Hearing in Arms Smuggling Case Delayed (missile plot to shoot down US airliner)

NY TIMES ^ | 9/4/03 | THE ASSOCIATED PRESS

[Liz]

NEWARK, N.J. (AP) -- A bail hearing for a man facing terrorism charges in an alleged missile-smuggling plot was postponed Thursday so that prosecutors could present a witness to bolster accusations that the defense claimed were vague.

Meanwhile, defendant Hemant Lakhani will remain held without bail. The hearing was set to resume next Thursday.

U.S. Attorney Christopher J. Christie said Thursday that Lakhani confessed after his arrest and can be heard on more than 150 covertly recorded conversations and seen in some videotapes, at one point actually handling a missile he knew was sought by a terrorist group to shoot down a U.S. airliner.

After defense lawyer Alan L. Zegas argued that much of the information in the FBI complaint appears to be hearsay, U.S. Magistrate Ronald J. Hedges said he would give the government a chance to present a witness next week to bolster the complaint. Christie said he would call an FBI agent to testify.

Lakhani, 68, of London, was arrested with two others Aug. 12 in a sting operation and charged with trying to provide material support to terrorists and dealing arms without a license. The first charge carries up to 15 years in prison and a $250,000 fine; the second, 10 years and $1 million.

Prosecutors said Lakhani tried to sell 50 shoulder-fired missiles to an undercover agent posing as a Muslim terrorist bent on shooting down a U.S. airliner.

The only U.S. citizen charged in the alleged scheme, Yehuda Abraham, 76, a New York diamond dealer, has been released on $10 million bail. He is accused of money-laundering.

Abraham and an Indian citizen, Moinuddeen Ahmed Hameed, 38, are charged with conspiring to operate an unlicensed money transmitting business. The charge carries a maximum penalty of five years in prison and a $250,000 fine. Hameed also remains in custody.

[Liz]

Televised news reports raised questions b/c when he was arrested in the plot to kill Americans and undermine the US economy, Lakhani claimed he was indigent and could not afford a lawyer.

Reporters wondered why, at his bail hearing, Lakhani turned up with not one, not two, but three high-powered (and high-paid) lawyers, to defend him.

Another suspect, the only American charged in the missile plot, Yehuda Abraham, a wealthy New York gem dealer who owns jewelry stores around the world, was released on $10 million bail, but is required to wear an electronic device to monitor his movements.

Authorities said Abraham and Moinuddeen Ahmed Hameed, a 38-year-old citizen of India who, the government said, arrived in the New York area from Malaysia, were enlisted to help manage the financial arrangements for the arms deal.

Both men were charged with conspiring to operate an unlicensed money-transmitting business.

Illegal money-transfers are said to be the favored MO of terrorists since the subrosa financing is conducted underground out of sight of banking procedures that leave paper trails.