By Lookout Staff

July 14, 2025 -- Federal agents on Thursday arrested a resident of Santa Monica and Tehran at LAX for illegally exporting electronic equipment to Iran's government, according the U.S. Justice Department.

Bahram Mohammad Ostovari, 66, is charged with one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and three counts of violating the IEEPA, Justice officials said.

The IEEPA and the Iranian Transactions and Sanctions Regulations (ITSR) impose controls and restrictions based on threats to the U.S. posed by Iran, including "its pursuit of nuclear weapons and sponsorship of terrorism."

According to the indictment unsealed Friday, Ostovari's Tehran-based engineering company, identified as “Company A,” "supplied signaling and communications systems to Iran and its government, including on projects for the Islamic Republic of Iran Railways."

"From at least May 2018 to July 2025, Ostovari and his co-conspirators obtained and shipped sophisticated computer processors, railway signaling equipment, and other electronics and electronic components to Company A in Iran," officials allege.

"After he became a lawful permanent resident of the United States in May 2020, Ostovari continued to export, sell, and supply electronics and electrical components to Company A in Iran."

The sale of many of the items was controlled under federal regulations and their export to Iran was prohibited without a license, officials said in a press release Friday.

"To perpetrate his illegal export scheme, Ostovari used two front companies he controlled in the UAE (United Arab Emirates) -- MH-SYS FZCO and Match Systech FZE -- as conduits," officials said.

Ostovari, who is the founder and CEO of "Company A," "directed co-conspirators at these front companies to acquire the electronics and electronic components" for his company.

Ostovari and his co-conspirators "intentionally concealed from electronics suppliers in the United States and elsewhere that the goods were destined for Iran, falsely stating that MH-SYS and Match Systech in the UAE were the end users when in fact the true end user was Company A in Iran."

"Ostovari then directed his co-conspirators to arrange to ship the goods from the UAE to Company A in Iran," Justice Department officials allege.

"At no time did Ostovari, his companies, or his co-conspirators apply for or obtain authorization from OFAC to export, sell or supply goods and technologies from the United States to Iran."

If convicted, Ostovari faces a maximum penalty of 20 years in prison for each count.

Homeland Security Investigations and the Department of Commerce’s Bureau of Industry and Security are investigating this case, which is being prosecuted by Assistant U.S. Attorneys David C. Lachman and Colin S. Scott for the Central District of California.

Trial Attorney Kathryn DeMarco of the National Security Division’s Counterintelligence and Export Control Section is assisting in the prosecution.