A federal jury convicted Brian Assi, also known as Brahim Assi, yesterday of conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR), attempted unlawful export of goods from the United States to Iran without a license, attempted smuggling goods from the United States, submitting false or misleading export information, and conspiracy to commit money laundering.
“The defendant schemed to unlawfully export U.S.-origin mining drills to Iran, while deceiving his employer into believing that they were being sent to Iraq,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This conviction affirms the Justice Department’s resolve to disrupt and hold accountable those who evade our sanctions against Iran, wherever in the world they may be.”
“As this verdict makes clear, no matter how hard you try to obfuscate your scheme to send restricted U.S. items to Iran, we will work tirelessly to bring your conduct to light and ensure you face justice,” said Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Department of Commerce, Bureau of Industry and Security (BIS). “We take action whenever we uncover attempts to evade our sanctions, especially when those efforts are designed to support adversaries like Iran.”
“Efforts to conceal impermissible transactions and circumvent imposed sanctions represent a threat to both the United States economic and national security interests,” said U.S. Attorney Jason R. Coody for the Northern District of Florida. “Today’s verdict demonstrates our collective resolve to hold those who violate regulatory restrictions accountable for their criminal conduct.”
According to evidence presented at trial, Assi was a Middle East-based salesman of a multinational heavy machinery manufacturer with a U.S.-based subsidiary and production plant located in northern Florida. Assi conspired with individuals affiliated with Sakht Abzar Pars Co. (SAP-Iran), based in Tehran, Iran, to export U.S.-made heavy machinery indirectly to Iran without first obtaining the required licenses from the Office of Foreign Assets Control (OFAC).
Assi and his Iranian co-conspirators orchestrated the scheme by locating an Iraq-based distributor to serve as the forward-facing purchaser of two U.S.-origin blasthole drills from the U.S. subsidiary of Assi’s employer. The drills are a type of heavy machinery used to create holes in the ground that are then filled with controlled explosives for mining.
Assi facilitated the sale of the drills and attempted to export them to Iran and used freight forwarding companies to ship the heavy equipment from the U.S. to Turkey. In doing so, Assi concealed any Iranian involvement in the transaction from his employer, claiming the drills were ultimately destined for use in Iraq. But in truth, Assi intended for his Iranian co-conspirators to transship or reexport those items from Turkey to Iran, in circumvention of U.S. export control and sanctions laws.
In furtherance of the conspiracy, Assi concealed his activities with his Iranian co-conspirators by causing false information to be entered into the Automated Export System (AES), a U.S.-government database containing information about exports from the United States. The U.S.-based plant hired a U.S. freight forwarder to arrange the drill’s export from the United States to Iraq. As part of the shipping process, the freight forwarder submitted information to AES about the shipment, including the ultimate consignee’s name and the ultimate delivery destination. Assi misled his employer by claiming that the Iraqi distributor was the ultimate consignee, and that the ultimate delivery destination was Iraq. In fact, Assi knew that his coconspirators in Iran were the true intended recipients, and Iran was the ultimate intended delivery destination.
In furtherance of the illicit transaction, Assi and his coconspirators caused the transfer of approximately $2.7 million from Turkey to pass through the United States.
Sentencing for Brian Assi is scheduled for Jan. 7, 2025.
The BIS is investigating the case.
Assistant U.S. Attorneys Andrew J. Grogan and Harley W. Ferguson for the Northern District of Florida and Trial Attorney Ahmed Almudallal of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.