81 FR 22575 - Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

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

Page Range		22575-22576
FR Document		2016-08920
Federal Register, Volume 81 Issue 74 (Monday, 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)).
---------------------------------------------------------------------------

    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
Federal Register / Vol. 81, No. 74 / Monday, April 18, 2016 / Notices 22575

DEPARTMENT OF COMMERCE Dated: April 12, 2016. Arms Export Control Act (22 U.S.C.
Andrew McGilvray, 2778).’’ 15 CFR 766.25(a); see also
Foreign-Trade Zones Board Executive Secretary. Section 11(h) of the EAA, 50 U.S.C.
[FR Doc. 2016–08909 Filed 4–15–16; 8:45 am] 4610(h). The denial of export privileges
[B–85–2015] BILLING CODE 3510–DS–P under this provision may be for a period
of up to ten (10) years from the date of
Foreign-Trade Zone (FTZ) 20—Newport the conviction. 15 CFR 766.25(d); see
News, Virginia; Authorization of DEPARTMENT OF COMMERCE also 50 U.S.C. 4610(h). In addition,
Proposed Production Activity, Canon Section 750.8 of the Regulations states
Virginia, Inc., Subzone 20D, (Toner Bureau of Industry and Security that the Bureau of Industry and
Cartridges and Bottles); Newport Security’s Office of Exporter Services
News, Virginia Order Denying Export Privileges may revoke any Bureau of Industry and
In the Matter of: Paweena Pechner, a/k/a Security (‘‘BIS’’) licenses previously
On December 14, 2015, Canon
Paweena Montasood, 399 Maplewood issued in which the person had an
Virginia, Inc., operator of Subzone 20D,
Avenue, Portsmouth, NH 03801 interest in at the time of her conviction.
submitted a notification of proposed Respondent. CheapShop4You LLC, 399 BIS received notice of Pechner’s
production activity to the Foreign-Trade Maplewood Avenue, Portsmouth, NH 03801 conviction for violating the AECA, and
Zones (FTZ) Board for its facilities in Related Person; has provided notice and an opportunity
Newport News, Virginia. for Pechner to make a written
The notification was processed in A. Denial of Export Privileges of
Paweena Pechner submission to BIS, as provided in
accordance with the regulations of the Section 766.25 of the Regulations. BIS
FTZ Board (15 CFR part 400), including On July 17, 2014, in the U.S. District received a submission from Pechner.
notice in the Federal Register inviting Court for the District of New Hampshire, Based upon my review and
public comment (80 FR 220, January 5, Paweena Pechner, a/k/a Paweena consideration of that submission, and
2016). The FTZ Board has determined Montasood (‘‘Pechner’’), was convicted consultations with BIS’s Office of
that no further review of the activity is of violating Section 38 of the Arms Export Enforcement, including its
warranted at this time. The production Export Control Act (22 U.S.C. 2778 Director, and the facts available to BIS,
activity described in the notification is (2012)) (‘‘AECA’’). Specifically, Pechner I have decided to deny Pechner’s export
authorized, subject to the FTZ Act and knowingly and willfully caused to be privileges under the Regulations for a
the Board’s regulations, including exported from the United States to period of ten (10) years from the date of
Section 400.14. Thailand firearms which were Pechner’s conviction. I have also
Dated: April 12, 2016.
designated as defense articles on the decided to revoke all licenses issued
United States Munitions List, without pursuant to the Act or Regulations in
Andrew McGilvray,
having obtained from the United States which Pechner had an interest at the
Executive Secretary. Department of State a license or written
[FR Doc. 2016–08908 Filed 4–15–16; 8:45 am]
time of her conviction.
approval for the export of these defense
BILLING CODE 3510–DS–P articles. Pechner was sentenced to B. Denial of Export Privileges of Related
probation for two years, assessed a Person CheapShop4You LLC
penalty of $600, and fined $3,000. Pursuant to Sections 766.25(h) and
DEPARTMENT OF COMMERCE Section 766.25 of the Export 766.23 of the Regulations, the Director
Administration Regulations (‘‘EAR’’ or of BIS’s Office of Exporter Services, in
Foreign-Trade Zones Board ‘‘Regulations’’) 1 provides, in pertinent consultation with the Director of BIS’s
part, that ‘‘[t]he Director of the Office of Office of Export Enforcement, may, in
[B–83–2015] Exporter Services, in consultation with order to prevent evasion of a denial
the Director of the Office of Export order, make a denial order applicable
Foreign-Trade Zone (FTZ) 183—Austin,
Enforcement, may deny the export not only to the respondent, but also to
Texas; Authorization of Proposed
privileges of any person who has been other persons related to the respondent
Production Activity, Samsung Austin
convicted of a violation of the EAA, the by ownership, control, position of
Semiconductor, L.L.C., Subzone 183B,
EAR, of any order, license or responsibility, affiliation, or other
(Semiconductors), Austin, Texas
authorization issued thereunder; any connection in the conduct of trade or
On December 14, 2015, Samsung regulation, license, or order issued business.
Austin Semiconductor, L.L.C., operator under the International Emergency As provided in Section 766.23 of the
of Subzone 183B, submitted a Economic Powers Act (50 U.S.C. 1701– Regulations, BIS gave notice to
notification of proposed production 1706); 18 U.S.C. 793, 794 or 798; section CheapShop4You LLC
activity to the Foreign-Trade Zones 4(b) of the Internal Security Act of 1950 (‘‘CheapShop4You’’) that its export
(FTZ) Board for its facility in Austin, (50 U.S.C. 783(b)), or section 38 of the privileges under the Regulations could
Texas. be denied for up to ten (10) years due
1 The Regulations are currently codified in the
The notification was processed in to its relationship with Pechner and that
Code of Federal Regulations at 15 CFR parts 730–
accordance with the regulations of the 774 (2015). The Regulations issued pursuant to the BIS believed that naming
FTZ Board (15 CFR part 400), including Export Administration Act (50 U.S.C. 4601–4623 CheapShop4You as a person related to
notice in the Federal Register inviting (Supp. III 2015) (available at http:// Pechner would be necessary to prevent
uscode.house.gov)) (‘‘EAA’’). Since August 21,
mstockstill on DSK4VPTVN1PROD with NOTICES

public comment (80 FR 81293, evasion of a denial order imposed
2001, the EAA has been in lapse and the President,
December 29, 2015). The FTZ Board has through Executive Order 13222 of August 17, 2001 against Pechner. In providing such
determined that no further review of the (3 CFR, 2001 Comp. 783 (2002)), which has been notice, BIS gave CheapShop4You an
activity is warranted at this time. The extended by successive Presidential Notices, the opportunity to oppose its addition to the
production activity described in the most recent being that of August 7, 2015 (80 FR Pechner Denial Order as a related party.
48233 (August 11, 2015)), has continued the
notification is authorized, subject to the Regulations in effect under the International
Having received and reviewed a
FTZ Act and the Board’s regulations, Emergency Economic Powers Act (50 U.S.C. 1701, submission from Pechner, I have
including Section 400.14. et seq. (2006 & Supp. IV 2010)). decided, following consideration of that

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22576 Federal Register / Vol. 81, No. 74 / Monday, April 18, 2016 / Notices

submission and consultations with BIS’s other activity subject to the Regulations; must be filed within 45 days from the
Office of Export Enforcement, including or date of this Order and must comply
its Director, to name CheapShop4You as C. Benefitting in any way from any with the provisions of Part 756 of the
a Related Person and make this Denial transaction involving any item exported Regulations.
Order applicable to CheapShop4You, or to be exported from the United States Fifth, in accordance with Part 756 and
thereby denying its export privileges for that is subject to the Regulations, or in Section 766.23(c) of the Regulations,
ten (10) years from the date of Pechner’s any other activity subject to the CheapShop4You may file an appeal of
conviction. I have also decided to Regulations. its naming as a related person in this
revoke all licenses issued pursuant to Second, no person may, directly or Order with the Under Secretary of
the Act or Regulations in which indirectly, do any of the following: Commerce for Industry and Security.
CheapShop4You had an interest at the A. Export or reexport to or on behalf This appeal must be filed within 45
time of Pechner’s conviction. The 10- of a Denied Person any item subject to days from the date of this Order and
year denial period is scheduled to end the Regulations; must comply with the provisions of Part
on July 17, 2024. B. Take any action that facilitates the 756 of the Regulations.
CheapShop4You, a company acquisition or attempted acquisition by Sixth, a copy of this Order shall be
associated with Pechner, is an online a Denied Person of the ownership, provided to Pechner and
personal shopping business, which possession, or control of any item CheapShop4You. This Order shall be
Pechner used to accept, process, and subject to the Regulations that has been published in the Federal Register.
export, both lawfully and unlawfully, or will be exported from the United Seventh, this Order is effectively
shipments to customers. States, including financing or other immediately and shall remain in effect
CheapShop4You is co-located at support activities related to a until July 17, 2024.
Pechner’s residence, and Pechner is transaction whereby a Denied Person Issued this 11th day of April, 2016.
listed as its registered agent with the acquires or attempts to acquire such Karen H. Nies-Vogel,
New Hampshire Secretary of State. ownership, possession or control;
Director, Office of Exporter Services.
C. Take any action to acquire from or
Therefore, CheapShop4You is related to [FR Doc. 2016–08920 Filed 4–15–16; 8:45 am]
to facilitate the acquisition or attempted
Pechner within the meaning of Section BILLING CODE P
acquisition from a Denied Person of any
766.23. BIS also has reason to believe
item subject to the Regulations that has
that CheapShop4You should be added
been exported from the United States;
as a related person in order to prevent D. Obtain from a Denied Person in the DEPARTMENT OF COMMERCE
evasion of this Denial Order. United States any item subject to the
Accordingly, it is hereby ordered: Bureau of Industry and Security
Regulations with knowledge or reason
First, from the date of this Order until to know that the item will be, or is Order Denying Export Privileges
July 17, 2024, Paweena Pechner a/k/a intended to be, exported from the
Paweena Montasood, with a last known United States; or In the Matter of: Alexandre Astakhov,
address of 399 Maplewood Avenue, E. Engage in any transaction to service Register Number: 68614–066, USP
Portsmouth, NH 03801, and when acting any item subject to the Regulations that Lewisburg, U.S. Penitentiary, Federal Prison
for or on her behalf, her successors, Camp, P.O. Box 2000, Lewisburg, PA 17837.
has been or will be exported from the
assigns, employees, agents, or United States and which is owned, On May 7, 2015, in the U.S. District
representatives, and CheapShop4You possessed or controlled by a Denied Court for the Eastern District of
LLC, with a last known address of 399 Person, or service any item, of whatever Pennsylvania, Alexandre Astakhov
Maplewood Avenue, Portsmouth, NH origin, that is owned, possessed or (‘‘Astakhov’’), was convicted of
03801, and when acting for or on its controlled by a Denied Person, if such violating Section 38 of the Arms Export
behalf, its successors, assigns, directors, service involves the use of any item Control Act (22 U.S.C. 2778 (2012))
officers, employees, agents, or subject to the Regulations that has been (‘‘AECA’’). Specifically, Astakhov
representatives (each as ‘‘Denied or will be exported from the United knowingly and willfully attempted to
Person’’ and collectively the ‘‘Denied States. For purposes of this paragraph, export from the United States to Russia,
Persons’’) may not, directly or servicing means installation, and aided and abetted the attempted
indirectly, participate in any way in any maintenance, repair, modification or export of, defense articles, that is two L–
transaction involving any commodity, testing. 3 CNVD–T thermal clip-on night vision
software or technology (hereinafter Third, in addition to the Related devices, which were designated as a
collectively referred to as ‘‘item’’) Person named above, after notice and defense article on the United States
exported or to be exported from the opportunity for comment as provided in Munitions List, without having first
United States that is subject to the section 766.23 of the Regulations, any obtained from the Department of State a
Regulations, or in any other activity other individual, firm, corporation, or license for such export or written
subject to the Regulations, including but other association or organization or authorization for such export. Astakhov
not limited to: other person related to a Denied Person was sentenced to 39 months of
A. Applying for, obtaining, or using by ownership, control, position of imprisonment, three years of supervised
any license, License Exception, or responsibility, affiliation, or other release, 150 hours of community
export control document; connection in the conduct of trade or service, a criminal fine of $2,500 and a
B. Carrying on negotiations business may also be made subject to $200 assessment.
Section 766.25 of the Export
mstockstill on DSK4VPTVN1PROD with NOTICES

concerning, or ordering, buying, the provisions of this Order if necessary
receiving, using, selling, delivering, to prevent evasion of this Order. Administration Regulations (‘‘EAR’’ or
storing, disposing of, forwarding, Fourth, in accordance with Part 756 ‘‘Regulations’’) 1 provides, in pertinent
transporting, financing, or otherwise and Section 766.25(g) of the
1 The Regulations are currently codified in the
servicing in any way, any transaction Regulations, Pechner may file an appeal
Code of Federal Regulations at 15 CFR parts 730–
involving any item exported or to be of the issuance of this Order against her 774 (2015). The Regulations issued pursuant to the
exported from the United States that is with the Under Secretary of Commerce Export Administration Act (50 U.S.C. 4601–4623
subject to the Regulations, or in any for Industry and Security. The appeal (Supp. III 2015) (available at http://

VerDate Sep<11>2014 17:54 Apr 15, 2016 Jkt 238001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 E:\FR\FM\18APN1.SGM 18APN1
Document Created: 2016-04-16 01:45:36
Document Modified: 2016-04-16 01:45:36
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 22575
81 FR 22575 - Order Denying Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

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

DEPARTMENT OF COMMERCE
Bureau of Industry and Security
