Opinion ID: 3039142
Heading Depth: 3
Heading Rank: 2

Heading: Assessment of the Penalty

Text: Following a highly-publicized November 1997 humanitarian trip to Iraq in which Sacks participated, OFAC issued Sacks a Prepenalty Notice, pursuant to 31 C.F.R. § 575.702. The Prepenalty Notice accused Sacks, other individuals, and 17328 SACKS v. OFFICE OF FOREIGN ASSETS CONTROL Voices of violating the Iraqi Sanctions.2 In its Violations section, the Prepenalty Notice described “your and [Voices]’ exportation of donated goods, including medical supplies and toys, to Iraq absent specific prior authorization by OFAC.” It then listed ten specific violations. Six of these violations accused Voices of exporting medical supplies and/or other goods “absent prior specific license or other authorization.” Sacks was individually charged with only one violation: 6. Between on or about November 21-30, 1997, Messrs. Handleman, Mullins, Sacks and Zito engaged in currency travel-related transactions to/ from/within Iraq absent prior license or other authorization from OFAC. These currency transactions included, but are not limited to, the purchase of food, lodging, ground transportation, and incidentals; The Prepenalty Notice proposed a $10,000 penalty for Sacks and the other individuals described in the sixth charge, and a $120,000 penalty for Voices ($20,000 for each of the six violations). It further provided Sacks an opportunity to respond to the charges in writing, which he did. Although he was individually charged only with violating the Travel Ban, in his written response Sacks admitted that he had violated the Medicine Restrictions, as well as the Travel Ban, stating, “You are correct to say in your prepenalty letter (12/3/98) that I brought medical supplies and toys to Iraq absent prior OFAC approval.” Although he did not explicitly address the travel charge, the statement that he “brought medical supplies and toys to Iraq” is an implied admission that he had traveled to Iraq. Three-and-a-half years later, OFAC issued Sacks a formal Penalty Notice, which described his prior admission ambigu- 2 It appears from the record that a single Prepenalty Notice was issued to Sacks and the other named individuals. Presumably, a separate Prepenalty Notice was issued to Voices. SACKS v. OFFICE OF FOREIGN ASSETS CONTROL 17329 ously: “You admitted the Notice’s allegation in Count 6 that you exported goods to Iraq absent prior OFAC approval.” Citing his willful violation of the Iraqi Sanctions, OFAC imposed the full $10,000 penalty against him and demanded that it be paid within thirty days. When Sacks did not pay the penalty, he received a letter in August 2003 from the Ocwen Federal Bank, which sought to collect the debt — $13,767.08 including interest and late fees — on behalf of the United States Department of Treasury.