In the Matter of: Juan Ricardo Puente-Paez, Inmate Number #05086-379, FCI McDowell, Federal Corrections Institution, Federal Satellite Low, P.O. Box 1009, Welch, WV 24801, 37788-37789 [2013-14986]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 78, Number 121 (Monday, June 24, 2013)]
[Notices]
[Pages 37788-37789]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-14986]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Juan Ricardo Puente-Paez, Inmate Number 
05086-379, FCI McDowell, Federal Corrections Institution, 
Federal Satellite Low, P.O. Box 1009, Welch, WV 24801

Order Denying Export Privileges

    On May 29, 2012, in the U.S. District Court, Southern District of 
Texas, Juan Ricardo Puente-Paez (``Puente-Paez'') was convicted of 
violating Section 38 of the Arms Export Control Act (22 U.S.C. 2778 
(2006 & Supp. IV 2010)) (``AECA''). Specifically, Puente-Paez was 
convicted of knowingly and willfully exporting, attempting to export 
and causing to be exported from the United States to Mexico four 
military spec Interceptor body armor vests, which were designated as 
defense articles on the United States Munitions List, without having 
first obtained from the Department of State a license for such export 
or written authorization for such export. Puente-Paez was sentenced to 
95 months of imprisonment and three years of supervised release, and 
fined a $100 assessment. Puente-Paez is also listed on the U.S. 
Department of State Debarred List.
    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 the Export 
Administration Act (``EAA''), the EAR, or any order, license or 
authorization issued thereunder; any regulation, license, or order 
issued under the International Emergency Economic Powers Act (50 U.S.C. 
1701-1706); 18 U.S.C. 793, 794 or 798; section 4(b) of the Internal 
Security Act of 1950 (50 U.S.C. 783(b)), or section 38 of the Arms 
Export Control Act (22 U.S.C. 2778).'' 15 CFR 766.25(a); see also 
Section 11(h) of the EAA, 50 U.S.C. app. Sec.  2410(h). 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); see also 50 
U.S.C. app. Sec.  2410(h). 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 in which the person had an 
interest in at the time of his conviction.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2013). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. app. 
Sec. Sec.  2401-2420 (2000)) (``EAA''). Since August 21, 2001, the 
EAA has been in lapse and the President, through Executive Order 
13222 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 15, 2012 (77 Fed. Reg. 49699 (August 16, 
2012)), has continued the Regulations in effect under the 
International Emergency Economic Powers Act (50 U.S.C. 1701, et seq. 
(2006 & Supp. IV 2010)).
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    I have received notice of Puente-Paez's conviction for violating 
the AECA, and have provided notice and an opportunity for Puente-Paez 
to make a written submission to BIS, as provided in Section 766.25 of 
the Regulations. I have not received a submission from Puente-Paez. 
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 Puente-Paez's export privileges under the 
Regulations for a period of 10 years from the date of Puente-Paez's 
conviction. I have also decided to revoke all licenses issued pursuant 
to the Act or Regulations in which Puente-Paez had an interest at the 
time of his conviction.
    Accordingly, it is hereby

Ordered

    I. Until May 29, 2022, Juan Ricardo Puente-Paez, with a last known 
address at: Inmate Number 05086-379, FCI McDowell, Federal 
Corrections Institution, Federal Satellite Low, P.O. Box 1009, Welch, 
WV 24801, and when acting for or on behalf of Puente-Paez, his 
representatives, assigns, agents or employees (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 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 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 other person,

[[Page 37789]]

firm, corporation, or business organization related to Puente-Paez 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 if necessary to prevent evasion of the 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 May 29, 2022.
    VI. In accordance with Part 756 of the Regulations, Puente-Paez 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 the Puente-Paez. 
This Order shall be published in the Federal Register.

    Issued this 17th day of June 2013.
Bernard Kritzer,
Director, Office of Exporter Services.
[FR Doc. 2013-14986 Filed 6-21-13; 8:45 am]
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