In a significant legal victory for the U.S. Department of Justice, two Texas men were sentenced to 45 months in prison for attempting to violate the International Emergency Economic Powers Act (IEEPA) and conspiracy to commit money laundering. The men, Zhenyu “Bill” Wang, a 43-year-old Chinese citizen, and Daniel Ray Lane, 42, from McKinney, Texas, were found guilty of scheming to sell sanctioned Iranian oil to China and laundering the proceeds.
A Complex Conspiracy Unveiled
From July 2019 to February 2020, Wang and Lane, along with their co-conspirators, devised a plan to evade U.S. economic sanctions against Iran. Their scheme involved purchasing sanctioned Iranian oil, concealing its origins, and selling it to buyers in China. To achieve this, they engaged in extensive communication with various parties to disguise the oil’s origin, secure financing, draft contracts, and arrange shipping.
Key elements of their plan included obtaining Antiguan passports to facilitate the transactions and setting up offshore bank accounts to receive the illicit funds. They also planned to distribute and conceal the proceeds, thereby disguising the true nature and source of the money.
Government Response and Sentencing
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division emphasized the seriousness of the crime, stating, “Today, Mr. Lane and Mr. Wang are held accountable for attempting to broker illicit oil sales between Iran and China, and launder the proceeds, in violation of U.S. sanctions. The court’s sentence makes clear that those who place personal profit over national security will face serious consequences.”
U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania added, “Wang, Lane, and their co-conspirators’ scheme to make millions also would have enriched Iran, one of our government’s foreign adversaries, in direct contravention of measures meant to protect American interests and national security.”
Larissa L. Knapp, Executive Assistant Director of the FBI’s National Security Branch, highlighted the FBI’s commitment to stopping such illegal activities, stating, “The FBI will use all our lawful authorities to stop those who seek to evade sanctions on Iranian oil. Today’s sentencing of Zhenyu Wang and Daniel Ray Lane reflects our commitment to combatting these illegal actions and serves as a warning to others that violating U.S. sanctions impacts our national security and will not be tolerated.”
The Role of the Conspirators
Wang played a pivotal role in the conspiracy by connecting with Chinese buyers and brokering a contract of sale. He even arranged for bribe payments to Chinese officials to facilitate the transaction. Lane agreed to help launder the proceeds from the sale through his business, Stack Royalties, and purchased a cash machine to count the millions of dollars quickly.
The conspirators aimed to start their operation with a 500,000-barrel shipment of Iranian oil and planned to increase it to one or two million barrels per month. They anticipated making significant profits, with Wang expecting $1.5 million per 500,000-barrel shipment.
Both Wang and Lane were fully aware of the illegality of their actions. Wang candidly acknowledged the profits from the illegal transactions, stating, “I love sanction to be honest with you and the sanctions make everybody money.” Lane similarly noted that “sanctions can always be massaged . . . you know, there is always a way around it.”
