Bahram Mohammad Ostovari, 66, an Iranian national and a lawful permanent resident of the United States, has faced arrest upon his recent arrival at Los Angeles International Airport. Ostovari, the CEO of an Iranian engineering firm, stands accused of shipping advanced electronics to Iran contravening U.S. sanctions, according to a federal indictment unsealed on Thursday. Ostovari has pleaded not guilty to the four counts against him including one count of conspiracy and three violations of the International Emergency Economic Powers Act (IEEPA).
Ostovari's arrest comes on the heels of an indictment which alleges that from May 2018 to July 2025, he knowingly continued to export and supply railroad signaling and telecommunication systems from the U.S. to Iran. During his arraignment in downtown Los Angeles, Ostovari was released on a $1.3 million bond and is scheduled to stand trial on September 2. Ostovari allegedly leveraged his residence status in the U.S., gained in May 2020, to knowingly facilitate the prohibited transactions.
The indictment reveals that Ostovari's company, referred to as “Company A,” operated within Iran and catered to projects for the Islamic Republic of Iran Railways among other recipients. Employing front companies in the United Arab Emirates, MH-SYS FZCO and Match Systech FZE, Ostovari is accused of obscuring the true destination of U.S.-origin goods, falsely claiming them as end users. In reality, the merchandise was bound for Company A in Iran, as outlined in the Justice Department's announcement.
The IEEPA and Iranian Transactions and Sanctions Regulations (ITSR) serve to restrict trade with Iran, based on national security concerns, including Iran's nuclear pursuits and terrorism sponsorship. Yet, records indicate that Ostovari never sought the necessary export license from the U.S. Treasury Department's Office of Foreign Assets Control (OFAC). Homeland Security Investigations, along with other agencies, are actively investigating this matter, while Assistant U.S. Attorneys from the Terrorism and Export Crimes Section are to prosecute the case with support from the Justice Department National Security Division's Counterintelligence and Export Control Section.
Indicted individuals are presumed innocent until proven guilty. However, if convicted, Ostovari faces the possibility of harshly receiving a maximum sentence of 20 years for each count, effectively underscoring the severity of the charges against him. Public Information Officer Ciaran McEvoy confirmed these details, concomitant with the pending legal proceedings against Ostovari.
