The President of the Alavi Foundation, an Iranian not-for-profit organization devoted to the promotion and support of Persian culture, has been arrested.

Farshid Jahedi, has been charged with obstruction of justice, for his alleged attempt to throw away documents responsive to a subpeona issued on Wednesday, December 17th. The subpeona was issued in connection with an investigation of Assa Corp. which the government asserts is a front to funnel money from the U.S. to Iran set up by Bank Melli, a blocked entity, as designated by the U.S. Department of Treasury’s Office of Foreign Assets Control.

Mr. Jahedi is alleged to have thrown documents responsive to the subpoena into a public trash can in Ardsley, N.Y.

The Alavi Foundation, owns 60 percent of 650 Fifth Avenue Co., and the government contends that the rental income from that company is being transferred to Bank Melli through Assa Corp.

The crime of obstruction of justice is codified at 18 U.S.C. 1505. In part, the statute makes it a crime for a person:

who has the intent to avoid, evade, prevent, or obstruct compliance with a civil investigation that was properly made under 15 U.S.C. §§ 1311 et seq., to

• willfully withhold, misrepresent, remove from any place, conceal, cover up, destroy, mutilate, alter, or by other means falsify any
  • documentary material,
  • answer to written interrogatories, or
  • oral testimony,
• which is the subject of such demand.

A violation of this statute can lead to a fine, or imprisonment for a term of not more than 5 years, or both.

What makes this case more interesting is the penalties that can be assessed under the Iranian Transactions Regulations. Under those regulations, codified at 31 C.F.R. Part 560, most financial transactions between U.S. persons or entities and individuals or entities deemed to be under the control of the Government of Iran are prohibited.

Criminal penalties for violations of the Iranian Transactions Regulations may result in a fine up to $1 million dollars, and natural persons may be imprisoned for up to 20 years.

If you feel that you may have violated the Iranian Transactions Regulations or seek assistance in complying with those regulations please contact the author at 202-329-5652 or by email at ferrari@mcnabbassociates.com

If you believe that you may have violated the Obstruction of Justice statute mentioned above, then please contact the author at 202-329-5652 or by email at ferrari@mcnabbassociates.com

The author of this blog is Erich C. Ferrari, an attorney in Washington, DC, who specializes in Sanctions Law and White Collar Criminal Defense. If you have any questions about the blog please email him at ferrari@mcnabbassociates.com