Notice2022-18551

Order Denying Export Privileges; In the Matter of: Naum Morgovsky, Currently Incarcerated at: Inmate Number: 92623-111, FMC Fort Worth Federal Medical Center, P.O. Box 15330, Fort Worth, TX 76119, and With an Address at: 1423 Avondale Road, Hillsborough, CA 94010

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
August 29, 2022

Issuing agencies

Commerce DepartmentIndustry and Security Bureau

Full Text

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<title>Federal Register, Volume 87 Issue 166 (Monday, August 29, 2022)</title>
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[Federal Register Volume 87, Number 166 (Monday, August 29, 2022)]
[Notices]
[Page 52740]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-18551]



[[Page 52740]]

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DEPARTMENT OF COMMERCE

Bureau of Industry and Security


Order Denying Export Privileges; In the Matter of: Naum 
Morgovsky, Currently Incarcerated at: Inmate Number: 92623-111, FMC 
Fort Worth Federal Medical Center, P.O. Box 15330, Fort Worth, TX 
76119, and With an Address at: 1423 Avondale Road, Hillsborough, CA 
94010

    On November 13, 2018, in the U.S. District Court for the Northern 
District of California, Naum Morgovsky was convicted of violating 
section 38 of the Arms Export Control Act (22 U.S.C. 2778) 
(``AECA'').\1\ Specifically, Naum Morgovsky was convicted of, among 
other things, knowingly and willfully and intentionally conspiring to 
export components for the production of night-vision and thermal 
devices designated as defense articles on the United States Munitions 
List from the United States to Russia, without having first obtained 
from the Department of State a license for such export or written 
authorization for such export. As a result of his conviction, the Court 
sentenced Naum Morgovsky to 108 months in prison, supervised release 
for three years, a criminal fine of $1,000,000 and a $300 assessment.
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    \1\ The U.S. Court of Appeals for the Ninth Circuit affirmed the 
conviction on September 22, 2020.
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    Pursuant to section 1760(e) of the Export Control Reform Act 
(``ECRA''), the export privileges of any person who has been convicted 
of certain offenses, including, but not limited to, section 38 of the 
AECA, may be denied for a period of up to ten (10) years from the date 
of his/her conviction. See 50 U.S.C. 4819(e). 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.
    BIS received notice of Naum Morgovsky's conviction for violating 
section 38 of the AECA. BIS provided notice and opportunity for Naum 
Morgovsky 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 not received a written 
submission from Naum Morgovsky.
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    \2\ The Regulations are currently codified in the Code of 
Federal Regulations at 15 CFR parts 730-774 (2022).
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    Based upon my review of the record and consultations with BIS's 
Office of Exporter Services, including its Director, and the facts 
available to BIS, I have decided to deny Naum Morgovsky's export 
privileges under the Regulations for a period of 10 years from the date 
of Naum Morgovsky's conviction. The Office of Exporter Services has 
also decided to revoke any BIS-issued licenses in which Naum Morgovsky 
had an interest at the time of his conviction.\3\
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    \3\ The Director, Office of Export Enforcement, is 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 November 13, 2028, Naum 
Morgovsky, with last known addresses of: currently incarcerated at: 
Inmate Number: 92623-111, FMC Fort Worth, Federal Medical Center, P.O. 
Box 15330, Fort Worth, TX 76119, and with an address at: 1423 Avondale 
Road, Hillsborough, CA 94010, 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 ECRA (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 Naum Morgovsky 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, Naum 
Morgovsky 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 Naum Morgovsky 
and shall be published in the Federal Register.
    Sixth, this Order is effective immediately and shall remain in 
effect until November 13, 2028.

John Sonderman,
Director, Office of Export Enforcement.
[FR Doc. 2022-18551 Filed 8-26-22; 8:45 am]
BILLING CODE 3510-DT-P


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Indexed from Federal Register on August 29, 2022.

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