The Justice Department has charged four companies and five individuals for participating in an international network that illegally procured $24 million in controlled goods to end-users in Iran. According to a 24-count federal indictment unsealed on April 17, the procurement network conspired to export sensitive U.S.-origin electronic components with military applications to Iran via companies in Taiwan and Turkey, in violation of the International Emergency Economic Powers Act. Charges were brought against Bahram Mechanic, Tooraj Faridi, and Smart Power Systems, of Houston, Texas; Khosrow Afghani of Los Angeles, California; Arthur Shyu and the Hosoda Taiwan Limited Corporation, in Taiwan; Matin Sadeghi and Golsad Istanbul Trading Ltd., in Turkey; and the Faratel Corporation, in Iran.
News Briefs
April 17, 2015
-- U.S. Department of Justice Office of Public Affairs
April 13, 2015
The Russian government lifted its ban on the delivery of the S-300 air defense system to Iran on April 13. The S-300 (Antey-2500) is a long-range surface-to-air missile complex that is mobile and able to target aircraft and missiles. Russian Foreign Minister Sergei Lavrov said the S-300 system did not fall under the U.N. arms embargo and that Russia had voluntarily implemented the ban. The ban had been put in place in 2010 by then-Russian President Dmitri Medvedev.
-- Wall Street Journal
April 3, 2015
A $1.45 billion agreement between Commerzbank AG and the U.S. government to settle charges that the German bank had violated U.S. sanctions on doing business with Iran and Sudan was approved by a federal judge on April 3. The federal government agreed to defer prosecution for three years in exchange for penalties paid to the Manhattan District Attorney's office, the Federal Reserve, and the Treasury Department. If Commerzbank abides by the terms of the agreement, after three years prosecutors will ask that the charges be dropped. The bank conceded the allegations, which included the processing of more than $250 million in transactions for Iranian and Sudanese entities.
-- Bloomberg
March 25, 2015
The world's largest oilfield services company, Schlumberger Ltd., has agreed to pay $232.7 million to the United States for violating U.S. sanctions against Iran and Sudan. A subsidiary, Schlumberger Oilfield Holdings Ltd., will also plead guilty to conspiring to violate the International Emergency Economic Powers Act by facilitating illegal transactions with sanctioned countries. According to U.S. officials, Schlumberger facilitated the illegal export of drilling equipment to Iran and Sudan between 2004 and 2010. The plea agreement includes a record $155.1 million criminal fine and the forfeiture of $77.6 million in profits.
-- Wall Street Journal
March 24, 2015
The European Union intends to re-impose sanctions on 40 Iranian shipping firms linked to the Islamic Republic of Iran Shipping Lines (IRISL), Iran's national shipping line. In January, the E.U.'s General Court had struck down the sanctions, ruling that the European Union had not provided sufficient evidence linking IRISL to nuclear proliferation.
-- Reuters
March 14, 2015
Iran began mass production of the Qadir cruise missile on March 14, during a ceremony attended by Iranian Defense Minister Brigadier General Hossein Dehqan. According to Iranian defense officials, the Qadir has a range of 300 km and can be launched from ships and helicopters.
-- Fars New Agency
March 8, 2015
Iran's defense minister unveiled a new ground-based cruise missile system at a ceremony in Tehran on March 8. Defense Minister Brigadier General Hossein Dehqan described the new cruise missile, the Soumar, as an indigenously-manufactured system developed by the Aerospace Industries Organization (AIO). Dehqan also announced the delivery of the Qadr and Qiam ballistic missile systems to the IRGC Aerospace Force.
-- Mehr News Agency
February 25, 2015
Mozaffar Khazaee, a former engineer for Pratt & Whitney and other defense contractors, pleaded guilty on February 25 to violating the Arms Export Control Act by attempting to export sensitive information about the U.S. Air Force's F-35 and F-22 fighter jet programs to Iran. Khazaee, a dual U.S.-Iranian citizen, faces up to 20 years in prison. He was arrested at Newark Liberty International Airport on January 9 while attempting to fly to Tehran with stolen documents related to military jet engines in his luggage.
-- Reuters
February 24, 2015
Iran has smuggled in at least $1 billion in recent months, evading U.S. sanctions prohibiting the purchase or acquisition of U.S. bank notes by the government of Iran. According to Western and Iranian sources, the Central Bank of Iran has worked with Iranian entities and front companies to obtain dollars from abroad. After passing through money changers and front companies, cash was hand-carried on flights from Dubai or Turkey, or brought over the border from Iraq. About $500 million in cash was reportedly brought into Iran using traders in Iraq, while two Dubai-based front companies, Sima General Trading Company and Belfast General Trading, were responsible for obtaining another $500 million. Both front companies have been previously sanctioned by the U.S. Department of the Treasury.
-- Reuters
February 23, 2015
Russia has offered to sell Iran its Antey-2500 surface-to-air missile system. The head of Russian state-owned defense firm Rostec, Sergei Chemezov, said Iran is considering the offer to purchase the Antey-2500 after an agreement to buy the S-300 surface-to-air missile system was cancelled by Russia in 2010. The Antey-2500 is made by Russian firm Almaz-Antey. The U.S. government sanctioned Chemezov in April 2014 for his role in Russia's war in Ukraine.
-- Reuters