U.S. Treasury sanctions Greek-Panamanian law firm that set up companies for Iran's 'shadow fleet'; Bessent: "Either you are with us or against us"

WASHINGTON

The U.S. Treasury Department on the 21st (local time) sanctioned a Panamanian-Greek law firm that set up shipping companies for Iran's "shadow fleet." As part of Operation Economic Outcast, Treasury added the law firm Karnakis and Karnakis, five of its owners and employees, and three ship management companies and shipping agents to its sanctions list. Nine vessels were identified as blocked property. Treasury Secretary Scott Bessent called on those helping the Iranian regime to make a choice, saying, "Either you are with us or against us."

Treasury sanctions law firm that registered shipping companies, along with five owners and employees

According to the Treasury press release, Karnakis and Karnakis for years used its legal work to register shipping companies that own shadow fleet vessels. Treasury said the firm helped conceal and transport Iranian commodities, thereby indirectly helping the Iranian regime raise money "to fund its military, weapons, and nuclear programs." The firm was sanctioned under Executive Order 13902 for operating in the petroleum and petrochemical sectors of the Iranian economy.

The OFAC sanctions list gives two addresses for the firm. One is on the 21st floor of the Global Plaza building on 50th Street in Panama City, and the other is in Piraeus, Greece. The list gives its date of establishment as March 13, 2006, and its line of business as "legal activities."

All five individuals were sanctioned for acting on behalf of the firm. Treasury said Sofianos Karnakis Kosmas and Konstantinos Karnakis Kosmas are dual Panamanian-Greek nationals who founded the firm and still own it. Ioanis Karnakis Kosmas is an employee of the firm. The Treasury press release described him as a Panamanian-Greek national, but the OFAC list gives his nationality only as Panamanian.

Panamanian nationals Pedro Ortega Jones and Roberto Ortega Jones are also employees of the firm. Treasury said Roberto Ortega Jones serves as a director and officer of several companies registered by the firm. The five were born between 1972 and 1982.

Bessent warns those in law firm offices will be found and sanctioned

In the press release, Bessent said, "Whether you are conducting illegal oil transfers at sea or sitting in the corner office of a law firm," those who support the Iranian regime should know that "we will find you and sanction you."

Bessent went on to say, "Iran's facilitators must make a choice: Either you are with us or against us." Bessent added that Treasury knows who the facilitators are and what they are doing.

The State Department issued a statement the same day in the name of spokesperson Tommy Pigott. The statement was titled "Unmasking Service Providers Facilitating Iran's Shadow Fleet Operations." Pigott said the United States is exposing professional service providers who help the Iranian regime evade sanctions and finance destabilizing activities. The State Department said the firm "set up shell companies to hide the true owners of vessels carrying Iranian oil, petrochemicals, and steel."

Operation Economic Outcast enters second month at Trump's direction

Treasury announced Operation Economic Outcast on Aug. 24, dubbing it "Economic D-Day." The Treasury press release at the time said the operation was launched "at President Trump's direction." That day, Treasury designated five sectors under Executive Order 13902 as new sectors subject to sanctions: digital assets, technology, gold, aviation and shipping. The same day, close to 60 entities, individuals and vessels involved in nuclear and missile procurement, cyber operations and oil revenue generation networks were sanctioned.

In the August announcement, Bessent said, "Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone." Bessent also said, "America is no longer managing the Iranian threat. We are ending it."

In the latest press release, Treasury said the operation is "severing the remaining economic lifelines" that sustain the Iranian regime. Treasury said it had identified the networks, facilitators and financial channels Iran uses to smuggle oil, evade sanctions and finance terrorism. Treasury warned that those who help Iran launder money or evade sanctions could be cut off from the U.S. financial system.

Thirteen days earlier, on Oct. 8, Treasury sanctioned 17 shadow fleet vessels under the same operation name. Treasury claimed at the time that the action "effectively neutralizes the vast majority" of Iran's remaining shadow fleet network. That list included companies based in China and Hong Kong.

Treasury's Financial Crimes Enforcement Network (FinCEN) is also taking action. Treasury said FinCEN is working closely with European partners, including Greece. FinCEN has issued its first administrative subpoena under a Bank Secrecy Act provision (31 U.S.C. § 5318(k)) to investigate "a Greek bank's potential ties to Iran and its proxies." The bank was not named. FinCEN also made several requests for information on banks' transaction relationships with Iranian financial institutions sanctioned by OFAC.

Shipping companies set up by law firm already sanctioned for transporting Iranian oil

Treasury said Karnakis and Karnakis set up companies including Skyros Maritime and Trading S.A., Corfu Maritime and Trading S.A. and Elias Shipping and Trading Group S.A. Treasury said all three companies had previously been sanctioned for owning vessels used in the trade of Iranian oil and petroleum products.

Skyros was sanctioned on April 24, 2026. Treasury said at the time that the Panama-flagged tanker HH GLORY (IMO 9534614), owned by Skyros, had carried hundreds of thousands of barrels of Iranian liquefied petroleum gas (LPG) since 2025. Corfu was added to the sanctions list on Nov. 20, 2025. Treasury said at the time that four Panamanian companies, including Corfu, owned or operated shadow fleet vessels and carried millions of barrels of Iranian LPG and petroleum products, mainly to customers in South Asia. GAS ATHENA (IMO 9267950), in which Corfu has an interest, was identified as blocked property at that time.

Elias Shipping was sanctioned on Nov. 14, 2024, under counterterrorism Executive Order 13224. Treasury said Elias, as owner of the tanker RAMONA 1 (IMO 9233222), served as a front company for the Syrian firm Al-Qatirji. Treasury said Al-Qatirji had sold millions of barrels of Iranian oil for the Islamic Revolutionary Guard Corps-Qods Force (IRGC-QF) and Yemen's Houthis. The 2024 Treasury press release named Al-Qatirji as one of the Qods Force's main financial channels. In the latest press release, Treasury said Al-Qatirji had enabled the Qods Force to earn and spend "hundreds of millions of dollars a year" from Iranian oil sales.

The firm also had a hand in the shipping empire of Iranian LPG magnate Seyed Asadoollah Emamjomeh. Treasury said the firm served as corporate agent for many of Emamjomeh's companies, several of which were ultimately sanctioned. Emamjomeh himself was sanctioned on April 22, 2025, under Executive Order 13902. Treasury said at the time that his network had transported hundreds of millions of dollars' worth of Iranian LPG and crude oil.

Three of seven Roxette vessels carried Iranian petrochemicals and steel over past year

The seven vessels are operated and managed by Roxette Maritime Shipping and Trading S.A., which has an office in Piraeus, Greece. Karnakis and Karnakis is Roxette's corporate agent. Roxette was sanctioned for operating in the petrochemical sector of the Iranian economy. The OFAC list gives Roxette's date of establishment as Jan. 3, 2023.

All of the Roxette vessels identified as blocked property are Panama-flagged. The OFAC list classifies ANEMOS (built 1999), DESTINY (2009) and HARMONY (2010) as general cargo ships, and FLAMINGO 1, GLORIS and PRINCE (all 2010) and PRIDE (2011) as bulk carriers. None of the seven is classified as a tanker.

Treasury said three of them, ANEMOS, GLORIS and PRIDE, had made multiple shipments of Iranian cargo, including petrochemicals and steel, over the past year. It did not disclose the shipping records of the other four vessels or the destinations of the cargo.