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Iranian CEO Nabbed at LAX in Sanctions Bust
LOS ANGELES – Bahram Mohammad Ostovari, 66, founder and CEO of a Tehran-based engineering company, is facing serious federal charges after being arrested Thursday at Los Angeles International Airport. Ostovari, also a U.S. lawful permanent resident, is accused of running a multi-year scheme to illegally export sophisticated electronics to Iran, brazenly defying U.S. sanctions.
The four-count federal indictment details a conspiracy stretching from at least May 2018 to July 2025, where Ostovari and his associates allegedly procured and shipped computer processors, railway signaling equipment, and other restricted electronics to “Company A” in Iran. This company, according to court documents, supplies critical systems to the Islamic Republic of Iran Railways and other governmental entities. The export of these items without a license is strictly prohibited under the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
Ostovari didn’t deal directly. Instead, prosecutors say he used two front companies based in the UAE – MH-SYS FZCO and Match Systech FZE – to mask the true destination of the goods. He allegedly instructed co-conspirators to lie to U.S. electronics suppliers, falsely identifying the UAE companies as the end-users while the real recipient was Company A in Iran. The scheme involved shipping the electronics from the UAE directly to Tehran. Even after becoming a permanent resident in May 2020, Ostovari continued the operation, knowingly skirting U.S. law.
The indictment reveals that Ostovari was fully aware of the sanctions against Iran, even discussing them in emails with his co-conspirators. He allegedly directed one associate to provide false information to a federal export control officer regarding the end use of the U.S.-origin goods. This wasn’t a case of simple oversight; it was a calculated effort to circumvent the law and funnel technology to a nation deemed a threat to U.S. national security due to its nuclear ambitions and support for terrorism.
Crucially, neither Ostovari, his companies, nor his network of co-conspirators ever sought or obtained authorization from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) to conduct these exports. Ostovari pleaded not guilty at his arraignment in United States District Court in downtown Los Angeles. A federal magistrate judge released him on a hefty $1.3 million bond, with a trial date set for September. If convicted, Ostovari faces a statutory maximum sentence of 20 years in federal prison for each of the four counts against him.
The investigation, a collaborative effort between Homeland Security Investigations, the Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement, and IRS Criminal Investigation, underscores the government’s commitment to enforcing export control laws and preventing sensitive technology from falling into the wrong hands. An indictment is not proof of guilt, and Ostovari is presumed innocent until proven otherwise in a court of law. Grimy Times will continue to follow this case as it unfolds.
Key Facts
- State: California
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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