by 
Exporting Computers to Syria Without the Required License

    On 14 occasions, between on or about February 26, 2003 and on or 
about December 13, 2003, Ghashim engaged in conduct prohibited by 
the Regulations by exporting over 300 computers subject to the 
Regulations and classified under ECCN 4A994 and one computer subject 
to the Regulations and classified under ECCN 4A003 to Syria without 
the Department of Commerce licenses required by Section 742.9 of the 
Regulations. In so doing, Ghashim committed 14 violations of Section 
764.2(a) of the Regulations.

Charges 16-26--15 CFR 764.2(a)--Engaging in Prohibited Conduct by 
Exporting Computers to Syria Through the United Arab Emirates Without 
the Required License

    On 11 occasions, between on or about January 7 2004 and May 21, 
2004, Ghashim engaged in conduct prohibited by the Regulations by 
exporting over 400 computers subject to the Regulations and 
classified under ECCN 4A994 to Syria without the Department of 
Commerce license required by Section 742.9 of the Regulations. 
Specifically, Ghashim transshipped these computers to Syria through 
a shipping consolidator and forwarder in the U.A.E. In so doing, 
Ghashim committed 11 violations of Section 764.2(a) of the 
Regulations.

Charges 27-37--15 CFR 764.2(e)--Acting With Knowledge of a Violation

    On 11 occasions, between on or about January 7, 2004 and May 21, 
2004, in connection with the transactions described in Charges 16-
26, above, Ghashim sold, transferred or forwarded computers to Syria 
by transshipment through the U.A.E. with knowledge that violations 
of the Regulations were occurring. Ghashim had knowledge that 
violations were occurring because Ghashim had been advised by the 
U.S. Government and his computer suppliers that licenses were 
required to export or transship these items to Syria, and Ghashim 
had license applications pending with BIS for exports to Syria of 
similarly controlled items. In selling, transferring or forwarding 
these computers with knowledge that violations were occurring, 
Ghashim committed 11 violations of Section 764.2(e) of the 
Regulations.

Charges 38-39--15 CFR 764.2(c)--Attempting To Violate the Regulations 
by Exporting Computers to Syria Through the United Arab Emirates 
Without the Required License

    On two occasions, on or about June 16, 2004 and on or about June 
22, 2004, Ghashim attempted to violate the Regulations by attempting 
to export over 10 computers subject to the Regulations and 
classified under ECCN 4A994 to Syria without the Department of 
Commerce license required by Section 742.9 of the Regulations. 
Specifically, Ghashim attempted to export these computers to Syria 
by transshipment through a shipping consolidator and forwarder in 
the U.A.E. In so doing, Ghashim committed two violations of Section 
764.2(a) of the Regulations.

Charges 40-41--15 CFR 764.2(e)--Acting With Knowledge of a Violation

    On two occasions, on or about June 16, 2004 and on or about June 
22, 2004, in connection with the transactions described in Charges 
38-39, above Ghashim ordered, bought, stored, sold, transferred or 
transported computers with knowledge that violations of the 
Regulations were about to occur or were intended to occur in 
connection with the items. Specifically, Ghashim ordered, bought, 
stored, sold, transferred or transported the items, which Ghashim 
planned to export to Syria through the U.A.E. without a Department 
of Commerce license. Ghashim had knowledge that violations were 
about to occur or were intended to occur because he had been advised 
by the U.S. Government and his suppliers that licenses were required 
to export or transship these items to Syria, and he had license 
applications pending with BIS for exports to Syria of similarly 
controlled items. In so doing, Ghashim committed two violations of 
Section 764.2(e) of the Regulations.

Charges 42-66--15 CFR 764.2(g)--Misrepresentation of Facts Through 
False Statements on Shipper's Export Declarations

    On 25 occasions between on or about February 26, 2003 and on or 
about May 21, 2004, in connection with the transactions described in 
Charges 2-26, above, Ghashim indirectly made false statements to the 
U.S. Government in connection with the submission of export control 
documents. Specifically, Ghashim, through his freight forwarder, 
field Shipper's Export Declarations (``SEDs'') with the U.S. 
Government stating that the items that were the subject of the SEDs 
qualified for exports as ``NLR,''meaning that no license was 
required for their export. Those representations were false, as 
licenses were required for the computers included in the shipments. 
SEDs are export control documents, as defined in Part 772 of the 
Regulations. In filing, through his freight forwarded, SEDs with the 
U.S. Government that contained false statements of fact, Ghashim 
committed 25 violations of Section 764.2(g) of the Regulations.

Charges 67-77--15 CFR 764.2(e)--Acting With Knowledge of a False 
Statement Being Made to the U.S. Government

    On 11 occasions, between on or about January 7, 2004 and on or 
about May 21, 2004, in connection with the 11 transactions described 
in Charges 56-66, above, Ghashim sold, transferred or forwarded 
computers subject to the Regulations that were to be exported from 
the United States with knowledge that violations of the Regulations 
would occur in connection with the export of the computers. 
Specifically, Ghashim knew that he indirectly had filed false SEDs 
with the U.S. Government in connection with his sale, transfer, or 
forwarding of the computers. Ghashim knew that the items required 
export licenses because he had been advised by the U.S. Government 
and his computer suppliers that licenses were required to export or 
transship these items to Syria, and he had license applications 
pending with BIS for exports to Syria of similarly controlled items. 
Nevertheless, Ghashim informed his freight forwarder that the 
computers did not require export licenses and that the SEDS should 
indicate that no license was required. In so doing, Ghashim 
committed 11 violations of Section 764.2(e) of the Regulations.

Charges 78-88--15 CFR 764.2(g)--Misrepresentation of Facts Through 
False Statements on Shipper's Export Declarations

    On 11 occasions between on or about January 7, 2004 and on or 
about May 21, 2004, in connection with the transactions described in 
Charges 16-26, above, Ghashim indirectly made false statements to 
the U.S. Government in connection with the submission of export 
control documents. Specifically, Ghashim, through his freight 
forwarder, filed SEDs with the U.S. Government stating that the 
U.A.E. was the country of ultimate destination of the computers that 
were the subject of the SEDs. These representations were false, as 
the country of ultimate destination of the items being exported was 
Syria. SEDs are export control documents, as defined in Part 772 of 
the Regulations. In filing, through his freight forwarder, SEDs with 
the U.S. Government that contained false statements of fact, Ghashim 
committed 11 violations of Section 764.2(g) of the Regulations.

Charges 89-99--15 CFR 764.2(e)--Acting With Knowledge of a False 
Statement Being Made to the U.S. Government

    On 11 occasions, between on or about January 7, 2004 and on or 
about May 21, 2004, in connection with the 11 transactions described 
in Charges 78-88, above, Ghashim sold, transferred or forwarded 
computers subject to the Regulations that were to be exported from 
the United States with knowledge that violations of the Regulations 
would occur in connection with the export of the computers. 
Specifically, Ghashim knew that he indirectly had filed false SEDs 
with the U.S. Government in connection with his sale, transfer or 
forwarding of the computers. Ghashim knew that the country of 
ultimate destination of the items was Syria, but he informed his 
freight forwarder that the country of ultimate destination was

[[Page 55163]]

the U.A.E. In so doing, Ghashim committed 11 violations of Section 
764.2(e) the Regulations.

    Whereas, BIS and Ghashim 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 a civil penalty of $1,089,000 is assessed against 
Ghashim. Ghashim shall pay $22,000 to the Department of Commerce as 
follows: $2,200 not later than October 15, 2006; $2,200 not later than 
November 15, 2006; $2,200 not later than December 15, 2006; $2,200 not 
later than January 15, 2007; $2,200 not later than February 15, 2007; 
$2,200 not later than March 15, 2007; $2,200 not later than April 15, 
2007; $2,200 not later than May 15, 2007; $2,200 not later than June 
15, 2007; and $2,200 not later than July 15, 2007. Payment shall be 
made in the manner specified in the attached instructions. Payment of 
the remaining $1,067,000 shall be suspended for a period of five years 
from the date of entry of this Order and thereafter shall be waived, 
provided that during the period of suspension, Ghashim has committed no 
violation of the Act, or any regulation, order, or license issued 
thereunder and has made the payment of $22,000, described above, in a 
timely manner.
    Second, that, pursuant to the Debt Collection Act of 1982, as 
amended (31 U.S.C. 3701-3720E (2000)), the civil penalty owed under 
this Order accrues interest as more fully described in the attached 
Notice, and, if payment is not made by the due date specified herein, 
Ghashim will be assessed, in addition to the full amount of the civil 
penalty and interest, a penalty charge and an administrative charge, as 
more fully described in the attached Notice.
    Third, that the timely payment of the civil penalty set forth above 
is hereby made a condition to the granting, restoration, or continuing 
validity of any export license, license exception, permission, or 
privilege granted, or to be granted, to Ghashim. Accordingly, if 
Ghashim should fail to pay the civil penalty in a timely manner, the 
undersigned may enter an Order denying all of Ghashim's export 
privileges under the Regulations for a period of one year from the date 
of entry of this Order.
    Fourth, that for a period of twenty years from the date of entry of 
this Order, Mazen Ghashim, 3334 Walnut Bend Lane, Houston, Texas 77042, 
and, when acting for or on behalf of Ghashim, his representatives, 
agents, assigns, or employees, including MNC Group International, Inc. 
doing business as Wearform, doing business as Sports Zone, doing 
business as Soccer Zone, 3334 Walnut Bend Lane, Houston, Texas, which 
is a person related to Ghashim by ownership, control, position of 
responsibility, and other affiliation (``Related Person'') 
(collectively, ``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. Benefiting 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.
    Fifth, that 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.
    Sixth, 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 Ghashim 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.
    Seventh, 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.
    Eighth, that the proposed charging letter, the Settlement 
Agreement, and this Order shall be made available to the public.
    Ninth, that this Order shall be served on the Denied Person, the 
Related 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.

    Entered this 12th day of September, 2006.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 06-7877 Filed 9-20-06: 8:45 am]
BILLING CODE 3510-DT-M
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