Jamshid Ghomi arrested on sanctions charges

Federal prosecutors say the case against Jamshid Ghomi is not just about one shipment or one customer. The Justice Department said on June 3 that Ghomi, a dual U.S.-Iranian national and the CEO of an Iran-based technology company, was arrested on a criminal complaint accusing him of violating U.S. sanctions by acquiring U.S.-origin networking, security and encryption equipment for Iranian customers, including entities tied to Iran’s nuclear and military establishment. (justice.gov) Ghomi, 63, lives in Newport Coast, California, according to the department. The charge is conspiracy to violate the International Emergency Economic Powers Act, the main U.S. statute used to enforce sanctions programs in national security cases. (abcnews.com) The Justice Department said the related Iranian Transactions and Sanctions Regulations bar U.S. persons from exporting, re-exporting, selling or supplying goods or technology to Iran without authorization from the Treasury Department’s Office of Foreign Assets Control. ### How do prosecutors say the scheme worked? Prosecutors said the conduct ran from 2011 to 2023 and relied on ordinary commercial channels as well as intermediaries in the United Arab Emirates. ABC News reported that Ghomi allegedly used his own eBay and PayPal accounts to buy U.S. computer-networking equipment, sent the goods to middlemen in the UAE, and then moved them onward to Iran through a front company. (justice.gov) The Justice Department said Ghomi hid his role through front companies and falsified documentation. ABC reported prosecutors also alleged he told UAE co-conspirators to keep his name off shipping paperwork, omit invoices from shipments bound for Iran, and in at least two instances conceal U.S.-origin equipment inside larger shipments. (justice.gov) ### Which Iranian entities are named in the case? The Justice Department said the alleged customers included the Atomic Energy Organization of Iran and other sanctioned entities tied to Iran’s nuclear program. Assistant Attorney General for National Security John A. Eisenberg said Ghomi was accused of supplying U.S. technology to the Atomic Energy Organization of Iran and other sanctioned entities responsible for Iran’s nuclear program. (abcnews.com) ABC News reported Ghomi is the founder and CEO of Faraz Pardaz Rayaneh Co. Ltd., a Tehran-based computer networking company, and said prosecutors alleged his Iranian clientele included government groups. ABC also reported the company generated annual sales of more than $10 million. (justice.gov) ### Why are prosecutors focused on the money and the mansion? First Assistant U.S. Attorney Bill Essayli said Ghomi “earned millions” in violation of U.S. sanctions laws and that prosecutors would seek to seize assets, including a $35 million Newport Beach mansion. IRS Criminal Investigation said the case involved alleged use of U.S. financial systems and procurement channels to move controlled equipment to Iran. (justice.gov) ABC News reported prosecutors alleged Ghomi laundered money in the United States and used some of it to pay for the Orange County property. The same report said the government is working to seize the mansion. (abcnews.com) ### What does the arrest show about sanctions enforcement? The June 3 complaint shows how sanctions cases can be built from procurement records, payment accounts, shipping documents and asset tracing. The Justice Department and IRS Criminal Investigation both framed the arrest as part of a national security enforcement effort aimed at stopping the flow of American technology to Iran. (justice.gov) The allegations also show the exposure for executives and suppliers when U.S.-origin hardware moves through third countries. In this case, prosecutors said the route allegedly ran through the UAE and involved efforts to obscure the end user and destination. Ghomi has been charged, not convicted, and the allegations have not been tested at trial. (abcnews.com) ### What happens next in court? Ghomi made his initial appearance in U.S. District Court in Santa Ana, California, on June 3, according to the Justice Department. ABC News reported that he did not enter a plea at that appearance and that his arraignment was set for July 13. If prosecutors pursue forfeiture, the Newport Beach property is likely to remain a visible part of the case as it moves forward. (justice.gov)