DOJ Says 12 Now Indicted for Military Aircraft Part Exports to Iran
The Justice Department announced on June 23, 2011 that a total of seven individuals and five corporate entities based in the U.S., France, the United Arab Emirates, and Iran have been indicted to date for their alleged roles in a conspiracy to illegally export military components for fighter jets and attack helicopters from the U.S. to Iran. The indictments are for alleged violations of the Arms Export Control Act (AECA), the International Emergency Economic Powers Act (IEEPA), the Iranian Transactions Regulations, etc.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
(The Bureau of Industry and Security announced on June 23, 2011 that it would add eight parties associated with this international procurement network to the BIS Entity List. See ITT’s Online Archives or 06/24/11 news, 11062471, for BP summary.)
Conspired to Export Military Aircraft Components without License
According to the charges, the defendants conspired to export components for attack helicopters and fighter jets to Iran without obtaining the required U.S. export licenses. These components included military parts for the Bell AH-1 attack helicopter, the UH-1 Huey attack helicopter, as well as the F-5 and F-4 fighter jets.
Exported U.S. Military Aircraft Parts to UAE and France for Sale to Iran
Defendant Syed Amir Ahmed Najfi and his firm, Aletra General Trading, a company in Dubai, U.A.E. are alleged to have placed orders and purchased military aircraft parts, including those for the Bell AH-1 attack helicopter, from Michael Todd and his company, the Parts Guys, in the U.S. Todd and other conspirators then attempted to and did cause the export of the aircraft parts to the U.A.E.
Defendant Hank Seifi and his firm, Galaxy Aviation Services, in Illinois also allegedly placed orders and purchased U.S. aircraft parts from Todd and his company in Georgia -- on behalf of Hassan Seifi, Reza Seifi and their company, Sabanican Company, in Iran. According to the charges, Todd and other conspirators then caused these aircraft parts to be exported to Iran via the defendants in France: Sanchez, Teuly and their company, Aerotechnic.
8 Defendants Newly Indicted, 4 Others Already Charged and Pleaded Guilty
Federal prosecutors unsealed an indictment on June 23, 2011, charging eight of the defendants with conspiring to violate and violating AECA, the IEEPA and the Iranian Transactions Regulations, as well as conspiracy to defraud the U.S., money laundering and false statement violations.
Charges against the four other defendants, who have pleaded guilty in the case, are contained in the original indictment in the investigation that was filed previously.
One Sentenced to 56 Months Prison, $12.5K Fine and $154K Forfeiture
On June 22, one of the earlier-charged defendants, Seifi, was sentenced to 56 months in prison followed by three years of supervised release, a fine of $12,500 and forfeiture of $153,950, while Galaxy Aviation, which is now defunct, received a $400 special assessment. Todd and his company, The Parts Guys, pleaded guilty to conspiracy to violate the AECA on May 9, 2011, and have yet to be sentenced.
Indictment, filed 06/16/11, available here.