WASHINGTON—The U.S. Justice Department said on Feb. 11 it had charged five people in Texas and New York with conspiring to violate a law on international commerce by arranging to purchase sanctioned Iranian oil and sell it to a refinery in China.
The defendants include Daniel Ray Lane, president of privately held STACK Royalties LLC a Texas-based company that sells oil and gas mineral rights to investment funds and private equity groups.
The Justice Department charged the defendants with one count of conspiracy and another for violating the International Emergency Economic Powers Act, based on allegations that from July 2019 to February 2020 they conspired to arrange for the purchase of oil from Iran for sale to an unnamed Chinese refinery. The charges also allege violations of U.S. economic sanctions on Iran.
The five suspects, in addition to Lane, are Nicholas Haven of New York and Robert Thwaites, Nicholas Fuchs and Zhenyu Wang, also known as Bill Wang, of Texas.
Lane offered to further the conspiracy by laundering money through STACK Royalties, the Justice Department said. STACK did not immediately respond to requests for comment.
Polish Shell Company
China is the world’s only major importer of Iranian oil despite sanctions President Donald Trump unilaterally reimposed on Tehran’s petroleum exports in 2018 after withdrawing the United States from the 2015 Iran nuclear deal between Tehran and six world powers.
“With the goal of illegally enriching themselves, the defendants conspired for over eight months to devise a scheme to violate U.S. sanctions imposed on Iran, particularly the ban on foreign oil sales,” said Assistant Attorney General for National Security John Demers.
The defendants agreed to use a Polish shell company as a straw seller of the illicit oil and planned two shipments of oil per month, according to the charges against them.
The Justice Department said Fuchs and Thwaites agreed to apply for foreign passports in order to set up offshore accounts that would not be reported to U.S. authorities.
If convicted, the defendants each face a maximum sentence of 25 years and a fine of up to $1.25 million, the department said. It was not immediately clear if the five had hired lawyers to represent them.
Recommended Reading
NAPE: Turning Orphan Wells From a Hot Mess Into a Hot Opportunity
2024-02-09 - Certain orphaned wells across the U.S. could be plugged to earn carbon credits.
Well Done Foundation Wins California Orphan Well Project
2024-02-12 - Nonprofit Well Done Foundation will plug orphan wells in Santa Barbara County, California, starting in Orcutt and Santa Maria.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
E&P Highlights: Jan. 29, 2024
2024-01-29 - Here’s a roundup of the latest E&P headlines, including activity at the Ichthys Field offshore Australia and new contract awards.
Diamondback May Go Nuclear to Power Permian Basin Ops
2024-04-08 - Oklo Inc., a California fission power plant developer, on April 8 said it signed a letter of intent to collaborate with Diamondback Energy on implementation of nuclear energy for drilling operations in the Permian Basin.