Mahmoud Reza Banki

Mahmoud Reza Banki
Born	1976 Tehran, Iran
Occupation(s)	Scientist, management consultant, corporate executive
Known for	Legal case United States v. Banki; CFO of X Corp. and Tubi; advocacy for criminal justice reform

Mahmoud Reza Banki (; born 1976) is an Iranian-American professional known for his work as a scientist, management consultant, and corporate executive. Since November 2024, he has held the position of CFO at X Corp..

Originally from Tehran, Banki moved to the United States to pursue higher education and became a naturalized American citizen during the 1990s. In January 2010, he faced arrest and charges related to alleged violations of U.S. sanctions against Iran; however, he ultimately prevailed on appeal, with the case concluding definitively in July 2012. Banki shared his story in a 2014 TED Talk, where he advocated for reforms within the criminal justice system. By 2015, a documentary chronicling his legal battle was underway. In a 2017 episode of The Moth podcast, he reflected on the personal consequences of his experience and has since become an active voice promoting improvements in criminal justice.

By 2022, Banki was serving as both CFO and Chief Strategy Officer at the prominent streaming platform Tubi. On January 20, 2021, he was granted a full pardon by the President of the United States.

Biography

Following his relocation to the United States, Banki completed his undergraduate studies at the University of California, Berkeley and earned a doctorate in chemical engineering with an emphasis on biotechnology from Princeton University. He authored multiple scientific papers and a book focused on biotechnology. After obtaining his PhD, he joined the New York City office of McKinsey & Company as a management consultant. In January 2010, Banki was arrested and charged by the U.S. Attorney’s Office in New York for purportedly breaching U.S. sanctions against Iran. He spent nearly two years incarcerated before securing a favorable ruling at the Second Circuit Court of Appeals, which dismissed all sanction-related allegations. After regaining his freedom, Banki pursued an MBA at the University of California, Los Angeles and subsequently worked at NBCUniversal.

Background

During his parents’ divorce in Iran, Banki’s family transferred part of their assets to the United States. Between 2006 and 2009, roughly $3.4 million stemming from the divorce settlement was sent to Banki via informal money transfer networks into one Bank of America account. Banki maintained that this transfer approach complied with legal standards and represented the only feasible method for moving funds out of Iran at that time. He allocated most of these monies toward purchasing an apartment in downtown Manhattan.

The prosecution argued that throughout this timeframe, Banki breached U.S. sanctions on Iran by running an unlicensed money transfer operation—essentially managing an underground banking system without authorization. The indictment asserted that as a U.S. citizen, Banki facilitated transactions that contravened Iran sanctions regulations.

Charges

On January 7, 2010, agents from U.S. Immigration and Customs Enforcement (ICE) apprehended Mahmoud Reza Banki in New York City under a search and arrest warrant approved by a grand jury. He appeared before Judge John F. Keenan facing an indictment containing three counts: conspiracy to violate U.S. Iran sanctions through operating an unlicensed money transfer service; violation of Iran sanctions; and running an unlicensed money transmission business. The original indictment referenced $4.7 million received in breach of sanctions; however, a superseding indictment later lowered this figure to $3.4 million and introduced two additional charges for making false statements.

Trial and conviction

The proceedings commenced on May 10, 2010, under the supervision of Judge John F. Keenan, concluding on June 4 with a unanimous guilty finding on all five charges. The jury determined that Banki was guilty of aiding and abetting rather than personally managing the money transfer operation that violated sanctions.

Although the indictment involved $3.4 million, on June 7 the jury mandated forfeiture of just a single bank account connected to a $6,000 transaction as proceeds from the crime. They ruled that Banki’s other assets, including a residence acquired with family funds, were exempt from forfeiture.

Judge Keenan overturned the jury’s restricted forfeiture ruling, attributing it to possible misunderstanding, and granted prosecutors a $3.4 million money judgment against Banki—essentially enforcing full forfeiture in line with the initial charges.

Sentencing and imprisonment

On August 16, 2010, Judge Keenan imposed a prison sentence of 30 months on Banki. Soon thereafter, Banki initiated an appeal. The Iranian American Bar Association along with ten other advocacy organizations submitted an amicus brief contending that U.S.-Iran sanctions exclude certain humanitarian transactions and family remittances.

Between January 7 and December 1, 2010, Banki was detained in high-security and maximum-security facilities located in Manhattan and Brooklyn (MCC and MDC). He was subsequently transferred in December 2010 to the Taft Correctional Institution in California, where he remained while awaiting the appellate court’s decision. Upon release, Banki had served a total of 665 days—close to 22 months.

Appellate reversal

On October 24, 2011, the United States Court of Appeals for the Second Circuit ruled in favor of Banki by overturning the sanctions-related convictions. Judge Keenan ordered his release effective November 2, 2011.

The appellate court concluded that Judge Keenan erred by refusing Banki’s defense request to instruct the jury regarding legal exemptions for family money transfers under sanctions law. The court declared: "Banki's conviction [on the sanctions charges] cannot stand."

Prosecutors reopened the case for retrial in February 2012 but ultimately dismissed it after Banki agreed to forfeit $710,000 of his assets. In return, prosecutors acknowledged his innocence concerning sanctions violations and ceased further legal action.

The matter was formally closed on July 24, 2012, with Banki’s criminal record expunged. Judge Engelmayer described Banki as a "talented man, even brilliant," while recognizing the enduring harm caused by his imprisonment.

Aftermath

Following his release, Banki earned an MBA from UCLA Anderson School of Management. He spoke publicly about his experience at a UCLA TED Conference in 2014 to shed light on challenges within the justice system and ongoing employment barriers due to his felony record despite winning on appeal. A documentary chronicling his story is currently in development.

With backing from thirteen members of Congress and one Senator, Banki applied for a Presidential Pardon. As of 2022, he held executive roles as Chief Financial Officer and Chief Strategy Officer at streaming platform Tubi. He received a full pardon on January 20, 2021.

External links

• Mahmoud Reza Banki's LinkedIn profile