DOJ Probing Dubai-Based Iranian Oil Tycoon’s Global Banking Web

The U.S. Justice Department is investigating whether Iranian oil tycoon Hossein Shamkhani violated sanctions while using a global network of banks, according to Bloomberg.

The inquiry centers on billions of dollars moving among firms overseen by Shamkhani, the son of a senior adviser to Supreme Leader Ayatollah Ali Khamenei, the news agency said, citing individuals familiar with the matter. The existence of the probe does not mean charges will be filed.

Investigators have drawn on information from insiders inside Shamkhani’s business empire and from Wall Street banks that dealt with entities in his network, the sources told the news outlet.

The focus is on Shamkhani rather than the banks. Institutions whose dealings are being examined include JPMorgan Chase & Co., ABN Amro Bank NV, Marex Group Plc, Standard Chartered PLC, Emirates NBD PJSC and National Bank of Fujairah PJSC, according to the report.

The news agency previously reported that the Treasury Department was reviewing JPMorgan’s relationship with a hedge fund said to be overseen by Shamkhani. The DOJ probe is broader, with an eye to possible indictments and arrests of individuals working across his companies, and will require coordination with foreign counterparts, particularly in the United Arab Emirates.

Shamkhani, based mainly in Dubai, was sanctioned in late July along with dozens of associated individuals, companies and vessels in what the Treasury described as its largest Iran-related action in seven years. The U.K. and EU have also designated him in recent months.

U.S. officials say he leveraged his father’s political clout to build a fleet of tankers and container ships that moved billions of dollars in oil, petroleum and other products from Iran and Russia to buyers worldwide, often through layers of shell companies. He has used aliases including “H,” “Hector” and “Hugo Hayek,” according to Treasury statements cited by Bloomberg.

Following the U.S. sanctions, Dominica revoked a passport issued to Shamkhani under the Hayek name, and Panama de-flagged several vessels linked to his firms. Some companies have since made Oman their primary base, Bloomberg reported.