The materials that Parviz Khaki and Yi Zongcheng allegedly sought to export to Iran included maraging steel, aluminum alloys, mass spectrometers and vacuum pumps used to build, operate and maintain gas centrifuges to enrich uranium.
Khaki, 43, who also goes by “Martin,” and Yi, known as “Kohler” were each charged with one count of conspiracy to violate the law that requires a license to export such goods.
They were also charged with one count of conspiracy to defraud the United States, two counts of smuggling, two counts of illegally exporting US goods to Iran and one count of conspiracy to commit money laundering.
Khaki was arrested in May in the Philippines on a US provisional arrest request, while Yi remains at large and is believed to be in China.
In December 2008, Khaki asked a contact in China to obtain 20 tons of C-350 maraging steel, known for its superior strength suited for use in centrifuges for uranium enrichment, from the United States for his customers in Iran.
He then communicated with Yi in the following months about purchasing 20 tons of maraging steel from a US company with which Yi was in contact, according to the indictment issued in Washington last Thursday.
As he sought more maraging steel, Khaki was also said to have communicated with an undercover US federal agent who was posing as an illegal exporter of US goods in March 2009.
“You know and I know this material [is] limited material and danger goods,” Khaki told the undercover agent. He also discussed his goal to make money from the transaction.
In late 2008, Khaki got in touch with someone in China about obtaining 20 tons of 7075-O aluminum alloy 80mm rods and 20 tons of 7075-T6 aluminum alloy 150 mm rods from the United States or Europe.
During one exchange, Khaki explained to the individual that the aluminum alloy had to be made in America because his Iranian customer had found that Chinese aluminum alloy was of poor quality.
In addition, the indictment found that Khaki had tried to obtain radioactive source materials from the United States, asking the undercover agent to procure barium-133, europium-152, cobalt-57 and cadmium-109 from a US firm.
Most of the material being sought never left the United States, but the indictment says the defendants did successfully export lathes and nickel alloy 120 from the US through China to Iran.
“Today’s indictment sheds light on the reach of Iran’s illegal procurement networks and the importance of keeping US nuclear-related materials from being exploited by Iran,” Assistant Attorney General for National Security Lisa Monaco said in a statement.
“Iranian procurement networks continue to target US and Western companies for technology acquisition by using fraud, front companies and middlemen in nations around the globe.”