82 FR 43217 - In the Matter of: Dmitrii Karpenko, a/k/a Simon Fox, Pavlova St 11-75, Nevinnomyssk, Stavropol Region, Russia; Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 82, Issue 177 (September 14, 2017)

Page Range		43217-43218
FR Document		2017-19527

Federal Register, Volume 82 Issue 177 (Thursday, September 14, 2017)

[Federal Register Volume 82, Number 177 (Thursday, September 14, 2017)]
[Notices]
[Pages 43217-43218]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-19527]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Dmitrii Karpenko, a/k/a Simon Fox, Pavlova St 
11-75, Nevinnomyssk, Stavropol Region, Russia; Order Denying Export 
Privileges

    On April 28, 2017, in the U.S. District Court for the Eastern 
District of New York, Dmitrii Karpenko, a/k/a Simon Fox (``Karpenko'') 
was convicted of violating the International Emergency Economic Powers 
Act (50 U.S.C. 1701, et seq. (2012)) (``IEEPA''). Specifically, 
Karpenko was convicted of violating Section 206 of IEEPA, 50 U.S.C. 
1705, by willfully conspiring with others to export from the United 
States to Russia microelectronics items controlled pursuant to the 
Export Administration Regulations (``EAR'' or ``Regulations''),\1\ and 
under the jurisdiction of the Bureau of Industry and Security 
(``BIS''), U.S. Department of Commerce (``DOC''), without the required 
BIS/DOC license. Karpenko was sentenced to time served and an 
assessment of $100.00.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2017). 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'' or ``the Act''). 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 15, 2017 (82 FR 39005 (Aug. 16, 2017)), has continued the 
Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C. 1701, et seq. (2012)).
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    Section 766.25 of the Regulations 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 [Export Administration Act], 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 
BIS's Office of Exporter Services may revoke any BIS licenses 
previously issued pursuant to the Export Administration Act (``EAA'' or 
``the Act'') or the Regulations in which the person had an interest at 
the time of his conviction.
    BIS has received notice of Karpenko's conviction for violating 
IEEPA, and has provided notice and an opportunity for Karpenko to make 
a written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has not received a submission from Karpenko.
    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 Karpenko's export privileges under the Regulations 
for a period of five (5) years from the date of Karpenko's conviction. 
I have also decided to revoke all licenses issued pursuant to the Act 
or Regulations in which Karpenko had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until April 28, 2022, Dmitrii 
Karpenko, a/k/a Simon Fox, with a last known address of Pavlova Street 
11-75, Nevinnomyssk, Stavropol Region, Russia, 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 engaging 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 from 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,

[[Page 43218]]

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 Karpenko 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, Karpenko 
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 Karpenko and 
shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until April 28, 2022.

    Dated: September 8, 2017.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2017-19527 Filed 9-13-17; 8:45 am]
 BILLING CODE P

Federal Register / Vol. 82, No. 177 / Thursday, September 14, 2017 / Notices 43217

Third, after notice and opportunity for and under the jurisdiction of the Bureau Person’’), may not, directly or indirectly,
comment as provided in Section 766.23 of Industry and Security (‘‘BIS’’), U.S. participate in any way in any
of the Regulations, any other person, Department of Commerce (‘‘DOC’’), transaction involving any commodity,
firm, corporation, or business without the required BIS/DOC license. software or technology (hereinafter
organization related to Morales by Karpenko was sentenced to time served collectively referred to as ‘‘item’’)
ownership, control, position of and an assessment of $100.00. exported or to be exported from the
responsibility, affiliation, or other Section 766.25 of the Regulations United States that is subject to the
connection in the conduct of trade or provides, in pertinent part, that ‘‘[t]he Regulations, including, but not limited
business may also be made subject to Director of the Office of Exporter to:
the provisions of this Order in order to Services, in consultation with the A. Applying for, obtaining, or using
prevent evasion of this Order. Director of the Office of Export any license, license exception, or export
Fourth, in accordance with part 756 of Enforcement, may deny the export control document;
the Regulations, Morales may file an privileges of any person who has been B. Carrying on negotiations
appeal of this Order with the Under convicted of a violation of the EAA concerning, or ordering, buying,
Secretary of Commerce for Industry and [Export Administration Act], the EAR, receiving, using, selling, delivering,
Security. The appeal must be filed or any order, license, or authorization storing, disposing of, forwarding,
within 45 days from the date of this issued thereunder; any regulation, transporting, financing, or otherwise
Order and must comply with the license or order issued under the servicing in any way, any transaction
provisions of part 756 of the International Emergency Economic involving any item exported or to be
Regulations. Powers Act (50 U.S.C. 1701–1706); 18 exported from the United States that is
Fifth, a copy of this Order shall be U.S.C. 793, 794 or 798; section 4(b) of subject to the Regulations, or engaging
delivered to Morales, and shall be the Internal Security Act of 1950 (50 in any other activity subject to the
published in the Federal Register. U.S.C. 783(b))[;] or section 38 of the Regulations; or
Sixth, this Order is effective Arms Export Control Act (22 U.S.C. C. Benefitting in any way from any
immediately and shall remain in effect 2778).’’ 15 CFR 766.25(a); see also transaction involving any item exported
until March 23, 2021. Section 11(h) of the EAA, 50 U.S.C. or to be exported from the United States
4610(h). The denial of export privileges that is subject to the Regulations, or
Dated: September 8, 2017.
under this provision may be for a period from any other activity subject to the
Karen H. Nies-Vogel, of up to 10 years from the date of the Regulations.
Director, Office of Exporter Services. conviction. 15 CFR 766.25(d); see also Second, no person may, directly or
[FR Doc. 2017–19526 Filed 9–13–17; 8:45 am] 50 U.S.C. 4610(h). In addition, Section indirectly, do any of the following:
BILLING CODE P 750.8 of the Regulations states that BIS’s A. Export or reexport to or on behalf
Office of Exporter Services may revoke of the Denied Person any item subject to
any BIS licenses previously issued the Regulations;
DEPARTMENT OF COMMERCE pursuant to the Export Administration B. Take any action that facilitates the
Act (‘‘EAA’’ or ‘‘the Act’’) or the acquisition or attempted acquisition by
Bureau of Industry and Security the Denied Person of the ownership,
Regulations in which the person had an
interest at the time of his conviction. possession or control of any item subject
In the Matter of: Dmitrii Karpenko, to the Regulations that has been or will
a/k/a Simon Fox, Pavlova St 11–75, BIS has received notice of Karpenko’s
conviction for violating IEEPA, and has be exported from the United States,
Nevinnomyssk, Stavropol Region, including financing or other support
Russia; Order Denying Export provided notice and an opportunity for
Karpenko to make a written submission activities related to a transaction
Privileges whereby the Denied Person acquires or
to BIS, as provided in Section 766.25 of
On April 28, 2017, in the U.S. District the Regulations. BIS has not received a attempts to acquire such ownership,
Court for the Eastern District of New submission from Karpenko. possession or control;
York, Dmitrii Karpenko, a/k/a Simon Based upon my review and C. Take any action to acquire from or
Fox (‘‘Karpenko’’) was convicted of consultations with BIS’s Office of to facilitate the acquisition or attempted
violating the International Emergency Export Enforcement, including its acquisition from the Denied Person of
Economic Powers Act (50 U.S.C. 1701, Director, and the facts available to BIS, any item subject to the Regulations that
et seq. (2012)) (‘‘IEEPA’’). Specifically, I have decided to deny Karpenko’s has been exported from the United
Karpenko was convicted of violating export privileges under the Regulations States;
Section 206 of IEEPA, 50 U.S.C. 1705, for a period of five (5) years from the D. Obtain from the Denied Person in
by willfully conspiring with others to date of Karpenko’s conviction. I have the United States any item subject to the
export from the United States to Russia also decided to revoke all licenses Regulations with knowledge or reason
microelectronics items controlled issued pursuant to the Act or to know that the item will be, or is
pursuant to the Export Administration Regulations in which Karpenko had an intended to be, exported from the
Regulations (‘‘EAR’’ or ‘‘Regulations’’),1 interest at the time of his conviction. United States; or
Accordingly, it is hereby ordered: E. Engage in any transaction to service
1 The Regulations are currently codified in the First, from the date of this Order until any item subject to the Regulations that
Code of Federal Regulations at 15 CFR parts 730– April 28, 2022, Dmitrii Karpenko, a/k/ has been or will be exported from the
asabaliauskas on DSKBBXCHB2PROD with NOTICES

774 (2017). The Regulations issued pursuant to the a Simon Fox, with a last known address United States and which is owned,
Export Administration Act (50 U.S.C. 4601–4623 possessed or controlled by the Denied
(Supp. III 2015) (available at http:// of Pavlova Street 11–75, Nevinnomyssk,
uscode.house.gov)) (‘‘EAA’’ or ‘‘the Act’’). Since Stavropol Region, Russia, and when Person, or service any item, of whatever
August 21, 2001, the Act has been in lapse and the acting for or on his behalf, his origin, that is owned, possessed or
President, through Executive Order 13222 of August successors, assigns, employees, agents controlled by the Denied Person if such
17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which service involves the use of any item
has been extended by successive Presidential or representatives (‘‘the Denied
Notices, the most recent being that of August 15,
subject to the Regulations that has been
2017 (82 FR 39005 (Aug. 16, 2017)), has continued Emergency Economic Powers Act (50 U.S.C. 1701, or will be exported from the United
the Regulations in effect under the International et seq. (2012)). States. For purposes of this paragraph,

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43218 Federal Register / Vol. 82, No. 177 / Thursday, September 14, 2017 / Notices

servicing means installation, and under the jurisdiction of the Bureau on his behalf, his successors, assigns,
maintenance, repair, modification or of Industry and Security (‘‘BIS’’), U.S. employees, agents or representatives
testing. Department of Commerce (‘‘DOC’’), (‘‘the Denied Person’’), may not, directly
Third, after notice and opportunity for without the required BIS/DOC license. or indirectly, participate in any way in
comment as provided in Section 766.23 Krutilin was sentenced to time served any transaction involving any
of the Regulations, any other person, and an assessment of $100.00. commodity, software or technology
firm, corporation, or business Section 766.25 of the Regulations (hereinafter collectively referred to as
organization related to Karpenko by provides, in pertinent part, that ‘‘[t]he ‘‘item’’) exported or to be exported from
ownership, control, position of Director of the Office of Exporter the United States that is subject to the
responsibility, affiliation, or other Services, in consultation with the Regulations, including, but not limited
connection in the conduct of trade or Director of the Office of Export to:
business may also be made subject to Enforcement, may deny the export A. Applying for, obtaining, or using
the provisions of this Order in order to privileges of any person who has been any license, license exception, or export
prevent evasion of this Order. convicted of a violation of the EAA control document;
Fourth, in accordance with Part 756 of [Export Administration Act], the EAR, B. Carrying on negotiations
the Regulations, Karpenko may file an or any order, license, or authorization concerning, or ordering, buying,
appeal of this Order with the Under issued thereunder; any regulation, receiving, using, selling, delivering,
Secretary of Commerce for Industry and license or order issued under the storing, disposing of, forwarding,
Security. The appeal must be filed International Emergency Economic transporting, financing, or otherwise
within 45 days from the date of this Powers Act (50 U.S.C. 1701–1706); 18 servicing in any way, any transaction
Order and must comply with the U.S.C. 793, 794 or 798; section 4(b) of involving any item exported or to be
provisions of Part 756 of the the Internal Security Act of 1950 (50 exported from the United States that is
Regulations. U.S.C. 783(b)); or section 38 of the Arms subject to the Regulations, or engaging
Fifth, a copy of this Order shall be Export Control Act (22 U.S.C. 2778).’’ 15 in any other activity subject to the
delivered to Karpenko and shall be CFR 766.25(a); see also Section 11(h) of Regulations; or
published in the Federal Register. the EAA, 50 U.S.C. 4610(h). The denial C. Benefitting in any way from any
Sixth, this Order is effective of export privileges under this provision transaction involving any item exported
immediately and shall remain in effect may be for a period of up to 10 years or to be exported from the United States
until April 28, 2022. from the date of the conviction. 15 CFR that is subject to the Regulations, or
Dated: September 8, 2017. 766.25(d); see also 50 U.S.C. 4610(h). In from any other activity subject to the
Karen H. Nies-Vogel, addition, Section 750.8 of the Regulations.
Director, Office of Exporter Services.
Regulations states that BIS’s Office of Second, no person may, directly or
Exporter Services may revoke any BIS indirectly, do any of the following:
[FR Doc. 2017–19527 Filed 9–13–17; 8:45 am]
licenses previously issued pursuant to A. Export or reexport to or on behalf
BILLING CODE P
the Export Administration Act (‘‘EAA’’ of the Denied Person any item subject to
or ‘‘the Act’’) or the Regulations in the Regulations;
which the person had an interest at the B. Take any action that facilitates the
DEPARTMENT OF COMMERCE acquisition or attempted acquisition by
time of his conviction.
Bureau of Industry and Security BIS has received notice of Krutilin’s the Denied Person of the ownership,
conviction for violating IEEPA, and has possession or control of any item subject
In the Matter of: Alexey Krutilin, a/k/a provided notice and an opportunity for to the Regulations that has been or will
David Powell, 16 Melioratorov Street, Krutilin to make a written submission to be exported from the United States,
Ivanovskoe Village, Stavropol Region, BIS, as provided in Section 766.25 of including financing or other support
Russia 357020; Order Denying Export the Regulations. BIS has not received a activities related to a transaction
Privileges submission from Krutilin. whereby the Denied Person acquires or
Based upon my review and attempts to acquire such ownership,
On April 28, 2017, in the U.S. District consultations with BIS’s Office of possession or control;
Court for the Eastern District of New Export Enforcement, including its C. Take any action to acquire from or
York, Alexey Krutilin a/k/a David Director, and the facts available to BIS, to facilitate the acquisition or attempted
Powell (‘‘Krutilin’’) was convicted of I have decided to deny Krutilin’s export acquisition from the Denied Person of
violating the International Emergency privileges under the Regulations for a any item subject to the Regulations that
Economic Powers Act (50 U.S.C. 1701, period of ten (10) years from the date of has been exported from the United
et seq. (2012)) (‘‘IEEPA’’). Specifically, Krutilin’s conviction. I have also States;
Krutilin was convicted of violating decided to revoke all licenses issued D. Obtain from the Denied Person in
Section 206 of IEEPA, 50 U.S.C. 1705, pursuant to the Act or Regulations in the United States any item subject to the
by willfully conspiring with others to which Krutilin had an interest at the Regulations with knowledge or reason
export from the United States to Russia time of his conviction. to know that the item will be, or is
microelectronics items controlled Accordingly, it is hereby ordered: intended to be, exported from the
pursuant to the Export Administrations First, from the date of this Order until United States; or
Regulations (‘‘EAR’’ or ‘‘Regulations’’),1 April 28, 2027, Alexey Krutilin a/k/a E. Engage in any transaction to service
David Powell, with a last known
asabaliauskas on DSKBBXCHB2PROD with NOTICES

any item subject to the Regulations that
1 The Regulations are currently codified in the
address of 16 Melioratorov Street, has been or will be exported from the
Code of Federal Regulations at 15 CFR parts 730– Ivanovskoe Village, Stavropol Region,
774 (2017). The Regulations issued pursuant to the
United States and which is owned,
Export Administration Act (50 U.S.C. 4601–4623 Russia 357020, and when acting for or possessed or controlled by the Denied
(Supp. III 2015) (available at http:// Person, or service any item, of whatever
uscode.house.gov)) (‘‘EAA’’ or ‘‘the Act’’). Since Notices, the most recent being that of August 15, origin, that is owned, possessed or
August 21, 2001, the Act has been in lapse and the 2017 (82 FR 39005 (Aug. 16, 2017)), has continued
President, through Executive Order 13222 of August the Regulations in effect under the International
controlled by the Denied Person if such
17, 2001 (3 CFR, 2001 Comp. 783 (2002)), which Emergency Economic Powers Act (50 U.S.C. 1701, service involves the use of any item
has been extended by successive Presidential et seq. (2012)). subject to the Regulations that has been

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Document Created: 2017-09-13 23:49:18
Document Modified: 2017-09-13 23:49:18

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 43217

82 FR 43217 - In the Matter of: Dmitrii Karpenko, a/k/a Simon Fox, Pavlova St 11-75, Nevinnomyssk, Stavropol Region, Russia; Order Denying Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 82, Issue 177 (September 14, 2017)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security