Two exporters from California have been charged with violating the Iranian Transactions Regulations for the export of laptop computers to Iran via Dubai, UAE. It is alleged that these exported laptops were exported to Iran without a license from the United States Department of the Treasury Office of Foreign Assets Control (OFAC). Amongst the offenses charged in the criminal complaint are violations of the International Emergency Economic Powers Act, 50 U.S.C. 1705, and the Iranian Transactions Regulations, 31 C.F.R. 560.203 and 560.204.

Although the two individuals charged with these offenses face a statutory maximum sentence of up to twenty (20) years in prison, the sentence will probably be less than that 20 year maximum. What many people do not realize is that while a violation of the Iranian Transactions Regulations carries with it a maximum of 20 years, the minimum sentence for such violation recommended by the United States Sentencing Commission is sixty-three (63) months, or five (5) years and three (3) months. That is only a recommended base sentence. There are other factors that can enhance a sentence.

For example, the government has alleged that there was an attempt by these individuals to lie to the investigating federal agents. As such, if convicted, these individuals might receive a +2 enhancement under the federal sentencing guidelines and receive a higher sentence. There are a number of other enhancements which can be applied, so one convicted for a criminal violation of the Iranian Transactions Regulations should not assume that the sentence will be five years and three months.

On the other hand, there are also opportunities to depart below the recommended minimum sentence found in the Federal Sentencing Guidelines. In addition, the sentencing court will have an opportunity to consider allowing for a variance below that recommended minimum sentence. As such, guessing how a criminal conviction for a violation of the Iranian Transaction Regulations will be sentenced will depend entirely on the facts. However, the take away here should be that the penalties are serious and the U.S. government is criminally prosecuting violations of the Iranian Transactions Regulations, particularly those pertaining to exports of goods and technology.

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.

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