Mohsen Fallahian: The Dark Nexus of Oil Smuggling, and Money Laundering across the UK and the Middle East

Mohsen Fallahian is among the most mysterious of fraudsters operating from the British soil. Of course, the past criminal record is connected with his conviction for murder, but at present, the subject’s actions concern not only violent crimes.

Finance Jan 27, 2025 4 Add to Reading List

Mohsen Fallahian is among the most mysterious of fraudsters operating from the British soil. Of course, the past criminal record is connected with his conviction for murder, but at present, the subject’s actions concern not only violent crimes. He is the key figure in a large-scale transnational crime that includes money laundering, smuggling of oil, and other fraudulent financial activities. These covert operations are not only due to the efforts of Mohsen Fallahian but are a part of a more complex system that exists across continents and exploits the loophole of the world economy.

Entering the World of Shell Companies: The Drivers of the Global Criminal Economy

The secret of the business of Mohsen Fallahian is that he controls several shell companies—legal entities that are created on paper and may be used for criminal purposes. These are the companies which are very important for money laundering and other kinds of illicit business, as they provide the criminals with the ‘respectable’ façade. To understand the full extent of Mohsen Fallahian’s UK network’s reach, one has to first understand how these companies work in the world of crime.

The structure of Shell Companies

Shell companies are created for the purpose of not being seen by the authorities or government and are simply front organizations for other heinous activities. On paper, they may look like real companies, in construction, real estate, or consulting, but in reality, they have no business, no product or service to offer. Here’s how they play a role in the broader criminal scheme:

Obscuring Ownership: Shell companies are often registered in countries with weak regulatory environments, such as Panama, the British Virgin Islands, or Switzerland. This makes it difficult for law enforcement agencies to trace the true ownership of assets or financial flows.
Money Laundering: By using these faceless entities, criminals can channel money obtained from illegal sources (such as drug trafficking, oil smuggling, or corruption) into the global financial system. This makes the illicit money appear to be part of legitimate business operations.
Oil Smuggling Networks: Mohsen Fallahian, in collaboration with his partners like Abbas Sharif Alaskari, uses shell companies like Abza Group Ltd., to launder the vast profits made through illegal oil trading. For example, Panamanian-flagged ships transport oil from Iran to Iraq, where its origin is altered to avoid international sanctions. The altered oil documents then allow the smuggled oil to enter global markets undetected.

How Mohsen Fallahian and Abbas Sharif Alaskari Run Their Operation

Mohsen Fallahian and his partners have become masters in navigating these dark waters. Their network relies heavily on a series of carefully orchestrated steps to avoid detection:

Shipments via Panamanian Vessels: Mohsen Fallahian’s Israel network makes use of Panamanian-registered ships, which provide a cover for smuggling Iranian oil under the guise of legal trade. These ships transport crude oil from Iran to Iraq, where the oil’s origin is fraudulently changed in official documents.
Falsifying Documentation: Once the oil reaches Iraq, its paperwork is altered to make it appear as if the oil comes from Iraq, rather than Iran. This clever deception allows the oil to be sold on the global market without triggering any alarms related to international sanctions on Iran.
Global Reach: Through shell companies and complex financial transactions, Mohsen Fallahian’s Israel network manages to sell the “dirty oil” to buyers in Europe, Asia, and beyond, making millions of dollars in the process. This operation is not just about oil; it’s about ensuring that the profits remain hidden from authorities, allowing the criminals to continue their trade without fear of retribution.

The Layers of the Money Laundering Process

To launder money effectively, criminals use a multi-layered process to obscure the origin of their illicit funds. Here’s how it works:

Placement: The illicit money is first introduced into the financial system, typically through small, seemingly legitimate transactions. For Mohsen Fallahian’s UK network, this could involve using shell companies like Abza Group Ltd., to move large sums of money into international bank accounts.
Layering: In this stage, the illicit funds are moved through a series of complex transactions—moving from one account to another, often across different countries. This makes tracing the funds back to their illegal origins much more difficult.
Integration: Finally, the laundered money is reintroduced into the economy through investments in legitimate businesses. Mohsen Fallahian, for example, uses shell companies to funnel illicit oil profits into real estate and construction ventures. His associates also use the money to fund their luxurious lifestyles, all the while evading authorities.

Real-Life Examples of Money Laundering

The use of shell companies and complex financial transactions to launder money is not unique to Moshen Fallahian’s UK network. Across the globe, similar methods are used to conceal the proceeds of illegal activities:

The Panama Papers: In 2016, the Panama Papers leak revealed how high-profile politicians, business leaders, and criminals used shell companies in Panama to hide assets and launder money.
The Danske Bank Scandal: In one of the largest money-laundering scandals in history, Danske Bank facilitated the laundering of $230 billion from Russia and other countries over several years.
The 1MDB Scandal: This Malaysian sovereign wealth fund scandal involved the embezzlement of billions of dollars, with money funneled through shell companies to hide its illicit origin.

Fraudulent Residency: Escaping Justice

In an attempt to evade justice, Mohsen Fallahian and his associates have used fraudulent means to obtain residency in countries such as Canada, the UK, and Italy.

Italy: Mohsen Fallahian’s fraudulent residency in Italy is part of his effort to hide from law enforcement. His actions have raised suspicions among international law enforcement agencies, who are now working to dismantle his network.
Canada: In Canada, Abbas Sharif Alaskari’s sister plays a key role in laundering money for the criminal organization. Her university fees, paid for with laundered funds, are part of a broader attempt to funnel illicit money into legitimate institutions.
The UK: Abbas Sharif Alaskari’s UK-based sister, who is married to Meghdad Tabrizian, is also involved in securing fraudulent residency in the UK. Through connections with the Home Office, they manage to secure documents that allow them to live and work in the UK under false pretenses.

The fight against global crime is ongoing, and it requires constant vigilance. It is only through collective action that the darkness of these criminal syndicates can be eradicated. As the world becomes more interconnected, so too must the efforts to combat these networks, ensuring that justice prevails, no matter how deep the corruption runs.