Smart Power Systems

"On April 16, 2015, the United States District Court in the Southern District of Texas indicted five individuals and four companies on 24 counts related to illegally exporting sensitive military microelectronics and power supplies to Iran.  The defendants, including the individuals Bahram Mechanic, Khosrow Afghahi, Tooraj Faridi (all three described as 'United States persons'), Arthur Shyu, Matin Sadeghi, and the companies Faratel Co., Smart Power Systems Inc., Hosoda Taiwan Limited, and Golsad Istanbul Trading Ltd., are charged with violating the International Emergency Economic Powers Act by 'exporting high-tech microelectronics, uninterruptible power supplies and other commodities to Iran.'  These technologies had uses in 'military purposes, including surface-to-air missiles and backup power sources for military or nuclear energy systems.' The defendants are also charged with money laundering, conspiracy, and related offenses.  They allegedly used multiple foreign financial transactions to launder Iranian payments for the goods. This alleged illicit procurement network is estimated to have 'obtained at least approximately 28 million parts valued at approximately $24 million from companies worldwide and shipped these commodities to Iran...'  The indictment alleges that the defendants illicitly provided these technologies to 'both commercial entities and Iranian Government agencies, such as the Iranian Ministry of Defense, the Atomic Energy Organization of Iran and the Iranian Centrifuge Technology Company (TESA).'  U.S. sanctions prohibit unauthorized dual-use military sales to these Iranian entities.  Mechanic, Faridi, and Afghani will stand trial for their alleged offenses.  Defendants Sadeghi and Shyu continue to reside in Turkey and Taiwan." (ISIS, "Case Study: Skilled Procurement Ring Charged in Illegally Obtaining Goods for Iran," 5/5/15)

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"Four companies and five individuals have been accused of illegally exporting to Iran high-tech electronics that could be used for military weapons. The 24-count federal indictment was unsealed Friday in Houston. The counts include conspiring to commit money laundering, money laundering and failure to file foreign bank and financial accountings. Prosecutors say the companies and defendants are charged with violating U.S. law by sending certain microelectronics, power supplies and other items to Iran. The exports violate U.S. sanctions as part of anti-terrorism efforts. The indictment names Houston-based Smart Power Systems Inc., plus companies operating in Taiwan, Turkey and Iran. Some defendants are from Houston and Los Angeles, with arrests carried out in Texas and California." (AP, "4 firms, 5 individuals charged in Texas over exports to Iran," 4/17/15)