Ostovari, identified as the CEO of a Tehran-based engineering firm, allegedly orchestrated the scheme since 2018
A 66-year-old Santa Monica resident was arrested Thursday at Los Angeles International Airport on charges of illegally exporting sophisticated electronics to Iran, federal authorities announced.
Bahram Mohammad Ostovari, also a resident of Tehran, faces a four-count indictment for violating the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
Ostovari, identified as the CEO of a Tehran-based engineering firm supplying railway and telecommunications systems to Iran’s government, allegedly orchestrated the scheme from May 2018 to July 2025. The indictment claims he used front companies in the United Arab Emirates, MH-SYS FZCO and Match Systech FZE, to acquire and ship controlled items like computer processors and railway signaling equipment to his Iranian company without U.S. authorization.
He became a permanent resident in 2020 but continued the operation, concealing the true destination from U.S. suppliers.
The charges include one count of conspiracy and three counts of IEEPA violations, tied to exports supporting Iran’s infrastructure, including the Islamic Republic of Iran Railways. Ostovari allegedly acknowledged U.S. sanctions in emails, directing co-conspirators to falsify end-user details to evade export controls.
The IEEPA and ITSR prohibit such transactions due to Iran’s nuclear and terrorism threats, requiring Office of Foreign Assets Control approval, which Ostovari never sought. If convicted, he could face up to 20 years in prison per count.
Authorities believe others may be involved and are investigating.
