NY Daily News, 28 Oct. 2016- Two California men were arrested for their alleged roles in a conspiracy to purchase and ship more than $3 million worth of fighter jet parts to Iran, federal prosecutors said.
Zavik Zargarian, 52, of Glendale, and Vache Nayirian, 57, of Lakeview Terrace, were taken into custody Wednesday, arraigned and allowed to post bond, the Justice Department announced Friday.
Zargarian’s Glendale-based company ZNC Engineering was named in the nine-count federal indictment along with two Iranian nationals — Hanri Terminassian, 55, and Hormoz Nowrouz, 56 — who are believed to be in Iran, officials said.
According to the indictment, Terminassian originally contacted Zargarian from Iran and asked for help buying military aircraft parts from U.S.-based suppliers.
Zargarian then tried to buy the desired items from an undercover Homeland Security special agent who was posing as a parts supplier, prosecutors said.
The items included parts used in F-14, F-15, F-16 and F-18 fighter jets, officials said.
Prosecutors claim Terminassian traveled to the U.S. to meet with both Zargarian and the undercover special agent to discuss the transaction.
The indictment alleges the men sought to purchase between 10 and 30 units of each item, with the total cost potentially exceeding $3.6 million.
The indictment also claims Zargarian and Nayirian conspired with Terminassian and Nowrouz to secretly export more than 7,000 fluorocarbon rubber O-rings to Iran over the course of the conspiracy.
It alleges Terminassian contacted Nayirian and Zargarian on behalf of Nowrouz and sought their help to obtain the O-rings, which can be used in military aircraft hydraulic systems and landing gear.
Terminassian allegedly transferred funds to Nayirian, and the California man later provided the money to Zargarian.
Through his company ZNC Engineering, Zargarian bought the O-rings from a California vendor, and Nayirian exported them to addresses in the United Arab Emirates and Kuwait where Terminassian had them transshipped to Iran.
To keep the conspiracy in the shadows, the defendants substantially undervalued the materials on shipping documents to avoid having to file export forms that might prompt further inspection, prosecutors said.
As part of the investigation, authorities allegedly obtained evidence that the O-rings were delivered to the Iranian Air Force
‘The crimes charged in this indictment are very serious threats to our national security,’ U.S. Attorney Eileen M. Decker said in a statement Friday.
‘As a nation, it is vital that we protect our military technology and prevent it from getting into the hands of other countries without proper authorization,’ she said.
‘One of HSI’s top enforcement priorities is preventing sensitive articles like those in this case from falling into the hands of individuals or nations that might seek to harm America or its interests,’ said Joseph Macias, special agent in charge for Homeland Security Investigations Los Angeles.
Zargarian and Nayirian entered not guilty pleas and were given a Dec. 20 trial date, officials said.
If convicted as charged, Zargarian faces up to 115 years in federal prison and a $4.8 million fine.
Nayirian could face up to 95 years in federal prison and $3.8 million in fines if convicted of all counts.
The U.S. embargo on Iran prohibits the export of goods, technology and services to Iran with very limited exceptions, officials said.