An undercover operation involving chemical catalysts, forged documents, and triangulated payments exposed how a U.S. company deliberately violated its own government’s sanctions. The Unicat Catalyst Technologies case reveals the methods used to sell industrial supplies to sanctioned regimes, including the state-owned Venezuelan Orinoco Iron, amidst geopolitical conflict. What appeared to be a technical transaction turned into an emblematic case of international corporate crime.
A federal investigation in the U.S. revealed that the petrochemical Unicat Catalyst Technologies, based in Texas, violated multiple international sanctions by selling chemical catalysts to countries like Iran, Syria, Cuba, and specifically to a sanctioned Venezuelan state entity. The transaction with Orinoco Iron S.C.S., currently Briquetera del Orinoco, was carried out in 2020 using intermediaries and trade routes from China to evade U.S. controls. The operation, orchestrated under the direction of then-CEO Mani Erfan, included document forgery, payment triangulation, and concealment of business records. The closed case, resulting in a nearly $4 million fine and non-prosecution agreements, highlights the compliance risks in corporate environments and the persistent role of international economic actors in supporting sanctioned regimes like Venezuela.
In June 2025, the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury announced a settlement with Unicat Catalyst Technologies, LLC, a petrochemical company based in Alvin, Texas. The settlement called for a payment of $3,882,797 to resolve 13 apparent violations of the Iranian Transactions and Sanctions Regulations (ITSR) and one violation of the Venezuelan Sanctions Regulations (VSR).
The violations occurred between 2014 and 2021, when Unicat, under the direction of its then-CEO Mani Erfan, conspired with employees, partners, and agents to sell chemical catalysts to prohibited clients in Cuba, Iran, Syria, and Venezuela. These operations generated approximately $3.33 million in revenue, with some involving direct exports from the U.S., clearly violating export control laws.
The investigation revealed document forgery, payment triangulation through foreign bank accounts, and manipulation of business records. Additionally, during acquisition negotiations by White Deer Management, LLC in September 2020, Unicat executives falsely certified their compliance with U.S. regulations.
Venezuela at the Center of the Case
The violation related to Venezuela occurred in May 2020, when Unicat sold chemical catalysts to Orinoco Iron S.C.S., an entity located in Puerto Ordaz and then owned by the government of Venezuela, classifying it as a blocked entity under U.S. sanctions.
According to reports from specialized media like Analitica.com, Orinoco Iron is now known as Briquetera del Orinoco. The operation involved the use of third parties and exports routed from China, complicating the traceability of the transaction. This sale was identified by the U.S. government as a direct violation of the Venezuelan Sanctions Regulations (VSR).
White Deer Management, LLC: Cooperation and Voluntary Disclosure
In September 2020, White Deer Management, LLC acquired Unicat. Shortly after, the new executive team detected an active transaction with a customer in Iran and proceeded to cancel it. The company hired external legal counsel, conducted a thorough internal investigation, and voluntarily reported its findings to the DOJ.
Thanks to this cooperation, White Deer avoided sanctions, and the Justice Department cited the Compliance Policy for Mergers and Acquisitions from March 2024 as the basis for not prosecuting the firm.
Resolution with the Department of Justice
Unicat paid a civil fine of nearly $4 million to OFAC and agreed to a forfeiture of $3.3 million through a non-prosecution agreement with the DOJ.
Mani Erfan was charged with conspiracy to violate sanctions, forgery, and international money laundering.
White Deer, by meeting all cooperation requirements, was exempt from sanctions.
The Deputy Attorney General for National Security, John A. Eisenberg, praised White Deer’s approach as an example of responsible corporate leadership.
Reports indicate that the case exposes how sanctioned companies like Orinoco Iron S.C.S. (now Briquetera del Orinoco) continue to access the international market through triangulations and third countries, such as China. It also underscores the importance of regulatory compliance for companies operating in sensitive sectors like petrochemicals.
It also demonstrates that voluntary disclosure and active cooperation with authorities can mitigate legal consequences in international mergers and acquisitions.
The Unicat case shows how private actors can unintentionally or intentionally facilitate operations linked to transnational organized crime and sanctioned regimes like Venezuela. Surveillance, transparency, and rigorous compliance with sanctions are, now more than ever, essential tools for protecting international legal and economic frameworks.
_____________________
«U.S. sanctions violation by Unicat Catalyst Technologies»
«U.S. company sold catalysts to Venezuela under sanctions»
«International corporate crime and sanctions against Venezuela»
«Unicat case: illegal exports to sanctioned countries»
«Unicat Catalyst, U.S. sanctions, and sale to Briquetera del Orinoco»
«How U.S. companies violate sanctions against Venezuela»
«Illegal exports to Venezuela from the U.S.: the Unicat case»
«OFAC fines Texas company for ties to Venezuela»
«Prohibited transactions with Venezuela under U.S. Treasury investigation»
«Companies violating international sanctions: the Unicat case»
Corporate crime: Unicat violated sanctions with Venezuela