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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, 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
Dear Ms. Kelly and Messrs. Handelman, Mullins, Sacks, and Zito:
The Office of Foreign Assets Control has reasonable cause to believe that you and Voices in the
Wilderness 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 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
be 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 =A7 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.