Federal authorities on Friday raided a Houston business as part of an international investigation in which a total of nine people have been indicted for allegedly supplying Iran with high-tech microelectronics, power supplies and other commodities valued in the millions, officials said.
Two local men were arrested as part of the probe.
"The nine defendants charged in the indictment allegedly circumvented U.S. sanctions and illegally exported controlled microelectronics to Iran," said John P. Carlin, assistant attorney general for National Security.
"Violations of the International Emergency Economic Powers Act not only can undercut the impact of U.S. sanctions, but can also serve to undermine U.S. foreign policy and adversely affect national security."
Exports to Iran
The indictment alleges that Smart Power Systems' Bahram Mechanic, 69, and Tooraj Faridi, 46, both of Houston, and Khosrow Afghahi, 71, of Los Angeles, Calif., were all members of an Iranian procurement network, according to the FBI.
Also accused are Arthur Shyu and the Hosoda Taiwan Ltd. Corp. in Taiwan; Matin Sadeghi, 54, and Golsad Istanbul Trading Ltd. in Turkey; and the Faratel Corp., which is co-owned by Mechanic and Afghahi in Iran.
Agents with the FBI, Commerce Department and the Internal Revenue Service arrived about 6:30 a.m. Friday at the Smart Power Systems at 1760 Stebbins near Shadow Wood Drive, said Shanua Dunlap, spokeswoman for the FBI.
According to the indictment, officials said, Mechanic and Afghahi are co-owners of Iran-based Faratel and its Houston-based sister company, Smart Power Systems.
Faratel allegedly designs and builds uninterruptible power supplies for various Iranian entities, including Iranian government agencies such as the Iranian Ministry of Defense, the Atomic Energy Organization of Iran and the Iranian Centrifuge Technology Company, according to the charges.
Faridi currently serves as a vice president of Smart Power Systems.
Shyu is a senior manager at the Hosoda Tawain Ltd. Corp., a trading company in Taiwan, while Sadeghi is an employee of Turkey shipping company Golsad Istanbul Trading.
The indictment alleges that from about July 2010, Mechanic and the others engaged in a conspiracy to obtain various commodities, including controlled U.S.-origin microelectronics. They then allegedly exported microcontrollers and digital signal processors to Iran, while carefully evading the government licensing system set up to control such exports.
Officials said these commodities are frequently used in a wide range of military systems, including surface-air and cruise missiles. Since about July 2010, Mechanic's network allegedly sent at least $24 million worth of commodities to Iran.
Facing 20 years
According to court documents, officials said, Mechanic, assisted by Afghahi and Faridi, regularly received lists of commodities, including U.S.-origin microelectronics, sought by Faratel in Iran. Mechanic would approve these orders and then send the orders to Shyu in Taiwan.
Shyu would allegedly purchase the commodities utilizing Hosoda Taiwan Ltd. and then ship the commodities to Turkey, where Sadeghi would act as a false buyer through his company, Golsad Istanbul Trading Ltd.