May 14, 2021
In one of the oddest cases of sanctions violations, the US government has charged an American cosmetics manufacturer with clandestinely shipping nail polish to the Islamic Republic.
US prosecutors said April 6 that they had charged Michael Rose, president of Forsythe Cosmetics Group LLC, for violating US sanctions from 2015 to 2018 by arranging for the export from the United States to Iran of more than $350,000 worth of cosmetics.
They said an Iranian-based importer with whom Rose was working then used front companies based outside Iran to send payments to New York and to arrange for the shipment of goods to Iran via the United Arab Emirates.
Rose was arrested April 6 by the Federal Bureau of Investigation and the US Commerce Department’s Office of Export Enforcement. At a court hearing later that day, a federal magistrate judge ruled that Rose should be released on bail, subject to conditions including restrictions on travel and gun ownership.
“Whatever his motivation – greed or something more sinister – we allege Mr. Rose intentionally disguised his products’ ultimate destination and lied about those products’ prices to limit his customs liability,” said William F. Sweeney Jr., an FBI assistant director.
Forsythe Cosmetic Group made its name in the nail care market. Its products include nail care items, as well as nail polish, lipstick, and makeup available in more than 150 shades. Specializing in professional nail lacquer, Forsythe’s brand names include Silicone Shield, Color Club, Art Club, and Funky Fingers. Founded in 1979 by Harriet and Buddy Rose, their son, Michael, joined the firm in 2005.
