12-18-2003 -- Lakhani, Hemant -- Indictment -- News Release

British Arms Dealer Lakhani Indicted for Attempting to Aid Terrorists; Offered to Sell More Missiles to Take Down a Dozen U.S. Aircraft

NEWARK, N.J. - A British arms dealer arrested in August as he tried to complete the sale of a shoulder-fired missile imported from Russia was indicted today with new allegations that he also offered to procure anti-aircraft guns, tanks, armored personnel carriers, radar systems and a "dirty bomb," U.S. Attorney Christopher J. Christie announced.

Hemant S. Lakhani, 68, of London, also is alleged to have advised his intended purchaser of the missile - with whom he was also arranging the sale of another 50 - that the missiles could be used most effectively in terrorizing America if 10 to 15 commercial aircraft were shot down simultaneously across the country. Lakhani also is alleged to have offered to broker a deal for a multi-ton quantity of C-4 explosive.

In the minutes before his arrest on Aug. 12 at a Newark Liberty International Airport hotel, Hemant S. Lakhani was videotaped handling the shoulder-fired missile, which was an unarmed weapon substituted for the authentic one he believed he had imported through contacts in Russia. During that meeting and in dozens more government audio- and video-recorded meetings, Lakhani arranged for the missile sale and planned other purchases with a man he believed to be representing a Somali terrorist organization. In fact, the individual was a government cooperating witness.

"The Department of Justice is committed, through its coordinated law enforcement activities, to thwarting terrorist plots that threaten the lives of innocent Americans," said Attorney General John Ashcroft. "We remain vigilant in our pursuit to detect, disrupt and dismatle terrorist plots affecting our country."

"The evidence makes clear that Lakhani had the intention and ability to put a missile into the hands of a terrorist," Christie said. "It also shows that he suggested a plan for multiple attacks on American cities with the missiles he was willing to sell to people he believed would do it."

"The arrest and indictment of Mr. Lakhani sends a clear message that law enforcement worldwide remains vigilant to preventing terrorist attacks in the United States and abroad," said John P. Torres, Special Agent in Charge of U.S. Immigration and Customs Enforcement in Newark. "Without our unprecedented cooperation with Russian authorities in this investigation, Mr. Lakhani would have gone on to pose a serious threat to our national security and public safety."

Lakhani is charged in the Indictment with one count of attempting to provide material support to terrorists, which carries a maximum penalty of 15 years in prison and a $250,000 fine; one count of unlawful brokering of foreign defense articles, which carries a maximum penalty of 10 years in prison and a $1 million fine; two counts of money laundering, each of which carries a maximum penalty of 20 years in prison and a $500,000 fine; and one count of attempting to import merchandise into the U.S. by means of false statements, which carries a maximum penalty of two years in prison and a $250,000 fine.

The Indictment also has three forfeiture counts, which seek return of the two payments made via the cooperating witness 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.

Lakhani has remained in federal custody since his arrest in August. He will be arraigned on the Indictment in Newark sometime within the coming days.

Two other defendants were arrested on Aug. 12, for allegedly helping to transfer cash for missile purchases. One of those individuals, Yehuda Abraham, 75, a New York City jeweler, is alleged to have helped arrange the delivery of a $30,000 cash down payment between the cooperating witness and Lakhani.

Abraham and another individual, Moinuddeen Ahmed Hameed, 38, an Indian citizen, are alleged to have been planning to meet with the government witness on Aug. 12, to assist in the transfer of a $500,000 cash down payment for 50 more surface-to-air missiles. Hameed, who remains in federal custody, and Abraham, who was released on bail on a $10 million bond, are charged with conspiring to operate an unlicensed money transmitting business. Abraham and Hameed are not alleged to have known that the transactions involved illegal arms.

Lakhani, 68, of London, England, flew from London to John F. Kennedy International Airport on Sunday, Aug. 10 and was arrested Aug. 12 by Special Agents of the FBI/Newark Joint Terrorism Task Force, as he was meeting with a government cooperating witness to complete the sale of a single shoulder-fired surface-to-air missile.

The investigation, which began in the months after the Sept. 11, 2001, terror attacks on America, also involved law enforcement authorities in the Russian Federation, who infiltrated Lakhani's pipeline to a weapons supplier.

According to the original criminal complaint, (see Aug. 13 at http://www.njusao.org/break.html ) contact between Lakhani and the cooperating witness began in December 2001, with most of the conversations spoken in Urdu or Hindi. The following month, after the cooperating witness said he wanted to purchase one surface-to-air missile initially and more to follow, Lakhani represented to the cooperating witness that he could export weapons from sources in the former Soviet Union. At a meeting between the two in New Jersey, Lakhani provided a military arms brochure and business cards from individuals with whom he had connections.

The complaint states that during a video- and audio-taped meeting at a hotel overlooking Newark Airport in September 2002, Lakhani and the cooperating witness looked out and gestured at departing commercial aircraft. Lakhani allegedly said he understood the purpose of the sale was to shoot down an aircraft and cause economic harm to the United States - to "make one explosion ... to shake the economy."

Among the more than 150 other audio- or video-taped conversations during the investigation, Lakhani allegedly spoke approvingly of Usama bin Laden, saying bin Laden "straightened them all out" and "did a good thing." And, in a another conversation, Lakhani was recorded saying, "The Americans are bastards."

As stated in the complaint, the discussions continued about importation of the missile, and on Aug. 17, 2002, Lakhani said he understood that the buyer of the missile had wanted it for "the anniversary" - a reference to the Sept. 11, 2001, terrorist attacks on America.

The surface-to-air missiles at issue in this case - a Russian-manufactured Igla-S portable anti-aircraft missile complex - are "foreign defense articles" subject to the regulatory authority of the Department of State Directorate of Defense Trade Controls. Lakhani is neither registered with the DDTC nor licensed to engage in the business of importing or transferring any defense articles.

An Indictment is merely an accusation, all defendants are presumed innocent unless and until proven otherwise in federal court.

The case is being prosecuted by U.S. Attorney Christopher J. Christie of New Jersey and Assistant U.S. Attorneys Jeffrey Clark and Brian R. Howe. The international investigation that led to today's charges was assisted by law enforcement authorities in Russia, 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 Secret Service at the Department of Homeland Security, and the Defense Intelligence Agency.

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

-end-