The charges brought by Manhattan District Attorney Robert Morgenthau include the misuse of Manhattan banks and the proliferation of illicit missile and nuclear technology to subsidiary agencies of the Iranian Defense Industries Organization (DIO).
The Chinese company, known as LIMMT, was sanctioned in mid-2006 by the U.S. Treasury Department and the Office of Foreign Assets Control for supporting and playing a role in the proliferation of weapons of mass destruction to Iran. The sanctions banned LIMMT and its manager Li Fang Wei from transactions with or through the U.S. financial system.
Wei, who has seven aliases, has been using 10 shell companies to continue profiting as a major supplier to the Iranian military of banned weapons materials. According to a report from Reuters, six Iranian companies were involved in the scheme.
LIMMT’s two primary lines of business include selling standard metallurgical products to global commercial customers and high-strength metals and sophisticated military materials. Many of the high-strength metals and military materials are prohibited from being exported to Iran under international agreements.
“Our banks have high standards and sophisticated systems to stop these transactions, but this conduct was specifically designed to defeat their systems,” said Manhattan District Attorney Robert Morgenthau in a statement released by his office.
LIMMIT conducted its business through a complex Web of financial transactions that were processed through U.S. banks. Because of the company’s status as an entity proliferating WMD’s, the payments to non-military customers were illegal. Payments to Iranian military subsidiaries were made primarily in Euros.
Wire payments, used in all of LIMMT’S transactions, were sent to and from a number of Chinese banks that handled LIMMT’s front company accounts. An investigation into the Chinese banks is ongoing.
“Banks that provide access to the world’s financial systems to criminals, proliferators and terrorists should expect that they will be found out and prosecuted,” said Morgenthau.
According to Morgenthau’s office, the investigation revealed that in the three years since LIMMT was sanctioned, it has used its aliases to continue sending banned missile, nuclear and so-called dual use materials to subsidiary organizations of the DIO. Some of the materials included specialized aluminum alloy used in long range missile production, graphite cylinders used for banned electrical discharge machines, and other materials. In addition, LIMMT and the DIO engaged in negotiations for the sale of gyroscopes and accelerometers, crucial to Iran’s development of long range missiles.
According to Reuters, Morgenthau also said he would request the arrest and extradition of Li from the Chinese regime, as he is believed to be at large in China.