Security

US offers $15 million reward for businessman who provided drone technology to IRGC

Hossein Hatefi Ardakani oversees a transnational procurement network that spans the Middle East and East Asia. The reward aims to disrupt Iran's destabilizing activities across the region.

The US government's Rewards for Justice program is offering up to $15 million for information leading to the disruption of financial mechanisms of the Islamic Revolutionary Guard Corps (IRGC). Iranian businessman Hossein Hatefi Ardakani has helped acquire and supply sophisticated technology that has supported IRGC weapon production and sales. [Rewards for Justice]
The US government's Rewards for Justice program is offering up to $15 million for information leading to the disruption of financial mechanisms of the Islamic Revolutionary Guard Corps (IRGC). Iranian businessman Hossein Hatefi Ardakani has helped acquire and supply sophisticated technology that has supported IRGC weapon production and sales. [Rewards for Justice]

By Al-Fassel |

The US government is seeking to disrupt the ability of Iran's Islamic Revolutionary Guard Corps (IRGC) to acquire the necessary technology to produce the attack drones creating instability throughout the region.

The IRGC's drone sales help fund its destabilizing activities, while the drones themselves have been used by Russia in the war on Ukraine, by Iranian proxy militias in Iraq and Syria against US forces, and by the Houthis to disrupt global shipping through the Red Sea.

The US government's Rewards for Justice program on Tuesday (January 23) announced an award of up to $15 million for information leading to the disruption of the IRGC's weapon programs, including information on Iran-based Hossein Hatefi Ardakani.

The move follows US Treasury sanctions announced last month against 10 entities and four individuals supporting Iran's drone production.

Foreign military advisers visit Iran's defense industry achievement exhibition in Tehran on August 23. Iran unveiled on August 22 its latest domestically built drone that can fly at a higher altitude and for a longer duration with enhanced weapon capabilities, state media reported. [Atta Kenare/AFP]
Foreign military advisers visit Iran's defense industry achievement exhibition in Tehran on August 23. Iran unveiled on August 22 its latest domestically built drone that can fly at a higher altitude and for a longer duration with enhanced weapon capabilities, state media reported. [Atta Kenare/AFP]

The sanctioned network is led by Ardakani, who oversees a transnational procurement scheme that spans the Middle East and East Asia, the Treasury said.

Since 2014, Ardakani has used his network of intermediary companies in Tehran, Malaysia, Hong Kong and the United Arab Emirates (UAE) to procure and facilitate the transfer of sensitive US- and foreign-origin materials, components, and technology to Iran for the IRGC's weapon programs.

These weapons, including the Shahed-136 and Shahed-131 attack unmanned aerial vehicles (UAVs, or drones), are developed on behalf of the IRGC and then sold on the international market.

Ardakani has procured hundreds of thousands of dollars worth of servomotors, inertial navigation equipment and other items with UAV applications for the IRGC's Aerospace Force Self Sufficiency Jihad Organization (IRGC ASF SSJO), the Treasury said.

"Iran's illicit production and proliferation of its deadly UAVs to its terrorist proxies in the Middle East and to Russia continues to exacerbate tensions and prolong conflicts, undermining stability," Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian Nelson said announcing the sanctions on December 19.

"Ardakani directly contracts with the IRGC ASF SSJO using his Iran-based firms and coordinates foreign defense procurements through front companies in Malaysia, Hong Kong and other jurisdictions," the announcement said.

$15 million reward

Individuals with information on Ardakani or his business network are asked to contact Rewards of Justice via Signal, Telegram, WhatsApp (+1 202 702 7843) or through the confidential Tor browser.

In Iran, Ardakani serves as the chairman of the board of directors for Kavan Electronics Behrad LLC; he manages Teyf Tadbir Arya Engineering Company, and he owns and manages Basamad Electronic Pouya Engineering LLC.

Mehdi Dehghani Mohammadabadi serves as Kavan Electronics CEO, and is also subject to sanctions.

Iran-based procurement agent Gholamreza Ebrahimzadeh Ardakani is also subject to sanctions for procuring antennas, US-origin gas thrusters, modular measurement systems, and other UAV-applicable items for Ardakani and his network, the US Treasury said.

Iran-based Saman Industrial Group serves as a commercial front company for the IRGC ASF SSJO and has directly contracted with Kavan Electronics to acquire servomotors on behalf of the IRGC ASF SSJO, it said.

Malaysia- and Hong Kong-based front companies supporting the Ardakani network include Skyline Advanced Technologies Sdn Bhd, Dirac Technology HK Limited, Arta Wave Sdn Bhd, Integrated Scientific Microwave Technologies and Tecknologi Merak Sdn Bhd, and Nava Hobbies Sdn Bhd.

"The companies act as proxies for Ardakani to acquire US- and foreign-origin materials, which are otherwise unobtainable through legitimate procurement channels due to US sanctions and export controls targeting Iran and the IRGC," the Rewards for Justice announcement said.

The US government also identified several UAE­-based businesses, including Dubai-based Smart Mail Services, Ring Field FZE and others, that are willing "to submit false or misleading shipping information, circumvent US and non-US sanctions and export control regulations, and transship illegally procured components to the IRGC on behalf of Ardakani."

Iranian drone attacks

The $15 million reward announcement comes amid an increase in attacks by Yemen's Iran-backed Houthis targeting commercial shipping in the Red Sea.

In November, the Houthis began striking vessels in the Red Sea, disrupting shipping on the vital route, which normally carries 12-15% of global maritime trade.

As a result of Houthi attacks, maritime traffic through the Red Sea shipping route has fallen by 22% in a month, European Union (EU) trade commissioner Valdis Dombrovskis said January 23.

The United States and United Kingdom have carried joint strikes aimed at reducing the Houthis' ability to target shipping, while Washington has also launched a series of unilateral air raids on the Iran-backed group's missiles.

In addition to military action, Washington is seeking to put diplomatic and financial pressure on the Houthis, redesignating them as a terrorist organization last week.

The EU is pushing to launch its own naval mission in the Red Sea to help protect international shipping.

EU countries have given initial backing to the plan and are aiming to finalize it by a meeting of the bloc's foreign ministers on February 19.

Iran's proxy militias have also regularly targeted the international coalition fighting the "Islamic State of Iraq and Syria" (ISIS).

Since October, there have been more than 140 attacks on US and coalition forces in Iraq and Syria, deployed there to fight ISIS.

The latest of these attacks was on January 23, when several drones targeted an airbase in Iraq hosting US troops, a US military official said.

The same base was targeted by at least a dozen missiles on January 20.

Russia has also been using Iranian reconnaissance and attack drones in its war on Ukraine.

Ukraine and its allies have accused Tehran of supplying Moscow with hundreds of Shahed-131 and Shahed-136 attack drones, dubbed "suicide drones" because they explode upon impact with a target.

Iran has reportedly developed a new explosive and reconnaissance drone, the Shahed-107, for use by Russia in Ukraine, Sky News reported January 10.

An informed security source told the outlet that "a few units" of the specially designed drone may have been offered to Russia in a deal estimated to be worth more than $2 million.

Tehran is also close to providing Moscow with surface-to-surface missiles, the source claimed.

This reflects "the significant force design work Iran is engaged in to support Russia's interests regarding Ukraine," the source said.

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[TN: rambling] However, the problems in the region will expand, and I was not able to comment on any [...] but in general it will lead to a rough adventure that develops into unexpected war disasters, and God knows best. In my opinion this must be solved through diplomacy before it escalates. I mean escalate into a volcano that only God can know. Reason must solve it sooner or later, it's not in anyone's interest and leads only to total destruction and leads to whatever it leads to, like a wheel [TN: or: car] in [...][TN: literal: alcohol, possible typo - alt: wheel rolling down the road] because the issue now is contentious and I think that it could grow to a boiling point [T: typo in source text], may God bring calm [TN: or: peace, peace of mind].