Chinese Man Faces Additional Charges for Continuing U.S. Business After Placement on SDN List
The U.S. government seized nearly $7 million from bank accounts related to the owner of a network of industrial companies in Eastern China due to his non-compliance with sanctions imposed for doing business with Iran, said the U.S. Attorney’s Office for the Southern District of New York. Li Fangwei, also known as Karl Lee, also faces additional sanctions and new charges that could lead to 30 years in prison if he is apprehended. Fangwei, a national of China, is currently a fugitive.
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According to the U.S. attorney, Fangwei and his company LIMMT were placed on the Specially Designated Nationals (SDN) List in 2009 and 2006, respectively. But despite the ban on conducting business in the U.S., Fangwei used a network of front companies to sell to U.S. companies, sell merchandise to Iran-based companies utilizing the U.S. financial system, and attempt to acquire on behalf of Iran-based entities dual-use items from the United States, alleges the government.
Fangwei is now being charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA), violations of the International Emergency Economic Powers Act, money laundering conspiracy, conspiracy to commit wire fraud and bank fraud, and wire fraud. The FBI and U.S. Attorney’s Office also seized over $6,895,000 from U.S. bank accounts held by foreign banks. Although the foreign banks aren’t implicated in any wrongdoing, the U.S. can seize money from foreign banks if they can’t directly get to assets subject to seizure that are held in those foreign banks’ accounts.