Action Affecting Export Privileges; Walter L. Lachman, 13083-13084 [07-1336]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security
• Industry and Security Bureau

[Federal Register Volume 72, Number 53 (Tuesday, March 20, 2007)]
[Notices]
[Pages 13083-13084]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-1336]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Action Affecting Export Privileges; Walter L. Lachman

In the Matter of: Walter L. Lachman, 1159 Old Marlboro Road, Concord, 
MA 01742, Respondent; Order Denying Export Privileges

A. Denial of Export Privileges of Walter L. Lachman

    On November 18, 2005, in the U.S. District Court in the District of 
Massachusetts, Walter L. Lachman (``Lachman'') was convicted of 
violating the Export Administration Act of 1979, as amended (currently 
codified at 50 U.S.C. app. 2401-2420 (2000)) (the ``Act'').\1\ 
Specifically, Lachman was convicted of knowingly exporting and causing 
to be exported from the United States to India, a controlled commodity, 
to wit, a component, accessory and controls for an isostatic press, 
that is, a control panel which consisted of, among other things, an 
operating control cabinet, a power/pressure control cabinet, and 
digital controllers and recorder, without having first obtained the 
required export license from the U.S. Department of Commerce.
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    \1\ 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)), as extended by the Notice of August 3, 2006 
(71 FR 44551, Aug. 7, 2006), has continued the Regulations in effect 
under the International Emergency Economic Powers Act (50 U.S.C. 
1701-1706 (2000)) (``IEEPA'').
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    In addition to the violation of the Act, Lachman was convicted of 
conspiring to violate the Act in violation of 18 U.S.C. 371 (2000) and 
aiding and abetting in violation of 18 U.S.C. 2 (2000). Lachman was 
ordered to serve 36 months probation with the first year in home 
confinement and a fine of $250,000.
    Section 11(h) of the Act and Section 766.25 of the Export 
Administration Regulations (``Regulations'') \2\ provide, in pertinent 
part, that ``[t]he Director of Exporter Services, in consultation with 
the Director of the Office of Export Enforcement, may deny export 
privileges of any person who has been convicted of a violation of * * * 
Act,'' for a period not to exceed 10 years from the date of conviction. 
15 CFR 766.25(a) and (d). In addition, Section 750.8 of the Regulations 
states that BIS's Office of Exporter Services may revoke any BIS 
licenses previously issued in which the person had an interest at the 
time of his conviction.
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    \2\ The Regulations are currently codified at 15 CFR Parts 730-
774 (2006).
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    I have received notice of Lachman's conviction for violating the 
Act, and I, following consultations with Export Enforcement, including 
the Director, Office of Export Enforcement, have decided to deny 
Lachman's export privileges under the Regulations for a period of 10 
years from the date of his conviction. Due to exceptional 
circumstances, this Order is being issued without prior notice or 
opportunity to respond.
    Accordingly, it is hereby
    Ordered
    I. Until November 18, 2015, Walter L. Lachman, 1159 Old Marlboro 
Road, Concord, MA 01742, his successors or assigns, and when acting for 
or on behalf of Lachman, his officers, representatives, agents, or 
employees (``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, 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. Benefitting in any way from any transaction involving any item 
exported or to be exported from the United States

[[Page 13084]]

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 acquistion 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 Regulatiosn 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 other person, firm, corporation, 
or business organization related to Lachman by affiliation, ownership, 
control, or position of responsibility in the conduct of trade or 
related services may also be made 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 November 18, 2015.
    VI. In accordance with Part 756 of the Regulations, Lachman 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.
    VII. A copy of this Order shall be delivered to Lachman. This Order 
shall be published in the Federal Register.

    Dated: March 12, 2007.
Eileen M. Albanese,
Director, Office of Exporter Services.
[FR Doc. 07-1336 Filed 3-19-07; 8:45 am]
BILLING CODE 3510-DT-M