HSI investigation leads to criminal conspiracy convictions related to Iranian sanctions

WASHINGTON — Two international business organizations pleaded guilty and were sentenced April 18 in the U.S. District Court for the District of Columbia for their participation in a criminal conspiracy to violate U.S. export laws and sanctions by sending U.S.-origin goods to Iran.

Homeland Security Investigations (HSI) Austin, the FBI’s San Antonio Division, the Department of Defense’s Office of Inspector General, and the Defense Criminal Investigative Service investigated the case.

Taiwan business organization DES International Co., Ltd. (DES), and Brunei business organization Soltech Industry Co., Ltd., each pleaded guilty to conspiring to defraud the United States and to violate the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations.

United States District Judge Jia M. Cobb sentenced both the companies to pay fines of $83,769 each — three times the value of the goods they unlawfully exported to Iran — and to serve five-year terms of corporate probation.

“We will pursue individuals and organizations, wherever located, who would threaten our national security by attempting to illegally resell U.S. origin goods to Iran,” said U.S. Attorney Matthew M. Graves. “The U.S. government has many avenues to hold those who break our sanctions and export control laws accountable and will ensure that the penalties for these crimes will be substantially greater than the anticipated profit from these schemes. We thank all of our law enforcement partners for their unwavering commitment to this effort.”

“The defendant companies, which shared common directors and employees, have pled guilty to obtaining US export-controlled goods for the benefit of the government of Iran and concealing the US origin of those good to facilitate their illicit transfer,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today we are holding them accountable for violating our laws at the expense of US national security.”

“The defendants in this case took actions that placed profit and economic gain above U.S. national security and global stability,” said FBI San Antonio Division Special Agent in Charge Oliver E. Rich Jr. “Today’s sentencing demonstrates the unwavering commitment of the FBI, U.S. Attorney’s Office, Department of Homeland Security, Department of Defense and Department of Commerce to hold accountable anyone who would threaten U.S. national security and the safety of the American people.”

“Keeping our nation's sensitive technologies out of the hands of our adversaries is one of our highest priorities," said Special Agent in Charge Mentavlos of the Defense Criminal Investigative Service’s Southwest field office. “DCIS, the law enforcement arm of the Department of Defense Office of Inspector General, and our federal partners are committed to identifying and holding accountable those that seek to evade U.S. export enforcement laws, putting our warfighters at risk.”

“BIS’s aggressive enforcement of the Export Administration Regulations plays a critical role in protecting U.S. national security,” said Special Agent in Charge Trey McClish of Department of Commerce’s Office of Export Enforcement in Dallas. “In this instance, our partnership with HSI, DCIS, FBI and the U.S. attorney’s office sends the message that violating U.S. export control rules on Iran will not be tolerated.”

According to court documents, DES and Soltech, which were affiliated with one another by virtue of common directors, employees and customers, both procured goods from the United States for the benefit of Iranian government entities and business organizations. In particular, a sales agent for DES and Soltech helped an Iranian research center obtain U.S. goods without a license from the Department of the Treasury. These goods included a power amplifier designed for use in electromechanical devices as well as cybersecurity software. The companies’ sales agent took steps to conceal the U.S. origin of the goods, including by removing serial number stickers with the phrase “Made in USA” from packages and by causing the cybersecurity software to be downloaded on a computer outside of Iran. In addition, the sales agent shared developments regarding this illegal conduct with other employees and directors of DES and Soltech. An arrest warrant issued for the sales agent has not yet been executed.

Assistant U.S. Attorney Michael J. Friedman and National Security Division Trial Attorney Christopher M. Rigali, representing the United States, prosecuted the case.

HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel and finance move. HSI’s workforce of more than 8,700 employees consists of more than 6,000 special agents assigned to 237 cities throughout the United States, and 93 overseas locations in 56 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.