Notice2021-24808

Order Denying Export Privileges

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
November 15, 2021

Issuing agencies

Commerce DepartmentIndustry and Security Bureau

Full Text

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<title>Federal Register, Volume 86 Issue 217 (Monday, November 15, 2021)</title>
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[Federal Register Volume 86, Number 217 (Monday, November 15, 2021)]
[Notices]
[Page 62987]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24808]


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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges

    In the Matter of: Hersel Lincoln McKenzie, Jr.; 2624 \1/2\ S. 
Cochran Avenue, Los Angeles, CA 90016.
    On January 8, 2020, in the U.S. District Court for the Southern 
District of Texas, Hersel Lincoln McKenzie, Jr. (``McKenzie'') was 
convicted of violating 18 U.S.C. 554(a). Specifically, McKenzie was 
convicted of knowingly and fraudulently attempting to export and 
exporting from the United States to Mexico, certain merchandise, 
articles and objects, namely 7.62 x 39 mm ammunition, in violation of 
18 U.S.C. 554. As a result of his conviction, the Court sentenced 
McKenzie to 12 months and one day in prison, and a $100 assessment.
    Pursuant to Section 1760(e) of the Export Control Reform Act 
(``ECRA''),\1\ the export privileges of any person who has been 
convicted of certain offenses, including, but not limited to, 18 U.S.C. 
554, may be denied for a period of up to ten (10) years from the date 
of his/her conviction. 50 U.S.C. 4819(e) (Prior Convictions). In 
addition, any Bureau of Industry and Security (``BIS'') licenses or 
other authorizations issued under ECRA, in which the person had an 
interest at the time of the conviction, may be revoked. Id.
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    \1\ ECRA was enacted as part of the John S. McCain National 
Defense Authorization Act for Fiscal Year 2019, and as amended is 
codified at 50 U.S.C. 4801-4852. McKenzie's conviction post-dates 
ECRA's enactment on August 13, 2018.
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    BIS received notice of McKenzie's conviction for violating 18 
U.S.C. 554, and has provided notice and opportunity for McKenzie to 
make a written submission to BIS, as provided in Section 766.25 of the 
Export Administration Regulations (``EAR'' or the ``Regulations''). 15 
CFR 766.25.\2\ BIS has received and considered a written submission 
from McKenzie.
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    \2\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2021).
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    Based upon my review of the record, including McKenzie's 
submission, and consultations with BIS's Office of Exporter Services, 
including its Director, and the facts available to BIS, I have decided 
to deny McKenzie's export privileges under the Regulations for a period 
of five years from the date of McKenzie's conviction. The Office of 
Exporter Services has also decided to revoke any BIS-issued licenses in 
which McKenzie had an interest at the time of his conviction.\3\
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    \3\ The Director, Office of Export Enforcement, is now the 
authorizing official for issuance of denial orders, pursuant to 
recent amendments to the Regulations (85 FR 73411, November 18, 
2020).
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    Accordingly, it is hereby ordered:
    First, from the date of this Order until January 8, 2025, Hersel 
Lincoln McKenzie, Jr., with a last known address of 2624\1/2\ S. 
Cochran Avenue, Los Angeles, CA 90016, 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, reexport, or transfer (in-country) 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.
    Third, pursuant to Section 1760(e) of the Export Control Reform Act 
(50 U.S.C. 4819(e)) and Sections 766.23 and 766.25 of the Regulations, 
any other person, firm, corporation, or business organization related 
to McKenzie 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, McKenzie 
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 McKenzie and 
shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until January 8, 2025.

John Sonderman,
Director, Office of Export Enforcement.
[FR Doc. 2021-24808 Filed 11-12-21; 8:45 am]
BILLING CODE 3510-DT-P


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Indexed from Federal Register on November 15, 2021.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.