Debarment Involving Henry L. Lavery III and Security Assistance International, Inc., 7811-7812 [E7-2831]

Agencies

• DEPARTMENT OF STATE

[Federal Register Volume 72, Number 33 (Tuesday, February 20, 2007)]
[Notices]
[Pages 7811-7812]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-2831]


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DEPARTMENT OF STATE

[Public Notice 5698]


Debarment Involving Henry L. Lavery III and Security Assistance 
International, Inc.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Department of State has 
imposed an administrative debarment against Henry L. Lavery III and 
Security Assistance International, Inc. pursuant to a December 12, 2006 
Consent Agreement and other authority based upon section 127.7(a) and 
(b)(2) of the International Traffic in Arms Regulations (ITAR) (22 CFR 
sections 120 to 130).

EFFECTIVE DATE: December 12, 2006.

FOR FURTHER INFORMATION CONTACT: David Trimble, Director, Office of 
Defense Trade Controls Compliance, Bureau of Political-Military 
Affairs, Department of State (202) 663-2700.

SUPPLEMENTARY INFORMATION: Section 127.7 of the ITAR authorizes the 
Assistant Secretary of State for Political-Military Affairs to debar 
any person who has been found pursuant to Section 128 of the ITAR to 
have committed a violation of the Arms Export Control Act (AECA) or the 
ITAR of such character as to provide a reasonable basis for the Office 
of Defense Trade Controls Compliance to believe that the violator 
cannot be relied upon to comply with the AECA or ITAR in the future. 
Such debarment prohibits the subject from participating directly or 
indirectly in the export of defense articles or defense services for 
which a license or approval is required by the ITAR.
    Debarred persons are generally ineligible to participate in 
activity regulated under the ITAR (see e.g., sections 120.1(c) and (d), 
126.7, 127.1(c), and 127.11(a)). The Department of State will not 
consider applications for licenses or requests for approvals that 
involve any debarred person.
    Henry L. Lavery III doing business as Security Assistance 
International, Inc., (SAI) was under a Consent Agreement dated June 3, 
1999, as a result of a Proposed Charging Letter alleging numerous ITAR 
violations between April 1993 and April 1999. Mr. Lavery and his 
company, SAI, were cited for submitting export applications on behalf 
of clients containing falsified applicant signatures; failing to 
maintain records as required under the ITAR; obtaining export licenses 
for firms whose registrations expired or who were never registered; and 
brokering without being registered and without authorization. Under the 
June 3, 1999, Consent Agreement, Mr. Lavery was required to pay a 
$10,000 penalty, register as a broker, reconstruct export records, 
cease participating directly or indirectly in exports of defense 
articles and/or defense services and implement a compliance program 
outlining SAI's operating procedures and internal controls for 
adherence to the ITAR. On or about August 1, 2001, Mr. Lavery completed 
the requirements of the Consent Agreement and his export privileges 
were reinstated by the Department.
    On July 11, 2005, the Office of Defense Trade Controls Compliance 
conducted a review of SAI's ITAR

[[Page 7812]]

compliance program. The review determined that many of the practices, 
which led to the June 3, 1999, Consent Agreement, had not been 
corrected. A July 14, 2003 license application for the temporary export 
of Night Vision equipment was submitted by Mr. Lavery on behalf of an 
unregistered company; Mr. Lavery was unable to provide complete records 
and/or was unable to produce records required to be maintained by the 
ITAR for his current authorized exports; and Mr. Lavery violated a 
license proviso requiring proof of export be provided to the 
Department.
    On December 12, 2006, as the result of these continuing violations, 
the Department and Mr. Lavery entered into a new Consent Agreement, 
which debarred Mr. Lavery and SAI until December 12, 2007. 
Reinstatement after December 12, 2007 is not automatic but contingent 
on full compliance with the terms of the December 12, 2006 Consent 
Agreement and evidence that the underlying problems that gave rise to 
the violations have been corrected. At the end of the debarment period, 
Mr. Lavery and SAI may apply for reinstatement. Until licensing 
privileges are reinstated, Mr. Lavery and SAI will remain debarred.
    This notice is provided to make the public aware that the persons 
listed above are prohibited from participating directly or indirectly 
in any brokering activities and in any export from or temporary import 
into the United States of defense articles, related technical data, or 
defense services in all situations covered by the ITAR.
    Exceptions may be made to this denial policy on a case-by-case 
basis at the discretion of the Directorate of Defense Trade Controls. 
However, such an exception would be granted only after a full review of 
all circumstances, paying particular attention to the following 
factors: Whether an exception is warranted by overriding U.S. foreign 
policy or national security interests; whether an exception would 
further law enforcement concerns that are consistent with foreign 
policy or national security interests of the United States; or whether 
other compelling circumstances exist that are consistent with the 
foreign policy or national security interests of the United States, and 
law enforcement concerns.
    This notice involves a foreign affairs function of the United 
States encompassed within the meaning of the military and foreign 
affairs exclusion of the Administrative Procedures Act. Because the 
exercise of this foreign affairs function is highly discretionary, it 
is excluded from review under the Administrative Procedures Act.

    Dated: January 29, 2007.
Ambassador Stephen Mull,
Acting Assistant Secretary for Political-Military Affairs.
 [FR Doc. E7-2831 Filed 2-16-07; 8:45 am]
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