An Iranian national and lawful permanent resident of the United States has been apprehended following allegations of illegal exports to Iran. Bahram Mohammad Ostovari, 66, who resides in Tehran and Santa Monica, was detained at Los Angeles International Airport on Thursday. He faces a four-count federal indictment related to violations of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
Ostovari, founder and CEO of a Tehran-based engineering firm referred to as “Company A,” allegedly exported electronics for railway signaling and telecommunications systems from the U.S. to Iran without proper authorization. The charges include one count of conspiracy to violate IEEPA and three counts of violating IEEPA.
The indictment claims that from May 2018 to July 2025, Ostovari used two UAE-based front companies—MH-SYS FZCO and Match Systech FZE—to facilitate these exports. These items were controlled under federal regulations, requiring a license for export to Iran.
At his arraignment in Los Angeles, Ostovari pleaded not guilty. A trial date is set for September 2 after he was released on $1.3 million bond.
U.S. sanctions against Iran restrict transactions due to threats posed by Iran’s nuclear pursuits and terrorism sponsorship. The IEEPA prohibits unauthorized export or sale of goods from the U.S. to Iran or its government.
Authorities assert that Ostovari did not seek authorization from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) for these transactions.
The investigation is being conducted by Homeland Security Investigations, the Bureau of Industry and Security Office of Export Enforcement, and IRS Criminal Investigation. Assistant United States Attorneys David C. Lachman and Colin S. Scott are prosecuting with assistance from Trial Attorney Kathryn DeMarco.
“An indictment contains allegations that a defendant has committed a crime,” officials stated, emphasizing the presumption of innocence until proven guilty in court.
If convicted, Ostovari could face up to 20 years in federal prison per count.
