In short
- Dindar used a Chinese company to procure and ship military sonar system parts from the U.S. to Iran, falsely claiming they were for China.
- He was fined $10,000 and will serve three years of supervised release after his prison term.
What happened
Reza Dindar, an Iranian citizen, was sentenced in Seattle to 18 months in prison for orchestrating a scheme to smuggle sensitive U.S. technology to Iran via China, in violation of longstanding U.S. sanctions. Dindar operated New Port Sourcing Solutions in Xi’an, China, and concealed the true Iranian destination of military sonar system parts purchased in the U.S.
Dindar was arrested in Panama in July 2025, extradited to the U.S. in April 2026, and pleaded guilty to two counts of export to an embargoed country and two counts of smuggling goods. He also received a $10,000 fine and three years of supervised release.
The export controls put into effect through the International Emergency Economic Powers Act (IEEPA) are essential to the United States’ national security interests.
In numbers
- 18 months prison sentence
- $10,000 fine imposed
What compliance teams should check
- Review transactions involving New Port Sourcing Solutions and any procurement activities in Xi’an, China, for possible diversion risks.
- Screen for deceptive end-use claims related to military sonar system parts and verify final destinations, especially when China is listed as the recipient.
- Update internal controls to ensure compliance with the President’s Executive Order sanctions against Iran, including indirect shipments through third countries.
Why it matters
This case highlights the ongoing risk of sanctions evasion through third countries and the use of deceptive procurement practices to acquire sensitive U.S. technology for embargoed destinations. Compliance officers must remain vigilant for red flags such as false end-user statements and complex trans-shipment routes, especially involving jurisdictions like China. The enforcement actions and penalties imposed underscore the importance of robust due diligence and adherence to export controls to prevent unauthorized transfers to sanctioned entities.
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