81 FR 22575 - Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 74 (April 18, 2016)

[Federal Register Volume 81, Number 74 (Monday, April 18, 2016)]
[Notices]
[Pages 22575-22576]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-08920]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges

    In the Matter of: Paweena Pechner, a/k/a Paweena Montasood, 399 
Maplewood Avenue, Portsmouth, NH 03801
    Respondent. CheapShop4You LLC, 399 Maplewood Avenue, Portsmouth, 
NH 03801
    Related Person;

A. Denial of Export Privileges of Paweena Pechner

    On July 17, 2014, in the U.S. District Court for the District of 
New Hampshire, Paweena Pechner, a/k/a Paweena Montasood (``Pechner''), 
was convicted of violating Section 38 of the Arms Export Control Act 
(22 U.S.C. 2778 (2012)) (``AECA''). Specifically, Pechner knowingly and 
willfully caused to be exported from the United States to Thailand 
firearms which were designated as defense articles on the United States 
Munitions List, without having obtained from the United States 
Department of State a license or written approval for the export of 
these defense articles. Pechner was sentenced to probation for two 
years, assessed a penalty of $600, and fined $3,000.
    Section 766.25 of the Export Administration Regulations (``EAR'' or 
``Regulations'') \1\ provides, in pertinent part, that ``[t]he Director 
of the Office of Exporter Services, in consultation with the Director 
of the Office of Export Enforcement, may deny the export privileges of 
any person who has been convicted of a violation of the EAA, the EAR, 
of any order, license or authorization issued thereunder; any 
regulation, license, or order issued under the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1706); 18 U.S.C. 793, 794 or 798; 
section 4(b) of the Internal Security Act of 1950 (50 U.S.C. 783(b)), 
or section 38 of the Arms Export Control Act (22 U.S.C. 2778).'' 15 CFR 
766.25(a); see also Section 11(h) of the EAA, 50 U.S.C. 4610(h). The 
denial of export privileges under this provision may be for a period of 
up to ten (10) years from the date of the conviction. 15 CFR 766.25(d); 
see also 50 U.S.C. 4610(h). In addition, Section 750.8 of the 
Regulations states that the Bureau of Industry and Security's Office of 
Exporter Services may revoke any Bureau of Industry and Security 
(``BIS'') licenses previously issued in which the person had an 
interest in at the time of her conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2015). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. 4601-
4623 (Supp. III 2015) (available at http://uscode.house.gov)) 
(``EAA''). Since August 21, 2001, the EAA has been in lapse and the 
President, through Executive Order 13222 of August 17, 2001 (3 CFR, 
2001 Comp. 783 (2002)), which has been extended by successive 
Presidential Notices, the most recent being that of August 7, 2015 
(80 FR 48233 (August 11, 2015)), has continued the Regulations in 
effect under the International Emergency Economic Powers Act (50 
U.S.C. 1701, et seq. (2006 & Supp. IV 2010)).
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    BIS received notice of Pechner's conviction for violating the AECA, 
and has provided notice and an opportunity for Pechner to make a 
written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS received a submission from Pechner. Based upon my 
review and consideration of that submission, and consultations with 
BIS's Office of Export Enforcement, including its Director, and the 
facts available to BIS, I have decided to deny Pechner's export 
privileges under the Regulations for a period of ten (10) years from 
the date of Pechner's conviction. I have also decided to revoke all 
licenses issued pursuant to the Act or Regulations in which Pechner had 
an interest at the time of her conviction.

B. Denial of Export Privileges of Related Person CheapShop4You LLC

    Pursuant to Sections 766.25(h) and 766.23 of the Regulations, the 
Director of BIS's Office of Exporter Services, in consultation with the 
Director of BIS's Office of Export Enforcement, may, in order to 
prevent evasion of a denial order, make a denial order applicable not 
only to the respondent, but also to other persons related to the 
respondent by ownership, control, position of responsibility, 
affiliation, or other connection in the conduct of trade or business.
    As provided in Section 766.23 of the Regulations, BIS gave notice 
to CheapShop4You LLC (``CheapShop4You'') that its export privileges 
under the Regulations could be denied for up to ten (10) years due to 
its relationship with Pechner and that BIS believed that naming 
CheapShop4You as a person related to Pechner would be necessary to 
prevent evasion of a denial order imposed against Pechner. In providing 
such notice, BIS gave CheapShop4You an opportunity to oppose its 
addition to the Pechner Denial Order as a related party.
    Having received and reviewed a submission from Pechner, I have 
decided, following consideration of that

[[Page 22576]]

submission and consultations with BIS's Office of Export Enforcement, 
including its Director, to name CheapShop4You as a Related Person and 
make this Denial Order applicable to CheapShop4You, thereby denying its 
export privileges for ten (10) years from the date of Pechner's 
conviction. I have also decided to revoke all licenses issued pursuant 
to the Act or Regulations in which CheapShop4You had an interest at the 
time of Pechner's conviction. The 10-year denial period is scheduled to 
end on July 17, 2024.
    CheapShop4You, a company associated with Pechner, is an online 
personal shopping business, which Pechner used to accept, process, and 
export, both lawfully and unlawfully, shipments to customers. 
CheapShop4You is co-located at Pechner's residence, and Pechner is 
listed as its registered agent with the New Hampshire Secretary of 
State. Therefore, CheapShop4You is related to Pechner within the 
meaning of Section 766.23. BIS also has reason to believe that 
CheapShop4You should be added as a related person in order to prevent 
evasion of this Denial Order.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until July 17, 2024, Paweena 
Pechner a/k/a Paweena Montasood, with a last known address of 399 
Maplewood Avenue, Portsmouth, NH 03801, and when acting for or on her 
behalf, her successors, assigns, employees, agents, or representatives, 
and CheapShop4You LLC, with a last known address of 399 Maplewood 
Avenue, Portsmouth, NH 03801, and when acting for or on its behalf, its 
successors, assigns, directors, officers, employees, agents, or 
representatives (each as ``Denied Person'' and collectively the 
``Denied Persons'') 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.
    Second, no person may, directly or indirectly, do any of the 
following:
    A. Export or reexport to or on behalf of a Denied Person any item 
subject to the Regulations;
    B. Take any action that facilitates the acquisition or attempted 
acquisition by a 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 a 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 a Denied Person of any item subject to 
the Regulations that has been exported from the United States;
    D. Obtain from a 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 a Denied Person, or 
service any item, of whatever origin, that is owned, possessed or 
controlled by a 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, in addition to the Related Person named above, after notice 
and opportunity for comment as provided in section 766.23 of the 
Regulations, any other individual, firm, corporation, or other 
association or organization or other person related to a Denied Person 
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 if necessary to prevent evasion 
of this Order.
    Fourth, in accordance with Part 756 and Section 766.25(g) of the 
Regulations, Pechner may file an appeal of the issuance of this Order 
against her 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.
    Fifth, in accordance with Part 756 and Section 766.23(c) of the 
Regulations, CheapShop4You may file an appeal of its naming as a 
related person in this Order with the Under Secretary of Commerce for 
Industry and Security. This 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.
    Sixth, a copy of this Order shall be provided to Pechner and 
CheapShop4You. This Order shall be published in the Federal Register.
    Seventh, this Order is effectively immediately and shall remain in 
effect until July 17, 2024.

    Issued this 11th day of April, 2016.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2016-08920 Filed 4-15-16; 8:45 am]
BILLING CODE P