The federal government will pay an Iranian-American defense contractor $290,000 to settle all claims in connection with a failed 2007 prosecution of him and his company, The Huntsville Times in Alabama reported.
The settlement ends a nearly six-year legal battle for Alex Latifi of Hunstville, Ala. It also precludes him from filing a civil claim against prosecutors, including former U.S. Attorney Alice Martin of Alabama’s Northern District, whom he alleged had improperly withheld evidence. Latifi last year filed a contempt motion against the prosecutors, which the government had asked the court to deny.
Latifi, whose company is Axion Corp., had been accused of sending classified information to China related to the design of the Blackhawk helicopter and faking testing results on government-contracted work.
But a jury acquitted him after a government witness acknowledge the helicopter design documents weren’t stamped classified, and a judge noted they could be found on the internet.
Lawyers involved in the case told the newspaper that they didn’t know of another instance in which the federal government has voluntarily paid a criminal defendant.
“It’s a revolutionary ruling and case,” Henry Frohsin, who represented Latifi, said in a statement. “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.”
Froshsin added: “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.”
Peggy Sanford, a spokeswoman for current U.S. Attorney Joyce Vance in Birmingham, told the Huntsville Times the settlement had been reached after consultation with DOJ officials in Washington.
“This was so we could devote our resources to protecting the people in this district rather than expending them on extended litigation in which we believe we would have ultimately prevailed, but the outcome is never certain,” Sanford told the newspaper.
Latifi was charged with violating the Arms Export Control Act in a six-count government indictment and trial in 2007. The award is meant to cover legal expenses incurred during his federal prosecution.
“The money itself will never make him whole, but what the money stands for speaks volumes,” defense attorney James Barger told the Alabama newspaper.
This article has been updated with additional information since it was originally published.
