Ex-Marine Accused of Attempting to Export Sensitive Military Items

LOS ANGELES—A retired Marine Corps staff sergeant, who until recently worked in the Marine Aviation Supply Office at Edwards Air Force Base, was arrested by federal agents this morning following an undercover probe that allegedly revealed he lied to the government as part of a scheme to sell sensitive military equipment to buyers around the globe.

Sean Elias Sayegh, 41, of Rosamond, was taken into custody at his residence by agents with U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Sayegh, who retired from the Marine Corps in December 2011, was named in an indictment returned by a federal grand jury last Friday that charges him with four counts of making false statements. Specifically, the indictment alleges that on four occasions Sayegh made fraudulent claims on U.S. Postal Service customs declaration forms, stating that packages he was shipping contained camera lenses and other camera equipment, when the items were actually laser light interference filters (LIFs). The alleged violations, which occurred between December 2009 and February 2010, involved the shipment of more than 100 LIFs.

LIFs, which are used with military night vision goggles, are on the U.S. Munitions List and cannot legally be exported without a license issued by the Department of State. LIFs protect the optics inside night vision goggles from being damaged by lasers. The technology is considered sufficiently sensitive that the military requires that LIFs be destroyed when they reach the end of their service life.

The Defense Criminal Investigative Service (DCIS) initiated the probe into Sayegh’s activities after receiving a lead about the possible sale of Munitions List items on eBay. DCIS referred the matter to the Naval Criminal Investigative Service (NCIS). HSI joined the investigation, at the request of NCIS, because of the potential export violations. HSI carried out the undercover investigation.

Each false statement charge in the indictment carries a statutory maximum penalty of five years in federal prison. Therefore, if he is convicted of the four counts in the indictment, Sayegh would face a maximum sentence of 20 years in prison, as well as a $1 million fine.

Sayegh is expected to be arraigned on the indictment this afternoon in United States District Court in Los Angeles.

“These items may look innocuous, but their sophistication makes them highly sought after by our adversaries,” said Claude Arnold, special agent in charge for HSI Los Angeles. “They were developed to give America and its allies a strategic military advantage, which is why HSI will continue to work with its law enforcement partners to ensure such technology doesn’t fall into the wrong hands.”

Jeffrey Morrow, special agent in charge for NCIS’ Southwest Field Office, stated, “One of the U.S. military’s greatest advantages is its ability to operate effectively at night when our adversaries cannot. In large part, this advantage is reliant on equipment and technologies like former-SSGT Sayegh attempted to sell to unauthorized buyers abroad. Actions like this risk the technological advantage that the U.S. military maintains and for this reason this case is significant. NCIS will work aggressively with our law enforcement partners to stop the compromise of these important technologies.”

Chris Hendrickson, special agent in charge, DCIS, Western Field Office, commented, “DCIS will use all tools available—our ability to track worldwide financial dealings, our advanced cyber capabilities, and our worldwide law enforcement alliances—to protect America’s warfighters and the taxpayers’ interests. DCIS and its law enforcement partners are committed to identifying and bringing to justice individuals intent on illegally exporting this country’s critical assets at the expense of America’s security.”

In addition to HSI, NCIS, and DCIS, the U.S. Postal Inspection Service (USPIS) and U.S. Customs and Border Protection (CBP) also played a prominent role in the case.

“This type of offense is unjustifiable,” said B. Bernard Ferguson, inspector in charge for the Los Angeles Division of the Postal Inspection Service. “U.S. Postal Inspectors will continue to aggressively investigate those who violate the laws meant to protect the Postal Service, its employees, and our nation’s citizens.”

In November 2009, the government announced the Export Control Initiative to streamline the complex system of U.S. export controls and enhance the coordination of efforts to address current security threats. As part of those ongoing reforms, HSI recently established the Long Beach-based Counter Proliferation Investigations Center (CPIC). CPICs are located in strategic cities where the threat of illegal exportations is greatest. The goal of these centers is to better facilitate regional enforcement efforts to target the illegal exportation of sensitive weapons and technology. In addition to DCIS, NCIS, USPIS, and CBP, other federal agencies currently participating in the HSI-led initiative include the Department of Commerce’s Office of Export Enforcement; the Air Force Office of Special Investigations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the FBI; and the National Aeronautics Space Agency (NASA) Office of Inspector General. The center enables the participating agencies to pool their resources, expertise, and intelligence to pursue cases involving export enforcement.

Members of International Procurement Network Indicted for Supplying Iran with U.S. Military Aircraft Components

Total of 12 Defendants in U.S., France, U.A.E. and Iran Charged

MACON, GA—Seven individuals and five corporate entities based in the United States, France, the United Arab Emirates (U.A.E.) and Iran have been indicted in the Middle District of Georgia for their alleged roles in a conspiracy to illegally export military components for fighter jets and attack helicopters from the United States to Iran. One of the defendants and his company were sentenced yesterday, with the individual receiving nearly five years in prison. Another defendant and his company have admitted their illegal conduct and also pleaded guilty in the investigation.

Federal prosecutors today unsealed a superseding indictment in Macon, Ga., charging eight of the defendants with conspiring to violate and violating the Arms Export Control Act (AECA), the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions Regulations, as well as conspiracy to defraud the United States, 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.

The indictment and other enforcement actions were announced by Todd Hinnen, Acting Assistant Attorney General for National Security; Michael J. Moore, U.S. Attorney for the Middle District of Georgia; Brock Nicholson, Special Agent-in-Charge of the U.S. Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) office in Atlanta; Brian D. Lamkin, Special Agent-in-Charge of the FBI’s Atlanta Field Division; and Robert Luzzi, Special Agent-in-Charge of the Commerce Department, Office of Export Enforcement (OEE) Miami Field Office.

The Defendants

Thus far, four defendants based in the United States have been charged as part of the investigation. They are The Parts Guys LLC, a company in Port Orange, Fla., that maintains a warehouse at the Middle Georgia Municipal Airport in Macon, as well as the president of The Parts Guys, Michael Edward Todd, who is a U.S. national. In addition, Galaxy Aviation Services, a company in St. Charles, Ill., and its president, Hamid Seifi, also known as Hank Seifi, an Iranian-born U.S. national, have been charged.

Todd was arrested last year in Atlanta based on the original indictment in the case. 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. Federal agents arrested Seifi in Atlanta earlier this year, also based on the original indictment. Seifi and his company, Galaxy Aviation, pleaded guilty on Feb. 24, 2011, to conspiracy to violate the AECA and violating the IEEPA. Yesterday, 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.

Three defendants based in France have also been indicted as part of the investigation. They are Aerotechnic, a company in Pinsaguel, France, and its president, Philippe Sanchez, a French national, as well as Luc Teuly, a French national and the sales manager of Aerotechnic. Each of these defendants remains a fugitive.

Two defendants based in the U.A.E. have also been indicted in the case. They are Aletra General Trading, a company in Dubai doing business as “Erman & Sultan Trading Co,” and Syed Amir Ahmed Najfi, an Iranian national and purchaser for Aletra. Najfi remains a fugitive.

Three defendants based in Iran have also been charged in the case. They are Sabanican Company, a company in Tehran, and its president, Hassan Seifi, an Iranian national, as well as Reza Seifi, an Iranian national and the managing director of Sabanican Company. Each of these defendants remains at large.

As part of the U.S. government’s coordinated action against this procurement network, the Commerce Department announced today that it will add the eight defendants in France, Iran and the U.A.E. to its “Entity List.” The Entity List provides notice to the public that certain exports, re-exports and transfers (in-country) to parties identified on the Entity List require a license from the Commerce Department, and that availability of license exceptions in such transactions is limited. All eight parties will be added to the Entity List with a licensing requirement for all items subject to the Commerce Department export regulations and with a presumption of denial.

The Charges

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.

Defendant Najfi and his firm in the U.A.E. are alleged to have placed orders and purchased military aircraft parts, including those for the Bell AH-1 attack helicopter, from Todd and his company, The Parts Guys, in the United States. 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 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 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.

The charge of conspiracy carries a maximum penalty of five years in prison, while violating the AECA carries a maximum penalty of 20 years in prison, and violating IEEPA carries a maximum penalty of 20 years in prison. Money laundering carries a maximum 20 years in prison, while making false statements carries a maximum of five years in prison.

“The defendants in this case are alleged to have conspired to defraud the United States by illegally acquiring and exporting fighter jet and attack helicopter components. Keeping such advanced weaponry, which is designed to protect the men and women of our Armed Forces and to defend our national interests, from falling into the hands of state sponsors of terror has never been more important,” said Todd Hinnen, Acting Assistant Attorney General for National Security.

“Through coordinated law enforcement efforts, we have cut off more than a branch of this illegal supply tree; we have cut off the tree at its trunk. These parts have a military purpose, and I am determined to see that they are not used to harm the United States, its soldiers, citizens or friends. This type of criminal activity should remind each of us that we must be ever vigilant in our efforts to protect our national security. The threat is very real, and comes from even the least suspected places, including middle Georgia,” said U.S. Attorney Michael Moore.

“The illegal export of U.S. weapons and military technology presents a direct threat to our national security,” said Brock Nicholson, Special Agent-in-Charge of ICE-HSI in Atlanta. “This investigation demonstrates the importance of preventing our military equipment from falling into the wrong hands, where it could potentially be used against our military members, our homeland and our allies. Enforcing U.S. export laws is one of our top priorities, and we will continue working with our law enforcement partners to ensure that those who put our country at risk are discovered and brought forward for prosecution.”

Brian D. Lamkin, Special Agent-in-Charge, FBI Atlanta, stated: “The cooperative efforts among the FBI, ICE and U.S. Commerce was critical in bringing this case forward for prosecution by the U.S. Department of Justice. The enforcement of U.S. laws that prohibit the acquisition of specified defense related items is paramount to national security and is a daunting task when back dropped against the vast movement of legitimate international trade that occurs every day in the U.S. The FBI is pleased with the role that it has played in this multi-agency enforcement effort.”

“ The Commerce Department’s Office of Export Enforcement (OEE) dedicates one hundred percent of its resources to enforcing export laws, and today’s case is the result of ongoing cooperation with Immigration and Customs Enforcement and the FBI to protect our national security,” said Robert Luzzi, Special Agent-in-Charge of OEE’s Miami Field Office. “Parties who export to embargoed destinations such as Iran will be pursued and prosecuted to the fullest extent of the law.”

This case was investigated by ICE Homeland Security Investigations in Atlanta, FBI Atlanta Field Division and the Department of Commerce’s OEE.

The prosecution is being handled by Assistant U.S. Attorneys Jennifer Kolman and Danial E. Bennett from the U.S. Attorney’s Office for the Middle District of Georgia and Trial Attorneys Ryan P. Fayhee and Brandon L. Van Grack from the Counterespionage Section of the Justice Department’s National Security Division.

The public is reminded that an indictment contains mere allegations and that defendants are presumed innocent unless and until proven guilty.

Coalition forces in Iraq Kill 10, Catch 11

American Forces Press Service

May 29, 2008 - Coalition and Iraqi forces killed 10 enemy fighters, captured 11 suspects, and uncovered scores of weapons in Iraq over the past three days, military officials said. In two-day operations that culminated today, coalition forces detained 11 suspected al-Qaida in Iraq terrorists, including two wanted men.

One of the wanted men allegedly conducted bombing attacks against Iraqi security forces and the other is believed to be a senior al-Qaida in Iraq leader in Salahuddin and Anbar provinces, military officials said.

"We will continue to put pressure on al-Qaida in Iraq together with the Iraqi security forces to protect innocent citizens from these terrorists," said Army Maj. John Hall, a Multinational Force Iraq spokesman.

In Iraq yesterday:

-- Coalition forces killed 10 members of Iranian-backed "special groups" in the Fedaliyah neighborhood of eastern Baghdad's New Baghdad district. Troops engaged the weapon-wielding militants after observing them emplace homemade bombs.

-- Troops captured a key suspected special groups financier in Mahmudiyah, about 10 miles south of the Iraqi capital. Military officials believe the suspect is the primary financier between Iranian intelligence elements and special groups operatives from Mahmudiyah to southern Baghdad.

-- Coalition and Iraqi forces found weapons caches in the following areas: northwest of Baghdad, and in the Aamel, Rashid, West Rashid and Mansour districts of the Iraqi capital. The stockpiles totaled dozens of mortar rounds, rockets, bomb-making materials, homemade explosives, assault rifles and ammunition, and other military equipment.

During two separate operations May 27, coalition and Iraqi forces discovered hidden lodes of illegal weapons. A find in the Saydiyah district of southern Baghdad yielded weaponry and ammunition of various sizes, and a local citizens group in Arab Jabour uncovered a 200-pound bomb.

"The more bombs we get off the battlefield the better," Army 1st Lt. Jeno Giorgi, a military spokesman, said of the bomb discovered in the Arab Jabour farm field. "It's one less coalition force or Iraqi casualty."

(Compiled from Multinational Force Iraq and Multinational Corps Iraq news releases.)

Forces in Iraq Capture Dozens, Discover Weapons Caches

American Forces Press Service

May 28, 2008 - Forces in Iraq captured dozens of suspects and found multiple caches of weapons in recent days, military officials said. Iraqi national policemen discovered a substantial munitions cache early this morning in the Aamel area of Rashid, in southeastern Baghdad.

The national police seized 11 explosively formed projectiles -- bombs specifically designed to pierce armored vehicles -- as well as various sizes of mortar rounds, various explosives, rocket-propelled-grenade launchers, sniper rifles, a machine gun, grenades, a rocket sled, mortar base plates, and several artillery timers.

"Taking these weapons off the streets of Baghdad is a tremendous step in safeguarding the people of Baghdad," said Army Lt. Col. Steve Stover, a spokesman for Multinational Division Baghdad and 4th Infantry Division. "The national police continue to demonstrate their professionalism in keeping the local populace safe and secure."

In operations yesterday:

-- Information from an April 21 operation led coalition forces to Mosul, where they detained four suspected terrorists believed to be associated with al-Qaida in Iraq senior leaders. This included a wanted man believed to have fled to Mosul to avoid pressure from Iraqi and coalition forces in western Iraq.

-- Iraqi police and local members of "Sons of Iraq," a citizen security group, detained 41 men in the Salahuddin province. They also confiscated about 700 rounds of machine-gun ammunition from the detainees, officials said.

-- Iraqi soldiers found four weapons caches. They soldiers seized an RPG launcher and rocket, a trigger device, various size mortars and rounds, bomb-making materials, a homemade bomb, helmets, and life preservers.

-- Iraqi special operations forces captured three suspected Iranian-backed "special groups" enemy fighters in two separate operations around Baghdad. The two suspects are accused of kidnapping, torturing and killing Iraqi citizens. The third suspect is reported to be responsible for attacks against Iraqi and coalition forces, military officials said.

-- Iraqi soldiers took a number of weapons out of the control of enemy fighters during Operation Peace in the Sadr City district of Baghdad, seizing a total of 27 bombs designed to penetrate armored vehicles, and one mortar tube.

-- In two separate operations in Sadr City, Iraqi soldiers found assault rifles and ammunition, sniper rifles, two RPG launchers, mortar rounds and ammunition, a set of body armor, a radio, blasting caps, ammunition pouches, and a pair of binoculars.

-- An Iraqi led coalition forces to two large weapons caches near Duar, 18 miles south of Baghdad. The larger of the two caches, 30 meters from the second cache, was found buried 3 feet deep in the side of a hill. The combined caches contained more than 900 pounds of homemade explosives, various artillery and other military equipment and scores of rounds.

In operations May 26:

-- Coalition forces captured a wanted man believed to have been a leader of al-Qaida in Iraq since 2005. The suspect also allegedly was involved in an attack on U.S. troops near Donkey Island, in Anbar province, June 30, officials said. Seven other suspected terrorists also were captured.

-- Multinational Division Baghdad soldiers detained a suspected terrorist in Tarmiyah, northwest of Baghdad. Soldiers detained the suspect, who is accused of recruiting juveniles in the area to carry out attacks on Iraqi security forces and coalition forces. Military officials linked the suspect to an explosion at an Iraqi security checkpoint in the Tarmiyah area in which four Iraqi security force members were killed.

-- Iraqi special operations forces captured a suspected terrorist in eastern Mosul. The leader is suspected of operating an al-Qaida in Iraq cell in the Mosul area. Three other suspects were detained. The terrorist and his cell are suspected of being responsible for homemade-bomb attacks against Iraqi and coalition forces, officials said.

-- A tip led Multinational Division Center soldiers to about 900 pounds of homemade explosives north of Patrol Base Shanghai, about 22 kilometers southwest of Baghdad. In another operation, they uncovered a cache consisting of 18 50-pound bags of homemade explosive, military officials said.

-- Iraqi army and Multinational Division Baghdad soldiers discovered RPG rounds and a machine gun in the Adhamiyah district. In another operation, soldiers seized an 82 mm mortar round, a rocket, two homemade bombs, 12 bags of gun powder, and two hand grenades in the Karkh district. In the Furat area of the Rashid district, soldiers seized an RPG launcher, two RPG warheads and two RPG boosters, military officials said.

-- During a cordon-and-search operation, the Iraqi army found a large weapons cache in Tamim province. The cache consisted of RPG launchers and rockets, hundreds of anti-aircraft artillery rounds, various propellant charges, a machine gun, hundreds of communication devices and more than 2,500 meters of detonation cord, officials said.

-- Iraqi security forces, a Sons of Iraq a security group, and Multinational Division Baghdad soldiers discovered three weapons caches in Baghdad containing homemade explosives, mortar rounds, various rockets and fuses, assault rifles and hand grenades, officials said.

-- Iraqi army soldiers discovered a large explosives cache in Mosul. The cache consisted of homemade explosives, nitrate and liquid nitrate, oxygen tanks, gunpowder, and ball bearings. During operations Lion's Roar and Mother of Two Springs, the Iraqi army and Iraqi police have discovered 40 weapons and explosives caches throughout Mosul and Ninevah province, military officials said.

(Compiled from Multinational Force Iraq and Multinational Corps Iraq news releases.)

Forces in Iraq Catch 48 Suspects, Seize Scores of Weapons

American Forces Press Service

May 27, 2008 - Coalition and Iraqi forces detained 48 suspects and seized multiple caches of weapons in Iraq over the past three days, military officials said. Coalition forces captured a wanted man and 20 other suspected al-Qaida in Iraq terrorists during separate operations in Baghdad and Mosul that concluded today. The wanted man is linked to a car-bombing cell involved in an attack that killed four Iraqi police, according to military officials.

"Iraqi and coalition forces are sharing information so our operations defeat the al-Qaida in Iraq terrorist networks that threaten the Iraqi people," said Army Maj. John Hall, a Multinational Force Iraq spokesman.

In another operation today, coalition forces captured the suspected member of an Iranian-backed "special group" in Suwayrah, about 30 miles southeast of Baghdad. The suspect is an explosives expert believed to be responsible for coordinating and carrying out attacks on coalition forces in Wasit province, officials said.

Coalition and Iraqi forces yesterday and May 25 seized scores of mortar rounds, homemade bombs and explosive-making materials, a rocket-propelled-grenade launcher and ammunition, assault rifles, and other military equipment in several separate raids around Baghdad.

In other May 25 operations in Iraq:

-- Coalition forces captured a wanted man and six other suspects in Mosul. Military officials believe the wanted man is linked to foreign-terrorist smuggling operations. Meanwhile, about 55 miles south of Mosul, troops in Sharqat caught another four suspects.

-- Troops seized seven suspected terrorists and a cache of weapons in the Baghdad area. Military officials said the suspects are linked to the al-Qaida in Iraq bombing network in the Iraqi capital.

-- Iraqi police detained five suspected al-Qaeda in Iraq members in Mosul and seized a large weapons cache. At the time of the operation, the uncovered weapons marked the eighth cache found in the Ninevah province within 72 hours.

-- Iraqi special operations forces captured the mid-level leader of an Iranian-backed group in Baghdad's Shuala area. Military officials believe the suspect led a 300-member group responsible for kidnapping and murdering Iraqi citizens.

-- Troops caught a wanted man in Tikrit, about 100 miles north of Baghdad. Military officials believe he is associated with al-Qaida in Iraq leaders in the Tigris River valley.

-- Coalition forces captured a wanted man suspected of involvement with an al-Qaida in Iraq bombing network in the Tigris River valley.

(Compiled from Multinational Force Iraq and Multinational Corps Iraq news releases.)