US reveals indictments for two Iranian military procurement networks

WASHINGTON DC, United States (Kurdistan 24) – On Tuesday, the U.S. Department of Justice (DOJ) unsealed two indictments for the role of five men in the illegal acquisition and export of U.S. technology to Iran.

The indictments, which had been under seal—not disclosed publicly—were revealed following the sentencing on Tuesday of one defendant, a Turk and the only non-Iranian among the five. 

Also on Tuesday, and in coordination with the Justice Department, the Treasury Department sanctioned “three of the defendants and four entities for their involvement in the procurement of equipment that supports Iran’s unmanned aerial vehicle (UAV) and weapons programs,” as the DOJ statement that accompanied the release of the indictments explained.

“These defendants sought to obtain valuable U.S. goods that could assist Iran’s military and WMD [weapons of mass destruction] aspirations, and in some instances, they were successful,” the U.S. Attorney in Washington DC, Matthew Graves, whose office was responsible for the legal proceedings, stated, as the indictments were unsealed.

New Strategic Environment

For the U.S. and its European allies, the war in Ukraine has become the most important national security issue, topping all other concerns.

Russia’s unprovoked assault on its much smaller neighbor has revived aspects of the Cold War, while it has also resurrected memory of World War II. Western leaders fear that if they mishandle the situation and if they appear weak, Russia will attack more countries beyond Ukraine.

At the same time, they also worry that if their measures in support of Ukraine appear to be too strong, Russia will escalate the confrontation. It is a delicate situation, and it has transformed the U.S. and European position toward Iran. 

Iran is providing Russia with critical weapons—above all, exploding UAVs. In doing so, Tehran has aligned itself with Moscow. Tuesday’s measures mark the latest in a series of steps that the Biden administration has taken against Iran, and its attitude toward that country is very different from when it took office two years ago.

Previously, the highest priority with regards to Iran was to renew the 2015 nuclear accord, which was concluded under the Barack Obama administration, but which Donald Trump left three years later.

Now, the highest priority regarding Iran is to end its support for Moscow, if possible. But if not, then to punish Iran for that support.

Export of Fuel Cell Test Station, Bio-Detection System

The indictments released on Tuesday relate to two legal cases. In both, individuals based in a Middle East country that the U.S. viewed favorably purchased sensitive equipment for shipment to Iran. 

One case involves the actions of Murat Bükey, a 52-year-old Turk who lived in Izmir and owned the company Ozon Spor ve Hobi Ürünleri, or Ozone Hobby. 

According to the indictment, between 2012 and 2013, Bükey used Ozone Hobby to send two items to Iran, where a second defendant, an Iranian, Amanallah Paidar, operated the company, Farazan Industrial Engineering.

Bükey bought items from U.S. companies on behalf of, and at the direction of, Paidar. But Bükey made his purchases appear as Turkish, rather than Iranian, to circumvent U.S. export laws.

One item that Bükey sent to Iran was a fuel cell test station, manufactured by a company located in Southern Pines, North Carolina. 

“A fuel cell test station is a device that can test the efficacy and power of fuel cells,” and they “have a number of military and civilian uses,” the indictment explained. That includes the manufacture of UAVs, as well as ballistic missiles, and nuclear weapons, it said.

According to the indictment, Paidar e-mailed Bükey in April 2012, asking him to purchase a fuel cell test station from the North Carolina company. The cost for the fuel cell test station and related equipment was nearly $64,000. 

In July, the company sent the items to Ozone Hobby in Izmir. Upon receipt of the items, Bükey sent a wire transfer from his company in Izmir to the company in North Carolina.

However, Izmir was not the final destination—Bükey sent the shipment to Paidar’s company in Iran. 

Bükey also tried to ship a second restricted item to Iran. The Justice Department described it as a “bio-detection system,” stating that it “has application in weapons of mass destruction (WMD) research and use.” 

Due to the sensitive nature of the material, requiring U.S. embassy in Turkey approval, however, Bükey was unsuccessful in sending the second shipment.

On Oct. 18, 2012, as the indictment stated, Bükey emailed a U.S. company “requesting a ‘price offer’ for the ‘RAZOR EX Bio Detection System Type: RAZR-ASY-4000.’”

On Nov. 2, Bükey informed Paidar by email that the cost for the system would be $71,140 plus shipping expenses to Iran. 

Bükey proceeded with the paperwork to purchase the bio-detection system, claiming it would be sent to Izmir for use in the analysis of a hospital wastewater system.

The planned purchase proceeded through the U.S. controls system on the export of sensitive equipment, until May 2013, when the U.S. embassy in Turkey did a pre-shipment check, which included an interview with Bükey. 

The embassy remained suspicious of the order and had the export license revoked. The bio-detection system that Bükey sought to purchase on behalf of Tehran was never shipped.

Instead, in September 2021, Bükey was arrested in Spain, at the Barcelona airport. Charged with violating U.S. export laws, Bükey was ordered to be extradited to the U.S. in July 2022.

In December, Bükey pleaded guilty in a Washington D.C. courtroom, and on Tuesday, he was sentenced to 28 months in prison. After he serves his sentence, he will be deported from the U.S.

The other indicted defendant in the case, Amanallah Paidar, remains at large.

Export of High-Speed Camera, F-5 Parts, Meteorological Sensor System

The second indictment unsealed on Tuesday resembles the first in that individuals based in Iran used other individuals based in a Middle Eastern country that the U.S. considers friendly to import proscribed materials. In the second case, the point of transshipment was Sharjah, one of the seven emirates that constitute the United Arab Emirates (UAE.)

The three conspirators, all Iranians, sought to acquire three items: a sophisticated camera, the Maxicam 3002; a nose landing gear assembly for the F-5 fighter jet; and an MSS-1000 Meteorological Sensor System.

“The commodities in which the co-conspirators traded were items with known military and nuclear applications,” the indictment stated.

Their first acquisition was the Maxicam 3002. Despite encountering initial obstacles, the Mexicam was successfully shipped to Iran through Sharjah.

Their next effort, which began in January 2007, aimed to obtain nose landing gear assembly for the F-5 fighter jet, a well-regarded, but dated, plane that the U.S. had provided Iran during the days of the Shah.

The conspirators claimed that the equipment was bound for Yemen’s Air Force. However, they were denied an export license.

Their third attempt at acquiring a restricted item, however, was successful. In July 2008, they began an effort to acquire a Meteorological Sensor System MSS-100 from a company in Colorado. Six months later, in January, the company sent the MS-100 to Sharjah, unaware that it was bound for Iran.

None of the defendants in this indictment have been detained, and, it seems, no arrests will be made any time soon. 

However, the two indictments, taken together, provide insight on the methods Iran has developed to circumvent U.S. sanctions and export restrictions. And since the indictments refer to activities a decade ago, it is likely that, over the past ten years, Iran has developed new, more sophisticated methods.

Indeed, earlier this month, the President of Belarus, Alexander Lukashenko, who is closely aligned with Russia, visited Tehran. The U.S. characterized the visit as “an extension of the deepening relationship between Iran and Russia.”

Read More: As Belarus President visits Iran, US criticizes ‘Deepening Relationship’ between Tehran and Moscow

In a joint press conference, following the summit meeting, Iranian President Ebrahim Raisi essentially offered to help Belarus by sharing methods on how to evade U.S. sanctions.

“Iran is ready to share its experiences in this regard with Belarus, as a friendly country,” Raisi affirmed, with Lukashenko standing at his side.