Iranian finance firm's CEO pleads guilty to multimillion-dollar fraud conspiracy in Minnesota
The chief executive of an Iranian online financial services
company pleaded guilty Tuesday to fraud conspiracy charges that federal
prosecutors in Minnesota said involved millions of dollars in transactions
violating U.S. sanctions on Iran.
Seyed Sajjad Shahidian, the 33-year-old founder of
Payment24, admitted Tuesday to conducting 21 illegal transactions with
Minnetonka-based Digital River using a $1.8 million PayPal account acquired
with fake residency documents. Citing records obtained from PayPal, federal
prosecutors said Shahidian also controlled a $6 million PayPal account acquired
under similar fraudulent circumstances. Digital River, meanwhile, has not been
accused of any wrongdoing.
Under the scheme, Shahidian’s Payment24 used fake passports
and other fraudulent documents to set up online payment accounts its customers
could then use to do business with U.S. companies that were otherwise forbidden
by U.S. sanctions on Iran.
One advertised package of services offered by Payment24
included a PayPal account, an “ID card and address receipt,” one remote IP
address within the UAE and a Visa gift card for PayPal verification purposes.
Its website also told customers that “as long as the American sanctions
continue to be in place, it is always advisable to create your accounts with a
foreign identity.”
Payment24 had about 40 employees and offices in Tehran,
Shiraz and Isfahan, Iran. It claimed to have brought millions of dollars of
foreign currency into Iran and prosecutors say it illegally helped customers
buy and export computer software, software licenses and computer services from
U.S. companies.
Shahidian entered Tuesday’s plea via teleconference under
measures taken to avoid the spread of COVID-19 in federal courts. He appeared
roughly one month after being extradited from the United Kingdom following a
November 2018 arrest.
A federal public defender representing Shahidian was not
immediately available for comment.
The firm’s chief operating officer, Vahid Vali, 33, is also
charged, as is Payment24. The FBI’s Minneapolis division investigated the case.
U.S. District Judge Patrick Schiltz set an Oct. 15
sentencing date for Shahidian. Under the terms of Shahidian’s plea agreement,
he faces up to five years in prison, a fine of up to $250,000 and a supervised
release term of three years. Shahidian and the government have not reached an
agreement as to a recommended sentence.
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