Iranian Arms Case Figure Ordered Held Without Bail

A federal magistrate ruled Tuesday that a New York man, indicted as part of an alleged smuggling ring that sent stolen F-14 fighter parts to Iran, should be held in federal jail in San Diego without bail.

Edgardo P. Agustin, 45, was one of seven people arrested last month by federal agents after their investigation into an alleged San Diego-based smuggling operation that sold military hardware stolen from the aircraft carrier Kitty Hawk, other ships and the Naval Supply Depot at North Island.

Agustin was arrested in New York and sent to San Diego, where he joined his co-defendants. He appeared in U.S. Magistrate Robert C. McKee’s courtroom Monday and Tuesday while his attorney, Lonn E. Berney of New York, tried to persuade McKee to set bail for the accused weapons smuggler.

But McKee sided with a request by federal prosecutors to hold Agustin without bail. Prosecutors said Agustin had enough money and contacts to flee the country, and they gave McKee transcripts of three telephone conversations during which Agustin and his brother, co-defendant Franklin P. Agustin, 47, of San Diego allegedly discuss the arms-smuggling operation.

After reviewing the transcripts, McKee said that he disagreed with Berney’s contention that Edgardo Agustin was “minimally” involved in the case. He also said Agustin’s finances and “power to communicate” with people throughout the world added weight to the government’s contention.

The transcripts were sealed and not made part of the public court record.

After the hearing, Berney said he plans to appeal McKee’s ruling by next week.

On Monday, U.S. District Judge Earl B. Gilliam imposed a gag order on defense attorneys, prosecutors, enforcement officers and witnesses in the case. The gag order, however, does not apply to defendants in the case, a spokeswoman for Gilliam said Tuesday.

Gilliam also removed himself from hearing the case because of a potential “conflict of interest.” The case was assigned to U.S. District Judge Leland C. Neilsen, who may now determine whether to lift the gag order.