Plot to keep
Iran's 'Top Gun' jets flying ... ...with
parts from eBay!
HM REVENUE AND
CUSTOMS News Release (NAT 40/09) issued by COI News Distribution
Service on 4 June 2009
Three men were
jailed for a total of ten years for their part in a plot to supply
military equipment to keep Iranian F-14 'Tomcat' fighter
jets airborne and combat ready in contravention of an embargo on
military exports to Iran.
HM Revenue & Customs officers uncovered the plot when they
found a consignment of oxygen cylinders at Heathrow Airport which
were bound for Tehran.
The restricted parts had been sourced in the United States of
America using eBay thereby avoiding export controls.
Mohsen Akhavan Nik and his son Mohammad Akhavan Nik, who were
granted political asylum in the UK having apparently fled from
Iran in 1995, together with Nithish Jaitha, breached an arms
embargo by acting as middle-men supplying military hardware to
Iran until officers uncovered their network of illegal shipments
and fraudulent documents.
Mohsen Nik, 49, and Mohammad Nik, 26, of Ascot, Berkshire, were
jailed for five years and two-and-a-half years respectively.
Jaitha, 43, of Chalgrove, Oxford, was jailed for two-and-a-half
years. All three denied charges of conspiracy to export controlled
goods in a five week trial at Southwark Crown Court.
Iran's ageing jet fighters, including the F-14
'Tomcat', as featured in the 1980s film 'Top
Gun', together with F4 Phantoms, F5 Tigers and Cobra Attack
Helicopters can only be kept in service through parts purchased in
the USA and then illegally shipped to Iran using fraudulent
paperwork and bogus supply routes.
The conspiracy came to light in May 2006 when HMRC officers at
Heathrow Airport stopped a Tehran bound consignment of eight
liquid oxygen cylinders from being shipped in contravention of a
1993 UK embargo on military goods to Iran. The technical
equipment, which is vital in enabling fighter pilots to breathe at
high altitude, is specifically tailored for military jets and has
limited civilian application.
The items were sourced on E-bay in America and shipped to an
address in Florida to avoid the need for an export license. From
there the goods were normally despatched under misleading
descriptions to Iran via the UK, Romania or Hong Kong so as to
overcome US export controls and obscure the final destination. And
the three defendants also had liquid oxygen converters seized in
Romania and the US. The defendants claimed the items were for use
in the health sector, specifically for breathing apparatus in an
ambulance. The accused fabricated documents and trade catalogues
to reinforce their claim but court evidence from technical experts
showed this to be untrue.
Mohsen Akhavan Nik would receive a list from one of two people in
Iran requesting him to obtain parts and supply quotes for the
delivery of those parts to Iran. Those requests included not just
liquid oxygen converters but a vast array of parts required for
military jets ranging from military radios and transceivers,
through helicopter engine transmissions to electric drive motors
to power 20mm "Gatling type" cannons. Mohsen Akhavan Nik
and Mohammad Akhavan Nik then asked Jaitha to source the parts
from the United States. On regular occasions the supplier of the
parts would specifically state that the parts required an export
licence from the United States authorities before those parts
could be exported.
When that happened the defendants pretended that the customer for
the parts was in the United States and would arrange shipment of
the goods to an address in Florida that had been set up by Mohsen
Akhavan Nik and Mohammad Akhavan Nik. Once the goods were received
in Florida, they were exported under cover of paperwork that
invariably provided a misleading description of the parts together
with a value that was always a tiny fraction of the price that the
parts had been bought for.
Customs officers had previously warned Mohsen Akhavan Nik against
such prohibited trade in 2000 when an illegal shipment of lasers
to Iran was seized. He claimed the goods were used to project
advertising slogans onto the outside of buildings. The devices
were in fact not for advertising but battle simulation by tanks.
Despite this warning they continued trading until the current case
and the arrest of the Nik's in August 2007. Jaitha was
arrested in November 2007 and together with computers and
paperwork seized from all companies Customs officers in the UK,
with the assistance of Customs authorities in the USA, Romania and
Hong Kong were able to piece together the illegal trade to Iran.
Peter Millroy, Head of HMRC's specialist unit on military
exports, said:
"These men were involved in a complex and
lucrative conspiracy to supply military equipment to Iran in
contravention of a UK arms embargo. This is an excellent result
dismantling as it does this particular supply
route."
Mohsen Nik was also disqualified as a company
director for seven years. A confiscation hearing will take place
at court in due course.
NOTES FOR EDITORS
1. The defendants were charged as follows:
Count One
Conspiracy to evade the prohibition on the export
of goods contrary to Section 1(1) of the Criminal Law Act 1977
Particulars of Offence
Mohsen Akhavan NIK, Mohammad Akhavan
NIK and Nitish JAITHA between the 31st December 2005 and the 23rd
August 2007, conspired together and with persons unknown to export
goods, namely aircraft components and equipment, to Iran, with
intent to evade the prohibition on exportation in respect of those
goods, imposed by the Export of Goods, Transfer of Technology and
Provision of Technical Assistance (Control) Order 2003, in
contravention of Section 68(2) of the Customs and Excise
Management Act 1979.
Count Two
Conspiracy to evade the prohibition on the movement
of controlled goods between third countries contrary to Section
1(1) of the Criminal Law Act 1977
Particulars of Offence
Mohsen Akhavan NIK, Mohammad Akhavan
NIK and Nitish JAITHA between the 31st December 2005 and the 23rd
August 2007, conspired together and with persons unknown to
transfer, acquire or dispose of controlled goods, namely goods
specified in Schedule 1 to the Export of Goods, Transfer of
Technology and Provision of Technical Assistance (Control) Order
2003, with intent to evade a prohibition contained in article 4
and article 9(2) of The Trade in Goods (Control) Order 2003.
2. The defendants were sentenced as follows:
Mohsen Akhavan NIK
Five years for count one and three years
for count two, to run concurrent.
Mohsen Nik was also
disqualified from being a company director for seven years.
Mohammad Akhavan NIK
Two-and-a-half years for count one and
18 months for count two, to run concurrent.
Nitish JAITHA
Two-and-a-half years for count one and 18
months for count two, to run concurrent.
3. A short film showing liquid oxygen converters being fitted to
an F4 Phantom can be viewed or downloaded at http://nds.coi.gov.uk/infocus/Detail.asp?ReleaseID=402631&NewsAreaID=360
4. HMRC investigators were assisted by the Customs & Excise
Department of Hong Kong, the Customs authorities of Romania and
the US Immigration and Customs Enforcement.
5. The case was prosecuted by the Revenue & Customs
Prosecution Office which was created by Royal Assent on 7 April
2005. RCPO is an independent prosecuting authority which reports
directly to the Attorney General.
6. The UK has had a national arms embargo in place on Iran since
March 1993.
The relevant statutory instruments implemented in
UK law are:
* Export Control Order 2008 (SI
2008/3231)
Iran is a destination listed in this Order under
Schedule 4, Part 1 (Countries and Destinations subject to stricter
export of trade controls)
* The Export Control (Iran) Oder
2007 (SI 2007/1526)
* The Export Control (Iran) (Amendment)
Order 2007(SI 2007/2170)
This is national legislation to
provide for licensing, enforcement and penalty provisions in
respect of EU Regulation which came into force 27 July 2007.
*
The Export Control (Iran) (Amendment) Order 2008 (SI
2008/3063)
Exporters can apply for an export control licence
for their goods. All applications will be considered by the
Government on a case by case basis in line with the provisions of
the Consolidated Criteria for UK and EU Arms Exports.
Issued by HM Revenue & Customs Press Office
Press
enquiries only please contact:
Mike Burrell
Tel: 020 7147
0052
E-mail: mike.burrell@hmrc.gsi.gov.uk
Website http://www.hmrc.gov.uk