Washington, March 7: The United States has initiated legal action to seize over $15 million, alleging that the funds are linked to Iran’s illegal oil distribution network. This network reportedly utilized the International financial system to evade American sanctions, providing support to organizations associated with Iran’s Revolutionary Guard.
The U.S. Department of Justice announced 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 violated U.S. sanctions by selling and shipping Iranian Oil.
According to the lawsuits, the funds were allegedly used to facilitate violations of the International Emergency Economic Powers Act (IEEPA) and were linked to organizations such as the National Iranian Oil Company and the Islamic Revolutionary Guard Corps (IRGC), including its Quds Force. The U.S. has already designated both the IRGC and the IRGC-QF as foreign terrorist organizations.
U.S. officials identified a man named Mohammad Hossein Shamkhani as the head of a network of companies and associates involved in the sale and shipping of Iranian oil. This network reportedly employed various methods to conceal the true source of the oil and its connections to Iran.
Investigations revealed that the network utilized fake companies, shipping operations, and front firms to obscure the actual source of Iranian petroleum and facilitate international transactions.
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) had previously sanctioned Shamkhani in July 2025. According to OFAC, he is the son of Ali Shamkhani, a prominent political advisor to Iran’s Supreme Leader and a former head of Iran’s National Defense Council.
OFAC described the operation as a vast network of ships, shipping companies, and front companies that generated billions of dollars in profits 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 typically being the largest 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 assist sanctioned organizations. She stated that the accused allegedly provided millions of dollars to the IRGC and violated U.S. sanctions, for which they will now face significant consequences.
Assistant Attorney General Tyson A. Dua noted that this case highlights how networks linked to Iran attempt to exploit the U.S. banking system. He remarked that Shamkhani and his associates sought to enrich themselves while benefiting a terrorist network associated with Iran.
Officials indicated that approximately $12.97 million of the seized amount was intended for Wellbread Capital Private Limited and its subsidiary Wellbread Trading DMCC. These companies were allegedly operated by Shamkhani and his associates to conceal 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 Limited, which investigators claim were used to provide shipping services for this network.