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Company faces charges for attempted smuggling

An Orwigsburg firm specializing in precision machinery, Hetran Inc., is being charged by the U.S. Department of Justice for allegedly attempting to smuggle machinery into Iran in violation of U.S. export regulations.

A federal indictment, unsealed Wednesday morning, stems from a June 2009 incident.Hetran Inc.'s president and chief executive officer, Helmut Oertmann, is also facing charges.According to the Justice Department, the local company was approached in June 2009 by representatives of an Iranian firm, FIMCO, concerning the purchase of a type of machine known as a "peeler."The machinery is described as a centerless bar, horizontal lathe used in the production of high grade steel such as that found in the manufacture of automobile and aircraft parts.Hetran Inc. describes the fully computerized 50,000-pound machine as a "revolutionary approach in removing defects, cracks, seams, etc. to provide an overall superior product."Due to the possible dual uses of such machinery, American companies are prohibited from shipping such items to Iran without a special license from the U.S. Department of Commerce.Peter Smith, United States Attorney for the Middle District of Pennsylvania, alleges that after the initial contact between Hetran Inc. and FIMCO representatives, it became apparent the peeler was intended for shipment to Iran.Due to the U.S. Government's export laws, and the unlikelihood of receiving a special license from the Department of Commerce, Oertmann and his co-conspirators agreed to falsify shipping documents, instead indicating the machinery was being shipped to Crescent International (a FIMCO affiliate) in Dubai in the United Arab Emirates.The peeler was shipped on June 17, 2012, according to the court documents.A federal grand jury was convened in Harrisburg in December of 2012.Through its investigation, the grand jury has handed down indictments against Hetran Inc., Oertmann, FIMCO, Crescent International, three Iranian nationals Mujahid Ali, Khosrow Kasraei and Reza Ghoreishi and Suniel Malhotra, an Indian national and overseas sales representative for Hetran Inc.Hetran Inc., which has offices around the world, was charged with conspiracy to violate export laws of the United States.Oertmann faces charges of attempting to smuggle goods from the U.S. to Iran, while the others have been charged with conspiracy to violate and attempting to violate U.S. import laws.Types of materials processed by Hetran Inc. machinery include bearing steels, carbon steels, spring steels, stainless steels, structural steels, valve steels, high-temperature alloy steels, tool and high speed alloy steels, cobalt-base steels, nickel-base steels, aluminum alloys, titanium alloys, brass, (Beryllium) copper, Hafnium, Niobium, Vanadium and Zirconium.Investigating the case were representatives of the U.S. Office of Export Enforcement of the Department of Commerce.The prosecution will be coordinated by Assistant U.S. Attorney Christy Fawcett and senior litigation counsel Gordon Zubrod, with the National Security Division of the Justice Department overseeing the case.The maximum penalties under the federal statute include 10 years in prison, followed by a supervised release, as well as fines up to $1,000,000.Hetran Inc. employees had no comment when asked about the investigation.