Two U.S. citizens and a Pakistani national are facing federal charges for allegedly smuggling U.S. currency into Iran on behalf of the Supreme Leader in a covert financial pipeline that ran through Houston and Qom. Muzzamil Zaidi, 35, a U.S. citizen living in Qom, Iran, and Asim Naqvi, 35, of Houston, Texas, were arrested August 18, 2020, and charged with acting as unregistered agents of the Iranian government and violating the International Emergency Economic Powers Act (IEEPA). Ali Chawla, 36, a Pakistani national also based in Qom, was named in the same charges, accused of facilitating the transfer of American dollars to support Iranian state operations.
The criminal complaint, unsealed in Washington, D.C., alleges Zaidi offered his services to the Supreme Leader of Iran in July 2015, pledging to serve the ‘Islamic Republic in the socio-political or another field.’ By June 2018, Zaidi had traveled to Syria and flew into an active war zone aboard an armed Iranian military or intelligence aircraft. There, he allegedly accessed bases under the command of the Islamic Revolutionary Guard Corps (IRGC), including a Sepah Qods (IRGC Qods Force) installation—an elite unit designated by the U.S. as a terrorist organization.
Federal prosecutors say the defendants orchestrated a campaign to collect U.S. dollars from sympathizers and funnel them into Iran, bypassing strict American sanctions. The IRGC, which has been tied to terrorist operations across the globe, relies heavily on cash to fund its activities—from destabilizing campaigns in Yemen to regional proxy warfare. The complaint asserts that Zaidi, Naqvi, and Chawla played a direct role in supplying that lifeline, channeling funds under the radar of U.S. financial oversight.
Assistant Attorney General John C. Demers of the National Security Division didn’t mince words: ‘Disrupting Iran’s ability to raise U.S. dollars is key to combatting its ability to sponsor international terrorism and destabilize the Middle East.’ He emphasized that the scheme was not just a financial crime but a national security threat, one that exploited American citizens and the U.S. financial system to benefit a hostile foreign regime.
Michael R. Sherwin, then-Acting U.S. Attorney for D.C., stressed the IRGC’s operational reach and the critical role money plays in sustaining it. ‘The life-blood of these terrorist operations is cash—and the defendants played a key role in facilitating that critical component,’ Sherwin said. FBI officials echoed the sentiment, with Acting Assistant Director James A. Dawson stating the case underscores efforts to shut down covert foreign networks operating within U.S. borders.
FBI Houston, which led the takedown, credited round-the-clock coordination with intelligence partners and multiple field offices. Special Agent in Charge Perrye K. Turner said, ‘The arrests in this case are the direct result of the undeterred efforts of the FBI Houston Counterterrorism investigative team.’ The message to would-be operatives: solicit funds for terrorist regimes, and you’ll lose not just your freedom—but your future.
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Key Facts
- State: Washington DC
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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