U.S. Arrests California CEO Accused of Sending American Network Gear to Iran

Overview

• The Department of Justice arrested Jamshid Ghomi and charged him with supplying U.S.-origin networking, security and cryptography equipment to Iran; he remained in custody and is set to appear in federal court in Los Angeles after his arrest on Wednesday.
• Officials say the transactions lacked authorization from the U.S. Treasury, which is required for exports that could benefit Iran’s military or nuclear programs.
• Prosecutors allege Ghomi used his company, Faraz Pardaz Rayaneh, over more than a decade to buy and route sensitive equipment to Iranian customers through intermediaries in third countries.
• Authorities say Ghomi profited millions and used international transfers and intermediaries to move funds, and they contend the sold technology could help Iran conduct cyber operations or strengthen military command-and-control.
• The case highlights long-standing U.S. sanctions on Iran that bar most U.S. trade and control high-end network and cryptography items because they can aid military, cyber or nuclear efforts, and it now moves into criminal proceedings with potential severe penalties.