Iran tech company CEO Jamshid Ghomi was arrested by federal agents for violations of U.S. sanctions. As alleged, Ghomi supplied the Atomic Energy Organization of Iran with U.S. origin networking, security, and encryption technology. Exports to Iran are prohibited because the nation is the world’s largest state sponsor of terrorism.
As charged, Ghomi faces imprisonment and loss of assets including his $35 million Newport Beach mansion. U.S. Attorney Bill Essayli for the Central District of California stated that our nations laws prohibiting the aiding of declared enemies must be enforced.
Ghomi Charged with Conspiracy to Violate IEEPA
Ghomi, CEO and founder of Faraz Pardaz Rayaneh Co. Ltd. is charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and the the Iranian Transactions and Sanctions Regulations (ITSR). These regulations prohibit the export, reexport, of goods from the United States to Iran without authorization of the Treasury Department’s Office of Foreign Assets Control (OFAC).
According to the affidavit, Ghomi directed computer networking equipment to intermediaries in the United Arab Emirates (UAE) to evade export prohibitions. He reportedly instructed co-conspirators in the UAE to scrub his name from involved paperwork. From 2011 to 2023 Ghomi was involved in numerous transactions that led to annual sales exceeding $10 million.
Ghomi International Money Laundering
Proceeds from Ghomi’s illegal business transactions were deposited into sanctioned a Iranian bank and then transferred to a set of trading companies and exchange houses in Hong Kong, the British Virgin Islands, UAE, and Turkey. These transactions described as pertaining to “buying goods” and “consulting fees. More than $15 million moved from Iran to U.S. accounts from 2011 to 2024 were reported to the IRS as a foreign inheritance. His highest reported annual income was $20,684.
Export Enforcement Due to Increase
Export enforcement agencies are receiving budget increases to expand their efforts to prosecute violations that pose poses a threat to U.S. national security and foreign policy initiatives. The Bureau of Industry and Security (BIS) is set to increase its budget to $450 million to hire Special Agents to enforce the Export Administration Regulations (EAR). Additionally, agencies are cooperating and coordinating efforts both domestically and internationally to curtail sanction program violations.
CVG Strategy Export Compliance Management Programs
Organizations involved with export must adhere to ever changing regulations related to developing technologies. Remaining informed and having an effective export compliance program is essential for avoiding criminal and civil penalties.
Export Compliance Management Programs establish clearly defined policies and procedures for all departments within an organization. They ensure that registration, item classifications, license applications, denied part screening, and security measures are taken that will prevent violation. They also ensure that training, auditing, and record keeping are maintained according to requirements.
CVG Strategy can help you understand revisions to the International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR), and help you establish a coherent and effective export compliance program. We can perform export control classifications, perform audits, assist in filings for export licenses and educate your team. Regardless of whether your business falls under EAR or ITAR, CVG Strategy has the expertise to help.