Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a U.S. citizen has been indicted on federal charges for his alleged role in a scheme to provide services to Iran which resulted in the unlawful distribution of approximately $1 billion United States dollars equivalent of Iranian owned funds.  These funds were held in South Korea in restricted accounts, then transferred to more than 10 countries around the world, including the United States, United Arab Emirates, Switzerland, Germany, Austria and Italy.  These transfers were in violation of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).

Kenneth Zong, 77, is named as the sole defendant in the 47-count indictment charging him with conspiracy to violate IEEPA, unlawful provision of services to Iran, money laundering conspiracy, and money laundering.  The indictment alleges that Zong, a U.S. citizen, spent most of his adult life residing in, and doing business in Anchorage, Alaska.  At a time undetermined, Zong left Alaska for Seoul, South Korea, and operated businesses there.  The indictment alleges that in January 2011, and continuing through at least April 2014, Zong and four co-conspirators – three Iranian nationals and one U.S. citizen – conspired to evade the prohibitions of IEEPA and ITSR by engaging in false, fictitious and fraudulent transactions which were designed to unlawfully convert and remove Iranian owned funds equivalent to approximately $1 billion United States dollars.  These funds were held in controlled Korean bank accounts, and converted into more easily tradeable currencies, such as dollars and/or euros, by defrauding the Korean regulators into thinking the transactions were legitimate.   Zong is charged with transferring those currencies worldwide, and receiving payment for these acts from the Iranian nationals in an amount from $10 million to $17 million USD.

The indictment alleges that the scheme began in 2011, when Zong changed the name of his Korean company, “KSI Ejder, Inc.” (KSI) to “Anchore.”  Zong used KSI/Anchore as a conduit to convert and distribute Iranian funds into United States currency or, in some cases euros, by fictitiously selling marble tiles and other construction supplies to an Iranian shell company in Kish Island, Iran.  The indictment alleges that KSI/Anchore fictitiously purchased Italian marble tiles and other construction supplies from “MSL & Co Investment Trading” (MSL Investment Dubai), an Iranian-controlled shell company in Dubai, which were then fictitiously shipped directly to another fictitious company in Iran.  Zong and his co-conspirators created false and fictitious contracts, bills of lading, and invoices to show Korean government banking regulators that the Iranian company owed KSI/Anchore for the false marble purchases.  This resulted in the transfer of Iranian funds, at the direction of Zong’s co-conspirators, from the restricted Iranian bank account to Zong’s KSI/Anchore account.  Zong then transferred the funds to entities and individuals throughout the world, including Alaska and other countries in the Middle East, Europe and North America.

Zong is also charged with 43 counts of money laundering and one count of money laundering conspiracy for his actions in connection with the $10 million dollar fee paid to him by his Iranian associates.  In furtherance of the scheme, Zong transferred $10 million of his fees from Korea to a co-conspirator who resided in Anchorage.  This individual also created and operated various companies to be used as front companies to purchase real estate, automobiles, an interest in a yacht and other purchases or transfers of the Iranian funds.

The U.S. embargo on Iran, which is enforced through IEEPA and the ITSR, prohibits the export of goods, technology, and services to Iran with very limited exceptions.

An arraignment date has not been set.

U.S. Attorney Loeffler commended the IRS-Criminal Investigation and the FBI for the investigation of this case.

An indictment is only a charge and is not evidence of guilt.  A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.


  1. I really love your website.. Excellent colors & theme.
    Did you develop this website yourself? Please reply back as
    I’m planning to create my own site and would like to learn where you got this from or exactly what the theme is called.

    Appreciate it!

  2. Hi there, just became aware of your blog through Google,
    and found that it’s really informative. I’m gonna watch out for brussels.
    I’ll be grateful if you continue this in future. Numerous people will be
    benefited from your writing. Cheers!

  3. Most common type of wristwatch is worn on particular person`s wrist and is tightened with help of a watchband that’s made up of
    nylon, leather-based, some other plastic strap, metallic link
    or sometimes, even ceramic.

  4. That`s not all; this digital wristwatch also comes with some equipment which embrace Bluetooth headset, USB Bluetooth package charging cable,
    power adaptor, stand alone battery charger USB watch charging knowledge
    switch cable.

  5. I’ll right away grasp your rss feed as I can not find your email subscription hyperlink or e-newsletter service.
    Do you’ve any? Kindly let me recognise so that I may subscribe.

  6. First off I would like to say wonderful blog! I had a quick question in which
    I’d like to ask if you do not mind. I was curious to know how you center yourself and clear your
    head before writing. I’ve had a hard time clearing my mind in getting my thoughts out.
    I do take pleasure in writing but it just seems like
    the first 10 to 15 minutes are generally lost simply just
    trying to figure out how to begin. Any ideas or hints?

  7. The ladies wristwatch is always changing in response to the latest style
    trends in girls’ trend as a result of girls need a watch
    that they’re going to be pleased with. Anybody who’s in search of one needs to understand that there’s more to it than the
    model, the design, and the fashion.

  8. It is perfect time to make a few plans for the longer term and it
    is time to be happy. I’ve learn this put up and if I could
    I wish to suggest you some fascinating things or tips.
    Perhaps you could write next articles regarding this article.
    I wish to read more things approximately it!

  9. I have been surfing online more than 2 hours today, yet I never found any interesting article like yours.
    It is pretty worth enough for me. Personally, if all site owners and bloggers made good content as you did,
    the net will be a lot more useful than ever before.

  10. I absolutely love your blog and find the majority of your
    post’s to be just what I’m looking for. Does one offer guest writers
    to write content for yourself? I wouldn’t mind composing a post or elaborating on most
    of the subjects you write with regards to here. Again, awesome blog!

  11. W swojej działalności wykorzystujemy przede wszystkim metodę haftu
    komputerowego, a także inne alternatywne techniki, pozwalające na wykonanie wysokiej jakości, różnorodnych, a zarazem skomplikowanych projektów na ubrania i nie tylko.

  12. Greetings from Carolina! I’m bored to tears at work so
    I decided to browse your site on my iphone during lunch break.
    I really like the information you present here and can’t wait to take a look when I get home.
    I’m amazed at how fast your blog loaded on my phone ..

    I’m not even using WIFI, just 3G .. Anyhow, excellent blog!