82 FR 1689 - In the Matter of: Dane Francisco Delgado, Inmate Number: 60114-379, Eden, Correctional Institution, P.O. Box 605, Eden, TX 76837; Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 82, Issue 4 (January 6, 2017)

Page Range		1689-1690
FR Document		2017-00015

Federal Register, Volume 82 Issue 4 (Friday, January 6, 2017)

[Federal Register Volume 82, Number 4 (Friday, January 6, 2017)]
[Notices]
[Pages 1689-1690]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-00015]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Dane Francisco Delgado, Inmate Number: 60114-
379, Eden, Correctional Institution, P.O. Box 605, Eden, TX 76837; 
Order Denying Export Privileges

    On November 4, 2014, in the U.S. District Court for the Southern 
District of Texas, Dane Francisco Delgado (``Delgado''), was convicted 
of violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2012)) (``AECA''). Specifically, Delgado knowingly and willfully 
conspired with persons known and unknown to export, furnish, and cause 
to be exported from the United States to Mexico defense articles 
designated on the United States Munitions List without having first 
obtained from the Department of State a license or written 
authorization for such export. Delgado was sentenced to 60 months in 
prison, three years of supervised release, and a $100 assessment.
    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

[[Page 1690]]

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.
---------------------------------------------------------------------------

    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2016). 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 4, 2016 (81 FR 52587 
(Aug. 8, 2016)), 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 has received notice of Delgado's conviction for violating the 
AECA, and has provided notice and an opportunity for Delgado to make a 
written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has received a submission from Delgado.
    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 Delgado's export privileges under the Regulations 
for a period of 10 years from the date of Delgado's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Delgado had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until November 4, 2024, Dane 
Francisco Delgado, with a last known address of Inmate Number: 60114-
379, Eden, Correctional Institution, P.O. Box 605, Eden, TX 76837, 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 Delgado 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, Delgado 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 Delgado. This 
Order shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until November 4, 2024.

    Issued this 29th day of December, 2016.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2017-00015 Filed 1-5-17; 8:45 am]
 BILLING CODE P

Federal Register / Vol. 82, No. 4 / Friday, January 6, 2017 / Notices 1689

II. Basis for CAPS Expansion DEPARTMENT OF COMMERCE For further information, contact
Juanita H. Chen at Juanita.Chen@
A. Purpose Foreign-Trade Zones Board trade.gov or (202) 482–1378.
CAPS is designed to provide Dated: December 28, 2016.
managers at the lowest organizational [B–085–2016] Elizabeth Whiteman,
level the authority, control, and
Acting Executive Secretary.
flexibility to recruit, retain, develop, Foreign-Trade Zone (FTZ) 76—
[FR Doc. 2016–32034 Filed 1–5–17; 8:45 am]
recognize, and motivate its workforce, Danbury, Connecticut Notification of
BILLING CODE 3510–DS–P
while ensuring adequate accountability Proposed Production Activity;
and oversight. MannKind Corporation, (Fumaryl
The ESO is a new organization Diketopiperazone (FDKP) Carrier/
DEPARTMENT OF COMMERCE
designed to deliver common business Receptor Powder), Danbury,
support and mission-enabling services Connecticut Bureau of Industry and Security
in the functional areas of human
resources, acquisition, information MannKind Corporation (MannKind) In the Matter of: Dane Francisco
technology financial management, and submitted a notification of proposed Delgado, Inmate Number: 60114–379,
other areas as determined necessary. production activity to the FTZ Board for Eden, Correctional Institution, P.O.
The mission of the ESO is to: Enhance its facility in Danbury, Connecticut Box 605, Eden, TX 76837; Order
customer experience through the within Subzone 76B. The notification Denying Export Privileges
efficient delivery of high-quality conforming to the requirements of the
mission-enabling services; increase regulations of the FTZ Board (15 CFR On November 4, 2014, in the U.S.
400.22) was received on December 21, District Court for the Southern District
service transparency and accountability;
2016. of Texas, Dane Francisco Delgado
and enable employees, currently
MannKind currently has authority to (‘‘Delgado’’), was convicted of violating
performing these functions, to dedicate
use the facility for the production of Section 38 of the Arms Export Control
more time to the unique mission needs
Technosphere Insulin®, an inhalable Act (22 U.S.C. 2778 (2012)) (‘‘AECA’’).
of their organization. The expansion of
insulin made by a combination of Specifically, Delgado knowingly and
CAPS coverage to include the ESO,
imported fumaryl diketopiperazone willfully conspired with persons known
should improve the organization’s
(FDKP) and domestic material active and unknown to export, furnish, and
ability to recruit and retain a high-
ingredients. MannKind’s current request cause to be exported from the United
quality workforce to meet the
States to Mexico defense articles
organization’s mission. would add a finished product to the
designated on the United States
DoC’s CAPS allows for modifications scope of authority. Pursuant to 15 CFR
Munitions List without having first
of procedures if no new waiver from law 400.14(b), FTZ activity would be limited
obtained from the Department of State a
or regulation is added. Given that this to the specific foreign-status materials
license or written authorization for such
expansion and modification is in and components and specific finished
export. Delgado was sentenced to 60
accordance with existing law and products described in the submitted
months in prison, three years of
regulation and CAPS is a permanent notification (as described below) and
supervised release, and a $100
alternative personnel system, the DoC is subsequently authorized by the FTZ
assessment.
authorized to make the changes Board. Section 766.25 of the Export
described in this notice. Production under FTZ procedures Administration Regulations (‘‘EAR’’ or
could exempt MannKind from customs ‘‘Regulations’’) 1 provides, in pertinent
B. Participating Employees
duty payments on the foreign-status part, that ‘‘[t]he Director of the Office of
Employee notification of this components used in export production. Exporter Services, in consultation with
expansion will be accomplished by On its domestic sales, MannKind would the Director of the Office of Export
providing employees and managers be able to choose the duty rate during Enforcement, may deny the export
electronic access to all CAPS policies customs entry procedures that applies to privileges of any person who has been
and procedures, including the eleven FDKP carrier/receptor powder (duty rate convicted of a violation of the Export
previous Federal Register Notices. A 6.5%) for the foreign-status components Administration Act (‘‘EAA’’), the EAR,
copy of this Federal Register notice will and materials in the existing scope of or any order, license or authorization
also be accessible electronically upon authority. Customs duties also could issued thereunder; any regulation,
approval. Supervisor training and possibly be deferred or reduced on license, or order issued under the
informational briefings for employees foreign-status production equipment. International Emergency Economic
will be conducted as the ESO undergoes Public comment is invited from Powers Act (50 U.S.C. 1701–1706); 18
full transition over a period of a few interested parties. Submissions shall be U.S.C. 793, 794 or 798; section 4(b) of
years. addressed to the Board’s Executive the Internal Security Act of 1950 (50
III. Changes to the Project Plan Secretary at the address below. The
closing period for their receipt is 1 The Regulations are currently codified in the
The CAPS at DoC, published in the February 15, 2017. Code of Federal Regulations at 15 CFR parts 730–
Federal Register on December 24, 1997 774 (2016). The Regulations issued pursuant to the
A copy of the notification will be Export Administration Act (50 U.S.C. 4601–4623
(62 FR 67434), is amended as follows:
available for public inspection at the (Supp. III 2015) (available at http://
1. The following organization will be uscode.house.gov)). Since August 21, 2001, the Act
Office of the Executive Secretary,
sradovich on DSK3GMQ082PROD with NOTICES

added to the project plan, Section II D— has been in lapse and the President, through
Foreign-Trade Zones Board, Room
Participating Organizations Executive Order 13222 of August 17, 2001 (3 CFR,
21013, U.S. Department of Commerce, 2001 Comp. 783 (2002)), which has been extended
Office of the Secretary (OS), Office of 1401 Constitution Avenue NW., by successive Presidential Notices, the most recent
the Deputy Secretary, Enterprise Washington, DC 20230–0002, and in the being that of August 4, 2016 (81 FR 52587 (Aug. 8,
Services Organization (ESO) ‘‘Reading Room’’ section of the Board’s 2016)), has continued the Regulations in effect
under the International Emergency Economic
[FR Doc. 2017–00057 Filed 1–5–17; 8:45 am] Web site, which is accessible via Powers Act (50 U.S.C. 1701, et seq. (2006 & Supp.
BILLING CODE 3510–EA–P www.trade.gov/ftz. IV 2010)).

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1690 Federal Register / Vol. 82, No. 4 / Friday, January 6, 2017 / Notices

U.S.C. 783(b)), or section 38 of the Arms C. Benefitting in any way from any Fifth, a copy of this Order shall be
Export Control Act (22 U.S.C. 2778).’’ 15 transaction involving any item exported delivered to the Delgado. This Order
CFR 766.25(a); see also Section 11(h) of or to be exported from the United States shall be published in the Federal
the EAA, 50 U.S.C. 4610(h). The denial that is subject to the Regulations, or in Register.
of export privileges under this provision any other activity subject to the Sixth, this Order is effective
may be for a period of up to 10 years Regulations. immediately and shall remain in effect
from the date of the conviction. 15 CFR Second, no person may, directly or until November 4, 2024.
766.25(d); see also 50 U.S.C. 4610(h). In indirectly, do any of the following: Issued this 29th day of December, 2016.
addition, Section 750.8 of the A. Export or reexport to or on behalf
Karen H. Nies-Vogel,
Regulations states that the Bureau of of the Denied Person any item subject to
Director, Office of Exporter Services.
Industry and Security’s Office of the Regulations;
B. Take any action that facilitates the [FR Doc. 2017–00015 Filed 1–5–17; 8:45 am]
Exporter Services may revoke any
Bureau of Industry and Security (‘‘BIS’’) acquisition or attempted acquisition by BILLING CODE P

licenses previously issued in which the the Denied Person of the ownership,
person had an interest in at the time of possession, or control of any item
subject to the Regulations that has been DEPARTMENT OF COMMERCE
his conviction.
BIS has received notice of Delgado’s or will be exported from the United
Bureau of Industry and Security
conviction for violating the AECA, and States, including financing or other
has provided notice and an opportunity support activities related to a In the Matter of: Robert Luba, Inmate
for Delgado to make a written transaction whereby the Denied Person Number: 65986–050, USP Canaan, U.S.
submission to BIS, as provided in acquires or attempts to acquire such Penitentiary, Satellite Camp, P.O. Box
Section 766.25 of the Regulations. BIS ownership, possession or control; 200, Waymart, PA 18472; Order
C. Take any action to acquire from or Denying Export Privileges
has received a submission from
to facilitate the acquisition or attempted
Delgado. On April 25, 2016, in the U.S. District
acquisition from the Denied Person of
Based upon my review and any item subject to the Regulations that Court for the District of New Jersey,
consultations with BIS’s Office of has been exported from the United Robert Luba (‘‘Luba’’), was convicted of
Export Enforcement, including its States; violating Section 38 of the Arms Export
Director, and the facts available to BIS, D. Obtain from the Denied Person in Control Act (22 U.S.C. 2778 (2012))
I have decided to deny Delgado’s export the United States any item subject to the (‘‘AECA’’). Specifically, Luba knowingly
privileges under the Regulations for a Regulations with knowledge or reason and willfully exported and caused to be
period of 10 years from the date of to know that the item will be, or is exported from the United States to India
Delgado’s conviction. I have also intended to be, exported from the a defense article, that is, the technical
decided to revoke all licenses issued United States; or drawing for the NSSN Class Submarine,
pursuant to the Act or Regulations in E. Engage in any transaction to service Torpedo Tube, Open Breech Door,
which Delgado had an interest at the any item subject to the Regulations that Gagging Collar A, Drawing Number
time of his conviction. has been or will be exported from the 7072856, which was designated as a
Accordingly, it is hereby ordered: United States and which is owned, defense article on the United States
First, from the date of this Order until possessed or controlled by the Denied Munitions List, without having first
November 4, 2024, Dane Francisco Person, or service any item, of whatever obtained from the Department of State a
Delgado, with a last known address of origin, that is owned, possessed or license for such export or written
Inmate Number: 60114–379, Eden, controlled by the Denied Person if such authorization for such export. Luba was
Correctional Institution, P.O. Box 605, service involves the use of any item sentenced six months in prison, three
Eden, TX 76837, and when acting for or subject to the Regulations that has been years of supervised release, $173,736.67
on his behalf, his successors, assigns, or will be exported from the United in restituition, and a $200 assessment.
employees, agents or representatives States. For purposes of this paragraph, Section 766.25 of the Export
(the ‘‘Denied Person’’), may not, directly servicing means installation, Administration Regulations (‘‘EAR’’ or
or indirectly, participate in any way in maintenance, repair, modification or ‘‘Regulations’’) 1 provides, in pertinent
any transaction involving any testing. part, that ‘‘[t]he Director of the Office of
commodity, software or technology Third, after notice and opportunity for Exporter Services, in consultation with
(hereinafter collectively referred to as comment as provided in Section 766.23 the Director of the Office of Export
‘‘item’’) exported or to be exported from of the Regulations, any other person, Enforcement, may deny the export
the United States that is subject to the firm, corporation, or business privileges of any person who has been
Regulations, including, but not limited organization related to Delgado by convicted of a violation of the Export
to: ownership, control, position of Administration Act (‘‘EAA’’), the EAR,
A. Applying for, obtaining, or using responsibility, affiliation, or other or any order, license or authorization
any license, License Exception, or connection in the conduct of trade or
1 The Regulations are currently codified in the
export control document; business may also be made subject to
Code of Federal Regulations at 15 CFR parts 730–
B. Carrying on negotiations the provisions of this Order in order to 774 (2016). The Regulations issued pursuant to the
concerning, or ordering, buying, prevent evasion of this Order. Export Administration Act (50 U.S.C. 4601–4623
receiving, using, selling, delivering, Fourth, in accordance with Part 756 of (Supp. III 2015) (available at http://
storing, disposing of, forwarding, the Regulations, Delgado may file an uscode.house.gov)). Since August 21, 2001, the Act
sradovich on DSK3GMQ082PROD with NOTICES

has been in lapse and the President, through
transporting, financing, or otherwise appeal of this Order with the Under Executive Order 13222 of August 17, 2001 (3 CFR,
servicing in any way, any transaction Secretary of Commerce for Industry and 2001 Comp. 783 (2002)), which has been extended
involving any item exported or to be Security. The appeal must be filed by successive Presidential Notices, the most recent
exported from the United States that is within 45 days from the date of this being that of August 4, 2016 (81 FR 52587 (Aug. 8,
2016)), has continued the Regulations in effect
subject to the Regulations, or in any Order and must comply with the under the International Emergency Economic
other activity subject to the Regulations; provisions of Part 756 of the Powers Act (50 U.S.C. 1701, et seq. (2006 & Supp.
or Regulations. IV 2010)).

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Document Created: 2017-01-06 01:30:05
Document Modified: 2017-01-06 01:30:05

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		82 FR 1689

82 FR 1689 - In the Matter of: Dane Francisco Delgado, Inmate Number: 60114-379, Eden, Correctional Institution, P.O. Box 605, Eden, TX 76837; Order Denying Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 82, Issue 4 (January 6, 2017)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security