Three Cedar Rapids defendants in gun smuggling case plead not guilty

CEDAR RAPIDS - Three of the four family members charged with smuggling guns to Lebanon pleaded not guilty Tuesday in federal court to a 46 count indictment unsealed last week.

Ali Al Herz, 50, of Cedar Rapids, pleaded not guilty to 23 charges of domestic abuser in possession of a firearm and one count each of firearm conspiracy and money laundering. His brother, Bassem Herz, 30, also of Cedar Rapids, pleaded not guilty to one count each of firearms conspiracy and money laundering. And Bassam's wife, Sarah Zeaiter, 24, also of Cedar Rapids, pleaded not guilty to three counts of false claim to United States citizenship on bank records and federal firearms forms and one count each of firearms conspiracy and money laundering.

Attorneys made the not guilty pleas for the three and said they all resisted the forfeiture allegation included in the indictment. Prosecutors claim the firearms and ammunition are part of the crime and should be forfeited.

U.S. Chief Magistrate Jon Scoles set a trial for Aug. 10 in U.S. District Court.

Adam Al Herz, 22, Ali Herz's son, of Cedar Rapids, will be arraigned Wednesday. He is charged with 14 counts of drug user in possession of firearms and one count each of firearms conspiracy and money laundering.

Assistant U.S. Attorney Richard Murphy told the court he would withhold some of the discovery due to the 'international scope” of the ongoing investigation. He also said the government will likely file a superseding indictment at some point.

All four defendants, starting in late 2013 and continuing through May 12, are accused of conspiring to deal firearms without a license, ship and transport firearms to Lebanon in containers without providing written notice that firearms and ammunition were in the packages, and making false statements to licensed firearms dealers for transactions records required by law, according to the indictment.

According to the indictment, the defendants concealed 53 firearms and 6,972 rounds of various ammunition among Bobcat skid loaders and other items in two shipping containers bound for Lebanon, which were loaded at Midamar Corp. in Cedar Rapids.

One container was shipped in March and the other was shipped between May 6 and May 8.

One or more of the defendants traveled internationally to deal firearms and ammunition to customers in Lebanon, the indictment contends. The funds to buy guns were tracked through bank accounts of the defendants, and the fictitious business name of 'Herz Enterprises” was used to conduct the firearms purchases and in dealing with the shipments.

The indictment includes bank deposits and withdrawals of the defendants for thousands going in and out of their bank accounts for various amounts, from over $1,300 to $15,000, for the guns, ammunition and skid loaders. Included in the money transactions, is $61,000 in cash which was brought into the U.S. by Ali Al Herz after he was in Paris on Dec. 2. 2014.

Each false claim to citizenship is punishable by up to three years in prison, unlawful possession of firearms is up to 10 years in prison, the firearms conspiracy is up to five years in prison and the money laundering is up to 20 years in prison. In addition, there is a fine up to $250,000 on each count.