An Alabama company and its owner have been indicted on charges of illegally exporting sensitive military technology overseas, fraud involving aircraft parts, and submitting false documents to the government, Kenneth L. Wainstein, Assistant Attorney General for National Security, and Alice H. Martin, U.S. Attorney for the Northern District of Alabama.

The five-count indictment, issued in the Northern District of Alabama, charges Axion Corporation, a defense contracting firm based in Huntsville, Ala., and its owner, Alexander Nooredin Latifi, 59, a resident of Huntsville.

"Keeping sensitive U.S. military technology from falling into the wrong hands is a top priority for the Justice Department," said Assistant Attorney General Wainstein. "This indictment and other recent illegal export prosecutions should serve as a warning to companies seeking to enhance their profits at the expense of America's national security." "No defense contractor can export an item on the United States Munitions List, to another country, without first obtaining a license from the Department of State. Critical technology, such as the bifilar weight assembly, will be protected through criminal law enforcement where violations are found," said Alice H. Martin, United States Attorney Northern District of Alabama.

According to the indictment, in September 2003 and continuing thereafter, Axion Corporation and Latifi knowingly and willfully exported defense articles, specifically technical drawings of the bifilar weight assembly for the UH-60 Black Hawk helicopter, to overseas manufacturers without first obtaining a required license and authorization from the State Department. By law, U.S. companies must obtain a State Department license or authorization before exporting defense articles.

The indictment also alleges that, on or about February 19, 2004, Axion Corporation and Latifi made a fraudulent representation to the U.S. Army concerning an aircraft part in connection with a military contract. Specifically, the defendants represented to the U.S. Army that certain parts were provided by Tungsten Products of Madison, Alabama, when that company was not the supplier.

Further, on or about January 2004, Axion Corporation and Latifi knowingly submitted a false document to the government in connection with a military contract involving a tank part. Specifically, the defendants submitted "First Article Test Reports" which falsely stated that Industrial Fabrications Co., Inc., had conducted testing, when the defendants knew that the test reports were false and the testing had not taken place before a specific date.

Counts four and five of the indictment seek forfeiture of any assets and property derived from the offenses alleged in the indictment, including real property at 317 Nick Fitchard Road, NW Huntsville, Alabama, where Axion Corporation is located, as well as $659,280 and all interest and proceeds derived therefrom.

The maximum penalty for exporting defense articles without a license is ten years imprisonment, a fine of $1,000,000 or both, and a term of supervised release of three years. The maximum penalty for fraud is fifteen years imprisonment, a fine of not more than $500,000, or both, and a term of supervised release of three years. The maximum penalty for filing false documents is five years imprisonment, a fine of $250,000, or both, and a term of three years supervised release. This investigation was conducted by National Aeronautics and Space Administration (NASA) Office of Inspector General; the Defense Criminal Investigative Service (DCIS); Army Criminal Investigation Division; the U.S. Immigration and Customs Enforcement (ICE); the Federal Bureau of Investigation (FBI), and the Internal Revenue Service (IRS).

The prosecution is being handled by Assistant U.S. Attorneys David H. Estes, Angela Redmond Debro, and James D. Ingram from the U.S. Attorney's Office for the Northern District of Alabama, as well as Trial Attorney Mariclaire Rourke from the Counterespionage Section of the Justice Department's National Security Division.

Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government's burden to prove a defendant's guilt beyond a reasonable doubt at trial.

Vincent Warren, Executive Director of the Center for Constitutional Rights, criticized the plea as an "to silence criticism and keep the facts of their torture and abuse of detainees from the public." Hicks is the first Guantanamo detainee to be tried under the new Military Commissions Act. Hicks' conviction is also the first by the tribunal.

US Interior Department Inspector General Earl Devaney conducted the investigation into MacDonald's activities and documented comments by other US Interior Department officials who characterized MacDonald as favoring developers by "manipulating science" in an effort to meet her policy goals as a political appointee. US Rep. Nick Rahall (D-WV), chairman of the US House Natural Resources Committee, officially released Devaney's report and said he plans to conduct a hearing in May to address concerns "on whether politics is infiltrating decisions" by governmental officials on environmental issues.

In Friday's White House press briefing White House spokesperson Dana Perino contradicted told reporters that despite any reports to the contrary, the President has "100 percent confidence" in Gonzales.

The CRRA and Enron deal that went into effect in March 2001 called for Enron to buy power produced at CRRA's trash-to-energy plant in Hartford and pay the agency nearly $2.4 million a month for more than 11 years. Under the agreement, CRRA transferred $220 million to Enron.

Enron, once the nation's seventh-largest company, sought bankruptcy protection in December 2001 when it could no longer hide billions of dollars in debt. The collapse wiped out thousands of jobs, more than $60 billion in market value and more than $2 billion in pension plans. Several executives were convicted and sent to prison.

The company stopped paying the CRRA after filing for bankruptcy protection.

Murtha Cullina did not admit any wrongdoing, and Blumenthal's office agreed to drop its lawsuit in return for the firm's cooperation in other lawsuits involving the failed Enron deal.

Blumenthal said the state has now recouped nearly $151 million of the $220 million lost by CRRA, which serves 118 Connecticut cities and towns.

''This $16.25 million recovers for the law firm's key contribution to the Enron catastrophe — misadvising CRRA about looming financial debacle and legal disaster in the deal,'' Blumenthal said.

The state has sued numerous major banks, accounting firms, rating agencies and other financial institutions across the country over the Enron deal, claiming they contributed to the company's fraud. Some of the cases have been settled, while about 20 others remain pending in federal court.

Late last year, the state reached a $21 million settlement with Hawkins, Delafield & Wood LLP, another law firm involved in the deal.

Blumenthal said Murtha Cullina failed to recognized the deal's flaws.

Alfred E. Smith Jr., managing partner for the law firm, maintained that its advice to the CRRA was proper, given the information at the time.

''The settlement appropriately reflects our long-held position that we did nothing wrong in this matter,'' Smith said Thursday. ''We settled because, despite the strength of our legal case, any litigation is uncertain.''

Smith said that at the time of the deal, no one knew that Enron was on the verge of collapse. He said many ratings agencies and other financial institutions believed Enron was stable.

''Looking back ... I'm sure none of us would have been involved (with Enron),'' Smith said.

CRRA officials had called the Enron deal a legitimate energy transaction, but Blumenthal said it was an illegal loan.

"I can tell you that the president has confidence in him," said Deputy White House press secretary Dana Perino. President Bush "believes the attorney general can overcome the challenges that are before him," she said.

On Thursday, former Gonzales aide Kyle Sampson told a Senate hearing that rather than merely signing off on the firings, as Gonzales has repeatedly stated, Gonzales was in the middle of things from the beginning.

"I don't think the attorney general's statement that he was not involved in any discussions of U.S. attorney removals was accurate," Sampson told a Judiciary Committee inquiry into whether the dismissals were politically motivated.

"I remember discussing with him this process of asking certain U.S. attorneys to resign," Sampson said.

Sampson also told the panel that the White House had a large role in the firings, with one-time presidential counsel Harriet Miers joining Gonzales in approving them. And under questioning from Sen. Chuck Schumer, D-N.Y., Sampson said that looking back, he should not have advocated the firing of one prosecutor in particular, New Mexico's David Iglesias.

Congress began its spring break Friday, but there were intense activities taking place behind the scenes.

Michael Elston, chief of staff to Deputy Attorney General Paul McNulty, and three other Justice Department officials arrived on Capitol Hill Friday morning for what aides said would be a five-hour closed meeting with House and Senate Judiciary Committee officials.

McNulty in early February testified before Congress that seven of the U.S. attorneys were fired for performance reasons, and that one, Bud Cummins in Little Rock, Ark., was being moved out so that he could be replaced by a former aide to White House political adviser Karl Rove.

Gonzales was upset with McNulty's testimony afterwards and would have preferred that he said all eight were fired for performance reasons, according to Justice Department e-mails forwarded to the two committees. Bush has since criticized the department for not giving Congress an accurate account of the firings.

DAVID Hicks's sentence will be "substantially less" than 20 years in jail, the US military's chief prosecutor said today.

Hicks's sentencing will begin late tonight (Australian time) and both the defence and prosecution have been tight-lipped since Hicks's guilty plea on Monday about what sentence they will recommend.

Chief prosecutor Colonel Morris Davis declined to say today whether a plea deal had been reached with Hicks' defence lawyers, but he gave insight into what Hicks may receive.

John Walker Lindh, dubbed "The American Taliban", was sentenced to 20 years' jail in 2002 and for months Col Davis had used Lindh as a benchmark for Hicks' sentence.

However, Hicks's guilty plea would reduce the sentence prosecutors asked for, Col Davis said.

Asked today about Hicks' potential sentence, Col Davis said the sentence prosecutors will ask for would be much lower than Lindh's 20 years.

"I think you'll find when we get to argument we will argue for something substantially less than John Walker Lindh," Col Davis said at Guantanamo Bay military base.

Hicks's sentencing proceedings are due to begin tomorrow at 8am local time (10pm Friday AEDT).

Hicks, 31, on Monday pleaded guilty to a charge of providing material support for terrorism.