California man accused of providing computer equipment to Iran

SANTA ANA, Calif. (CN) — A man accused of obtaining U.S. networking and security equipment for Iranians, including that country’s government, was arrested and is expected to appear Wednesday before a federal judge in California.

Jamshid Ghomi, 63, of Newport Coast, faces a charge of conspiracy to violate the International Emergency Economic Powers Act. Both a U.S. and Iranian national, Ghomi is accused of violating U.S. sanctions against Iran, authorities said.

“Ghomi is accused of aiding our declared enemies by selling U.S.-origin computer networking parts to Iran and earning millions of dollars in violation of U.S. sanction laws,” said First Assistant United States Attorney Bill Essayli in a statement. “We will hold him accountable by seeking an appropriate prison sentence and by seizing his assets, including his $35 million Newport Beach mansion.”

If convicted, Ghomi would face a maximum of 20 years in prison.

Authorities claim Ghomi — founder, owner and CEO of Faraz Pardaz Rayaneh Co. Ltd. — used his computer networking company to obtain American networking equipment for Iranian customers. Prosecutors say Ghomi never got a license from the U.S. Treasury Department’s Office of Foreign Assets Control to authorize those transactions in violation of U.S. sanctions.

According to Essayli’s office, Ghomi bought and arranged the shipment of U.S. technology for his company, using eBay and PayPal from 2011 to 2023, to make hundreds of purchases. He had the purchases sent to the United Arab Emirates before reaching his own company in Iran.

Ghomi reportedly arranged the shipment of over 275 tons of networking equipment between 2014 and 2018, using various intermediaries in Dubai to cloak the equipment’s final destination.

“Today’s arrest reflects our commitment to disrupt the illegal flow of American technology to foreign nations, especially our adversaries,” said Darren Lian, acting special agent in charge, IRS Criminal Investigation’s Los Angeles Field Office, in a statement. “As alleged, Mr. Ghomi spent years exploiting United States financial systems and procurement channels to move controlled equipment to Iran while hiding his activities behind front companies and falsified documentation.”

Essayli’s office pointed to shipments of equipment to both the Atomic Energy Organization of Iran and the country’s Ministry of Defense and Armed Forces Logistics.

The shipments to the atomic energy organization happened between 2017 and 2023. The U.S. State Department sanctioned it in 2020 for failure to meet its nuclear commitments, including exceeded uranium stockpile and enrichment levels, authorities said.

Officials also accuse Ghomi’s company of providing U.S. networking, security and encryption equipment to an Iranian ministry that handles the development and manufacturing of its defenses. Those shipments, between 2014 and 2022, included a contract signed by Ghomi that states the buyer is the “Ministry of Defense and Armed Forces Logistics — Iran Computer Industries.”

Authorities say Ghomi knew he was violating the law, as he took steps to conceal his actions. He told people in the UAE to remove his name from paperwork and not include invoices from ships to Iran. Ghomi also reportedly hid U.S. equipment inside larger shipments on at least two occasions.

He also used funds from his scheme to pay for the construction of his Orange County mansion. A vacant Newport Coast lot cost almost $4.5 million, with another $10.4 million for construction, authorities said.

The long-simmering conflict between the United States and Iran flared into a war with the February joint operation involving American and Israeli strikes on Iranian military, government and nuclear facilities.

The war led to the closure of the Strait of Hormuz, through which 20% of the world’s oil supply travels.