HOUSTON – Four companies and five suspects were indicted for illegally exporting high-tech technology to Iran in violation of federal law, according to officials.
The Iranian procurement network managed to send $24 million worth of commodities to Iran.
The 24-count indictment has been unsealed today charging four corporations and five individuals with illegally exporting of high-tech microelectronics, uninterruptible power supplies and other commodities to Iran in violation of the International Emergency Economic Powers Act, officials stated.
“The nine defendants charged in the indictment allegedly circumvented U.S. sanctions and illegally exported controlled microelectronics to Iran,” said Assistant Attorney General for National Security John P. Carlin.
Adding “Violations of the International Emergency Economic Powers Act not only can undercut the impact of U.S sanctions, but can also serve to undermine U.S. foreign policy and adversely affect national security. I want to thank all those in law enforcement whose tireless efforts led to these charges.”
The indictment names the following businesses and defendants who were all members of an Iranian procurement network operating in the U.S.:
Houston-based company Smart Power Systems Inc. (SPS)
Bahram Mechanic, 69, of Houston
Tooraj Faridi, 46, of Houston
Khosrow Afghahi, 71, of Los Angeles, Calif.
Also charged as part of the scheme, Arthur Shyu and the Hosoda Taiwan Limited Corporation in Taiwan; Matin Sadeghi, 54, and Golsad Istanbul Trading Ltd. in Turkey; and the Faratel Corporation – co-owned by Mechanic and Afghahi in Iran.
The indictment alleges the following information:
- Around July 2010 and the present, Mechanic and the others engaged in a conspiracy to obtain various commodities, including controlled U.S.-origin microelectronics.
- They then allegedly exported these to Iran, while carefully evading the government licensing system set up to control such exports.
- The microelectronics shipped to Iran allegedly included microcontrollers and digital signal processors.
- These commodities have various applications, and are frequently used in a wide range of military systems, including surface-air and cruise missiles.
- Between July 2010 and the present, Mechanic’s network allegedly sent at least $24 million worth of commodities to Iran.
- Mechanic, assisted by Afghahi and Faridi, regularly received lists of commodities, including U.S.-origin microelectronics, sought by Faratel in Iran.
- Mechanic would approve these orders and then send the orders to Shyu in Taiwan
- Shyu would allegedly purchase the commodities using Hosoda Taiwan Limited and then ship the commodities to Turkey, where Sadeghi would act as a false buyer via his company – Golsad Istanbul Trading Ltd.
- Sadeghi would then receive the commodities from Shyu and then ship them to Faratel in Iran.
Mechanic required his co-conspirators to notify him and obtain his approval for each of the transactions completed by the network, according to the allegations.