8th Suspect Held in Jet Parts Ring : Man Charged in Scheme to Ship Fighter Hardware to Iran

A Massachusetts man who federal authorities say stole $1 million in F-14 jet fighter parts was arrested Thursday, bringing to eight the number of people who have been arrested in an alleged San Diego-based ring that smuggled sophisticated military parts to Iran, authorities said Thursday.

Arrested at his home in Leominster, Mass., was Daniel Wheeler, 33. He was arraigned in a Worcester federal courtroom, charged with stealing the parts while working as a civilian at the Naval Air Rework Facility North in Norfolk, Va., Assistant U.S. Atty. Philip Halpern said in San Diego.

Wheeler was employed as a products controller for the Navy and it was in that capacity that he is alleged to have stolen airplane parts, once every two weeks, since at least 1981, Halpern said. The arrest warrant identified circuit boards and gyroscopes as parts taken by Wheeler. Halpern declined to elaborate.

IRS Probe

A key in linking Wheeler to the alleged ring, Halpern said, was an Internal Revenue Service investigation supposedly showing that Wheeler banked more than $75,000 for his role in the scheme.

Wheeler will be extradited to San Diego, probably in about 10 days, Halpern said.

While federal prosecutors now believe all the major players involved in the scheme have been arrested, they said the investigation is continuing and more arrests are possible.

In custody in San Diego are Franklin P. Agustin, 47, the alleged ringleader; his wife, Julie, 46; his brother, Edgardo, 45, and Primitivo B. Cayabyab, a 17-year Navy veteran.

Two Free on Bail

Pedro M. Quito, 60, a retired sailor and Navy civilian employee, and Antonio G. Rodriquez, a 16-year Navy veteran, are free on $500,000 bail each.

An Iranian national, Saeid Asefi Inanlou, was arrested by British authorities in July. Authorities confiscated more than $2 million worth of U.S. aircraft equipment at the time of his arrest, including three sophisticated computers, four inertial navigation aids and two weapons indicator controls. Inanlou was released by the British on $150,000 bail.

Wheeler, an Air Force and Navy veteran, began working for the Navy as a civilian in 1976, but quit this year to work for an electronics company.

According to Halpern, Edgardo Agustin’s sister, Belita Agustin Tugbang, brought Agustin and Wheeler together by introducing her brother to Wheeler’s wife, Virginia. Initially, Agustin talked to Virginia Wheeler about obtaining electronic parts from the Naval Air Rework Facility, Halpern said.

Agustin eventually met Wheeler, who agreed to steal the jet fighter parts with the knowledge that they were destined for Iran, according to the FBI.