CEO of Iranian Engineering Firm Arrested for Allegedly Violating Iran Sanctions by Illegally Exporting US Electronics

The founder and CEO of a Tehran-based engineering company has been arrested on charges of illegally exporting sophisticated electronics from the United States to Iran, allegedly using front companies in the UAE to circumvent export controls and international sanctions.

Bahram Mohammad Ostovari, 66, an Iranian national and lawful permanent resident of the United States, was taken into custody upon arrival at Los Angeles International Airport. A federal indictment unsealed in California charges Ostovari with one count of conspiracy and three counts of violating the International Emergency Economic Powers Act (IEEPA), which underpins US sanctions against Iran.

According to the indictment, Ostovari led an export scheme spanning from at least May 2018 to July 2025. As the head of an Iranian engineering company that supplies railway signalling and telecommunications systems to the Iranian government, including the Islamic Republic of Iran Railways, Ostovari allegedly acquired and shipped controlled goods without authorisation from the US Treasury Department’s Office of Foreign Assets Control (OFAC).

The indictment details how Ostovari used two UAE-based front companies under his control — MH-SYS FZCO and Match Systech FZE — to procure sensitive electronics including computer processors and railway signalling equipment from US suppliers. To conceal the ultimate destination of these goods, Ostovari and his co-conspirators falsely declared that the UAE firms were the end users, when in fact the goods were being re-exported to Iran.

Prosecutors allege that Ostovari knowingly sought to evade sanctions, explicitly referencing US export restrictions in email communications and instructing associates to mislead a federal export control officer regarding the end use of US-origin items. Notably, Ostovari continued his activities even after becoming a lawful permanent resident of the United States in May 2020, allegedly directing illegal exports from US soil.

The IEEPA and Iranian Transactions and Sanctions Regulations (ITSR) prohibit the export, re-export, sale, or supply of goods and technology from the United States to Iran without OFAC authorisation, due to Iran’s activities that threaten international security. At no time did Ostovari or his network seek or obtain OFAC approval for their exports.

If convicted, Ostovari faces up to 20 years’ imprisonment on each of the four counts.

The case is being investigated by Homeland Security Investigations and the US Department of Commerce’s Bureau of Industry and Security. Prosecution is being led by the United States Attorney’s Office for the Central District of California, with assistance from the National Security Division’s Counterintelligence and Export Control Section.

This case underscores the continued scrutiny of illicit trade routes and highlights the serious consequences of violating Iran-related export controls and US sanctions law.

Read the press release here.