US sanctions Iranian procurement network accused of defrauding US firms for military supplies

WASHINGTON, May 29, 2026 — The US Treasury’s Office of Foreign Assets Control on Friday sanctioned an Iran-based procurement network it said defrauded US companies to obtain restricted goods for Iran’s Ministry of Defense and Armed Forces Logistics, or MODAFL, and other sanctioned Iranian end users. Treasury said the action was coordinated with the Commerce Department and the FBI’s Los Angeles field office.

Treasury said the network used impersonation and fraud to source goods for Iran’s defense apparatus. MODAFL, which oversees research, development and manufacturing across Iran’s defense enterprise, was previously designated by OFAC in 2019 under Executive Order 13224 for support to the Islamic Revolutionary Guard Corps-Qods Force, Treasury said.

OFAC’s sanctions-list update shows eight individuals and four entities tied to the network were added to the SDN List. Those named include Ali Majd Sepehr, identified as linked to MODAFL, and Sorena Hushmand Samaneh Company and Sairan Information Exchange Space Security Industries Company in Iran, along with Al Kawther Neon LLC and Green Light Computer Co LLC in the United Arab Emirates.

Treasury said the designations were made under Executive Order 13224, as amended, and warned that transactions involving the newly designated parties could expose foreign financial institutions to secondary sanctions. Secretary Scott Bessent said the case showed how far Iran’s military would go to deceive American businesses in support of its activities.

In a related compliance step the same day, OFAC amended Iran-related FAQ 1249 to reiterate that US persons are not authorized to make payments to, or receive guarantees or services from, Iran or the IRGC for safe passage through the Strait of Hormuz. OFAC said such dealings can also create sanctions risk for non-US persons.

The release forms part of the Trump administration’s “Economic Fury” campaign, which Treasury said is aimed at intensifying pressure on Iran and cutting the regime off from global financial channels. Treasury also noted that the State Department’s Rewards for Justice program is offering up to $15 million for information disrupting the financial mechanisms of Iran’s IRGC and its branches.