Iranian-Born Dealer Convicted in Arms Case

An Iranian-born businessman who bragged to undercover federal agents that he had smuggled $81 million in embargoed American military equipment to the Iranian army was convicted on five charges Thursday by a U. S. District Court jury.

After six days of testimony, a jury found Hassan Kangarloo, 27, of Woodland Hills guilty of one count of conspiracy, two counts of violating export control laws and two of filing false shipping documents.

U. S. District Judge Stephen V. Wilson revoked Kangarloo’s $100,000 bail and ordered him into custody to await sentencing Oct. 6. The charges carry a maximum penalty of nine years in prison.

A single charge of conspiracy against Kangarloo’s wife, Azedeh Zareh, 24, was dismissed by the judge Tuesday on the ground that secretly recorded conversations between her and others allegedly involved in a conspiracy were ambiguous.

Kangarloo was accused of posing as the head of a British company when he attempted to purchase rockets, bombs and other military equipment from American firms. Sales of such equipment to Iran have been barred by federal law since 1979.

The prosecutors, Assistant U. S. Attys. Jeffrey Modisett and Bonnie Clapper, said Kangarloo was enriching himself in deals with the purchasing arm of the Iranian Army, the Ground Forces Logistics Command.

“He bought military radios and radio parts for $1 million but had a contract to sell the Ground Forces Logistical Command the same parts for more than $2 million,” Modisett said. “He boasted of making 40% and 50% markups on the sales.”

The jury heard several secretly made tape recordings of conversations between Kangarloo, manufacturers and undercover customs agents posing as arms suppliers.

Boasted About Sales

On one tape Kangarloo boasted to an agent that he had shipped $81 million in restricted military items to Iran for use in its war against Iraq.

On another tape, an undercover agent mentioned that his proposed deal with Kangarloo was illegal and Kangarloo replied, “Yeah, that’s what the problem is.”

Only about $100,000 worth of radio parts actually reached Iran, prosecutors said. But, Modisett said, Kangarloo was involved in “an ongoing operation going back to 1983 to export every conceivable piece of military equipment to Iran,” including engines for M-60 tanks, aerial reconnaissance cameras and jet aircraft parts.

Kangarloo left the United States for England in September, 1985, and was arrested on April 6 when he crossed the border from Canada at Blaine, Wash.

Worked For Arms Ring

Kangarloo also was involved with a ring that was accused of attempting to procure more than $9 million worth of military equipment for Iran, including TOW anti-tank missiles, with the aid of a U. S. Army officer, Modisett said.

Modisett told the jury that Kangarloo, who formerly lived in Encino, was a salesman for a larger arms smuggling operation headed by a Calabasas woman, Farhin Sanai, 53, and her husband, Fadel Norman Fadel, 55. Two men were convicted by a federal jury in Orlando, Fla., in December of plotting to ship 1,140 TOW missiles to Iran. But Sanai and Fadel were among four defendants, including the American officer, who were acquitted.

Kangarloo was not a defendant in that case.

Kangarloo testified at his own trial that he worked for Sanai in her import-export business and initially was unaware that an export license was required to ship military goods to Iran.