by Terry Frieden

CNN Washington Bureau

June 15, 2001

WASHINGTON (CNN) -- Federal agents have arrested four men in connection with a scheme to smuggle U.S. Stinger missiles and other high-tech weapons to private buyers in Pakistan, government sources told CNN Friday.

The sources said it was not known if the arms were intended for operatives with links to terrorist groups -- but in a court affidavit a federal agent contends there is probable cause the men "attempted to transport explosives with the knowledge that (they) would be used to kill, injure, or destroy property" in violation of U.S. law.

Officials said two of the men in custody, Diaa Mohsen, 57, and Mohammed Rajaa Malik, 52, of Jersey City, New Jersey, were arrested in a sting operation in which an undercover agent posing as an arms dealer discussed with them the sale of Stinger and TOW anti-tank missiles, machine guns, night vision goggles, and other equipment.

The sources said the men expressed interest in purchasing 200 missiles at a cost of tens of millions of dollars.

Wall Street trader Kevin Ingram, 42, was also charged with money laundering in the case. The officials said Ingram intended to launder profits from the weapons sale.

A fourth man, Walter Kapij, 44 of Connecticut was also under arrest for allegedly chartering a flight from Florida to the Netherlands in connection with profits from the sale.

At a bail hearing in Miami Thursday, Ingram was ordered held on $250,000 bond, and bail for Kapij was set at $135,000. Bail hearings for Malik and Mohsen are set for next week.