A three-judge panel at the U.S. Court of Appeals in Washington, D.C. unanimously authorized a settlement between the federal government and the Dutch company Fokker Services B.V. accused of sanctions violations, overturning a district court ruling that had thrown out the deferred-prosecution agreement as too lenient. Fokker, an aerospace company, had agreed to pay $21 million as part of an 18-month deferred prosectuion agreement to settle charges that it sold aircraft parts to Iranian military customers, as well as to customers in Burma and Sudan, in violation of U.S. law.
News Briefs
April 5, 2016
German prosecutors indicted three men for allegedly exporting valves to the Iranian company responsible for building Iran's Arak heavy water reactor, in violation of German export control laws. Prosecutors allege that the three men delivered 51 valves, worth about 1 million euros ($1.14 million), in two shipments in 2010 and 2011. The three men were identified only as Bernd L., Rene L., and Ralf C. The end user in Iran was not identified.
April 4, 2016
The U.S. Navy confiscated weapons bound from Iran to Houthi rebels in Yemen for at least the third time in two months on March 28. U.S. forces aboard the USS Sirocco seized a cache of weapons from a small boat in the Arabian Sea. The weapons included about 1,500 Kalashnikov rifles, 200 rocket-propelled grenade launchers, and 21 .50-caliber machine guns.
-- Washington Post
March 24, 2016
The U.S. Treasury Department imposed new sanctions on two Iranian defense firms for their involvement in Iran's ballistic missile program. Shahid Nuri Industries and Shahid Movahed Industries were designated as subordinates of Shahid Hemmat Industrial Group (SHIG), which is responsible for Iran's liquid-fueled ballistic missile program. The Treasury Department also sanctioned two British businessmen--Jeffrey John James Ashfield and John Meadows--and two UK-based companies--Aviation Capital Solutions and Aircraft, Avionics, Parts & Support Ltd. (AAPS)--for providing aviation parts, financing, and for facilitating transactions for Mahan Air, which has been blacklisted by the United States for supporting terrorism. Two companies based in the United Arab Emirates--Grandeur General Trading FZE and HSI Trading FZE--were also sanctioned for supporting Mahan Air.
-- U.S. Treasury Department Press Center
March 21, 2016
A Turkish national and two Iranian citizens were indicted in Manhattan U.S. District Court on charges of engaging in hundreds of millions of dollars-worth of transactions on behalf of the the government of Iran and other Iranian entities in violation of U.S. sanctions. Reza Zarrab, a dual Turkish-Iranian citizen, was arrested on March 19, while his two Iranian co-defendants, Camelia Jamshidy and Hossein Najafzadeh, remain at large. Between 2010 and 2015, the three men allegedly conspired to use an international network of companies located in Iran, Turkey, and elsewhere to induce U.S. banks to unknowingly process financial transactions for Iranian entities in violation of U.S. sanctions.
-- U.S. Department of Justice Office of Public Affairs
March 9, 2016
The Islamic Revolutionary Guard Corps (IRGC) concluded two days of large-scale missile exercises with the test-firing of two Ghadr-H ballistic missiles on March 9. The missiles were launched from the Eastern Alborz Mountains in Iran at targets 1,400 km away on the Makran coast. On March 8, the IRGC test-fired a number of missiles during military exercises in the Qom desert, including the Shahab-1, Shahab-2, Ghadr-H, and Ghadr-F missiles.
-- Mehr News Agency
March 7, 2016
The U.S. Commerce Department has placed heightened export restrictions on the Chinese technology company ZTE Corporation. ZTE, one of China's largest and most prominent tech firms, sold U.S.-origin items to Iran in violation of U.S. sanctions and planned to continue to do so. The Commerce Depatment released two internal ZTE documents to support its action against the company. In one of the documents from 2011, ZTE reveals that it has ongoing projects in "all five major [U.S.] embargoed countries - Iran, Sudan, North Korea, Syria, and Cuba," referring to the Iran project as its "biggest risk." In the second document, the company lays out a proposal to evade U.S. export controls using a network of shell companies, thereby allowing it to re-export controlled items to Iran. The heightened controls on ZTE require American companies to obtain a license before selling products to the firm.
-- New York Times
March 1, 2016
Erdal Kuyumcu, the head of a New York-based metallurgical company, has been arrested on charges of illegally exporting a specialized powder to Iran, the Justice Department announced on March 1. Kuyumcu, the CEO of Global Metallurgy LLC, was accused of exporting more than a thousand pounds of cobalt-nickel metallic powder to Iran via Turkey without an export license. The metallic powder has aerospace, missile production, and nuclear applications.
-- Associated Press
February 23, 2016
Federal prosecutors charged four men of conspiring to export technical equipment to Iran in violation of U.S. sanctions. One defendant, Shahin Tabatabaei, of Vancouver, Canada, was arrested at the U.S.-Canada border on February 19. Between 2007 and 2011, Tabatabaei allegedly ran companies in Mexico and Canada that shipped U.S.-origin goods to Iran, via transshipment through Turkey or the United Arab Emirates. These goods, which have applications in the oil and gas industry, included pressure transducers, thermal imagers, solenoid valves, battery chargers, and gear-motors. Three other defendants were indicted in the case: Seyed Mohammad Akhavan of Canada; Abbas Moradi of Iran; and Amirreza Sahebjamei of Iran.
-- Associated Press
February 18, 2016
The European Union's highest court ruled on February 18 that Bank Mellat, Iran's largest privately-owned bank, had been improperly sanctioned by the European Union in 2010. The European Court of Justice found insufficient evidence to support the contention that Bank Mellat was involved in Iran's nuclear and ballistic missile programs. The EU removed sanctions on Bank Mellat in January following the implementation of the nuclear agreement with Iran, but the court's decision, which cannot be appealed, could allow a claim for damages.
-- Wall Street Journal