On Wednesday, the United States Attorneys Office for the District of Columbia (USAO) indicted David Levick, an Australian, charging him with violations for the federal conspiracy statute, the International Emergency Economic Powers Act (IEEPA), and the Arms Control Export Act (ACEA), for allegedly exporting U.S. origin goods to Iran.

The goods in question were seemingly all for use on aircraft and helicopters and included gyroscopes, transducers, lights, and emergency flotation system kits. According to the U.S. government, Mr. Levick is accused of placing orders for Iranian buyers for these goods. Due to the sanctions and export controls, the buyers could not directly buy these products from the U.S. Furthermore, the government alleges that those involved in the conspiracy, including Mr. Levick, would structure the transactions and payments in an effort to avoid restrictions on engaging in financial transactions with Iran. None of this activity was carried out pursuant to licenses from either the United States Department of the Treasury Office of Foreign Assets Control (OFAC) or from the United States Department of State Directorate of Defense Trade Controls (DDTC).

To effectuate the purchases, it is alleged that Levick and his company ICM Components used a broker in Florida to purchase the parts on their behalf. That broker has not been indicted as part of this conspiracy, or at least if they have been indicted, that matter is still under seal. Among the allegations made are that Levick sent emails to a co-conspirator referred to as Iranian A in which he acknowledged that the activity being engaged in was in violation of the law and he could face jail time if caught. Furthermore, the indictment alleges that once federal authorities began their investigation and contacted the Florida broker, who ceased shipment of the products, that Iranian A requested the broker’s contact information and demanded either a shipment of the articles or a refund. Iranian A has been identified by Australian news sources as Hossein Ali Khoshnevisrad, the owner of Ariasa AG. Mr. Khoshnevisrad was previously charged with sanctions violations by the U.S. in 2009. Both Mr. Levick and Mr. Khoshnevisrad are at-large and the U.S. has said that their whereabouts remain unknown, however, at least in the case of Mr. Levick his location is known to Australian news sources who found him at his office. Mr. Levick even allowed for a video interview with Australian media sources stating that he is not hiding and he is living openly in Sydney.

The first step in this case will circle around the United States attempts to extradite Mr. Levick from Australia. The U.S. and Australia have an extradition treaty in place, but it only calls for extradition for certain types of crimes, none of which, Mr. Levick has been charged with. That said, there are some exceptions to the rule which Mr. Levick could potentially be extradited for. Ultimately, it will be up to Australia to determine whether or not the requirements of the treaty are met.

If Mr. Levick is indeed extradited to the U.S. he faces up to 20 years in prison for the charges. However, due to the willful requirement of criminal sanctions violations, he does have a defense as to not understanding the law, i.e., ignorance of the law. That said, if the government can prove the allegations in the indictment, then it seems the willful requirement will be met and Mr. Levick could be convicted. This case is still a long way from a conviction, however, it will be interesting to see if in the coming weeks Australia gives up Mr. Levick for prosecution in the U.S.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC matters. If you have any questions please contact him at 202-280-6370 or ferrari@ferrari-legal.com.