Commerce Dept Notice on Alleged Export Violations by Thomas C. Butler

[Federal Register: September 14, 2006 (Volume 71, Number 178)]
[Notices]               
[Page 54265-54266]
                      

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

 
Action Affecting Export Privileges; In the Matter of: Thomas 
Campbell Butler, 4611 10th Street, Lubbock, TX 79416, Respondent; Order

    The Bureau of Industry and Security, U.S. Department of Commerce 
(``BIS'') has notified Thomas Campbell Butler (``Butler'') of its 
intention to initiate an administrative proceeding against Butler 
pursuant to Section 766.3 of the Export Administration Regulations 
(currently codified at 15 CFR Parts 730-774 (2006)) (``Regulations'') 
\1\ and Section 13(c) of the Export Administration Act of 1979, as 
amended (50 U.S.C. app. 2401-2420 (2000)) (``Act''),\2\ by issuing a 
proposed charging letter to Butler that alleged that Butler committed 
four violations of the Regulations. Specifically, the charges are:
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    \1\ The violations charged occurred in 2002. The Regulations 
governing the violations at issue are found in the 2002 version of 
the Code of Federal Regulations (15 CFR. Parts 730-774 (2002)). The 
2006 Regulations establish the procedures that apply to this matter.
    \2\ 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 3, 2006 
(71 FR 44551 (August 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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    1. One violation of 15 CFR 764.2(a)--Engaging in Unauthorized 
Export to Tanzania: On or around September 9, 2002, Butler engaged in 
conduct prohibited by the Regulations when he exported the human 
pathogen Yersinia pestis is subject to the Regulations and classified 
under Export Control Classification Number (ECCN) 1C351. Section 742.2 
or the Regulations requires a Department of Commerce license to be 
obtained for exports of Yersinia pestis to Tanzania.
    2. One violation of 15 CFR 743.2(e)--Transferring, Forwarding and/
or Disposing of Items with Knowledge that a Violation Would Occur: On 
or around September 9, 2002, Butler transferred, forwarded, and/or 
disposed of items subject to the Regulations with knowledge that a 
violation of the Regulations was about to occur in connection with the 
items. Specifically, Butler transferred, forwarded, and/or disposed of 
the human pathogen Yersinia pestis (Plague) to Tanzania, as described 
in Charge One, knowing that the item would be exported without the 
required Department of Commerce license.
    3. One violation of 15 CFR 764.2(h)--Taking an Action with Intent 
to Evade the Provisions of the Act or Regulations: On or around 
September 9, 2002, Butler took action with intent to evade the 
provisions of the Regulations in connection with the export described 
in Charge One above. Specifically, Butler described the human pathogen 
Yersinia pestis (Plague) as ``Laboratory Materials'' on the waybill, 
undervalued the shipment, neglected to fill out the section of the 
waybill regarding Shipper's Export Declaration requirements, and signed 
his name under a statement claiming that the commodities in question 
were being shipped in accordance with the Regulations. He did this to 
disguise the fact that the export required a license.
    4. One violation of 15 CFR 764.2(h)--Taking an Action with Intent 
to Evade the Provisions of the Act or Regulations: On or around 
September 9, 2002, Butler took action with intent to evade the 
provisions of the Regulations in connection with the export described 
in Charge One above. Specifically, Butler failed to file a Shipper's 
Export Declaration for the export of the human pathogen Yersinia pestis 
(Plague). He did this to disguise the fact that the export required a 
license.
    Whereas, BIS and Butler have entered into a Settlement Agreement 
pursuant to Section 766.18(a) 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 the terms of such Settlement Agreement; It 
is therefore ordered:
    First, that a civil penalty of $37,400 is assessed against Butler, 
which shall be paid to the U.S. Department of Commerce no later than 30 
days from the date of entry of this Order. 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. Sec. Sec.  3701-3702E (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 date specified 
herein, Butler will be assessed, in addition to

[[Page 54266]]

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 timely payment of the civil penalty 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 Butler. Accordingly, if Butler 
should fail to pay the civil penalty in a timely manner, the 
undersigned may enter an Order denying all of Butler's export 
privileges under the Regulations for a period of one year from the date 
of entry of this Order.
    Fourth, that for a period of 10 years from the date of entry of 
this Order, Thomas Campbell Butler, 4611 10th Street, Lubbock, Texas 
79416, and, when acting on his behalf, his 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. Benefiting 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.
    Fifth, 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;
    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, or 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.
    Sixth, 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 Butler by affiliation, worship, 
control, or position of responsibility in the conduct of trade or 
related services may also be made subject to the provisions of the 
Order.
    Seventh, that 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.
    Eighth, that the proposed charging letter, the Settlement 
Agreement, and this Order shall be made available to the public.
    Ninth, that this Order shall be served on the Denied Person and on 
BIS, and shall be published in Federal Register.
    This Order, which constitutes the final agency action in this 
matter, is effective immediately.

    Entered this 1st day of September 2006.
Darryl W. Jackson,
Assistant Secretary of Commerce for Export Enforcement.
[FR Doc. 06-7622 Filed 9-13-06; 8:45 am]

BILLING CODE 3510-DT-M