SPRING BRANCH, Texas – Two Houston men, formerly charged with violating U.S. trade sanctions, have been pardoned by President Barack Obama as part of an elaborate prisoner swap agreement.
Houston residents Bahram Mechanic, 69, and his nephew Tooraj Faridi, 46, were arrested last April after federal agents raided their business. The company's third owner, a man from Los Angeles, was also arrested. Faridi had been free on bond and Mechanic was released over the weekend.
Both men were accused of breaking multiple federal laws, based on the alleged activity of their Houston-based electronics company Smart Power Systems.
Faridi was charged with one count of conspiracy to violate the Iranian embargo and the EAR, two counts of violating the Iranian embargo and one count of conspiracy to commit money laundering.
Mechanic was charged with one count of conspiracy to violate the Iranian embargo and the EAR, six counts of violating the Iranian embargo and the EAR, five counts of violating the Iranian embargo, one count of conspiracy to commit money laundering, eight counts money laundering and one count of failure to file Reports of Foreign Bank and Financial Accounts (FBARs).
U.S. government officials agreed Saturday to drop charges against the men and four others in exchange for the release of four American citizens being held in Iran.
The deal is also designed to prevent further development of Iran's nuclear program.
The FBI and the U.S. Attorney's Office claimed Smart Power Systems and high-ranking employees used a Taiwanese company to ship products to a Turkish business that then shipped the materials to Iran. Some of the material may have been used in Iranian cruise missiles, the U.S. Attorney's Office said.
"Its appalling to think of the FBI and all of the man hours and careful investigation they did to gather the evidence, and it's all down the tubes now," Kelly Mask, a neighbor of Faridi's, said.
Nobody answered the door at the Faridi's Houston home, Monday. Mechanic, through a security guard, also declined comment.
Officials said there will be a hearing this week to decide if the charges against the company will be dismissed as well.
It was unclear Monday whether the mechanic, Faridi and Smart Power Power systems would be able to continue the alleged activity in light of the recent pardons.