Accused gun smugglers will stay in jail

CEDAR RAPIDS - After a three-hour federal hearing, during which prosecutors said they have an 'overwhelming” amount of evidence, a magistrate took just minutes Friday to rule he wouldn't release from jail defendants accused of conspiring to smuggle guns to Lebanon.

U.S. Magistrate Jon Scoles said he wouldn't speculate on political views, on who was intended to receive the guns in Beirut, or whether the weapons were to be sold there out of greed, as the government suggested. But he did believe the evidence was strong and that the defendants had a place to flee - Lebanon.

Ali Herz, 50; his son, Adam Herz, 22; and his sister-in-law Sarah Zeaiter, 24, will remain in jail pending trial. Bassem Herz, 30, Ali's brother and Zeaiter's husband, didn't ask for release and also remains in jail. The four family members are charged with conspiracy and delivering a package to a carrier without notice that it contained firearms and ammunition. If convicted, they each face five years in prison.

According to a criminal complaint, the four legally obtained guns and ammunition from dealers in Eastern Iowa, purchasing 113 firearms in 17 months. But then they conspired to conceal them, hidden in containers of goods collected from a clothing drive organized by a Cedar Rapids company.

Authorities seized one shipment bound for Beirut in Norfolk, Va., in March, according to the complaint. It contained 53 firearms, parts and more than 6,800 rounds of ammunition hidden in skid loaders. Another intercepted container contained 99 guns, more than 9,500 rounds of ammunition and gun parts, records show.

Assistant U.S. Attorney Richard Murphy argued the conduct of the defendants was dangerous - sending weapons into a 'war torn” country - and greedy. Violence in the Middle East has driven up prices for weapons, he said.

Local and federal authorities conducted raids Tuesday, including at the Pizza Daddy restaurant and at the Midamar Corp. food company, which had organized the clothing drive.

Investigators said they discovered a ledger in the apartment where Bassem Herz and Zeaiter lived above Pizza Daddy.

Zeaiter was the purported bookkeeper for the group. The ledger showed they purchased 70 guns for about $40,000 and could sell them in Lebanon for $415,000 to $465,000.

Murphy said there's an 'overwhelming” amount of evidence and investigators haven't gotten through it yet. He suggested there could be more charges coming, but didn't elaborate.

All three defense attorneys said their clients have ties to this community and have reasons not to flee if let out of jail.

Zeaiter has an infant she's breast-feeding. Adam Herz is a student in the dental assistant program at Kirkwood Community College. And Ali Herz has seven children and a wife here.

The attorneys said there's no proof any of them are connected to or support terrorist groups,

Homeland Security agent Christopher Cantrell testified that Ali Herz's former wife and others from the 'public” told investigators he had expressed support for the extremist group Hezbollah many years ago. But the agent acknowledged Ali Herz had no direct connections with any terrorist organization.

Cantrell testified all the defendants had traveled many times out of the country. Ali Herz planned to go to Lebanon on Wednesday - the day after he was arrested - and not return until December. Adam Herz was to leave for Lebanon on Tuesday, when all four were arrested.

Cantrell also outlined a series of money transfers he said coincided with the purchase of firearms and moved through Zeaiter's bank accounts in a short period of time.

During this time, Zeaiter had little or no income to report and wasn't employed, he testified. About $100,000 cash flowed through her account, and fluctuations corresponded with firearm purchases.

Cantrell said none of the defendants had any reportable income or regular employment.

Homeland Security Agent Andy Lund testified investigators found more than $30,000 cash in the apartment of Zeaiter and Bassem Herz.