81_FR_40777 81 FR 40657 - In the Matter of: Dennis Haag, 3940 County Line Road, Lenox, MI 48050; Order Denying Export Privileges

81 FR 40657 - In the Matter of: Dennis Haag, 3940 County Line Road, Lenox, MI 48050; Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 81, Issue 120 (June 22, 2016)

Page Range40657-40657
FR Document2016-14744

Federal Register, Volume 81 Issue 120 (Wednesday, June 22, 2016) 
[Federal Register Volume 81, Number 120 (Wednesday, June 22, 2016)]
[Notices]
[Page 40657]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14744]



[[Page 40657]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Dennis Haag, 3940 County Line Road, Lenox, MI 
48050; Order Denying Export Privileges

    On September 24, 2014, in the U.S. District Court for the Eastern 
District of Michigan, Dennis Haag (``Haag''), was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2012)) (``AECA''). Specifically, Haag knowingly and willfully exported 
defense articles, that is rifle barrels and other parts, from the 
United States to South Africa, which rifle parts were designated as 
defense articles on the United States Munitions List, without having 
first obtained from the State Department a license as required by law. 
Haag was sentenced three years of probation, a $200 assessment and a 
criminal fine of $39,000.
    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 Export 
Administration Act (``EAA''), the EAR, or 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 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 
his 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)). 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)), which has been extended by successive Presidential 
Notices, the most recent being that of August 7, 2015 (80 FR 48,233 
(Aug. 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 has received notice of Haag's conviction for violating the 
AECA, and has provided notice and an opportunity for Haag to make a 
written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has received a submission from Haag.
    Based upon my review and consultations with BIS's Office of Export 
Enforcement, including its Director, and the facts available to BIS, I 
have decided to deny Haag's export privileges under the Regulations for 
a period of five (5) years from the date of Haag's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Haag had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until September 24, 2019, Dennis 
Haag, with a last known address of 3940 County Line Road, Lenox, MI 
48050, 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 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 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, after notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any other person, firm, corporation, 
or business organization related to Haag 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, Haag may 
file an appeal of this Order 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, a copy of this Order shall be delivered to the Haag. This 
Order shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until September 24, 2019.

    Issued this 15 day of June 2016.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2016-14744 Filed 6-21-16; 8:45 am]
 BILLING CODE P

Federal Register / Vol. 81, No. 120 / Wednesday, June 22, 2016 / Notices 40657 DEPARTMENT OF COMMERCE person had an interest in at the time of States, including financing or other his conviction. support activities related to a Bureau of Industry and Security BIS has received notice of Haag’s transaction whereby the Denied Person conviction for violating the AECA, and acquires or attempts to acquire such In the Matter of: Dennis Haag, 3940 has provided notice and an opportunity ownership, possession or control; County Line Road, Lenox, MI 48050; for Haag to make a written submission Order Denying Export Privileges to BIS, as provided in Section 766.25 of C. Take any action to acquire from or the Regulations. BIS has received a to facilitate the acquisition or attempted On September 24, 2014, in the U.S. acquisition from the Denied Person of District Court for the Eastern District of submission from Haag. Based upon my review and any item subject to the Regulations that Michigan, Dennis Haag (‘‘Haag’’), was consultations with BIS’s Office of has been exported from the United convicted of violating Section 38 of the Export Enforcement, including its States; Arms Export Control Act (22 U.S.C. 2778 (2012)) (‘‘AECA’’). Specifically, Director, and the facts available to BIS, D. Obtain from the Denied Person in Haag knowingly and willfully exported I have decided to deny Haag’s export the United States any item subject to the defense articles, that is rifle barrels and privileges under the Regulations for a Regulations with knowledge or reason other parts, from the United States to period of five (5) years from the date of to know that the item will be, or is South Africa, which rifle parts were Haag’s conviction. I have also decided intended to be, exported from the designated as defense articles on the to revoke all licenses issued pursuant to United States; or United States Munitions List, without the Act or Regulations in which Haag had an interest at the time of his E. Engage in any transaction to service having first obtained from the State any item subject to the Regulations that Department a license as required by law. conviction. Accordingly, it is hereby ordered: has been or will be exported from the Haag was sentenced three years of First, from the date of this Order until United States and which is owned, probation, a $200 assessment and a September 24, 2019, Dennis Haag, with possessed or controlled by the Denied criminal fine of $39,000. Section 766.25 of the Export a last known address of 3940 County Person, or service any item, of whatever Administration Regulations (‘‘EAR’’ or Line Road, Lenox, MI 48050, and when origin, that is owned, possessed or ‘‘Regulations’’) 1 provides, in pertinent acting for or on his behalf, his controlled by the Denied Person if such part, that ‘‘[t]he Director of the Office of successors, assigns, employees, agents service involves the use of any item Exporter Services, in consultation with or representatives (the ‘‘Denied subject to the Regulations that has been the Director of the Office of Export Person’’), may not, directly or indirectly, or will be exported from the United Enforcement, may deny the export participate in any way in any States. For purposes of this paragraph, privileges of any person who has been transaction involving any commodity, servicing means installation, convicted of a violation of the Export software or technology (hereinafter maintenance, repair, modification or Administration Act (‘‘EAA’’), the EAR, collectively referred to as ‘‘item’’) testing. or any order, license or authorization exported or to be exported from the United States that is subject to the Third, after notice and opportunity for issued thereunder; any regulation, comment as provided in Section 766.23 license, or order issued under the Regulations, including, but not limited to: of the Regulations, any other person, International Emergency Economic A. Applying for, obtaining, or using firm, corporation, or business Powers Act (50 U.S.C. 1701–1706); 18 any license, License Exception, or organization related to Haag by U.S.C. 793, 794 or 798; section 4(b) of export control document; ownership, control, position of the Internal Security Act of 1950 (50 B. Carrying on negotiations responsibility, affiliation, or other U.S.C. 783(b)), or section 38 of the Arms concerning, or ordering, buying, connection in the conduct of trade or Export Control Act (22 U.S.C. 2778).’’ 15 receiving, using, selling, delivering, business may also be made subject to CFR 766.25(a); see also Section 11(h) of storing, disposing of, forwarding, the provisions of this Order in order to the EAA, 50 U.S.C. 4610(h). The denial transporting, financing, or otherwise prevent evasion of this Order. of export privileges under this provision servicing in any way, any transaction may be for a period of up to 10 years Fourth, in accordance with Part 756 of involving any item exported or to be from the date of the conviction. 15 CFR the Regulations, Haag may file an appeal exported from the United States that is 766.25(d); see also 50 U.S.C. 4610(h). In of this Order with the Under Secretary subject to the Regulations, or in any addition, Section 750.8 of the of Commerce for Industry and Security. other activity subject to the Regulations; Regulations states that the Bureau of The appeal must be filed within 45 days or Industry and Security’s Office of C. Benefitting in any way from any from the date of this Order and must Exporter Services may revoke any transaction involving any item exported comply with the provisions of Part 756 Bureau of Industry and Security (‘‘BIS’’) or to be exported from the United States of the Regulations. licenses previously issued in which the that is subject to the Regulations, or in Fifth, a copy of this Order shall be 1 The Regulations are currently codified in the any other activity subject to the delivered to the Haag. This Order shall Code of Federal Regulations at 15 CFR parts 730– Regulations. be published in the Federal Register. 774 (2015). The Regulations issued pursuant to the Second, no person may, directly or Export Administration Act (50 U.S.C. 4601–4623 indirectly, do any of the following: Sixth, this Order is effective (Supp. III 2015) (available at http:// A. Export or reexport to or on behalf immediately and shall remain in effect uscode.house.gov)). Since August 21, 2001, the Act of the Denied Person any item subject to until September 24, 2019. mstockstill on DSK3G9T082PROD with NOTICES has been in lapse and the President, through Executive Order 13222 of August 17, 2001 (3 CFR, the Regulations; Issued this 15 day of June 2016. 2001 Comp. 783 (2002)), which has been extended B. Take any action that facilitates the Karen H. Nies-Vogel, by successive Presidential Notices, the most recent acquisition or attempted acquisition by being that of August 7, 2015 (80 FR 48,233 (Aug. the Denied Person of the ownership, Director, Office of Exporter Services. 11, 2015)), has continued the Regulations in effect under the International Emergency Economic possession, or control of any item [FR Doc. 2016–14744 Filed 6–21–16; 8:45 am] Powers Act (50 U.S.C. 1701, et seq. (2006 & Supp. subject to the Regulations that has been BILLING CODE P IV 2010)). or will be exported from the United VerDate Sep<11>2014 20:02 Jun 21, 2016 Jkt 238001 PO 00000 Frm 00005 Fmt 4703 Sfmt 9990 E:\FR\FM\22JNN1.SGM 22JNN1


Document Created: 2016-06-22 01:05:27
Document Modified: 2016-06-22 01:05:27
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation81 FR 40657 
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