Gov't threatens sanctionsbusters

Fri, 11 Dec 1998 01:12:45 -0500 (EST)
Peter Grimes (p34d3611@jhu.edu)

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FYI--P. Grimes

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Date: Tuesday, December 08, 1998 7:59 PM
Subject: Civil Penalty Proposed against Voices in the Wilderness

Dear Friends-

Yesterday afternoon Voices in the Wilderness received a Prepenalty Notice
from the Department of the Treasury in Washington DC. The notice included
Proposed Penalties directed at Voices and four individual delegates: Bert
Sacks, Randall Mullins, Dan Handelman, and Joe Zito. We are charged with
violating the embargo on Iraq through "exportation of donated goods,
including medical supplies and toys, to Iraq." The proposed penalty for
Voices is $120,000. The proposed penalty for the individual delegates
ranges from $10,000-$12,000.

Following is the notice. We are asking that you pass this on to as many
people as possible. This is a great opportunity to draw attention to the
ongoing crisis in Iraq. The US government tells us that we have engaged in
"prohibited" transactions, but in the eyes of humanity, who is the real
criminal? Five to six thousands children die each month in Iraq due to the
sanctions, according to the most recent UN report. We will be meeting in
the next few days to plan and strategize the ways in which we respond to and
challenge this letter. Spreading information through word of mouth (or
e-mail!) is one of the most powerful tools we have in resisting injustice.
We would like to ask you to seize this opportunity to bring light to the
humanitarian disaster in Iraq. We welcome any suggestions or feedbacks from
you.

As always, we deeply appreciate your continued support. Thank you very much.

Sincerely,

Jeff Guntzel for Voices in the Wilderness

Prepenalty Notice

December 3, 1998

Dear Ms. Kelly and Messrs. Handelman, Mullins, Sacks, and Zito:

The Office of Foreign Assets Control (“OFAC”) has reasonable cause to
believe that you and Voices in the Wilderness (“VW”) have engaged in certain
prohibited transactions, detailed below, relating to the embargo against
Iraq in 1997. Inasmuch as no license or approval had been issued by OFAC
prior to such transactions, they violated the Iraqi Sanctions Regulations,
31 CFR Part 575 (the “Regulations”), and underlying statutes and Executive
orders. See, specifically, §§ 575.204-.207 and 575.211 of the Regulations.

Violations:

The violations of the regulations and underlying statutes and Executive
Orders for which this Notice is issued concern your and VW’s exportation of
donated goods, including medical supplies and toys, to Iraq absent specific
prior authorization by OFAC and transactions relating to travel to Iraq and
activities in Iraq. Additionally, the violations involve transactions for
the purpose of , or which have the effect of, evading or avoiding, or which
facilitate the evasion or avoidance of any of the prohibitions of the
Regulations, as well as a conspiracy formed for the purpose of engaging in
transactions prohibited by the Regulations. In this regard, VW has
organized members to deliver goods to Iraq in violation of the embargo and
made express statements of the organization’s
knowledge of its violative actions. As to Messrs. Handelman and Mullins,
the violations also concern the importation of goods and services of Iraqi
origin. Specifically, the violations are as follows:

1. In March 1996, VW exported goods, including medical supplies, valued
at approximately $18,000, to Iraq absent prior specific license or other
authorization issued by OFAC;

2. In August 1996, VW exported goods, including medical supplies, valued
at approximately $8,000, to Iraq absent prior specific license or other
authorization issued by OFAC;

3. In November 1996, VW exported goods, including medical supplies,
valued at approximately $10,000, to Iraq absent prior license or other
authorization issued by OFAC;

4. In November 1997, VW exported goods, including medical supplies and
toys, valued at approximately $30,000-40,000, to Iraq absent prior license
or other authorization issued by OFAC;

5. On or about November 21, 1997, Mr. Handelman exported film and
videotape to Iraq, through Jordan;

6. Between on or about November 21-30, 1997, Messrs. Handelman, Mullins,
Sacks, and Zito, engaged in currency travel-related transactions
to/from/within Iraq absent prior license or other authorization from OFAC.
These currency transactions included, but are not limited to, the purchase
of food, lodging, ground transportation, and incidentals;

7. On December 3, 1997, Mr. Handelman imported goods and/or services, into
the United States at Detroit, Michigan. Upon entry of the goods, the United
States Customs Service (“USCS”) seized them (District Case Nos.
98-3801-000235). The goods included an Iraqi water bottle label, an Iraqi
stamp, photographic film, video and audio tapes and/or cassettes, postcards,
and assorted papers;

8. On December 3, 1997, Mr. Mullins imported goods and/or services, into
the United States at Detroit, Michigan. Upon entry of the goods, the USCS
seized them (District case No. 98-3801-00238). The goods included a
necklace, a wooden drum, audio tapes, a computer disc, notebooks, pictures,
and miscellaneous papers and cards;

9. In July 1998, VW exported goods to Iraq absent prior specific license or
other authorization issued by OFAC; and

10. In September 1998, VW exported goods, including medical supplies, to
Iraq absent prior specific license or other authorization issued by OFAC.

Proposed Penalty:

Section 206 of IEEPA, 50 U.S.C. § 1705, provides, in part, for a civil
penalty not to exceed $10,000 per violation. section 586E of the Iraq
Sanctions Act of 1990, PL.101-513, 104 Stat. 2049, provides, in part, for a
civil penalty not to exceed $250,000 for each violation occurring after Nov.
5 1990**. See, Regulations § 575.701. Pursuant to § 575.702 of the
Regulations, you are hereby notified that OFAC intends to issue a claim
against each of you and VW for a monetary penalty in the amounts set forth
below:

As to VW : $120,000, computed at $20,000 for each Counts 1-4, 9 and 10

As to Mr. Handelman: $12,000, computed at $1,000 for each of Counts 5 and
7, plus $10,000 for Count 6

As to Mr. Mullins: $11,000, computed at $1,000 for Count 8, plus $10,000
for Count 6

As to Mr. Sacks: $10,000 for Count 6

As to Mr. Zito: $10,000 for Count 6

With respect to the disposition of goods seized in the above-cited USCS
District Cases from Messrs. Handelman and Mullins, we recommend that,
inasmuch as goods have been involved in the violation of U.S. law by U.S.
persons, such goods be forfeited to the United States in accordance with
USCS procedures.

Election of Proceedings:

1. You have the right to make a written presentation to FAC within thirty
(30) days of the mailing of this Notice. Such written presentation in
response to this Notice need not be in any particular form, but it should
contain a response to the allegations herein, and set forth the reasons
why the penalty should not be issued, or if issued, why the amount should
ne less than proposed in this Notice. Such response should be addressed
to the Office of Foreign Assets Control (Attention: Civil Penalties),
U.S. Department of the Treasury, 1500 Pennsylvania Avenue, N.W.,
Washington, D.C. 20220.

2. In the event that you elect not to respond, OFAC will conclude that
you have decided not to submit any new facts or explanations for our
consideration. In such instance, OFAC will issue a Penalty Notice in
accordance with § 575.704 (b) of the Regulations, finding a violation and
assessing a penalty generally in the amount proposed herein.

3. Should you elect to resolve this matter informally absent any final
agency finding of violation, you may initiate settlement negotiations by
telephoning the OFAC staff member named below under “Contact Person” at any
time before you are issued a Penalty notice. If the negotiations result in
settlement, you are not required to make a written response to this Notice,
which will be withdrawn without a formal determination of violation,
provided settlement occurs within the time period set in this Notice.

Collection:

Section 575.705 of the Regulations provides that this matter shall be
referred to the United States Department of Justice for collection if the
penalty is not paid within thirty (30) days of the mailing of a Penalty
Notice, should one be issued imposing a penalty pursuant to § 575.704 of the
Regulations. Prior to such referral, OFAC may undertake administrative
collection through the Office of Financial Management of the U.S. Treasury
Department.

Contact:

In view of the short response time, if you have any questions concerning
this matter, please feel free to contact the appropriate member of my staff,
Mrs. B.S. Scott, Chief, Civil Penalties program, at telephone number (202)
622-6140.

Sincerely,

R. Richard Newcomb
Director
Office of Foreign Assets Control

**Section 4 of the Federal Civil Penalties Inflation Adjustment Act of 1990
(Pub.L. 101-410, 104 Stat. 890, 28 U.S.C. 2461 note), as amended by the debt
Collection Improvement Act of 1996 (Pub.L. 104-134, sec. 31001 (s)1), Apr.
26, 1996, 110 Stat. 1321-373 -- jointly, the “FCPIA”), requires each Federal
agency with statutory authority to assess civil monetary penalties (“CMPs”)
for inflation according to a formula described in § 5 of the FCPIA.
Accordingly, on October 23, 1996, OFAC published in the Federal register the
required amendment, effective October 21, 1996, to the Regulations adjusting
its CMP to $275,000. See 61 FR 54936 at 54939.

Voices in the Wilderness
A Campaign to End the US/UN Economic Sanctions Against the People of Iraq
1460 West Carmen Ave.
Chicago, IL 60640
ph:773-784-8065; fax: 773-784-8837
email: kkelly@igc.apc.org
website: http://www.nonviolence.org/vitw

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