“Behrouz Mokhtari, a 72-year-old man from Virginia, has been sentenced to 41 months in federal prison for his involvement in a conspiracy to violate Iranian sanctions. Mokhtari pleaded guilty to two counts of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) for engaging in prohibited business activities on behalf of Iranian entities without the necessary licenses from the Office of Foreign Assets Control (OFAC). Alongside his co-conspirators, Mokhtari used the FSR Network, a series of businesses in Iran and the UAE, to provide services and engage in transactions involving Iranian petrochemical products. Moreover, they utilized bank accounts in the UAE to conceal their activities and processed these transactions through Bitubiz FZE. Mokhtari also participated in another illicit scheme involving the shipment of petrochemical products to and from Iran, using the U.S. financial system to facilitate these transactions. His involvement included the creation of a front company in Panama, East & West Shipping, Inc., which he used to purchase tanker vessels for transporting Iranian petrochemical products while concealing his connection. Mokhtari knowingly engaged in illegal business activities and admitted his awareness of the illegality of evading Iranian sanctions as a U.S. citizen.”
1. Behrouz Mokhtari’s Sentencing
Behrouz Mokhtari, a 72-year-old man from Virginia, has recently been sentenced to 41 months in federal prison for conspiring to violate Iranian sanctions. This case sheds light on the illegal activities conducted by Mokhtari and his co-conspirators in their attempt to engage in prohibited business activities on behalf of Iranian entities without the necessary licenses from the Office of Foreign Assets Control (OFAC).
1.1 Background
The background of this case is centered around Behrouz Mokhtari’s involvement in conspiracies related to Iranian sanctions violations. Mokhtari is a U.S. citizen who knowingly participated in activities that were in direct violation of the International Emergency Economics Power Act (IEEPA) and its sanctions against Iran. This act is designed to prevent individuals and entities from engaging in unauthorized business with sanctioned countries, including Iran.
1.2 Charges and Plea
Mokhtari pleaded guilty to two counts of conspiracy to violate the IEEPA. His admission of guilt acknowledges his involvement in coordinating and facilitating prohibited business activities on behalf of Iranian entities. By pleading guilty, Mokhtari acknowledged his awareness of the illegality of his actions and accepted responsibility for his role in the conspiracy.
1.3 Length of Sentence
As a result of his conviction, Mokhtari has been sentenced to 41 months in federal prison. This substantial sentence serves as a deterrent to others who may contemplate engaging in similar illegal activities. The length of the sentence highlights the severity and consequences of conspiring to violate Iranian sanctions, demonstrating that such actions will not be taken lightly by the justice system.
2. Conspiracy to Violate Iranian Sanctions
Mokhtari’s involvement in conspiracies to violate Iranian sanctions involved various criminal activities designed to circumvent the restrictions imposed by the IEEPA. These activities allowed him and his co-conspirators to engage in prohibited business dealings with Iranian entities.
2.1 Prohibited Business Activities
The prohibited business activities conducted by Mokhtari and his co-conspirators involved providing services and engaging in transactions related to Iranian petrochemical products. These activities were carried out without the necessary licenses from the OFAC, thus making them illegal under the IEEPA. By engaging in these business dealings, Mokhtari knowingly violated the sanctions imposed on Iran by the United States.
2.2 Use of FSR Network
To facilitate their illegal activities, Mokhtari and his co-conspirators utilized the FSR Network. This network consisted of multiple businesses operating in Iran and the UAE. By operating through this network, Mokhtari and his co-conspirators sought to obscure their involvement and provide services to Iranian entities. The use of such a network allowed them to engage in transactions involving Iranian petrochemical products, ultimately enabling them to violate the sanctions.
2.3 Utilization of Bank Accounts in the UAE
In order to process the transactions and conceal their activities, Mokhtari and his co-conspirators used bank accounts in the UAE. One specific account that played a significant role in their illegal operations was Bitubiz FZE. By utilizing these accounts, Mokhtari and his co-conspirators sought to obscure the true nature of their business dealings, making it more difficult for authorities to detect and prevent their illicit activities.
3. Separate Conspiracy Involving Petrochemical Shipments
In addition to the conspiracy to violate Iranian sanctions by engaging in prohibited business activities, Mokhtari was also involved in a separate conspiracy involving illicit shipments of petrochemical products to and from Iran. This additional criminal activity further highlights the extent of Mokhtari’s illegal operations.
3.1 Creation of Front Company in Panama
To facilitate the illicit shipments and conceal their involvement, Mokhtari created a front company in Panama known as East & West Shipping, Inc. This company was specifically established to purchase tanker vessels that would be used to transport Iranian petrochemical products. By operating through this front company, Mokhtari sought to distance himself from the true nature of these shipments, further complicating efforts to link him to the illegal activities.
3.2 Concealment of Involvement
In order to conceal his involvement in the illicit shipments, Mokhtari transferred ownership of the vessels to other entities. This tactic allowed him to distance himself from the operations and avoid direct association with the illegal activities. Additionally, Mokhtari used email communications to direct the operations of these vessels, further demonstrating his active participation in the conspiracy.
3.3 Use of U.S. Financial System
To further facilitate the illegal shipments, Mokhtari utilized the U.S. financial system. By doing so, he exploited the complexities of international transactions and attempted to mask the true nature of these shipments. This use of the U.S. financial system enabled Mokhtari to conduct his illicit activities, highlighting the need for increased diligence and oversight within the system to prevent similar violations in the future.
4. Acquiring Proceeds and Illegally Purchasing Property
In addition to his involvement in conspiracies related to Iranian sanctions violations, Mokhtari engaged in illegal activities to acquire proceeds and make unauthorized purchases.
4.1 Sale of Vessel and Purchase of Home
As part of his illicit operations, Mokhtari was involved in the sale of one of the vessels used in the petrochemical shipments. He received proceeds from this sale and used the funds to purchase a home in California. By using the proceeds from his illegal activities to make this purchase, Mokhtari further demonstrated his disregard for the law and his willingness to profit from his criminal enterprises.
4.2 Knowledge of Illegality
Throughout the investigations and subsequent legal proceedings, Mokhtari admitted to being aware of the illegality of his actions. As a U.S. citizen, he was fully cognizant of the sanctions imposed on Iran and the restricted nature of business dealings with Iranian entities. Despite this knowledge, Mokhtari chose to engage in these illicit activities, showcasing a blatant disregard for the law.
In conclusion, the sentencing of Behrouz Mokhtari serves as a significant reminder of the severe consequences associated with conspiring to violate Iranian sanctions. His involvement in prohibited business activities, illegal shipments, and the acquisition of proceeds highlights the complexity and extent of his criminal enterprises. The sentencing demonstrates the strong stance taken by the justice system against those who seek to undermine international sanctions and engage in illicit activities.