Iranian CEO Arrested Over Illegal U.S. Tech Exports to Iran

An Iranian executive was arrested at LAX for allegedly exporting U.S. electronics used in railway signaling and telecom systems to Iran in breach of federal sanctions. This is reported by the railway transport news portal Railway Supply.

Bahram Mohammad Ostovari, 66, was arrested upon landing in Los Angeles. He faces four federal charges, including conspiracy and violating U.S. export laws involving sensitive technology.

Ostovari founded and led a Tehran-based company that supplied advanced electronics to the Iranian government, including for national railway projects between 2018 and 2025.

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Arrested CEO Linked to Railway Signaling Tech Exports

Prosecutors say Ostovari shipped processors and telecom components critical to railway signaling through UAE front companies, MH-SYS FZCO and Match Systech FZE.

These firms purchased electronics from U.S. suppliers while concealing Iran as the actual destination. Ostovari directed his partners to deceive sellers about the end users.

He also instructed co-conspirators to reroute goods from the UAE to Tehran. These exports included items controlled under U.S. law due to their use in strategic infrastructure.

Arrested Engineer Faces 20 Years for Sanctions Breach

After becoming a lawful U.S. resident in 2020, Ostovari allegedly kept exporting banned components. Emails show he understood the sanctions and told others to mislead U.S. authorities.

The IEEPA and ITSR forbid such exports without U.S. Treasury authorization. Officials confirmed Ostovari and his associates never sought proper licensing through OFAC.

If convicted, Ostovari could face 20 years in prison for each count. Homeland Security, IRS, and Commerce agents continue to investigate the case before trial in September.

Source: www.justice.gov

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