It's definitely a licensing issue; probably (hard to map the line number accurately without knowing the version of FME you are running) corresponding to this message:
FME temporary license has expired. Please contact email@example.com or your distributor to purchase FME Suite.
You could confirm this by running a workspace using fme.exe and examining the log, or possibly just by starting Workbench.
In FME 2010 (final release) the corresponding message should be:
No FME Floating Licenses are available. Contact your distributor to purchase additional licenses.
Perhaps you are right on the edge of your license limit, and can't run your code at the same time Workbench is open.
Try this to make sure we really know what the error message is:
System.out.println("Error Create Feature: " + fe.getMessage());