US-based company settles $1.6m with Treasury for using sanctioned aircraft

The U.S. Treasury Department announced a $1.6 million settlement on Wednesday with a U.S.-based freight company that violated sanctions on Iran and Venezuela.

The department stated that Fracht FWO—a Houston-based company that coordinates freight shipments—agreed to pay $1,610,775 to settle the violations.

Fract contracted with a blocked Venezuelan government airline to transport car parts from Argentina to Mexico. The government airline used a blocked aircraft operated by Iran’s Mahan Air, which Treasury sanctioned in 2011.

The department said Fracht had “substantial cooperation” with its investigation and has begun working “to ensure similar violations do not reoccur.”