On July 11, 2025, the U.S. Department of Justice announced the arrest and indictment of Bahram Mohammad Ostovari for violating U.S. sanctions in connection with the export of electronics used in railway signaling and telecommunications systems from the United States to Iran. Ostovari, an Iranian national and U.S. permanent resident living in California, was charged with one count of conspiracy violating the International Emergency Economic Powers Act (“IEEPA”) and three counts of violating the IEEPA, for his role in the scheme. A trial date has been set for September 2, 2025.
According to the DOJ, from approximately May 2018 to July 2025, Ostovari supplied signaling and communications systems to Iran and its government, including the Islamic Republic of Iran Railways and the Tehran Urban and Suburban Railway Company, through an unnamed Iran-based engineering company that he founded and served as CEO. Ostovari reportedly worked with co-conspirators to obtain and ship systems, including sophisticated computer processors and railway signaling equipment, to his Iran-based company. He also allegedly had co-conspirators acquire electronics and electrical components, including U.S. export-controlled items, using two UAE-based front companies that Ostovari controlled in order to conceal from U.S. suppliers that the goods were destined for Iran. According to federal prosecutors, Ostovari continued to engage in this scheme after becoming a lawful permanent resident of the United States in May 2020.
The IEEPA and Iranian Transactions and Sanctions Regulations (ITSR) prohibit the export, re-export, sale, or supply of goods, technology, or services from the United States to the Iran or the Iranian Government without first obtaining authorization from OFAC. Federal prosecutors allege that Ostovari, his companies, or his co-conspirators never applied for or obtained authorization from OFAC for the shipments to Iran. According to the indictment, Ostovari also allegedly sent emails that suggested he knew that the shipments violated U.S. sanctions, including an email in which he instructed a co-conspirator to provide false information to a federal export control officer regarding the end use of a particular shipment.
DOJ Press Release | Indictment | Criminal Minutes – General