An Iranian national and lawful permanent resident of the United States, Bahram Mohammad Ostovari, has been arrested on charges related to the illegal export of electronics from the U.S. to Iran. The indictment accuses Ostovari of violating the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
Ostovari, 66, was apprehended at Los Angeles International Airport. He faces one count of conspiracy to violate IEEPA and three counts of violating IEEPA. During his arraignment in a Los Angeles court, he pleaded not guilty. A trial is set for September 2, with bail set at $1.3 million.
The indictment reveals that Ostovari is the CEO of a Tehran-based engineering firm known as “Company A,” which supplies systems to Iran’s government, including projects for the Islamic Republic of Iran Railways. From May 2018 to July 2025, Ostovari allegedly shipped controlled electronics to Company A in Iran without necessary licenses.
To execute this scheme, Ostovari used two front companies in the UAE—MH-SYS FZCO and Match Systech FZE—to purchase these goods while misleading suppliers about their final destination.
Despite becoming a U.S. permanent resident in May 2020, Ostovari reportedly continued his activities and knowingly circumvented U.S. sanctions against Iran by providing false information about the end use of exported goods.
Under IEEPA and ITSR regulations, unauthorized exports to Iran are prohibited due to concerns over national security threats posed by Iran. Neither Ostovari nor his associates sought authorization from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) for their transactions.
If convicted on all counts, Ostovari could face up to 20 years in federal prison per count.
The investigation involves Homeland Security Investigations, the Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement, and IRS Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys David C. Lachman and Colin S. Scott with assistance from Trial Attorney Kathryn DeMarco.
