March 20, 2018-- Alireza Jalali, 39, of Iran, was sentenced to 15 months in prison for his participation in a conspiracy to defraud the United States. Jalali pleaded guilty on Nov. 29, 2017,
Assistant Attorney General for National Security John C. Demers, U.S. Attorney Gregory G. Brooker for the District of Minnesota, Acting Special Agent in Charge Robert C. Bone II of the FBI’s Minneapolis Division, Special Agent in Charge Dan Clutch of the Department of Commerce-Office of Export Enforcement (OEE) and Special Agent in Charge Tracy Cormier of Homeland Security Investigations (HSI) St. Paul Field Office made the announcement. Jalali was sentenced before U.S. District Judge Joan N. Ericksen.
“Jalali and his co-conspirators illegally sent sensitive military-use technology to Iran, where it could fall into the hands of Iran’s Islamic Revolutionary Guard Corps, in clear violation of U.S. law,” said Assistant Attorney General Demers. “This is a threat to the national security of the United States and our allies, and we will aggressively prosecute those who brazenly violate our export control laws.”
“This multi-year investigation highlights the importance of preventing U.S.-origin technology from being transferred to unauthorized end users. Fana Moj has designed components for the Iranian military's missile systems,” said Acting Special Agent in Charge Bone. “We must prevent U.S. technology from falling into the wrong hands, where it could be used against our military members.”
“A top priority of OEE is identifying and disrupting the illicit export of controlled technology to Iran,” said Special Agent in Charge Clutch. “OEE will continue to collaborate with its law enforcement partners to combat these criminal schemes that threaten U.S. national security.”
“U.S. export controls are in place to keep sensitive technology from falling into the hands of our nation's enemies,” said Special Agent in Charge Cormier. “One of HSI's highest priorities is to prevent illicit procurement networks, terrorist groups, and hostile nations from illegally obtaining military items and controlled dual-use technology.”
According to the defendant’s guilty plea, from 2009 through December 2015, Jalali was a part-time employee of Green Wave Telecommunication, Sdn Bhn, (Green Wave) a Malaysian company located in Kuala Lumpur, Malaysia. Since its incorporation in 2009, Green Wave operated as a front company for Fanavar Moj Khavar (Fana Moj), an Iran-based company that specializes in both broadcast communications and microwave communications.
As part of the conspiracy, Green Wave was used to acquire unlawfully sensitive export-controlled technology from the United States on behalf of Fana Moj. In order to accomplish these acquisitions, Jalali and his co-conspirators concealed the ultimate unlawful destination and end users of the exported technology through false statements, unlawful financial transactions, and other means.
As part of the conspiracy, the defendant’s co-conspirators would contact producers and distributors of the sought-after technology, solicit purchase agreements, and negotiate the purchase and delivery of the goods with the seller. When the goods were received by Green Wave in Malaysia, Jalali repackaged and unlawfully exported the items from Malaysia to Fana Moj in Tehran, Iran. In 2017, Fana Moj was designated by the United States Department of the Treasury as a Specially Designated National for providing financial, material, technological or other support for, or goods or services in support of, the IRGC.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Commerce-OEE and HSI.
This case is being prosecuted by Assistant U.S. Attorney Charles J. Kovats of the District of Minnesota and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section, with assistance provided by Assistant U.S. Attorney Douglas M. Pravda for the Eastern District of New York.