US charges foreigners with illegal sales to Iran

BOMB MAKING: Some of the charges relate to goods which have made their way into improvised explosive devices (IEDs). (Getty Images)

The United States slapped sanctions on Iranian military firms on Wednesday and charged 16 foreign companies and individuals with illegally obtaining US dual-use and military goods for Tehran.

The US Treasury said it would sanction six Iranian military firms owned or controlled by entities previously sanctioned for their roles in Tehran's nuclear and ballistic missile programs.

Washington suspects Iran of building a nuclear weapon and has imposed several rounds of sanctions against Iranian companies and state entities as a means of pressuring Tehran to give up sensitive atomic work.

Iran says its nuclear program is for peaceful power purposes and not to build a bomb.

"Iran attempts to shield its procurement activities behind a maze of entities, essentially hoodwinking those still doing business with Iran into facilitating illicit transactions for the transport of dual-use, missile-related items," said Stuart Levey, under secretary for terrorism and financial intelligence, in announcing the sanctions.

The companies earmarked for sanctions included Iran Electronics Industries, Shiraz Electronics Industries, Iran Communications Industries, Iran Aircraft Manufacturing Industrial Company, Farasakht Industries, and Armament Industries Group, the Treasury Department statement said.

Separately, US officials said companies and individuals, including from the United Arab Emirates, Malaysia, Germany and Britain, were set to be charged following a two-year investigation that accuses them of being part of a global network obtaining dual-use military goods for Iran.

Alexander Acosta, the US attorney for the Southern District of Florida, was set to announce the charges at a joint news conference in Miami with US Commerce Undersecretary for Industry and Security Mario Mancuso.

"This extensive, effective government effort has broken up a lethal international ring seeking to harm American and allied forces as well as innocent civilians by acquiring sensitive US technology capable of producing improvised explosive devices (IED) similar to those being used in Iraq and Afghanistan," Mancuso said in a statement.

The 16 foreign-based defendants are charged with conspiracy and violations involving the Iran Trade Embargo, the Iranian Transactions Regulations, the Export Administration Regulations and the International Emergency Economic Powers Act.

US-origin goods diverted to Iran through the network included some subject to U.S. controls for missile technology, national security and anti-terrorism reasons, the Commerce Department said.

The Commerce Department also is placing 75 companies in 13 countries on its "entities list," which would bar them from exporting goods subject to the Export Administration Act.

The companies operate in the United Arab Emirates, Egypt, Malaysia, Singapore, Kuwait, Germany, the United Kingdom, France and the United States, Mancuso said.

The indictments stem from a 2006 case involving Dubai-based Mayrow General Trading, which the United States accused of illegally diverting controlled US goods to Iran which then found their way into bombs used against US and coalition forces in Iraq. (Reuters)

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