US Files Civil Forfeiture Complaint in Iranian Oil Sanctions Case

In a major enforcement action targeting sanctions violations, the US has filed a civil forfeiture complaint in the District Court for the District of Columbia, seeking the seizure of $47 million. These funds stem from the sale of nearly one million barrels of Iranian oil, allegedly linked to the Islamic Revolutionary Guard Corps (IRGC) and its Qods Force (IRGC-QF), both designated as Foreign Terrorist Organisations (FTOs).

Sanctions Violations & Deceptive Oil Shipments

The civil forfeiture complaint details an intricate sanctions evasion scheme operated between 2022 and 2024. Facilitators allegedly orchestrated the illicit shipment, storage, and sale of Iranian petroleum products in direct violation of US sanctions against Iran.

To mask the oil's true origin, the conspirators reportedly tampered with the tanker's automatic identification system (AIS), falsely indicating that the petroleum was sourced from Malaysia rather than Iran. They further presented falsified documents to a Croatian port and storage facility to support this misrepresentation.

Payments for storage fees were made in US dollars, processed unknowingly by U.S. financial institutions. Had these institutions been aware of the Iranian origin, they would have rejected the transactions under existing sanctions laws.

Following the oil’s sale in 2024, the US authorities successfully seized $47 million in proceeds, marking a significant victory for sanctions enforcement efforts.

Iranian Oil Sales Funding Terrorism

The forfeiture complaint asserts that the petroleum product is owned by the National Iranian Oil Company (NIOC), which has allegedly supported federal crimes of terrorism by materially aiding the IRGC and IRGC-QF. These groups are accused of using oil profits to finance activities such as the proliferation of weapons of mass destruction, global terrorism, and systematic human rights abuses.

The US underscores that this case exemplifies how sanctions evasion directly funds malign activities, reinforcing the necessity of strict global enforcement of Iranian sanctions.

Funds forfeited in connection with state sponsors of terrorism may be allocated to the US Victims of State Sponsored Terrorism Fund, offering compensation to victims of terrorist attacks.

Ongoing Enforcement Against Sanctions Evasion

The FBI Minneapolis Field Office and Homeland Security Investigations in New York are leading the investigation into the Iranian oil sanctions breach.

The litigation is spearheaded by Assistant US Attorneys Karen P. Seifert, Maeghan O. Mikorski, and Brian Hudak for the District of Columbia, alongside Trial Attorney Adam Small of the National Security Division’s Counterintelligence and Export Control Section. They are supported by former Paralegal Specialist Brian Rickers and the Justice Department’s Office of International Affairs.

This case highlights the United States’ continued commitment to enforcing economic sanctions against Iran and dismantling illicit networks that undermine international security frameworks.

Read the press release here.