In the Matter of: Dmitrii Karpenko, a/k/a Simon Fox, Pavlova St 11-75, Nevinnomyssk, Stavropol Region, Russia; Order Denying Export Privileges, 43217-43218 [2017-19527]

Agencies

• DEPARTMENT OF COMMERCE
• Bureau of Industry and Security

[Federal Register Volume 82, Number 177 (Thursday, September 14, 2017)]
[Notices]
[Pages 43217-43218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-19527]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


In the Matter of: Dmitrii Karpenko, a/k/a Simon Fox, Pavlova St 
11-75, Nevinnomyssk, Stavropol Region, Russia; Order Denying Export 
Privileges

    On April 28, 2017, in the U.S. District Court for the Eastern 
District of New York, Dmitrii Karpenko, a/k/a Simon Fox (``Karpenko'') 
was convicted of violating the International Emergency Economic Powers 
Act (50 U.S.C. 1701, et seq. (2012)) (``IEEPA''). Specifically, 
Karpenko was convicted of violating Section 206 of IEEPA, 50 U.S.C. 
1705, by willfully conspiring with others to export from the United 
States to Russia microelectronics items controlled pursuant to the 
Export Administration Regulations (``EAR'' or ``Regulations''),\1\ and 
under the jurisdiction of the Bureau of Industry and Security 
(``BIS''), U.S. Department of Commerce (``DOC''), without the required 
BIS/DOC license. Karpenko was sentenced to time served and an 
assessment of $100.00.
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    \1\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2017). The Regulations 
issued pursuant to the Export Administration Act (50 U.S.C. 4601-
4623 (Supp. III 2015) (available at https://uscode.house.gov)) 
(``EAA'' or ``the Act''). 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)), which has been extended by 
successive Presidential Notices, the most recent being that of 
August 15, 2017 (82 FR 39005 (Aug. 16, 2017)), has continued the 
Regulations in effect under the International Emergency Economic 
Powers Act (50 U.S.C. 1701, et seq. (2012)).
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    Section 766.25 of the Regulations 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 EAA [Export Administration Act], 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. 4610(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. 
4610(h). In addition, Section 750.8 of the Regulations states that 
BIS's Office of Exporter Services may revoke any BIS licenses 
previously issued pursuant to the Export Administration Act (``EAA'' or 
``the Act'') or the Regulations in which the person had an interest at 
the time of his conviction.
    BIS has received notice of Karpenko's conviction for violating 
IEEPA, and has provided notice and an opportunity for Karpenko to make 
a written submission to BIS, as provided in Section 766.25 of the 
Regulations. BIS has not received a submission from Karpenko.
    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 Karpenko's export privileges under the Regulations 
for a period of five (5) years from the date of Karpenko's conviction. 
I have also decided to revoke all licenses issued pursuant to the Act 
or Regulations in which Karpenko had an interest at the time of his 
conviction.
    Accordingly, it is hereby ordered:
    First, from the date of this Order until April 28, 2022, Dmitrii 
Karpenko, a/k/a Simon Fox, with a last known address of Pavlova Street 
11-75, Nevinnomyssk, Stavropol Region, Russia, and when acting for or 
on his behalf, his successors, assigns, employees, agents or 
representatives (``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 engaging 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 from any other activity subject to the Regulations.
    Second, 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,

[[Page 43218]]

servicing means installation, maintenance, repair, modification or 
testing.
    Third, 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 Karpenko by ownership, control, 
position of responsibility, affiliation, or other connection in the 
conduct of trade or business may also be made subject to the provisions 
of this Order in order to prevent evasion of this Order.
    Fourth, in accordance with Part 756 of the Regulations, Karpenko 
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.
    Fifth, a copy of this Order shall be delivered to Karpenko and 
shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until April 28, 2022.

    Dated: September 8, 2017.
Karen H. Nies-Vogel,
Director, Office of Exporter Services.
[FR Doc. 2017-19527 Filed 9-13-17; 8:45 am]
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