A US resident is arrested for operating front companies in the UAE to trade WMD to Iran.

Bahram Mohammad Ostovari, a 66-year-old Iranian national and U.S. lawful permanent resident:

• Was recently arrested for allegedly orchestrating the illegal export of sophisticated electronics from the U.S. to Iran. Ostovari, who resides in both Santa Monica and Tehran, was detained at Los Angeles International Airport; and
• Is accused of violating the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).

These laws are designed to prevent sensitive technology from reaching Iran, which is seen as a threat to U.S. national security due to its pursuit of nuclear weapons and sponsorship of terrorism.

From 2018 to 2025, Ostovari and his co-conspirators allegedly:

• Used front companies in the UAE to acquire and ship electronics, including computer processors and railway signalling equipment, to Iran; and
• Concealed the true destination of these goods by falsely claiming that the UAE companies were the end-users.

U.S. export control laws restrict a wide range of technologies to safeguard national security and prevent the proliferation of sensitive technologies.

Here are some key categories:

1. Nuclear Materials and Equipment: This includes nuclear reactors, fuel, and related technology.
2. Missile Technology: Items related to the development, production, and use of missiles and uncrewed aerial vehicles.
3. Chemical and Biological Weapons: Equipment and technology for the production of chemical and biological agents.
4. Advanced Electronics: This includes semiconductors, integrated circuits, and certain types of computer hardware.
5. Encryption Technology: Strong encryption software and hardware.
6. Aerospace and Propulsion: Technology related to aircraft, spacecraft, and propulsion systems.
7. Telecommunications: Certain telecommunications equipment and technology.
8. Sensors and Lasers: Advanced sensors, lasers, and related technology.
9. Marine Technology: Submersible vessels and related technology.
10. Materials Processing: Advanced materials and processing technology.

These restrictions are part of the Export Administration Regulations (EAR) and the International Traffic in Arms Regulations (ITAR), which aim to prevent sensitive technologies from falling into the wrong hands.

The International Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR) are two key frameworks governing U.S. export controls, but they have distinct scopes and regulatory bodies:

ITAR (International Traffic in Arms Regulations)

• Scope: ITAR controls the export and import of defence-related articles and services listed on the United States Munitions List (USML).
• Regulatory Body: Managed by the U.S. Department of State, specifically the Directorate of Defence Trade Controls (DDTC).
• Focus: Primarily on military items and defence services, including technical data related to these items.
• Examples: Weapons, military aircraft, and satellite technology.

EAR (Export Administration Regulations)

• Scope: EAR regulates the export of commercial and dual-use items (items that have both commercial and military applications) listed on the Commerce Control List (CCL).
• Regulatory Body: Overseen by the U.S. Department of Commerce, specifically the Bureau of Industry and Security (BIS).
• Focus: Covers a broader range of items, including commercial goods, software, and technology that could have military applications.
• Examples: Semiconductors, encryption software, and certain types of telecommunications equipment.

Key Differences

• Regulated Items: ITAR focuses on defence-related items, while EAR covers dual-use and commercial items.
• Regulatory Agencies: ITAR is managed by the Department of State, whereas the Department of Commerce manages EAR.
• Lists: ITAR uses the USML, and EAR uses the CCL.

Understanding these differences is crucial for compliance, as the penalties for violating these regulations can be severe.

This case highlights the importance of U.S. export control laws in safeguarding national security and preventing the proliferation of sensitive technologies.

References

ITAR vs. EAR – What’s the difference? - Export Solutions, Inc. https://www.exportsolutionsinc.com/resources/blog/itar-vs-ear-difference/

ITAR vs EAR Compliance: Understanding U.S. Export Laws https://cargoexportusa.com/resources/itar-vs-ear-compliance/

Deemed Exports FAQs - What technologies are subject to the Commerce ... https://www.bis.doc.gov/index.php/policy-guidance/deemed-exports/deemed-exports-faqs/faq/48-what-technologies-are-subject-to-the-commerce-department-controls

CEO of an Iranian Engineering Company Arrested for Allegedly Shipping ...https://www.justice.gov/opa/pr/ceo-iranian-engineering-company-arrested-allegedly-shipping-sophisticated-electronics-us

Iranian CEO arrested in U.S. over alleged violation of sanctions https://www.globalsecurity.org/wmd/library/news/iran/2025/iran-250712-irna03.htm.

High-Stakes Crackdown on Iranian Electronics Smuggling Uncovers ...https://fincrimecentral.com/ostovari-iran-electronics-export-controls-case/