Verdicts & Settlements

DOJ Pays Out $290K for Failed Prosecution of Iranian-American Defense Contractor

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Iranian-American Defense Contractor Alex Latifi will receive $290,000 from the U.S. Department of Justice for misguided prosecution in a landmark case settled this week.

Latifi, an Alabama native who was charged with violating the Arms Export Control Act in a six-count government indictment and trial in 2007, was granted the award for his legal expenses incurred during his federal prosecution.

Among the potholes of Latifi’s seven-day trial were a key government informant who was a fired company secretary convicted of stealing from Lafiti’s company, Axion, and forging his signature. She testified on the witness stand to sabotaging Axion records. The judge also excluded a top government fraud attorney from court for bizarre conduct.

“It’s a revolutionary ruling and case,” defense attorney Henry Frohsin, who represented Latifi, said in a press release (PDF). “I can’t speak for the Department of Justice, but it’s not likely that you will find any other case where the government has voluntarily agreed to make restitution. The fact is it was a misguided and unfair prosecution by the Bush administration and DOJ that never should have been waged in the first place and one the government ultimately lost.”

Prior Coverage:

ABA Journal: “The Curious Case of Alex Latifi”

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