09-12-2005 -- Lakhani, Hemant -- Sentencing -- News Release

British Arms Dealer Sentenced to Maximum Sentence -- 47 years -- for Attempting to Aid Terrorists

NEWARK, N.J. - British arms dealer Hemant Lakhani was sentenced today to 47 years in prison for his convictions in April of attempting to provide material support to terrorists in the brokering of shoulder-fired missiles, among other charges, U.S. Attorney Christopher J. Christie announced.

U.S. District Judge Katharine S. Hayden sentenced Lakhani, 70, to the maximum statutory prison sentence on each of his convictions and ordered that all but one of the terms run consecutively. The sentences imposed were 15 years for attempted material support to terrorists; 10 years for unlawful brokering of foreign defense articles; 20 years for money laundering; and two years for attempting to import merchandise into the U.S. by means of false statements.

Of the five counts of conviction, two were for money laundering. Judge Hayden sentenced Lakhani to 20 years on each of the money laundering convictions, but ordered that they run concurrently to one another, meaning that Lakhani was sentenced to an aggregate term of 47 years in federal prison.

Parole has been abolished in the federal system, and individuals serving custodial sentences must serve nearly all of the sentence.

"On this, the day after the fourth anniversary of the September 11th terror attacks on America, Hemant Lakhani has received a significant sentence," Christie said. "By sentencing Mr. Lakhani to 47 years in prison, those who would participate in aiding terrorists to plot to kill our citizens now know that the United States system of justice will deal with them swiftly and surely. We will continue to be vigilant every day in our battle to stay one step ahead of the terrorists and their network of supporters."

Judge Hayden rejected requests for leniency from Lakhani and his defense attorney. Prior to passing sentenced, Judge Hayden also rejected numerous defense motions, including a motion to dismiss the indictment for government misconduct, a challenge to the sufficiency of the evidence, and an argument based on post-trial comments about jury deliberations.

On April 27, Lakhani, a British citizen, was convicted on all counts against him following a trial that spanned nearly four months, with two extended adjournments for Lakhani to be treated for health problems and recuperate. Eighteen witnesses testified, including representatives of the Russian Federal Security Service and New Scotland Yard.

After the jury's verdict, Lakhani agreed to forfeit $86,500 to the United States, resolving the forfeiture allegations in the indictment.

In secretly recorded videotaped meetings at a hotel overlooking Newark Liberty International Airport, Lakhani rejoiced over the arrival of the first shoulder-fired missile he brokered (from which the explosive charge had been removed). Lakhani is heard recommending that the undercover agent - someone he believed represented a Somali terrorist group - buy many more missiles and use them to bring down commercial airliners in simultaneous attacks at airports in the United States.

According to evidence introduced at trial, Lakhani initiated contact with a government informant in late 2001, on the advice of Abdul Qayyum. At the time, Lakhani knew that Qayyum was wanted for a series of bomb blasts in India in 1993, known as the Mumbai blasts, which killed more than 200 people. Lakhani also knew of Qayyum's violent extortionate conduct directed against one of Lakhani's former office mates. Following Qayyum's advice, Lakhani called an individual whom neither man knew was a government informant. Lakhani offered to sell weapons to the informant, who in turn contacted the FBI.

Weeks after this call, in January 2002, Lakhani traveled to the United States for the first of four face-to-face meetings with the informant. Within minutes of the start of this meeting - which was recorded on audio and videotape - Lakhani offered praise for Osama Bin Laden: "Bin Laden has straightened them somewhat.... He has straightened these idiots." According to Lakhani, speaking just months after the September 11 attack on the World Trade Center and the Pentagon, Bin Laden "did a very good thing."

During this meeting, the informant explained that he represented a terrorist group in need of shoulder-fired missiles. Lakhani presented him with a brochure and business cards from an arms supplier in the Ukraine and promised he could obtain whatever was needed. Lakhani pressed for a large transaction, balking at a request for 20 to 50 missiles because "the quantity seems ... very small. If I have to take the risk, it is better if a good quantity comes out."

In the ensuing months, Lakhani traveled to the Ukraine and Russia on a dozen occasions and negotiated to buy portable IGLA SA18 shoulder-fired, surface-to-air missiles. Lakhani dealt with several real arms suppliers in the Ukraine and Cyprus for more than a year. In early 2003, Russian law enforcement learned of Lakhani's efforts and started their own investigation of Lakhani. Because of their growing concern about Lakhani, they decided to infiltrate the negotiations, posing as undercover arms dealers.

Lakhani arranged for numerous faxes describing the missile to be sent to the informant in New Jersey. In addition, Lakhani sent details about the cost of the missile as well as payment information. The informant made two payments to foreign bank accounts for Lakhani's benefit - a first down payment of $29,370 to Hong Kong ($30,000 less commission and wire transfer fee) - and $56,500 wired to a Swiss bank account. (The forfeiture to which Lakhani agreed represent the funds from those transactions.)

Among the more than 150 other audio- or video-taped conversations during the investigation, Lakhani at times boasted about the quality of the missiles he would supply. In late 2002, for example, terrorists fired two IGLA missiles at an Israeli civilian airplane carrying 261 tourists traveling home from Kenya. Both missiles narrowly missed the plane. Days later, Lakhani told the informant that the newer model he would obtain was of a "much higher quality" and "will destroy everybody."

Lakhani was arrested on August 12, 2003, after his fourth meeting in the United States. Sitting in a hotel room in Elizabeth overlooking Newark International Airport, Lakhani smiled and laughed as he handled one sample missile that had been imported from Russia, and promised to obtain 50 more in time for the second anniversary of the September 11 attacks. Altogether, Lakhani offered to provide 200 missiles. The sample was provided to Lakhani by undercover Russian law enforcement in cooperation with U.S. authorities, who imported the missile.

During the fourth and final meeting, Lakhani recommended using "50 at one time, simultaneously," in different cities. "It will shake them. They will run. They will think the war has started," Lakhani commented on tape. Lakhani, a frequent international traveler, added that "there are 300 to 400 people on one commercial flight" and that Mondays and Fridays were the busiest travel days.

At various times, according to the proofs at trial, Lakhani also offered to procure anti-aircraft guns, tanks, armored personnel carriers, radar systems and a "dirty bomb." In addition, he voiced anti-American sentiments in different recorded conversations, replete with curses and name-calling.

Three other defendants have pleaded guilty to date. Yehuda Abraham, 75, a New York City jeweler, pleaded guilty to operating a money-remitting business without a license. Moinuddeen Ahmed Hameed, 38, an Indian citizen, and Vijay Raja, 40, an Indian citizen, each pleaded guilty to conspiracy charges. Hameed was sentenced on June 6, 2005 to time served, which was at that time 21 months and six days. Raja and Abraham are awaiting sentencing. Abraham and Hameed are not alleged to have known that the transactions involved illegal arms. Raja testified at Lakhani's trial that he knew the transaction involved the attempted sale of shoulder-fired missiles.

The case was prosecuted by Assistant U.S. Attorneys Stuart Rabner, Chief of the Criminal Division, and Brian R. Howe. The international investigation that led to today's sentencing was assisted by law enforcement authorities in Russia and the United Kingdom, and is the product of New Jersey's Joint Terrorism Task Force, particularly agents from the Federal Bureau of Investigation, the Bureau of Immigration and Customs Enforcement, and the Defense Intelligence Agency.

Lakhani defense counsel: Henry Klingeman, Esq. Madison, N.J.

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