Iranian shipping line charged for using U.S. banks to support terrorists

[News_Editor]

Iranian shipping line charged for using U.S. banks to support terrorists

2011-06-21 04:23:29 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- The Islamic Republic of Iran Shipping Lines (IRISL) was charged in the United States on Monday in a 317-count indictment for providing support to terrorists and proliferators of weapons of mass destruction, prosecutors said.

IRISL, one of the world's largest shipping companies, its regional offices, and its agents were indicted for their roles in a conspiracy that illegally used financial institutions in Manhattan and evaded U.S. economic sanctions on foreign countries.

"Today our office is shining a spotlight on the fraudulent activities of IRISL, which has been sanctioned by the United States, the European Union, and the United Nations for its role in the proliferation of weapons of mass destruction," said Manhattan District Attorney Cyrus Vance.

According to the 317-count indictment, the 11 corporations and five individuals allegedly falsified the records of banks located in New York County to access illegally the U.S. financial system on repeated occasions.

Furthermore, the defendants deceived Manhattan banks into processing more than $60 million worth of payments using aliases or corporate alter egos to hide their illegal activities.

"For sanctions to be effective, they must be enforced. New York remains the number one target of terrorist organizations around the world, and today's joint action will make it more difficult for Iran, a state sponsor of terrorism," added Da Vance.

The state-run IRISL operates throughout the world in major shipping centers, including Singapore, the United Arab Emirates, and the United Kingdom. The other corporations mentioned in the indictment included Hafiz Darya Shipping Lines, Safiran Payam Darya Shipping Company, Asia Marine Network, Sinose Maritime, Leading Maritime and Oasis Freight Agencies.

The eleven companies and the five individuals were charged with Conspiracy in the Fifth Degree. Many of the companies and individuals were also charged with multiple counts of Falsification of Business Records in the First Degree.

In September 2008, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated IRISL and affiliates working on its behalf for economic sanctions as proliferators of weapons of mass destruction.

IRISL was designated to provide logistical services for Iran's ballistic missile program. In June 16, 2010, Hafiz Darya Shipping Lines (HDS Lines) and the Safiran Payam Darya Shipping Company (Sapid Shipping) were subsequently designated for working on IRISL's behalf.

The U.S. sanctions prohibited transactions with, and freeze the assets of IRISL and its affiliates, thereby isolating them from the U.S. financial and commercial systems. IRISL also violated UN Security Council Resolutions by chartering vessels transporting ammunition and weaponry from Iran to countries linked to international terrorism.

According to the charges, 36 Iranian cargo containers transporting hundreds of tons of weaponry, including rockets, missiles, mortars, and small arms, were interdicted en route to Syria via the intended port of Beirut in November 2009. It is alleged that this shipment was intended for Hezbollah.

Between September 10, 2008 and January 10, 2011, the defendants allegedly engaged in a conspiracy to continue their access to U.S. financial institutions despite being banned from it. Any use of their real names would have been detected and blocked by U.S. banks, which employ sophisticated anti-fraud and anti-money laundering computer systems to detect prohibited payments from OFAC-sanctioned entities.

However, it is alleged that IRISL and its sanctioned affiliates sent or received scores of illegal payments through Manhattan banks by using alias names and corporate alter egos in Singapore, the UAE, and the United Kingdom.

In this way, the defendants deceived banks in New York into processing financial transactions that would have otherwise been blocked and seized. As a result, over $60 million in illegal payments stemmed from the falsification of the records of Manhattan banks.

The five individuals, Cheong Kheng Guan, Alireza Ghezelayagh, Alireza Davoudzadeh, Moghaddami Fard and Mohammad Hadi Pajand, were employees of the co-defendant corporations during the relevant time period and actively participated in the conspiracy.

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