The businessman, Tavan Resit, owns a Turkish-based company, Ramor Group, which the US Treasury Department alleges provided marine power equipment to Iran's navy.
He was arrested June 8 in Romania, where he had traveled to meet with US officials. His lawyer, Catalin Predoiu, a former Romanian justice minister, said he went to Romania to deny any wrongdoing to the Americans.
Predoiu asked a court to transfer him to house arrest due to ill health. He also said that Romanian officials did not have a copy of the US arrest warrant, as is required in extradition cases. He claimed his client had not broken Romanian or Turkish laws.
Another lawyer, Mihai Mares, said a US compliance officer in February approved the equipment that Resit's company was intending to export.
On July 18, the US Treasury Department put Resit on a list of people and groups that allegedly aided Iran's military or its elite Revolutionary Guard.
The Romanian court will rule later today or Friday on whether to release him from arrest. A hearing on his possible extradition has been set for September 21.
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