Last member of Cedar Rapids family accused in Lebanon gun smuggling conspiracy pleads guilty

CEDAR RAPIDS - The last family member charged with smuggling guns from Iowa to Lebanon pleaded guilty Thursday in federal court.

Bassem Al Herz, 31, of Cedar Rapids, originally charged with four counts of a superseding indictment last year, pleaded guilty to firearms conspiracy, conspiracy to commit money laundering and violation of the Arms Export Control Act, which is not having a license to export firearms. He faces up to 45 years in prison, a $1.7 million fine and 13 years of supervised release.

His brother Ali Al Herz, 50, nephew Adam Al Herz and his wife Sarah Zeaiter, 24, all of Cedar Rapids, previously pleaded guilty to various charges for their part in the smuggling conspiracy.

Al Herz and the others were taken into custody last May after authorities raided Midamar Corp. after records show they found firearms and ammunition concealed among clothing drive items that had put in a shipping container at the Cedar Rapids company to send to refugees in Syria and Lebanon, according to authorities. The container was being sent to Lebanon by Herz Enterprises - the Al Herz family - which was using Midamar's export shipping service. But Midamar owners and employees were not involved with the crime, officials have said.

According to a criminal complaint, the four family members obtained weapons and ammunition from dealers in Eastern Iowa, purchasing 113 firearms over 17 months, and illegally concealed them within Bobcat construction equipment shipping containers without having a license to export.

A plea agreement, unsealed Thursday, shows Bassem Al Herz admitted there were a total of four shipments of guns sent from Cedar Rapids and destined for Lebanon, between March 2014 and May 2015. Money from the gun sales were used to purchase more guns and ammunition to continue the conspiracy, he admitted.

Authorities seized one shipment, bound for Beirut, in Norfolk, Va., in March, according to the complaint. The shipment contained 53 firearms, parts, and more than 6,800 rounds of ammunition hidden in skid loaders. Many of the weapons had been placed in bags similar to the ones used at Pizza Daddy, a Cedar Rapids restaurant which was owned by Ali Herz's brother, Maitham Herz. The restaurant was raided in May.

Another intercepted container contained 99 guns, more than 9,500 rounds of ammunition and gun parts and accessories, records show.

Bassem Al Herz admitted Thursday to joining in the conspiracy, which started in early 2013 and continued through May 2015, to ship firearms and ammunition without a license to Lebanon and without providing written notice of the contents of the shipping containers. He also admitted to making false statements to licensed firearms dealers. U.S. Magistrate Jon Scoles stopped the plea when Al Herz was asked to admit to the money laundering charge, because Al Herz said he wasn't part of the entire conspiracy and withdrew at some point.

After talking with his lawyer, Alfredo Parrish, Al Herz agreed to continue. Parrish said Al Herz admits to his participation, and any concerns about Al Herz's level of participation can be addressed at sentencing.

Al Herz admitted that he knew they were transferring money from a foreign country into the United States.

For the arms export charge, Al Herz admitted to exporting firearms without a license and he knew it was illegal.

As part of the plea, Al Herz will forfeit the guns, ammunition and $33,869 associated with the conspiracy.

Assistant U.S. Attorney Richard Murphy has declined to comment after the plea hearings in this case, so the question remains as to where or to whom the firearms were being sent. During a detention hearing in May, Murphy said the family was selling the guns to a 'war torn” country out of greed, because the violence in the Middle East has driven up prices for weapons.

Zeaiter was the bookkeeper for the group, according to evidence presented at that hearing. A ledger showed the family purchased 70 guns for about $40,000 and could sell them in Lebanon for $415,000 to $465,000.