US Fines Texas Firm $1.6M Over Venezuela Charter

The US Treasury’s Office of Foreign Assets Control (OFAC) has fined Houston-based freight forwarder Fracht FWO Inc. USD1.6 million for violating sanctions by chartering a Boeing 747-300M operated by Venezuela’s Emtrasur Cargo in 2022. The aircraft, previously linked to Iran’s Mahan Air, was later seized in Argentina and ultimately scrapped in the United States in 2024.

According to OFAC, the violations were “egregious” though not willful. Investigators found that Fracht executives ignored internal compliance procedures and failed to conduct due diligence despite clear red flags. At least two vice presidents knew that nearly USD935,000 in payments would go to Emtrasur, a subsidiary of Venezuelan state-owned Conviasa, which is sanctioned by the US.

The case arose when Fracht was hired by a major manufacturer to arrange urgent automotive part shipments from Mexico to Argentina in May 2022. The company chartered Emtrasur’s only aircraft, 747-300M YV3531, for USD885,000 through a broker and later paid USD110,000 directly to the airline for delays.

Unbeknownst to Fracht, the jet had ties to Iran’s Mahan Air, a sanctioned affiliate of the Islamic Revolutionary Guard Corps, and was crewed by Iranian nationals at the time. OFAC alleges Mahan Air continued providing training and maintenance after transferring the aircraft to Emtrasur.

The penalty was reduced from a potential USD2.1 million maximum due to Fracht’s cooperation. The incident underscores the risks of bypassing sanctions checks in global logistics, especially when dealing with high-risk jurisdictions like Venezuela and Iran.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com