Maryland Think Tank Co-Director Charged for Acting as an Agent for China, Iran

Among other things, in the weeks before the 2016 U.S. presidential election, Luft and a co-conspirator (“CC-1”), who is a Chinese national and worked for a Chinese nongovernmental organization affiliated with a Chinese energy company, created a written “dialogue” between CC-1 and Individual-1, in which Luft wrote Individual-1’s responses and included information that was favorable to China.  The dialogue was then published in a Chinese newspaper online and sent to, among others, individuals in the United States, including a journalist and professors at multiple U.S. universities. 

When Luft was writing the dialogue, CC-1 told Luft that “[i]n these articles, we do not want to spill all the beans yet, just enough to let ‘people’ know he [i.e., Individual-1] is in the corridor of power to be.  Just broad stroke policy consideration that leaves plenty of room for interpretation and imagination to be filled in later.”  After the purported “conversations” were published, Luft told CC-1 that certain information, favorable to China, had been “tucked between the lines.” 

Shortly after the 2016 election, Luft and CC-1 also discussed possible roles Individual-1 might have in the incoming U.S. administration and discussed Individual-1 taking a “silent trip” to China.  Luft responded that “[w]e are debating about his role in the new admin.  There are all kinds of considerations …We should talk ftf [i.e., face-to-face] as there can be a supremely unique opportunity for China.”

Second, DOJ says, Luft conspired with others and attempted to broker illicit arms transactions with, among others, certain Chinese individuals and entities.  In his role as a broker or middleman, Luft worked to find both buyers and sellers of certain weapons and other materials, without a license to do so as required under U.S. law, in violation of the Arms Export Control Act.  Among other things, Luft worked to broker a deal for Chinese companies to sell certain weapons to Libya, including anti-tank launchers, grenade launchers, and mortar rounds (which Luft and his associates referred to in coded language as “toys”). 

Luft also worked to broker deals for certain weapons to be sold to the United Arab Emirates, including aerial bombs and rockets.  Luft further worked to broker deals for certain weapons to be sold by a Chinese company to Kenya, including unmanned aerial vehicles (“UAVs”) – and specifically “strike” UAVs, which Luft acknowledged “[t]he US doesn’t want to sell[, …] hence the opportunity.” 

Luft also discussed brokering a deal for weapons to Qatar and told CC-1 that Israel was “not a good fit” as the middleman for the deal because it had the “[s]ame problem the [] Q [i.e., Qataris] have w uncle [i.e., the United States].  Need a third party.  …  I will activate.”  In his role as a broker for illicit arms deals, Luft worked on a commission basis and traveled to meetings and received and passed on documentation needed to secure the deals.  During a voluntary interview with U.S. law enforcement in which he was asked questions about his involvement in arms trafficking, Luft made multiple false statements, including that he had not sought to engage in or profit from arms deals.

Third, Luft conspired with others and attempted to broker deals for Iranian oil – which he directed an associate to refer to as “Brazilian” oil in an effort to conceal the activity and evade sanctions – in violation of U.S. sanctions against Iran and the International Emergency Economic Powers Act.  DOJ says that in his role as a broker or middleman, Luft solicited buyers and passed on pricing and other information.  One offer letter for Iranian oil that Luft received noted that the “origin” of the oil was “Iranian / It can be presented as UAE origin without Iranian papers.”  He also assisted in setting up meetings between Iranian representatives and a Chinese energy company for the purpose of discussing oil deals. 

During a voluntary interview with U.S. law enforcement in which he was asked about his role brokering deals in Iranian oil, Luft made multiple false statements, including that he had tried to prevent oil deals with Iran and had not been present during meetings with the Chinese energy company and Iranians. 

Luft, 57, a dual U.S.-Israeli citizen who formerly resided in both Maryland and Israel and is now a fugitive, has been charged with the following offenses, which carry the maximum prison terms listed below.  DOJ notes that the statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.

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Charges Against Luft and the Maximum Prison Terms for Each

1. Conspiracy to violate the Foreign Agents Registration Act – 5 years

2. Conspiracy to violate the Arms Export Control Act – 5 years

3. Violation of the Arms Export Control Act (relating to Libya) – 20 years

4. Violation of the Arms Export Control Act (relating to the United Arab Emirates) – 20 years

5. Violation of the Arms Export Control Act (relating to Kenya) – 20 years

6. Making false statements – 5 years

7. Conspiracy to violate the International Emergency Economic Powers Act – 20 years

8. Making false statements – 5 years

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DOJ adds: “If you have any information about Luft’s whereabouts, please contact your local FBI office or the nearest American Embassy or Consulate.  Tips can be reported anonymously and can also be reported online at tips.fbi.gov.”