Washington, D.C. -- The Commerce Department's Under Secretary for Export Administration, William A. Reinsch, has adopted the recommendation of an Administrative Law Judge and denied export privileges of William A. Roessl of Beverly Hills, CA. for 10 years. The penalty resulted from Reinsch's finding that Roessl, doing business as Enigma Industries, had committed three violations of the Export Administration Act when he shipped equipment from the United States through Canada to the Federal Republic of Germany without the required export license.
Reinsch noted that under U.S. export control law, exports to Canada intended for use there rarely require an export license, in order to facilitate the substantial trade between the two countries. But he added, "in this case, Roessl abused this exception. To abuse this exception is to risk losing it. A violation such as this is a serious matter and should receive a penalty that demonstrates that fact. The ALJ was correct in recommending the imposition of a ten-year period of denial of export privileges," Reinsch wrote.
Reinsch also pointed to the ALJ's assertion that "Roessl has been difficult to locate and has not cooperated with the resolution of this matter."
"A civil monetary penalty would not likely be collected. Accordingly, a period of denial of Roessl's export privileges is a more effective and appropriate penalty," Reinsch said.
The Export Administration Regulations provide that administrative enforcement proceedings be conducted by an Administrative Law Judge who recommends an appropriate resolution of the case to the Under Secretary for Export Administration. The Under Secretary may affirm, modify or vacate the ALJ's recommendation. In this case, Reinsch adopted the findings and penalty recommended by the ALJ.
Under Secretary Reinsch's order will be published in the Federal Register.
In April of 2002 the Bureau of Export Administration (BXA) changed its name to the Bureau of Industry and Security(BIS). For historical purposes we have not changed the references to BXA in the legacy documents found in the Archived Press and Public Information.