More family members plead in Cedar Rapids gun smuggling conspiracy

A Cedar Rapids man and his sister-in-law pleaded guilty on Friday to conspiracy charges involving smuggling guns hidden in shipping containers from Cedar Rapids to Lebanon.

Ali Al Herz, 51, originally charged with 27 counts, pleaded guilty to one count each of being a prohibited person in possession of firearms, firearms conspiracy, conspiracy to commit money laundering and violation of the Arms Export Control Act, in that he did not have a license to export firearms.

His sister-in-law Sarah Zeaiter, 24, of Cedar Rapids, originally charged with five charges, pleaded guilty of one count each to firearms conspiracy, conspiracy to commit money laundering and violation of the Arms Export Control Act.

U.S. Chief Magistrate Jon Scoles in separate hearings said Al Herz faces up to 55 years in prison and Zeaiter faces up to 45 years in prison.

Adam Herz, Ali's son, pleaded guilty Thursday and faces up to 45 years in prison.

The other family member, Bassem Al Herz, 30, Ali's brother, is negotiating a possible plea agreement with the U.S. Attorney's Office, lawyers said during a status conference Friday.

Al Herz and the others were taken into custody last May after authorities raided Midamar Corp. to find firearms and ammunition concealed among clothing drive items that Midamar had put in the container 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 this crime, officials previously said.

According to a criminal complaint, the four family members legally obtained weapons and ammunition from dealers in Eastern Iowa, purchasing 113 firearms over 17 months but illegally concealed them within Bobcat construction equipment in the shipping containers.

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, which was owned by Ali Herz's brother. 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.

Al Herz and Zeaiter each admitted Thursday to conspiring from early 2013 to May 2015 to deal firearms without a license, to shipping guns to Lebanon without written notice of what the shipment contained and making false statements to firearms dealers. They also admitted that money laundering was part of the scheme, which involved money going from the United States to a foreign country and money coming from a foreign country into the United States.

They also admitted they didn't have a license or authorization to export firearms and both said they voluntarily joined in the conspiracy and knew laws were being violated. Al Herz and Zeaiter, as part of the plea, will forfeit the guns, ammunition and other items associated with the conspiracy.

Assistant U.S. Attorney Richard Murphy said he couldn't comment about where the guns were being shipped or to whom, but he did say greed was likely a motive. The family was selling guns for a major profit because the violence in the Middle East has driven up prices for weapons.

Evidence at a previous hearing showed the family purchased 70 guns for about $40,000 and could sell them in Lebanon for $415,000 to $465,000.

Murphy added that more information will come out at the sentencings, which haven't been set at this time.