A San Jose man convicted of selling arms to Iran has appealed, saying federal prosecutors used false testimony and failed to disclose that President Reagan had secretly lifted the ban on arms sales to that nation. Paul Cutter filed an appeal in Orlando, Fla., federal court asking that his conviction be thrown out because his actions “were sanctioned by the government.” Reagan revealed Nov. 13 that he had secretly lifted the ban on arms sales to Iran in January during negotiations with representatives of Iran. Cutter, 49, and Charles St. Claire, 54, of Granada Hills, were convicted of making a deal in March, 1985, to buy 1,140 anti-tank missiles and five F-4 jet surveillance cameras from undercover FBI agents posing as thieves. The arms were to be resold to Iran for $10.2 million. Cutter was sentenced to five years in prison and St. Claire to 18 months. St. Claire has not challenged his conviction. After the Reagan disclosure, jury foreman Ed Bartle said he felt “duped” and would have voted to acquit Cutter and St. Claire had he known about the federal government’s actions.