Nicholas Hovan, Conspiracy to Sell Sanctioned Iranian Petroleum, Pennsylvania 2020

PHILADELPHIA, PA - In a shocking turn of events, a group of four individuals, including one from New York and three from Texas, have been indicted for their role in a massive conspiracy to sell sanctioned Iranian petroleum to a refinery in China.

Nicholas Hovan, 34, of New York, NY; Zhenyu Wang, a/k/a “Bill Wang,” 39, of Dallas, TX; Robert Thwaites, 30, of Dallas, TX; and Daniel Ray Lane, 39, of McKinney, TX, face charges of conspiracy, violating the International Emergency Economic Powers Act (“IEEPA”), and conspiracy to commit money laundering.

According to the indictment, from May 2019 to February 2020, the defendants conspired to arrange for the purchase of petroleum from the Islamic Republic of Iran, in violation of United States economic sanctions imposed on Iran, for sale to a refinery in the People’s Republic of China.

The indictment alleges that the defendants conspired to launder the proceeds of the sale through shell entities and offshore financial accounts to disguise the nature of the transaction. They are also charged with conspiring to conceal the origin of the petroleum, including by bribing a Chinese official, and to obtain Antigua passports to open Swiss bank accounts through which the proceeds would be laundered.

In February 2020, the defendants were arrested pursuant to a criminal complaint. As previously reported, the defendants planned two shipments of oil per month going forward, all for an expected profit of roughly $28 million-per-month.

“It doesn’t get much lower than attempting to get rich by flouting the United States’ national security interests,” said U.S. Attorney William M. McSwain. “The defendants here allegedly jeopardized the safety and security of the United States by scheming to get in bed with Iran and China. This type of conspiracy deserves the full condemnation of my Office -- and it has it.”

If convicted, each defendant faces a maximum possible sentence of 45 years in prison, a $1.75 million fine, a three year term of supervised release, and a $300 special assessment.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by First Assistant U.S. Attorney Jennifer Arbittier Williams and Assistant U.S. Attorney Michael J. Rinaldi, in partnership with Trial Attorney David Recker of the National Security Division, Counterintelligence and Export Control Section.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

Source: https://www.justice.gov/usao-edpa/pr/three-texans-one-new-yorker-indicted-conspiracy-sell-sanctioned-iranian-petroleum