[Federal Register Volume 89, Number 189 (Monday, September 30, 2024)]
[Notices]
[Pages 79518-79519]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-22341]


-----------------------------------------------------------------------

DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Nicholas Hovan, Inmate Number: 69967-066, FDC 
Houston, Federal Detention Center, P.O. Box 526255, Houston, TX 77052; 
Order Denying Export Privileges

    On January 10, 2024, in the U.S. District Court for the Eastern 
District of Pennsylvania, Nicholas Hovan (``Hovan''), was convicted of 
violating 18 U.S.C. 371 and the International Emergency Economic Powers 
Act (50 U.S.C 1701, et seq.) (``IEEPA''). Specifically, Hovan was 
convicted of conspiring to sell sanctioned Iranian petroleum/crude oil 
to a refinery in China. As a result of his conviction, the Court 
sentenced Hovan to 12 months plus one day of imprisonment, two years of 
supervised release, and a fine of $3,000.
    Pursuant to section 1760(e) of the Export Control Reform Act 
(``ECRA''),\1\ the export privileges of any person who has been 
convicted of certain offenses, including, but not limited to, 18 U.S.C. 
371 and IEEPA, may be denied for a period of up to ten (10) years from 
the date of his/her conviction. 50 U.S.C. 4819(e) (Prior Convictions). 
In addition, any Bureau of Industry and Security (BIS) licenses or 
other authorizations issued under ECRA, in which the person had an 
interest at the time of the conviction, may be revoked. Id.
---------------------------------------------------------------------------

    \1\ ECRA was enacted on August 13, 2018, as part of the John S. 
McCain National Defense Authorization Act for Fiscal Year 2019 and, 
as amended, is codified at 50 U.S.C. 4801-4852.
---------------------------------------------------------------------------

    BIS received notice of Hovan's conviction for violating 18 U.S.C. 
371 and IEEPA, and has provided notice and opportunity for Hovan to 
make a written submission to BIS, as provided in section 766.25 of the 
Export Administration Regulations (``EAR'' or the ``Regulations''). 15 
CFR 766.25.\2\ BIS has not received a written submission from Hovan.
---------------------------------------------------------------------------

    \2\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2024).
---------------------------------------------------------------------------

    Based upon my review of the record and consultations with BIS's 
Office of Exporter Services, including its Director, and the facts 
available to BIS, I have decided to deny Hovan's export privileges 
under the Regulations for a period of 10 years from the date of Hovan's 
conviction. The Office of Exporter Services has also decided to revoke 
any BIS-issued licenses in which Hovan had an interest at the time of 
his conviction.\3\
---------------------------------------------------------------------------

    \3\ The Director, Office of Export Enforcement, is the 
authorizing official for issuance of denial orders, pursuant to 
amendments to the Regulations (85 FR 73411, November 18, 2020).
---------------------------------------------------------------------------

    Accordingly, it is hereby ordered:
    First, from the date of this Order until January 10, 2034, Nicholas 
Hovan, with a last known address of Inmate Number: 69967-066, FDC 
Houston, Federal Detention Center, P.O. Box 526255, Houston, TX 77052, 
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, reexport, or transfer (in-country) 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, pursuant to section 1760(e) of the Export Control Reform Act 
(50 U.S.C. 4819(e)) and sections 766.23 and 766.25 of the Regulations, 
any other person, firm, corporation, or business organization related 
to Hovan 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, Hovan may 
file an appeal of this Order with the Under Secretary of Commerce for 
Industry and Security. The appeal must be filed

[[Page 79519]]

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 Hovan and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until January 10, 2034.

John Sonderman,
Director, Office of Export Enforcement.
[FR Doc. 2024-22341 Filed 9-27-24; 8:45 am]
BILLING CODE 3510-DT-P