83 FR 50073 - In the Matter of: Ruben Arnoldo Madrid, Inmate Number: 20727-479, FCI Beaumont Low, P.O. Box 26020, Beaumont, TX 77720; Order Denying Export Privileges

DEPARTMENT OF COMMERCE
Bureau of Industry and Security

Federal Register Volume 83, Issue 193 (October 4, 2018)

Page Range		50073-50074
FR Document		2018-21649

Federal Register, Volume 83 Issue 193 (Thursday, October 4, 2018)

[Federal Register Volume 83, Number 193 (Thursday, October 4, 2018)]
[Notices]
[Pages 50073-50074]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-21649]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Ruben Arnoldo Madrid, Inmate Number: 20727-479, 
FCI Beaumont Low, P.O. Box 26020, Beaumont, TX 77720; Order Denying 
Export Privileges

    On December 14, 2017, in the U.S. District Court for the Southern 
District of Texas, Ruben Arnoldo Madrid (``Madrid'') was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2012)) (``AECA''). Specifically, Madrid was convicted of knowingly 
exporting and attempting to export from the United States to Mexico 
firearms designated as defense articles on the United States Munitions 
List, without the required U.S. Department of State licenses. Madrid 
was sentenced to 51 months in prison, three years of supervised 
release, and an assessment of $100.
    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 . . . section 38 of 
the Arms Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a). 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). 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 
pursuant to the Act or the Regulations in which the person had an 
interest at the time of his/her conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2018). The Regulations 
originally issued under the Export Administration Act of 1979, as 
amended, 50 U.S.C. 4601-4623 (Supp. III 2015) (``the EAA''), which 
lapsed on August 21, 2001. The President, through Executive Order 
13, 222 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 8, 2018 (83 FR 39, 871 (Aug. 13, 2018)), 
continued the Regulations in full force and effect under the 
International Emergency Economic Powers Act, 50 U.S.C. 1701, et seq. 
(2012) (``IEEPA''). On August 13, 2018, the President signed into 
law the John S. McCain National Defense Authorization Act for Fiscal 
Year 2019, which includes the Export Control Reform Act of 2018, 
Title XVII, Subtitle B of Public Law 115-232 (``ECRA''). While 
Section 1766 of ECRA repeals the provisions of the EAA (except for 
three sections which are inapplicable here), Section 1768 of ECRA 
provides, in pertinent part, that all rules and regulations that 
were made or issued under the EAA, including as continued in effect 
pursuant to IEEPA, and were in effect as of ECRA's date of enactment 
(August 13, 2018), shall continue in effect according to their terms 
until modified, superseded, set aside, or revoked through action 
undertaken pursuant to the authority provided under ECRA.
---------------------------------------------------------------------------

    BIS has received notice of Madrid's conviction for violating 
Section 38 of the AECA, and has provided notice and an opportunity for 
Madrid to make a written submission to BIS, as provided in Section 
766.25 of the Regulations. BIS has not received a submission from 
Madrid.
    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 Madrid's export privileges under the Regulations 
for a period of 10 years from the date of Madrid's conviction. I have 
also decided to revoke all licenses issued pursuant to the Act or 
Regulations in which Madrid had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until December 14, 2027, Ruben 
Arnoldo Madrid, with a last known address of Inmate Number: 20727-479, 
FCI Beaumont Low, P.O. Box 26020, Beaumont, TX 77720, 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

[[Page 50074]]

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 Madrid 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, Madrid 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 Madrid and shall 
be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until December 14, 2027.

    Issued: September 27, 2018.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2018-21649 Filed 10-3-18; 8:45 am]
 BILLING CODE P

Federal Register / Vol. 83, No. 193 / Thursday, October 4, 2018 / Notices 50073

maintenance, repair, modification or part, that ‘‘[t]he Director of the Office of assigns, employees, agents or
testing. Exporter Services, in consultation with representatives (‘‘the Denied Person’’),
Third, after notice and opportunity for the Director of the Office of Export may not, directly or indirectly,
comment as provided in Section 766.23 Enforcement, may deny the export participate in any way in any
of the Regulations, any other person, privileges of any person who has been transaction involving any commodity,
firm, corporation, or business convicted of a violation of . . . section software or technology (hereinafter
organization related to Duenas by 38 of the Arms Export Control Act (22 collectively referred to as ‘‘item’’)
ownership, control, position of U.S.C. 2778).’’ 15 CFR 766.25(a). The exported or to be exported from the
responsibility, affiliation, or other denial of export privileges under this United States that is subject to the
connection in the conduct of trade or provision may be for a period of up to Regulations, including, but not limited
business may also be made subject to 10 years from the date of the conviction. to:
the provisions of this Order in order to 15 CFR 766.25(d). In addition, Section A. Applying for, obtaining, or using
prevent evasion of this Order. 750.8 of the Regulations states that the any license, license exception, or export
Fourth, in accordance with Part 756 of Bureau of Industry and Security’s Office control document;
the Regulations, Duenas may file an of Exporter Services may revoke any B. Carrying on negotiations
appeal of this Order with the Under Bureau of Industry and Security (‘‘BIS’’) concerning, or ordering, buying,
Secretary of Commerce for Industry and licenses previously issued pursuant to receiving, using, selling, delivering,
Security. The appeal must be filed the Act or the Regulations in which the storing, disposing of, forwarding,
within 45 days from the date of this person had an interest at the time of his/ transporting, financing, or otherwise
Order and must comply with the her conviction. servicing in any way, any transaction
provisions of Part 756 of the BIS has received notice of Madrid’s involving any item exported or to be
Regulations. conviction for violating Section 38 of exported from the United States that is
Fifth, a copy of this Order shall be the AECA, and has provided notice and subject to the Regulations, or engaging
delivered to Duenas and shall be an opportunity for Madrid to make a in any other activity subject to the
published in the Federal Register. written submission to BIS, as provided Regulations; or
Sixth, this Order is effective in Section 766.25 of the Regulations. C. Benefitting in any way from any
immediately and shall remain in effect BIS has not received a submission from transaction involving any item exported
until November 16, 2022. Madrid. or to be exported from the United States
Issued September 27, 2018. Based upon my review and that is subject to the Regulations, or
consultations with BIS’s Office of from any other activity subject to the
Karen H. Nies-Vogel,
Export Enforcement, including its Regulations.
Director, Office of Exporter Services .
Director, and the facts available to BIS, Second, no person may, directly or
[FR Doc. 2018–21652 Filed 10–3–18; 8:45 am] I have decided to deny Madrid’s export indirectly, do any of the following:
BILLING CODE P privileges under the Regulations for a A. Export or reexport to or on behalf
period of 10 years from the date of of the Denied Person any item subject to
Madrid’s conviction. I have also decided the Regulations;
DEPARTMENT OF COMMERCE to revoke all licenses issued pursuant to B. Take any action that facilitates the
Bureau of Industry and Security the Act or Regulations in which Madrid acquisition or attempted acquisition by
had an interest at the time of his the Denied Person of the ownership,
In the Matter of: Ruben Arnoldo conviction. possession, or control of any item
Madrid, Inmate Number: 20727–479, Accordingly, it is hereby ordered: subject to the Regulations that has been
FCI Beaumont Low, P.O. Box 26020, First, from the date of this Order until or will be exported from the United
Beaumont, TX 77720; Order Denying December 14, 2027, Ruben Arnoldo States, including financing or other
Export Privileges Madrid, with a last known address of support activities related to a
Inmate Number: 20727–479, FCI transaction whereby the Denied Person
On December 14, 2017, in the U.S. Beaumont Low, P.O. Box 26020, acquires or attempts to acquire such
District Court for the Southern District Beaumont, TX 77720, and when acting ownership, possession or control;
of Texas, Ruben Arnoldo Madrid for or on his behalf, his successors, C. Take any action to acquire from or
(‘‘Madrid’’) was convicted of violating to facilitate the acquisition or attempted
Section 38 of the Arms Export Control which lapsed on August 21, 2001. The President, acquisition from the Denied Person of
Act (22 U.S.C. 2778 (2012)) (‘‘AECA’’). through Executive Order 13, 222 of August 17, 2001
(3 CFR 2001 Comp. 783 (2002)), which has been
any item subject to the Regulations that
Specifically, Madrid was convicted of extended by successive Presidential Notices, the has been exported from the United
knowingly exporting and attempting to most recent being that of August 8, 2018 (83 FR 39, States;
export from the United States to Mexico 871 (Aug. 13, 2018)), continued the Regulations in D. Obtain from the Denied Person in
firearms designated as defense articles full force and effect under the International the United States any item subject to the
Emergency Economic Powers Act, 50 U.S.C. 1701,
on the United States Munitions List, et seq. (2012) (‘‘IEEPA’’). On August 13, 2018, the Regulations with knowledge or reason
without the required U.S. Department of President signed into law the John S. McCain to know that the item will be, or is
State licenses. Madrid was sentenced to National Defense Authorization Act for Fiscal Year intended to be, exported from the
51 months in prison, three years of 2019, which includes the Export Control Reform
Act of 2018, Title XVII, Subtitle B of Public Law
United States; or
supervised release, and an assessment of 115–232 (‘‘ECRA’’). While Section 1766 of ECRA E. Engage in any transaction to service
$100. repeals the provisions of the EAA (except for three any item subject to the Regulations that
Section 766.25 of the Export sections which are inapplicable here), Section 1768 has been or will be exported from the
daltland on DSKBBV9HB2PROD with NOTICES

Administration Regulations (‘‘EAR’’ or of ECRA provides, in pertinent part, that all rules
and regulations that were made or issued under the
United States and which is owned,
‘‘Regulations’’) 1 provides, in pertinent EAA, including as continued in effect pursuant to possessed or controlled by the Denied
IEEPA, and were in effect as of ECRA’s date of Person, or service any item, of whatever
1 The Regulations are currently codified in the enactment (August 13, 2018), shall continue in origin, that is owned, possessed or
Code of Federal Regulations at 15 CFR parts 730– effect according to their terms until modified,
774 (2018). The Regulations originally issued under superseded, set aside, or revoked through action
controlled by the Denied Person if such
the Export Administration Act of 1979, as amended, undertaken pursuant to the authority provided service involves the use of any item
50 U.S.C. 4601–4623 (Supp. III 2015) (‘‘the EAA’’), under ECRA. subject to the Regulations that has been

VerDate Sep<11>2014 17:43 Oct 03, 2018 Jkt 247001 PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 E:\FR\FM\04OCN1.SGM 04OCN1

50074 Federal Register / Vol. 83, No. 193 / Thursday, October 4, 2018 / Notices

or will be exported from the United ‘‘Regulations’’) 1 provides, in pertinent with a last known address of Inmate
States. For purposes of this paragraph, part, that ‘‘[t]he Director of the Office of Number: 24877–479, FCI Bastrop, P.O.
servicing means installation, Exporter Services, in consultation with Box 1010, Bastrop, TX 78602, and when
maintenance, repair, modification or the Director of the Office of Export acting for or on his behalf, his
testing. Enforcement, may deny the export successors, assigns, employees, agents
Third, after notice and opportunity for privileges of any person who has been or representatives (‘‘the Denied
comment as provided in Section 766.23 convicted of a violation of . . . section Person’’), may not, directly or indirectly,
of the Regulations, any other person, 38 of the Arms Export Control Act (22 participate in any way in any
firm, corporation, or business U.S.C. 2778).’’ 15 CFR 766.25(a). The transaction involving any commodity,
organization related to Madrid by denial of export privileges under this software or technology (hereinafter
ownership, control, position of provision may be for a period of up to collectively referred to as ‘‘item’’)
responsibility, affiliation, or other 10 years from the date of the conviction. exported or to be exported from the
connection in the conduct of trade or 15 CFR 766.25(d). In addition, Section United States that is subject to the
business may also be made subject to 750.8 of the Regulations states that the Regulations, including, but not limited
Bureau of Industry and Security’s Office to:
the provisions of this Order in order to
of Exporter Services may revoke any A. Applying for, obtaining, or using
prevent evasion of this Order.
Bureau of Industry and Security (‘‘BIS’’) any license, license exception, or export
Fourth, in accordance with Part 756 of licenses previously issued pursuant to control document;
the Regulations, Madrid may file an the Act or the Regulations in which the B. Carrying on negotiations
appeal of this Order with the Under person had an interest at the time of his/ concerning, or ordering, buying,
Secretary of Commerce for Industry and her conviction. receiving, using, selling, delivering,
Security. The appeal must be filed BIS has received notice of Madrid’s storing, disposing of, forwarding,
within 45 days from the date of this conviction for violating Section 38 of transporting, financing, or otherwise
Order and must comply with the the AECA, and has provided notice and servicing in any way, any transaction
provisions of Part 756 of the an opportunity for Madrid to make a involving any item exported or to be
Regulations. written submission to BIS, as provided exported from the United States that is
Fifth, a copy of this Order shall be in Section 766.25 of the Regulations. subject to the Regulations, or engaging
delivered to Madrid and shall be BIS has not received a submission from in any other activity subject to the
published in the Federal Register. Madrid. Regulations; or
Based upon my review and C. Benefitting in any way from any
Sixth, this Order is effective consultations with BIS’s Office of transaction involving any item exported
immediately and shall remain in effect Export Enforcement, including its or to be exported from the United States
until December 14, 2027. Director, and the facts available to BIS, that is subject to the Regulations, or
Issued: September 27, 2018. I have decided to deny Madrid’s export from any other activity subject to the
Karen H. Nies-Vogel, privileges under the Regulations for a Regulations.
Director, Office of Exporter Services.
period of 10 years from the date of Second, no person may, directly or
Madrid’s conviction. I have also decided indirectly, do any of the following:
[FR Doc. 2018–21649 Filed 10–3–18; 8:45 am]
to revoke all licenses issued pursuant to A. Export or reexport to or on behalf
BILLING CODE P the Act or Regulations in which Madrid of the Denied Person any item subject to
had an interest at the time of his the Regulations;
conviction. B. Take any action that facilitates the
DEPARTMENT OF COMMERCE Accordingly, it is hereby Ordered: acquisition or attempted acquisition by
First, from the date of this Order until the Denied Person of the ownership,
Bureau of Industry and Security November 16, 2027, Juan Diego Madrid, possession, or control of any item
In the Matter of: Juan Diego Madrid, subject to the Regulations that has been
1 The Regulations are currently codified in the
Inmate Number: 24877–479, FCI or will be exported from the United
Code of Federal Regulations at 15 CFR parts 730–
Bastrop, P.O. Box 1010, Bastrop, TX 774 (2018). The Regulations originally issued under
States, including financing or other
78602; Order Denying Export the Export Administration Act of 1979, as amended, support activities related to a
Privileges 50 U.S.C. 4601–4623 (Supp. III 2015) (‘‘the EAA’’), transaction whereby the Denied Person
which lapsed on August 21, 2001. The President, acquires or attempts to acquire such
through Executive Order 13222 of August 17, 2001
On November 16, 2017, in the U.S. (3 CFR, 2001 Comp. 783 (2002)), which has been ownership, possession or control;
District Court for the Southern District extended by successive Presidential Notices, the C. Take any action to acquire from or
of Texas, Juan Diego Madrid (‘‘Madrid’’) most recent being that of August 8, 2018 (83 FR to facilitate the acquisition or attempted
39871 (Aug. 13, 2018)), continued the Regulations acquisition from the Denied Person of
was convicted of violating Section 38 of in full force and effect under the International
the Arms Export Control Act (22 U.S.C. Emergency Economic Powers Act, 50 U.S.C. 1701,
any item subject to the Regulations that
2778 (2012)) (‘‘AECA’’). Specifically, et seq. (2012) (‘‘IEEPA’’). On August 13, 2018, the has been exported from the United
Madrid was convicted of knowingly President signed into law the John S. McCain States;
National Defense Authorization Act for Fiscal Year D. Obtain from the Denied Person in
exporting and attempting to export from 2019, which includes the Export Control Reform
the United States to Mexico firearms Act of 2018, Title XVII, Subtitle B of Public Law
the United States any item subject to the
designated as defense articles on the 115–232 (‘‘ECRA’’). While Section 1766 of ECRA Regulations with knowledge or reason
United States Munitions List, without repeals the provisions of the EAA (except for three to know that the item will be, or is
sections which are inapplicable here), Section 1768 intended to be, exported from the
daltland on DSKBBV9HB2PROD with NOTICES

the required U.S. Department of State of ECRA provides, in pertinent part, that all rules
licenses. Madrid was sentenced to 65 and regulations that were made or issued under the United States; or
EAA, including as continued in effect pursuant to E. Engage in any transaction to service
months in prison, three years of
IEEPA, and were in effect as of ECRA’s date of any item subject to the Regulations that
supervised release, and an assessment of enactment (August 13, 2018), shall continue in has been or will be exported from the
$100. effect according to their terms until modified,
superseded, set aside, or revoked through action
United States and which is owned,
Section 766.25 of the Export undertaken pursuant to the authority provided possessed or controlled by the Denied
Administration Regulations (‘‘EAR’’ or under ECRA. Person, or service any item, of whatever

VerDate Sep<11>2014 19:23 Oct 03, 2018 Jkt 247001 PO 00000 Frm 00012 Fmt 4703 Sfmt 4703 E:\FR\FM\04OCN1.SGM 04OCN1

Document Created: 2018-10-04 02:02:27
Document Modified: 2018-10-04 02:02:27

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		83 FR 50073

83 FR 50073 - In the Matter of: Ruben Arnoldo Madrid, Inmate Number: 20727-479, FCI Beaumont Low, P.O. Box 26020, Beaumont, TX 77720; Order Denying Export Privileges

DEPARTMENT OF COMMERCEBureau of Industry and Security

Federal Register Volume 83, Issue 193 (October 4, 2018)

DEPARTMENT OF COMMERCE
Bureau of Industry and Security