Action Affecting Export Privileges; FADI BOUTROS, Also Known as Fadi E. Sitto, Fadi Jirjis, and Fred Boutros; Order Denying Permission To Apply for or Use Export Licenses

[Federal Register Volume 64, Number 155 (Thursday, August 12, 1999)]
[Notices]
[Pages 43981-43982]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20911]


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DEPARTMENT OF COMMERCE

Bureau of Export Administration


Action Affecting Export Privileges; FADI BOUTROS, Also Known as 
Fadi E. Sitto, Fadi Jirjis, and Fred Boutros; Order Denying Permission 
To Apply for or Use Export Licenses

    On April 29, 1999, Fadi Boutros, also known as Fadi E. Sitto, Fadi 
Jirjis, and Fred Boutros (Boutros), was convicted in the United States 
District Court for the District of Connecticut on one court of 
violating Section 38 of the Arms Export Control Act (currently codified 
at 22 U.S.C.A. Sec. 2778 (1990 & Supp. 1999)) (AECA) and one count of 
violating the International Emergency Economic Powers Act (50 U.S.C.A. 
Secs. 1701-1706 (1991 & Supp. 1999)) (IEEPA). Specifically, Boutros was 
convicted of willfully attempting to export defense articles on the 
U.S. Munitions List from the United States to Iraq via Jordan, namely, 
ITT Aviator Night Vision GEN II AN/AVS 6 systems, without first having 
obtained the required export license from the United States Department 
of State, and of willfully dealing and attempting to deal in defense 
articles on the U.S. Munitions List intended for exportation to Iraq 
via

[[Page 43982]]

Jordan, specifically, ITT Aviator Night Vision GEN III AN/AVS 6 
systems, and engaging and attempting to engage in activity intended to 
promote such dealing, without first having obtained the authorization 
of the United States Department of Treasury, in violation of the 
embargo against Iraq contained in the Office of Foreign Assets 
Control's Iraqi Sanctions Regulations.
    Section 11(h) of the Export Administration Act of 1979, as amended 
(currently codified at 50 U.S.C.A. app. Secs. 2401-2420 (1991 & Supp. 
1999)) (the Act),\1\ provides that, at the discretion of the Secretary 
of Commerce,\2\ no person convicted of violating the AECA or IEEPA, or 
certain other provisions of the United States Code, shall be eligible 
to apply for or use any license, including any License Exception, 
issued pursuant to, or provided by, the Act or the Export 
Administration Regulations (currently codified at 15 CFR Parts 730-774 
(1999)) (the Regulations), for a period of up to 10 years from the date 
of the conviction. In addition, any license issued pursuant to the Act 
in which such a person had any interest at the time of conviction may 
be revoked.
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    \1\ The Act expired on August 20, 1994. Executive Order 12924 (3 
CFR, 1994 Comp. 917 (1995)), extended by Presidential Notices of 
August 15, 1995 (3 CFR, 1995 Comp. 501 (1996)), August 14, 1996 (3 
CFR, 1996 Comp. 298 (1997)), August 13, 1997 (3 CFR 1997 Comp. 306 
(1998)), and August 13, 1998 (3 CFR, 1998 Comp. 294 (1999)), 
continued the Export Administration Regulations in effect under 
IEEPA.
    \2\ Pursuant to appropriate delegations of authority that are 
reflected in the Regulations, the Director, Office of Exporter 
Services, in consultation with the Director, Office of Export 
Enforcement, exercises the authority granted to the Secretary by 
Section 11(h) of the Act.
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    Pursuant to Secs. 766.25 and 750.8(a) of the Regulations, upon 
notification that a person has been convicted of violating the AECA or 
IEEPA, the Director, Office of Exporter Services, in consultation with 
the Director, Office of Export Enforcement, shall determine whether to 
deny that person permission to apply for or use any license, including 
any License Exception, issued pursuant to, or provided by, the Act and 
the Regulations, and shall also determine whether to revoke any license 
previously issued to such a person.
    Having received notice of Boutros's conviction for violating the 
AECA and IEEPA, and following consultations with the Director, Office 
of Export Enforcement, I have decided to deny Boutros permission to 
apply for or use any license, including any License Exception, issued 
pursuant to, or provided by, the Act and the Regulations, for a period 
of 10 years from the date of his conviction. The 10-year period ends on 
April 29, 2009. I have also decided to revoke all licenses issued 
pursuant to the Act in which Boutros had an interest at the time of his 
conviction.
    Accordingly, it is hereby Ordered
    I. Until April 29, 2009, Fadi Boutros, also known as Fadi E. Sitto, 
Fadi Jirjis, and Fred Boutros, currently incarcerated at: Federal 
Correction Institute, P.O. Box 9999, Milan, Michigan 48160, and with an 
address at: 1491 Fueta Heights Lane, El Cajon, California 92019, 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. Benefiting 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.
    II. 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.
    III. After notice and opportunity for comment as provided in 
Section 766.23 of the Regulations, any person, firm, corporation, or 
business organization related to Boutros by affiliation, ownership, 
control, or position of responsibility in the conduct of trade or 
related services may also be subject to the provisions of this Order.
    IV. This Order does not prohibit any export, reexport, or other 
transaction subject to the Regulations where the only items involved 
that are subject to the Regulations are the foreign-produced direct 
product of U.S.-origin technology.
    V. This Order is effective immediately and shall remain in effect 
until April 29, 2009.
    VI. A copy of this Order shall be delivered to Boutros. This Order 
shall be published in the Federal Register.

    Dated: August 3, 1999.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 99-20911 Filed 8-11-99; 8:45 am]
BILLING CODE 3510-DT-M