Action Affecting Export Privileges; ERIC COHEN, 39844-39845 [2011-16992]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 76, Number 130 (Thursday, July 7, 2011)]
[Notices]
[Pages 39844-39845]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-16992]



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DEPARTMENT OF COMMERCE



Bureau of Industry and Security




Action Affecting Export Privileges; ERIC COHEN



10-BIS-0005



    Eric Cohen, 1631 East 10th Street, Brooklyn, NY 11223, Respondent.



Order Relating to Eric Cohen



    The Bureau of Industry and Security, U.S. Department of Commerce 

(``BIS''), has initiated an administrative proceeding against Eric 

Cohen (``Cohen'') pursuant to Section 766.3 of the Export 

Administration Regulations (the ``Regulations'') \1\ and Section 13(c) 

of the Export Administration Act of 1979, as amended (the ``Act''),\2\ 

through the issuance of a Charging Letter to Cohen that alleges, as 

amended, that Cohen committed two violations of the Regulations. 

Specifically, these charges are:

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    \1\ The Regulations are currently codified in the Code of 

Federal Regulations at 15 CFR parts 730-774 (2011). The charged 

violations occurred in 2005. The Regulations governing the 

violations at issue are found in the 2005 version of the Code of 

Federal Regulations (15 CFR parts 730-774 (2005)). The 2011 

Regulations set forth the procedures that apply to this matter.

    \2\ 50 U.S.C. app. Sec. Sec.  2401-2420 (2000). Since August 21, 

2001, the Act has been in lapse and the President, through Executive 

Order 13,222 of August 17, 2001 (3 CFR, 2001 Comp. 783 (2002)), as 

extended most recently by the Notice of August 17, 2010 (75 FR 

50,681 (Aug. 16, 2010)), has continued the Regulations in effect 

under the International Emergency Economic Powers Act (50 U.S.C. 

1701, et seq.).

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Charge 1 15 CFR 764.2(h)--Evasion



    Between on or about May 1, 2005, and continuing through and 

including on or about June 6, 2005, Cohen engaged in a transaction 

or took actions with the intent to evade the Regulations in 

connection with the export of thermal imaging cameras, items subject 

to the Regulations, classified under Export Control Classification 

Number (``ECCN'') 6A003.b.4, and controlled for reasons of Regional 

Stability, from the United States to Komeco Co., Ltd., in South 

Korea, without the required Department of Commerce license. At all 

pertinent times, Cohen was employed as an employee and/or manager of 

SZY Holdings LLC, of Brooklyn, New York, also known as (``a/k/a'') 

Ever Dixie USA EMS Supply Company, a/k/a Ever Dixie EMS, a/k/a 

Everready First Aid & Medical Supplies, and a/k/a Everready First 

Aid and Medical Supply Corp (``Ever Dixie''). In negotiating and/or 

arranging Ever Dix[i]e's acquisition of these controlled items from 

a U.S. company, Cohen was questioned about the ultimate destination 

of the items and concealed the intended export and destination of 

the items by falsely informing the U.S. company that it was selling 

the items domestically to fire departments in New York State and 

providing names and addresses for two fire departments in New York 

State, when, in fact, the items were intended for export to South 

Korea. Cohen facilitated Ever Dixie's sale of the items, valued at 

approximately $99,000, to the South Korean company and then arranged 

for a freight forwarder to ship the items from the United States to 

South Korea, without the export license required by Section 742.6 of 

the Regulations. In so doing, Cohen committed one violation of 

Section 764.2(h) of the Regulations.



Charge 3 15 CFR 764.2(b)--Causing, Aiding or Abetting a Violation



    Between on or about May 1, 2005 through and including on or 

about June 6, 2005, Cohen engaged in conduct prohibited by the 

Regulations by causing, aiding and/or abetting the export of thermal 

imaging cameras, items subject to the Regulations, classified under 

ECCN 6A003.b.4 and controlled for reasons of Regional Stability, and 

valued at approximately $99,000, from the United States to Komeco 

Co., Ltd., in South Korea, without the Department of Commerce 

license required by Section 742.6 of the Regulations. Cohen, at all 

pertinent times, was employed as an employee and/or manager of SZY 

Holdings LLC, of Brooklyn, New York, also known as (``a/k/a'') Ever 

Dixie USA EMS Supply Company, a/k/a Ever Dixie EMS, a/k/a Everready 

First Aid & Medical Supplies, and a/k/a Everready First Aid and 

Medical Supply Corp (``Ever Dixie''). Cohen negotiated and/or 

arranged Ever Dix[i]e's acquisition of these controlled items from a 

U.S. company by giving the U.S. company false information regarding 

the ultimate destination and purchasers or end users of the items. 

In so doing, Cohen committed one violation of Section 764.2(b) of 

the Regulations.\3\



    \3\ On May 5, 2011, BIS unilaterally withdrew Charge 2 

(Conspiracy).

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    Whereas, BIS and Cohen have entered into a Settlement Agreement 

pursuant to Section 766.18(b) of the Regulations, whereby they agreed 

to settle this matter in accordance with the terms and conditions set 

forth therein; and

    Whereas, I have approved of the terms of such Settlement Agreement;

    It is therefore ordered:

    First, that a civil penalty of $15,000 is assessed against Cohen. 

Cohen shall pay $5,000 to the U.S. Department of Commerce not later 

than August 15, 2011. Thereafter, Cohen shall pay $5,000 to the U.S. 

Department of Commerce not later than October 15, 2011; and $5,000 not 

later than December 15, 2011. Payment shall be made in the manner 

specified in the attached instructions.

    Second, that, pursuant to the Debt Collection Act of 1982, as 

amended (31 U.S.C. 3701-3720E (2000)), the civil penalty owed under 

this Order accrues interest as more fully described in the attached 

Notice, and, if payment is not made by the due dates specified herein, 

Cohen will be assessed, in addition to the full amount of the civil 

penalty and interest, a penalty charge and an administrative charge, as 

more fully described in the attached Notice.

    Third, that the full and timely payment of the civil penalty in 

accordance with the payment schedule set forth above is hereby made a 

condition to the granting, restoration, or continuing validity of any 

export license, license exception, permission, or privilege granted, or 

to be granted, to Cohen.

    Fourth, Cohen agrees not to take any action or to make or permit to 

be made any public statement denying, directly or indirectly, any 

allegations in the



[[Page 39845]]



Charging Letter, this Settlement Agreement or the Order. Nothing in 

this paragraph affects Cohen's testimonial obligations, or right to 

take legal or factual positions in litigation or other legal 

proceedings in which the U.S. Department of Commerce is not a party.

    Fifth, for a period of five years from the date of this Order, Eric 

Cohen, 1631 East 10th Street, Brooklyn, NY 11223, and when acting on 

his behalf, his assigns, representatives, or agents (hereinafter 

collectively referred to as ``Denied Person'') may not participate, 

directly or indirectly, 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 and listed on the Commerce Control List, set 

forth in Supplement No. 1 to 15 CFR part 774, or in any other activity 

subject to the Regulations involving an item listed on the Commerce 

Control List, including, but not limited to:

    A. Applying for, obtaining, or using any license, License 

Exception, or export control document that involves and item that is 

subject to the Regulations and listed on the Commerce Control List;

    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 and listed on the 

Commerce Control List, or in any other activity subject to the 

Regulations that involves an item listed on the Commerce Control List; 

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 and listed on the Commerce Control List, or in any 

other activity subject to the Regulations that involves an item listed 

on the Commerce Control List.

    Sixth, that 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 and listed on the Commerce Control List;

    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 and listed on the 

Commerce Control List 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 and listed on the Commerce Control List that has been 

exported from the United States;

    D. Obtain from the Denied Person in the United States any item 

subject to the Regulations and listed on the Commerce Control List 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 and listed on the Commerce Control List 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 

and listed on the Commerce Control List that has been or will be 

exported from the United States. For purposes of this paragraph, 

servicing means installation, maintenance, repair, modification or 

testing.

    Seventh, that, after notice and opportunity for comment as provided 

in Section 766.23 of the Regulations, any person, firm, corporation, or 

business organization related to Cohen 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 the 

Order.

    Eighth, that the Charging Letter, the Settlement Agreement, and 

this Order shall be made available to the public.

    Ninth, that this Order shall be served on Cohen and on BIS, and 

shall be published in the Federal Register.

    This Order, which constitutes the final agency action in this 

matter, is effective immediately.



    Issued this 30th day of June 2011.

David W. Mills,

Assistant Secretary of Commerce for Export Enforcement.

[FR Doc. 2011-16992 Filed 7-6-11; 8:45 am]

BILLING CODE 3510-DT-P