The United States has initiated legal action to confiscate over $15 million associated with an illegal Iranian oil distribution network accused of evading American sanctions. The Department of Justice filed complaints in the US District Court for the District of Columbia, alleging that the funds were used to support a network involved in selling and shipping Iranian oil in violation of US sanctions.
The complaints state that the money, totaling more than $15.3 million, was utilized to aid violations of sanctions imposed under the International Emergency Economic Powers Act (IEEPA). Additionally, the funds are alleged to have provided influence over entities such as the National Iranian Oil Company, the Islamic Revolutionary Guard Corps (IRGC), and the IRGC Quds Force.
Mohammad Hossein Shamkhani is accused of operating a network of companies and individuals that sold and shipped Iranian oil while concealing its origin and involvement of Iranian entities. US officials claim that the network utilized various companies, shipping operations, and front firms to hide the source of Iranian petroleum and facilitate international transactions.
The Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned Shamkhani in July 2025, describing him as the son of Ali Shamkhani, a key political advisor to Iran’s Supreme Leader. OFAC characterized the operation as a vast system involving vessels, shipping firms, and front companies moving substantial amounts of oil revenue.
Attorney General Pamela Bondi emphasized that the US will not tolerate the exploitation of its financial system to support sanctioned entities. She stated that foreign actors using the US financial system to aid the nation’s enemies will face consequences. Assistant Attorney General Tysen A. Duva highlighted the case as part of efforts to prevent companies associated with Iran from misusing the American banking system.
The complaints allege that approximately $12.97 million of the funds were designated for Wellbred Capital Pte Ltd and its subsidiary Wellbred Trading DMCC. These companies, allegedly acquired and operated by Shamkhani and associates, aimed to maintain a non-Iran-linked public image while serving the network’s activities discreetly. Another $2.4 million was purportedly intended for Sea Lead Shipping Pte Ltd and its affiliate Sea Lead Shipping Agency India PV, which were allegedly meant to offer shipping services for the network.
