Reza Dindar, 44, was arrested in Panama in July at the request of U.S. authorities and transferred to the United States last week. He made an initial appearance in U.S. District Court in Seattle, with arraignment scheduled for May 1, according to officials.

Prosecutors allege that Dindar conspired to violate longstanding U.S. trade sanctions by acquiring military sonar components under false pretenses and rerouting them to Iran. The indictment, unsealed Friday, charges him with conspiracy, smuggling and money laundering.

According to court documents, Dindar operated a company, New Port Sourcing Solutions, based in Xi’an, China, and between 2011 and 2012 arranged the purchase of parts for three military sonar systems from a business in Washington state.

Prosecutors said the transactions were carried out using deceptive practices, including misrepresenting the final destination of the equipment and asserting that no export license was required.

The components, valued at $97,600, were allegedly shipped first to China and then covertly transferred to Iran, in violation of U.S. sanctions imposed in 1995 and reinforced in 2001.Authorities have not disclosed Dindar’s whereabouts in the years between the alleged offenses and his arrest.

His attorney, Farhad Alavi, declined to comment.The case underscores ongoing U.S. enforcement efforts targeting alleged sanctions evasion networks involving dual-use or military-sensitive technologies.

In a separate matter, federal prosecutors said a Los Angeles woman was arrested over the weekend on suspicion of assisting Iran in trafficking weapons to Sudan, though officials said the cases are unrelated.

The Malaysian Anti-Corruption Commission (MACC) said the artworks, valued at approximately $198,000, were retrieved in coordination with U.S. authorities and form part of broader efforts to recover assets allegedly misappropriated from 1Malaysia Development Berhad between 2009 and 2014.

The collection includes Picasso’s “L’Ecuyère et les clowns” (1961), alongside works by Joan Miró, Maurice Utrillo and Balthus. Authorities said the pieces had been held in the United States and were among artworks linked to individuals associated with the fund.
The MACC said the items are now under strict security and undergoing environmental stabilisation before authentication and valuation by Malaysia’s National Visual Arts Development Board.

The repatriation follows earlier coordination with the Federal Bureau of Investigation and the U.S. Department of Justice, as Malaysia continues efforts to trace and recover assets across jurisdictions.
Authorities said some of the recovered works had previously been stored at major auction houses, including Christie’s and Sotheby’s, after being seized from a former lawyer linked to 1MDB.

Malaysia has sought to recover more than $4.5 billion believed to have been siphoned from the sovereign fund in a global scheme involving luxury assets ranging from real estate to artwork.

To date, about 31.2 billion ringgit ($7.90 billion) has been recovered, representing nearly 70% of identified assets, according to the MACC.

The 1MDB case, co-founded by former prime minister Najib Razak, has triggered investigations in multiple countries.

Najib was convicted and jailed in 2022 over charges linked to the scandal, which he has consistently denied.
The MACC said the recovered artworks may be publicly displayed before any decision is made on potential sale.

Li, a former chairman of the board at Huione Pay, is accused of being a core member of a criminal syndicate linked to Chinese-Cambodian businessman Chen Zhi, according to Chinese state broadcaster CCTV.

Chen was extradited to China in January and is currently in detention, authorities said.The case is part of a broader international crackdown on transnational fraud networks operating across Southeast Asia.

The United States said last October that it and the United Kingdom had taken action against Chen’s Prince Group, describing it as a criminal enterprise involved in online investment scams. U.S. authorities also accused the Huione Group of laundering proceeds from such schemes, as well as cyber heists linked to North Korea.

According to the Financial Crimes Enforcement Network, the Huione Group allegedly laundered at least $4 billion in illicit proceeds between August 2021 and January 2025.

Reuters could not seek comment from Huione, which has since been dissolved. A U.S.-based representative for Prince Group did not immediately respond to requests for comment outside business hours.

Cambodian government spokesperson Touch Sokhak said China had sent experts to assist local authorities in the investigation, which ultimately led to Li’s arrest and extradition.

“This shows Cambodia’s will to clear out online scams and that Cambodia is not a safe haven for scam criminals,” Sokhak said.

China’s foreign ministry spokesperson Mao Ning said Beijing would continue to work with Cambodia to combat cross-border telecommunications fraud, highlighting deepening cooperation between the two countries in tackling organised financial crime.

According to officials, the searches were related to possible violations of the Foreign Exchange Management Act (FEMA). The agency targeted NGOs and firms funded by OSF and SEDF, as well as Aspada Investments Private Limited, a holding company of SEDF. Authorities stated that Aspada acts as an investment advisor and fund manager for SEDF in India and is a wholly owned subsidiary of a Mauritius-based entity.

Officials revealed that the agency traced a money trail of INR25 crore from Soros-linked companies to several Indian NGOs. Additionally, foreign direct investment (FDI) amounting to INR300 crore, funneled through OSF’s subsidiaries, is under scrutiny. It is believed that SEDF has funded over a dozen companies in India with investments totaling INR300 crore.

ED’s Investigation into Foreign Funding

A senior officer, speaking anonymously, confirmed that ED recently launched a FEMA probe against Soros and his companies. “Our teams carried out raids at eight locations in Bengaluru to investigate contraventions in FDI rules by SEDF and OSF and the subsequent utilization of those funds,” the officer said.

Preliminary investigations indicate that OSF was placed under the Ministry of Home Affairs’ (MHA) prior reference category in 2016, restricting it from making unregulated donations to Indian NGOs. However, officials suspect OSF circumvented these restrictions by establishing subsidiaries in India and routing funds under the guise of FDI and consultancy fees.

A second official noted that ED is examining the end-use of other FDI funds brought in by SEDF and OSF in India.

SEDF’s Investment History in India

According to VCCEdge, the data platform owned by HT Media, SEDF invested INR50 crore in its impact-focused subsidiary, Aspada Investments, in 2013. Aspada Fund 1, its first fund, later raised around INR271 crore, which it used to invest in over a dozen companies, including quick commerce platform Dunzo Digital, WayCool Foods and Products, and NeoGrowth Credit.

SEDF later sold a controlling stake in Aspada to LGT, a private banking and asset management group owned by the Princely House of Liechtenstein. In 2021, this entity was renamed Lightrock, which continues to invest in impact-driven businesses in India.

OSF’s Presence and Restrictions in India

OSF, one of the world’s largest private funders of human rights advocacy, impact investment, and justice-related initiatives, began operations in India in 1999. However, officials confirm that OSF does not have a formal office in the country.

The organization’s website acknowledges that its funding activities in India have been constrained since mid-2016 due to government restrictions.

Political Controversy Surrounding George Soros

The Bharatiya Janata Party (BJP)-led central government has previously linked Soros to Congress leaders Sonia Gandhi and Rahul Gandhi. In December 2024, BJP MP Nishikant Dubey accused the Congress of collaborating with the Organized Crime and Corruption Reporting Project (OCCRP), a global investigative journalism initiative allegedly backed by Soros’ OSF, to undermine India’s Parliament and government. BJP MP Sambit Patra also alleged that Rahul Gandhi was part of a “triangle” with Soros and OCCRP aimed at destabilizing India.

Neither OSF nor SEDF has responded to queries regarding the ED’s latest actions.