Washington, March 7: The United States has initiated legal proceedings to seize over $15 million linked to Iran’s illegal oil distribution network. U.S. officials allege that this money was utilized to evade American sanctions by leveraging the international financial system, thereby supporting organizations connected to Iran’s Revolutionary Guard.
The U.S. Department of Justice has reported that civil forfeiture lawsuits have been filed in the U.S. District Court for the District of Columbia. These lawsuits claim that more than $15.3 million was used to fund a network that sells and ships Iranian oil in violation of U.S. sanctions.
According to the lawsuits, this money facilitated violations of the International Emergency Economic Powers Act (IEEPA). It was also linked to providing influence and financial support to organizations such as the National Iranian Oil Company and the Islamic Revolutionary Guard Corps (IRGC) along with its Quds Force (IRGC-QF).
The U.S. has previously designated both the IRGC and IRGC-QF as foreign terrorist organizations.
U.S. officials have identified a man named Mohammad Hossein Shamkhani as the operator of a network of companies and associates involved in the sale and shipping of Iranian oil. This network allegedly employed various methods to conceal the true source of the oil and its ties to Iran.
Investigations revealed that the network utilized fake companies, shipping operations, and front firms to obscure the actual source of Iranian petroleum, facilitating international transactions.
In July 2025, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) imposed sanctions on Shamkhani. According to OFAC, Mohammad Hossein Shamkhani is the son of Ali Shamkhani, a senior political advisor to Iran’s Supreme Leader. Ali Shamkhani has also served as the head of Iran’s National Defense Council.
OFAC described the operation as a vast network of ships, shipping companies, and front firms generating billions of dollars from oil sales worldwide. The agency noted that this network often profited from the sale of crude oil and other petroleum products from Iran and Russia, with China being the primary buyer.
OFAC also stated that the network employed complex methods to conceal its activities, ensuring that its connections to the Shamkhani family, Iran, and Russia remained undisclosed.
U.S. Attorney General Pamela Bondi emphasized that the U.S. will not tolerate the use of its financial system to aid sanctioned organizations.
She further stated that the accused allegedly provided millions of dollars to the IRGC while violating U.S. sanctions, and now faces significant consequences.
Assistant Attorney General Tyson A. Dua remarked that this case illustrates how networks linked to Iran attempt to exploit the U.S. banking system. He noted that Shamkhani and his associates sought to enrich themselves while benefiting terrorist networks connected to Iran.
According to officials, approximately $12.97 million of the seized amount was intended for Wellbred Capital Private Limited and its subsidiary Wellbred Trading DMCC. These companies were allegedly operated by Shamkhani and his associates to obscure their direct connection to Iran.
Additionally, around $2.4 million was earmarked for Sea Lead Shipping Private Limited and its affiliate Sea Lead Shipping Agency India Private. Investigators claim these companies were used to provide shipping services for the network.
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