Iran Traders Guilty, Probation and a Fine

Two Iran-controlled trading firms pleaded guilty to sanctions evasion in support of Iran's ballistic missile program.  Punishment included a small fine and "corporate probation."

DES International Co. Ltd. (DES) from Taiwan and Soltech Industry Co. Ltd. (Soltech) from Brunei, were convicted in the United States District Court for the District of Columbia for participating in a criminal conspiracy to violate U.S. export laws and sanctions by sending U.S.-origin goods to Iran.  The companies pleaded guilty to conspiring to defraud the United States and to violate the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations.

Both firms were sentenced to pay a fine of $83,769, and to serve a five-year term of corporate probation. In the announcement of the indictment in November, 2020 Justice announced that if convicted, a company sales rep would face up to five years of imprisonment and a fine of up to $250,000, and DES Int’l and Soltech would each face a fine of up to $500,000

An arrest warrant for the offending sales agent, Chin Hua Huang has not yet been executed, though she was sanctioned by OFAC along with colleagues and the entities in 2020.

DES and Soltech, which were affiliated through common directors, employees, and customers, both procured goods from the United States for Iranian government entities and business organizations. Ms. Huang helped an Iranian research center obtain U.S. goods without a license from the Department of the Treasury, including a power amplifier for electromechanical devices and cybersecurity software.

Ms. Huang took steps to conceal the U.S. origin of the goods, removing serial number stickers with the phrase "Made in USA" from packages, and causing the cybersecurity software to be downloaded onto a computer outside of Iran. The agent also shared information about this illegal conduct with other employees and directors of DES and Soltech. An arrest warrant for Ms. Huang has not yet been executed.

DES International Co., Ltd., a company that claims to have offices in the UAE, Singapore, Taiwan, and China is majority-owned and managed by dual Iran-U.K. national Mohammad Soltanmohammadi, utilizing the alias Chung Lung Wang. Soltanmohammadi is also the owner of China-based company Naz Technology Co., Ltd. and serves as a Director of Brunei-based Soltech Industry Co., Ltd.