Two Texas men, both of whom were convicted at trial, were sentenced on Wednesday to three years and nine months in prison for attempting to violate the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA, and conspiracy to commit money laundering based on their attempt to transact in sanctioned petroleum and launder the proceeds.
According to court documents, Zhenyu “Bill” Wang, 43, a Chinese citizen, and Daniel Ray Lane, 42, from McKinney, Texas, conspired with others to evade U.S. sanctions against Iran.
From July 2019 to February 2020, they bought sanctioned oil from Iran, disguised its origins, and sold it to buyers in China.
They communicated about hiding the oil’s origin, financing the deal, preparing necessary documents, shipping the oil, obtaining Antiguan passports, setting up offshore bank accounts, distributing the proceeds, and concealing the transaction’s details, according to authorities.
“Today, Mr. Lane and Mr. Wang are held accountable for attempting to broker illicit oil sales between Iran and China and launder the proceeds, in violation of U.S. sanctions,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The court’s sentence makes clear that those who place personal profit over national security will face serious consequences.”
“The FBI will use all our lawful authorities to stop those who seek to evade sanctions on Iranian oil,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Today’s sentencing of Zhenyu Wang and Daniel Ray Lane reflects our commitment to combatting these illegal actions and serves as a warning to others that violating U.S. sanctions impacts our national security and will not be tolerated.”
Wang played a crucial role in the conspiracy by connecting with Chinese buyers interested in purchasing Iranian oil.
He communicated with multiple parties in China, secured a written offer from a buyer, and brokered the sale contract. Wang also arranged bribe payments to Chinese officials to facilitate the illegal transaction.
Lane agreed to help launder the deal’s profits, using his business, Stack Royalties, to conceal the Iranian funds. He even bought a cash counting machine for the millions of dollars in laundered proceeds.
Wang and Lane collaborated with three other conspirators who acted as intermediaries to find buyers for the sanctioned oil.
Wang and Lane knowingly violated U.S. sanctions by selling Iranian crude oil. They both acknowledged the illegality of their actions.
Wang admitted he profited from these illegal transactions, stating, “I love sanctions, to be honest with you, and the sanctions make everybody money.” Lane talked about hiding the proceeds, saying, “sanctions can always be massaged… there is always a way around it.”
In January 2024, their co-conspirator,, Nicholas Hovan, was sentenced to 12 months and a day in prison, while Nicholas Fuchs and Robert Thwaites each received 10-month sentences
Assistant U.S. Attorneys Patrick J. Murray and Mary E. Crawley for the Eastern District of Pennsylvania prosecuted the case.