[Federal Register Volume 66, Number 178 (Thursday, September 13, 2001)]
[Notices]
[Pages 47630-47632]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-22948]
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DEPARTMENT OF COMMERCE
Bureau of Export Administration
Action Affecting Export Privileges; Infocom Corporation, Inc.,
Tetrabal Corporation, Inc., Bayan Medhat Elashi, Ghassan Elashi, Basman
Medhat Elashi, Ihsan Medhat, Ishan Medhat ``Sammy'' Elashi, Hazim
Elashi, Fadwa Elafrangi
In the Matter of: Infocom Corporation, Inc., 630 International
Parkway, Suite 100, Richardson, Texas 75081; Respondent and Tetrabal
Corporation, Inc., 316 Candlewood Place, Richardson, Texas 75081;
Bayan Medhat Elashi, 1810 Auburn, Richardson, Texas 75081; Ghassan
Elashi, 304 Town House Lane, Richardson, Texas 75081; Basman Medhat
Elashi, 1506 Willow Crest Drive, Richardson, Texas 75081; Ihsan
Medhat ``Sammy'' Elashi, 316 Candlewood Place, Richardson, Texas
75081; Hazim Elashi, 937 Stone Trail Drive, Plano, Texas 75023;
Fadwa Elafrangi, 306 Town House Lane, Richardson, Texas 75081,
Related persons.
Order Temporarily Denying Export Privileges
Through the Office of Export Enforcement (``OEE''), the Bureau of
Export Administration (``BXA''), U.S. Department of Commerce, has asked
me to issue an order pursuant to Sec. 766.24 of the Export
Administration Regulations (currently codified at 15 CFR parts 730-774
(2001)) (``EAR'' or ``Regulations'') \1\, temporarily denying all U.S.
export privileges to Infocom Corporation, Inc., 630 International
Parkway, Suite 100, Richardson, Texas 75081 (``Infocom''). BXA has also
asked that, pursuant to Secs. 766.24(c) and 766.23 of the regulations,
the order apply to the following persons who are related to Infocom:
\1\ The Regulations were issued pursuant to the Export
Administration Act of 1979 (``Act''), 50 U.S.C. app. secs. 2401-2420
(1994 & Supp. IV 1998), as reauthorized by Act of November 13, 2000,
Pub. L. 106-508, 114 Stat. 2360. The Act lapsed on August 20, 2001.
Pursuant to the International Emergency Economic Powers Act (50
U.S.C. 1701-1706 (1994 & Supp. IV 1998)), the President, through
Executive Order 13222 of August 17, 2001 (66 FR 44025 (August 22,
2001)), has continued the Regulations in force.
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Tetrabal Corporation, Inc., 316 Candlewood Place, Richardson, Texas
75081
Bayan Medhat Elashi, 1810 Auburn, Richardson, Texas 75081
Ghassan Elashi, 304 Town House Lane, Richardson, Texas 75081
Basman Medhat Elashi, 1506 Willow Crest Drive, Richardson, Texas
75081
Ihsan Medhat ``Sammy'' Elashi, 316 Candlewood Place, Richardson,
Texas 75081
Hazin Elashi, 937 Stone Trail Drive, Plano, Texas 75023
[[Page 47631]]
Fadwa Elafrangi, 306 Town House Lane, Richardson, Texas 75081
In its request, BXA states that, based upon an investigation by
OEE, it believes that Infocom has violated the Regulations by shipping
and attempting to ship goods to Libya and Syria without obtaining the
necessary authorizations from BXA. Specifically, BXA has determined
that Infocom made three shipments of computer equipment without the
required export licenses from BXA. These were:
(1) A 1997 shipment of computer accessories to Malta that was,
immediately upon its arrival in Malta, shipped to Libya. Infocom had
dealt with a representative of the ultimate end-user in Libya in a
manner that suggests that Infocom was aware that the goods were
ultimately intended for that country. Infocom did not have the
appropriate U.S. Government authorization to ship the goods to Libya.
Additionally, Infocom did not disclose the identity of the ultimate
consignee on the shipper's export declaration it filed for the
shipment, listing instead a forwarder in Malta.
(2) An April 1999 shipment of one computer as well as memory chips
and central processing units (``CPUs'') to Syria. Infocom made this
shipment directly from Texas to Syria. The Regulations required Infocom
to obtain an export license from BXA to make the shipment to Syria
because the shipment contained items that were controlled for anti-
terrorism reasons. Infocom did not receive an export license for this
transaction.
(3) An August 2000 shipment of a computer to Syria without the
required export license from BXA. In addition, Infocom undervalued the
goods in this shipment on the export control documents.
Additionally, in June 1999, Infocom made an attempted shipment of
CPUs to Syria. It used the same freight forwarder as the April 1999
shipment above. When the freight forwarder questioned whether the
shipment required an export license, Infocom's Logistics Manager,
Basman Elashi, stated that he had checked, and that it did not. Infocom
did not complete the shipment through this freight forwarder. In fact,
the shipment would have required a license from BXA.
In addition to these transactions, OEE's investigation also
establishes that Infocom offered price quotations to other customers in
Syria. It also suggests that Infocom has many contacts in third
countries through whom it could send goods to Syria and Libya as it did
the 1997 shipment through Malta.
Thus, OEE's investigation demonstrates that Infocom has made
repeated exports without the required U.S. government authorization,
and that it has attempted to conceal these shipments by undervaluing
goods, filing false and deceptive SEDs, and avoiding freight forwarders
that ask uncomfortable questions.
OEE's investigation has disclosed that one corporation and six
natural persons are closely related by their ownership, control,
affiliation, or connection with Infocom. All of the natural persons
have received wages from Infocom. Their names, addresses, and
relationships to Infocom are set out below as listed in documents
available to OEE:
Tetrabal Corporation, Inc., 316 Candlewood Place, Richardson, Texas
75081
A business owned and operated by the same principals as Infocom and
located at the same address.
Bayan Medhat Elashi, 1810 Auburn, Richardson, Texas 75081
Chief Executive Officer of Infocom
Ghassan Elashi, 304 Town House Lane, Richardson, Texas 75081
Vice President of Marketing of Infocom
Basman Medhat Elashi, 1506 Willow Crest Drive, Richardson, Texas
75081
Logistics Manager of Infocom
Ihsan Medhat ``Sammy'' Elashi, 316 Candlewood Place, Richardson,
Texas 75081
Systems Consultant for Infocom
Hazim Elashi, 937 Stone Trail Drive, Plano, Texas 75023
Manager of Personal Computers Division of Infocom
Fadwa Elafrangi, 306 Town House Lane, Richardson, Texas 75081
Majority owner of Infocom
(During the course of the investigations, OEE investigators
discovered different spellings for ``Elashi'' including: ``El
Ashi,'' ``Elashyi,'' ``Elashye,'' and ``Ashi.'')
In light of the evidence cited above that Infocom has committed
repeated violations of the regulations that are deliberate and covert,
that its principals have actively sought to engage in further export
transactions, and that, given the nature of the items shipped, future
violations could go undetected. In addition, a temporary denial order
is needed to give notice to companies in the United States and abroad
that they should cease dealing with Infocom in export transactions
involving U.S.-origin items. Such a temporary denial order is clearly
consistent with the public interest to preclude future violations of
the Regulations.
Accordingly, I am issuing this order because I have concluded that
a TDO is necessary, in the public interest, to prevent an imminent
violation of the regulations. This order is issued on an ex parte basis
without a hearing based upon BXA's showing that expedited action is
required.
It Is Therefore Ordered:
First, that Infocom Corporation, Inc., 630 International Parkway,
Suite 100, Richardson, Texas 75081 (``the denied person'') and the
following persons subject to the order by their relationship to the
denied person, Tetrabal Corporation, Inc., 316 Candlewood Place,
Richardson, Texas 75081; Bayan Medhat Elashi, 810 Auburn, Richardson,
Texas 75081; Ghassan Elashi, 304 Town House Lane, Richardson, Texas
75081; Basman Medhat Elashi, 1506 Willow Crest Drive, Richardson, Texas
75081; Ihsan Medhat ``Sammy'' Elashi, 316 Candlewood Place, Richardson,
Texas 75081; Hazim Elashi, 937 Stone Trail Drive, Plano, Texas 75023;
Fadwa Elafrangi; 306 Town House Lane; Richardson, Texas 75081 (``the
related persons'') (together, the denied person and the related persons
are ``persons subject to this order'') 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 Export Administration Regulations (EAR), or in any other
activity subject to the EAR, 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,
transaction involving any item exported or to be exported from the
United States that is subject to the EAR, or in any other activity
subject to the EAR; 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 EAR, or in any other activity subject to the EAR.
Second, that no person may, directly or indirectly, do any of the
following:
A. Export or reexport to or on behalf of a person subject to this
order any item subject to the EAR;
B. Take any action that facilitates the acquisition or attempted
acquisition by a person subject to this order of the ownership,
possession, or control of any item subject to the EAR that has been or
will be exported from the United States, including financing or other
support activities related to a transaction whereby a person subject to
this order
[[Page 47632]]
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 a person subject to this order of any
item subject to the EAR that has been exported from the United States;
D. Obtain from a person subject to this order in the United States
any item subject to the EAR 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 EAR
that has been or will be exported from the United States and which is
owned, possessed or controlled by a person subject to this order, or
service any item, of whatever origin, that is owned, possessed or
controlled by a person subject to this order if such service involves
the use of any item subject to the EAR that has been or will be
exported from the United States. For purposes of this paragraph,
servicing means installation, maintenance, repair, modification or
testing.
Third, that, in addition to the related persons named above, after
notice and opportunity for comment as provided in Sec. 766.23 of the
EAR, any other person, firm, corporation, or business organization
related to the denied person 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.
Fourth, that this order does not prohibit any export, reexport, or
other transaction subject to the EAR where the only items involved that
are subject to the EAR are the foreign-produced direct product of U.S.-
origin technology.
In accordance with the provisions of Sec. 766.24(e) of the
regulations, Infocom may, at any time, appeal this Order by filing a
full written statement in support of the appeal with the Office of the
Administrative Law Judge, U.S. Coast Guard ALJ Docketing Center, 40
South Gay Street, Baltimore, Maryland 21202-4022. A related person may
appeal to the Administrative Law Judge at the aforesaid address in
accordance with the provisions of Sec. 766.23(c) of the regulations.
This Order is effective immediately and shall remain in effect for
180 days.
In accordance with the provisions of Sec. 766.24(d) of the
regulations, BXA may seek renewal of this Order by filing a written
request not later than 20 days before the expiration date. Infocom may
oppose a request to renew this Order by filing a written submission
with the Assistant Secretary for Export Enforcement, which must be
received not later than seven days before the expiration date of the
Order.
A copy of this Order shall be served on Infocom and each related
person and shall be published in the Federal Register.
Entered this 6th day of September, 2001.
Michael J. Garcia,
Assistant Secretary for Export Enforcement.
[FR Doc. 01-22948 Filed 9-12-01; 8:45 am]
BILLING CODE 3510-DT-M