California tech CEO accused of smuggling US equipment to Iran’s military, nuclear programs

LOS ANGELES – A dual U.S.-Iranian citizen and technology CEO has been arrested on federal charges for allegedly running a massive, decade-long scheme to smuggle sophisticated U.S. computer networking and encryption equipment to Iran’s military and nuclear programs. 

What we know:

Jamshid Ghomi, 63, a resident of Newport Coast in Orange County, and the CEO of Tehran-based Faraz Pardaz Rayaneh Co. Ltd. (FPR), was arrested following a federal criminal complaint charging him with conspiracy to violate the International Emergency Economic Powers Act (IEEPA). 

Authorities allege that between 2011 and 2023, Ghomi used personal eBay and PayPal accounts, along with front companies and freight forwarders in the United Arab Emirates (UAE), to illegally route controlled U.S. technology to Iran without obtaining the required licenses from the Office of Foreign Assets Control (OFAC).

FPR’s annual sales exceeded $10 million, with a customer base that included sensitive Iranian state entities, officials said.

Prosecutors reveal that from 2017 to 2023, FPR supplied networking equipment to the Atomic Energy Organization of Iran (AEOI), the agency overseeing Iran’s uranium-enrichment and nuclear programs.

Additionally, from 2014 to 2022, Ghomi’s company allegedly provided security and encryption hardware to Iran’s Ministry of Defense and Armed Forces Logistics.

To fund his lifestyle, Ghomi allegedly laundered over $15 million in Iranian revenue into the United States via shell companies in the British Virgin Islands, Hong Kong, Turkey, and the UAE. 

He reportedly disguised these transfers as “foreign inheritances” or “consulting fees” on his tax returns. 

Despite building a custom Newport Coast mansion valued at $35 million, Ghomi reported virtually no income to the IRS, maxing out at $20,684 in a single year, and even claimed the federal Earned Income Tax Credit for low-income families across seven different tax years.

The ongoing investigation is being spearheaded by IRS Criminal Investigation and the Department of Commerce’s Bureau of Industry and Security, with the Major Frauds Section prosecuting the case. 

What we don’t know:

While the federal complaint outlines the volume of equipment smuggled—including more than 250 metric tons of networking gear between 2014 and 2018 alone—the full extent of the national security breach remains unclear. 

It’s unknown exactly how much of this U.S.-origin technology is actively operating within Iran’s active military defense systems or nuclear centrifuges today, or whether other U.S.-based suppliers knowingly assisted Ghomi in his procurement efforts.

Timeline:

• March 2010: Ghomi purchases a vacant lot in Newport Coast for $4,490,000.
• 2010–2013: Ghomi spends over $10.4 million to construct his luxury mansion, funded partially by $7 million in foreign-source wire transfers.
• 2011–2023: Ghomi utilizes eBay, PayPal, and UAE intermediaries to buy and route controlled U.S. technology to Iran.
• 2014–2018: Ghomi orchestrates the smuggling of over 250 metric tons of computer equipment into Iran via Dubai.
• 2014–2022: FPR actively supplies encryption and networking equipment to Iran’s Ministry of Defense.
• 2017–2023: FPR registers as an approved vendor and supplies hardware to the Atomic Energy Organization of Iran (AEOI).
• 2023: Ghomi personally negotiates direct equipment purchases from suppliers in Minnesota and Nebraska, routing them through a UAE front company.
• Present: Ghomi is arrested by federal authorities in California.

What they’re saying:

“Ghomi is accused of aiding our declared enemies by selling U.S.-origin computer networking parts to Iran and earning millions of dollars in violation of U.S. sanction laws,” said First Assistant United States Attorney Bill Essayli. “Our nation’s laws prohibiting doing business with one of the world’s largest state sponsors of terrorism must be enforced and obeyed. We will hold him accountable by seeking an appropriate prison sentence and by seizing his assets, including his $35 million Newport Beach mansion.”

“Today’s arrest reflects our commitment to disrupt the illegal flow of American technology to foreign nations, especially our adversaries. As alleged, Mr. Ghomi spent years exploiting United States financial systems and procurement channels to move controlled equipment to Iran while hiding his activities behind front companies and falsified documentation,” said Darren Lian, Acting Special Agent in Charge, IRS Criminal Investigation’s Los Angeles Field Office. “We will continue to work with our partners to safeguard national security by utilizing our financial investigative expertise.”

What’s next:

Ghomi is scheduled to make his initial court appearance Tuesday afternoon at the United States District Court in Santa Ana.

If convicted, Ghomi faces a statutory maximum sentence of 20 years in federal prison, alongside the federal seizure of his assets, including his multi-million-dollar Orange County estate.