Bert Sacks' reply to OFAC (June 17, 2002)
OFAC penalty notice (May 17, 2002)
Bert Sacks' reply to OFAC (December 28, 1998)
OFAC pre-penalty notice (December 3, 1998)
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220
FAC No. IQ-162016 and IQ-162433 MAY 17 2002
PENALTY NOTICE
Dear Mr. Sacks:
A Prepenalty Notice ("Notice") dated December 3, 1998, was issued to you, by the Office of Foreign Assets Control ("OFAC") for having engaged in certain prohibited transactions relating to Iraq, as detailed in the Notice. No license or approval was issued by OFAC for these transactions. Accordingly, such transactions violated the Iraqi Sanctions Regulations, 31 CF.R Part 575 (the "Regulations"), promulgated pursuant to the International Emergency Economic Powers Act, 50 U.S.C. 1701 et seq. ("IEEPA") and underlying statutes and Executive Orders. See §§ 575.207 and 515.211 of the Regulations.
Section 206 of IEEPA, 50 U.S.C. § 1705, provides, in part, for a civil penalty not to exceed $10,000 for each such violation. Section 586E of the Iraq Sanctions Act of 1990, PL.IO1-S13, 104 Stat. 2049, provides, in part, for a civil penalty not to exceed $250,000 for each violation occurring after November 5, 1990.' Pursuant to §§ 575.702 of the Regulations. the Notice proposed a penalty against you in the amount of $10,000. You were advised of your right to make a written presentation to OFAC setting forth reasons why the penalty should not be issued or, if issued why the amount should be less than that proposed. Such written response was required to be made within thirty (30) days of the mailing of the Notice.
OFAC mailed the Notice to you on December 3,1998. Delivery is evidenced by a signed United States Postal Service Form 3811, Domestic Return Receipt.
By a response received at OFAC January 8. 1999, you made a written presentation setting forth reasons why you engaged in certain prohibited transactions relating to the embargo against Iraq. You admitted the Notice's allegation in Count 6 that you exported goods to Iraq absent prior OFAC approval and also stated that you decided to violate the U.S-Government's economic sanctions against Iraq as an act of civil disobedience.
OFAC notes that you have admitted to Count 6 alleged in the Notice. The allegations included your currency travel-related transactions to/from/within Iraq absent prior license or other authorization from OF AC. The Regulations prohibit persons subject to United States jurisdiction from engaging in any transaction relating to travel to Iraq. See § 575.207 of the Regulations. Accordingly, OFAC finds that you have violated the Regulations as alleged in Count 6 of the Notice.
After a careful review of the entire file, it is determined that you did violate IEEPA and the Regulations. It is further determined that, while some relief is warranted to take into account the fact that the instant violation was your first offense on record at OFAC, such relief must be balanced against aggravating factors present, specifically your willful violation of the Regulations.
Accordingly, the proposed civil penalty in the amount of $10,000 is hereby imposed upon you pursuant to § 575.704 of the Regulations.
A check payable to the "U.S. Treasury" in the amount of $10,000 should be sent within 30 days of the mailing of this Penalty Notice to the Office of Foreign Assets Control, (Attention: Civil Penalties), U.S. Treasury Department, 1500 Pennsylvania Avenue. N.W., Washington, D.C. 20220. Please note that interest, administrative charges and late fees will commence to accrue after 30 days of the mailing of the Penalty Notice. Under Public Law 97-365, 31 U.S.C. § 3717, interest at an annual rate inter of 5% and an administrative charge of$12.00 will be added monthly if the amount is not paid by the due date. Should the amount not be paid within ninety (90) days, an additional late charge of 6% will be added.
Please note that § 575.705 of the Regulations provides that this matter shall be referred for administrative collection measures or to the United States Department of Justice for collection if the penalty is not paid within 30 days of the mailing of the Penalty Notice.
Please further note that 31 U.S.C. § 7701 requires that a person assessed a penalty by a Federal agency furnish a taxpayer identification number/Social Security Number and also requires the agency to disclose that we intend to use such number for the purposes of collecting and reporting on any delinquent penalty amount in the event of a failure to pay the penalty imposed.
Sincerely,
(signed)
Richard Newcomb
Director
Office of Foreign Assets Control
Mr. Bertram Sacks
127 NW Bowdoin Place, #103
Seattle, Washington 98107
cc: U.S. Customs Service
Fines, Penalties & Forfeitures Office
(Attn: Mr. Don Zainea)
Patrick V. McNamara Bldg.
477 Michigan Avenue. Rm 200
Detroit, Michigan 48226