Businessman Pleads Guilty to Illegal Exportation of Computer Parts

According to recently released court records, a U.S. businessman has pleaded guilty to installing a restricted U.S. satellite system on an Iranian government oil tanker and smuggling computer equipment to the Iranian ballistic missile program.^[1]

The businessman, Mohammad Farahbakhsh, was also an Iranian national and naturalized U.S. citizen who had been residing in Los Angeles.^[2] According to court records, he pleaded guilty to unlawful export of U.S. commodities to Iran from the United States. Due to “extraordinary family circumstances relating to the health of a family member”, he was sentenced to time already served in prison.^[3]

The records do not state how much time Farahbakhsh served, the date in which he entered the plea or if public hearings were conducted for his plea and sentencing.^[4] Moreover, The Federal Bureau of Prisons states that there is no record of him as an inmate.^[5]

Farahbakhsh was also accused on three other counts of sending goods to Iran without obtaining a valid export license. However, those counts were dismissed.^[6]

A judge can permit a case to be closed to the public. For example, a judge may close a case to the public when defendants are cooperating with authorities investigating others in the case in the hopes of winning a reduced sentence.^[7]

Prosecutors allege the Shahid Hemmat Industrial Group, the entity to whom the computer parts were sold, is ''involved in developing and producing ballistic and cruise missiles.''^[8] Farahbaksh sold computer parts to Shahid Hemmat Industrial Group during the period between 1998 and 2000.^[9]

Farahbaksh’s lawyer, Kristan Peters, has argued that the products shipped were not dangerous and could be purchased off the Internet.^[10] Peters stated that, ''this is a licensing case, not a case involving weapons and nuclear technology as the government insists,” and that the satellite equipment was used to pick up television reception on the oil tanker.^[11]

Under title 50, section 2410(b)(3) of the United States Code, it is a crime for any individual to possess goods or technology identified in 50 U.S.C. Appx § 2404 or § 2405 and to export such goods in violation of those statutes.^[12] These violations are for the exportation of goods or technology to any country which exportation is controlled for national security or foreign policy reasons. Not only does is there criminal liability for the actual exporter of the goods, but to anyone who transfers those goods or technologies mentioned above, knowing that they will be exported in violation of 50 U.S.C. Appx § 2404 or § 50 U.S.C. Appx § 2505.^[13] The punishment for this crime is a fine of $250,000, or 10 years in prison, or both. In addition, if the crime was committed knowingly and willfully and was in violation of § 2505, then additional penalties of $50,000 or five times the value of the goods or technologies exported (which ever is greater) or imprisonment of not more than five years, or both will be imposed.^[14]

Federal criminal defense attorney, Douglas McNabb, has written extensively about import-export laws. His work on the subject may be found here.

---

[1] John Christoffersen, Businessman Pleads Guilty to Illegal Exports to Iran, Associated Press, March 7, 2008 (available at www.boston.com).
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] Id.
[11] Id.
[12] 50 U.S.C. Appx § 2410.
[13] 50 U.S.C. Appx §§ 2404-2405.
[14] 50 U.S.C. Appx § 2410(3)(B).