Broker Nelson Pliakas hires Eric Brennan, a former world-renowned badminton star, who fell from grace after being convicted of committing felony assault against a rival badminton player. CBP denies Nelson’s request for approval to employ Eric. Nevertheless, Nelson continues to employ Eric, which comes to CBP’s attention after Eric makes a threat to one of Nelson’s clients with the intent to defraud that client. Based on the information provided, which of the following is a true statement?
A. CBP may fine Nelson only for Eric’s threats to clients.
B. Any delinquent activities and any convictions are the responsibility of the employee alone, and therefore, all liability for CBP purposes remains solely with Eric, not Nelson.
C. Nelson was required to obtain approval from CBP to employ Eric. As a result of not obtaining that approval, CBP could assess a monetary penalty against Nelson.
D. Eric was required to obtain approval from CBP to be employed by a licensed customs broker. Because Eric did not obtain approval, Nelson could face penalties limited to his license (non-monetary), while CBP will hold Nelson and Eric jointly liable for the monetary penalties.
E. Badminton is on CBP’s list of prohibited broker activities, and CBP can discipline Nelson, without right of review, for having associated with someone who engaged, professionally, in that sport.
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The Answer is: C
Citation: 19 CFR 111.53, 19 CFR 111.91
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