US Seizes $7M in Funds From Scheme to Violate US Sanctions Against Iran
The U.S. seized $7 million in Iranian funds related to a “complex international conspiracy” to violate U.S. sanctions against Iran, the Justice Department said Jan. 5. The conspiracy involved the transfer of about $1 billion worth of Iranian funds to accounts around the world, the agency said. The money was intended to finance terrorism, it said.
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The Justice Department said the people involved in the scheme, including three Iranian nationals and one U.S. citizen, defrauded South Korean banks by submitting fake documents showing Iranian companies were doing “legitimate” business with Korean companies. The individuals used these documents to transfer Iranian funds out of South Korea and into other financial markets, including in Alaska. The U.S citizen allegedly involved in the scheme was Kenneth Zong, who was charged in December 2016 with violating U.S. sanctions against Iran, the Justice Department said. Zong recently completed a prison sentence in South Korea stemming from charges by Korean authorities related to the scheme.
The Justice Department said it filed a forfeiture complaint to seize money held in a sovereign wealth fund in the United Arab Emirates, which was connected to the scheme. The funds were part of a down payment made by Iranian nationals involved in the scheme, the agency said. The forfeited $7 million will be allocated to the U.S. Victims of State Sponsored Terrorism Fund.