US Citizen CEO Sentenced to 57 Months in Prison for Conspiring to Export Specialty Metals to Iran

2017/10/16

By: Ashleigh Foor

On Friday, September 8, 2017, Erdal Kuyumcu, a US citizen and the chief executive officer of Global Metallurgy, LLC, based in Woodside, New York, was sentenced to 57 months in prison for conspiring to export specialty metals to Iran. The sentencing took place at the federal courthouse in Brooklyn, New York and proceedings held before Chief United States District Judge Dora L. Irizarry. In June 14, 2016, Kuyumcu plead guilty to conspiracy to violate the International Emergency Economic Powers Act by exporting specialty metals from the United States to Iran.

According to court documents, Kuyumcu conspired to export from the United States to Iran a metallic powder primarily composed of cobalt and nickel, without having obtained the required license from the US Treasury Department’s Office of Foreign Assets Control (OFAC). It was determined after a two-day presentencing evidentiary hearing that the metallic powder has potential military and nuclear uses. In order to prevent nuclear proliferation and terrorism, the US Department of Commerce requires a license to export and exporting without the required license is illegal.

In addition, Kuyumcu and others planned to obtain more than 1,000 pounds of the metallic powder from a US-based supplier, and hid the true destination of the goods by having it shipped first to Turkey and then to Iran. Coded language was used to keep this all secret, for instance, referring to Iran as the “neighbor.”  Once a shipment was sent from Turkey to Iran, a steel company in Iran would send a letter-sized package to Kuyumcu’s Turkey-based co-conspirator.

The Iranian steel company had the same address as an OFAC-designated Iranian entity under the Weapons of Mass Destruction proliferators’ sanctions program that was associated with Iran’s nuclear and ballistic missile programs.

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