How 1 Recent Arrest Prevented Top Secret F-35 Documents From Falling Into Iranian Hands

The little-reported story adds to the list of challenges facing the F-35 and possibly U.S.-Iranian relations.

Jan 13, 2014 at 7:00PM

A former defense contractor was arrested on Thursday at Newark Liberty International Airport before he could board a flight with a final destination of Tehran, Iran. The engineer had attempted to ship stolen documents on the F-35 Joint Strike Fighter to Iran in November. The little-reported story adds to the list of challenges facing the F-35 and possibly U.S.-Iranian relations.

F

Source: U.S. Navy via Wikimedia Commons.

The defendant, Mozaffar Khazaee, first sparked the government's interest in November, when U.S. Customs inspected a shipment of his to Iran. The shipment was marked as containing household goods but upon inspection revealed 44 "boxes of documents consisting of sensitive technical manuals, specification sheets, and other proprietary material relating to the U.S. Air Force's F35 Joint Strike Fighter program and military jet engines."

Further investigation by the government revealed that Khazaee is a dual Iranian U.S. citizen and worked as an engineer for defense contractors as recently as August. It's unclear whom he worked for, but since he was a resident of Connecticut and had documentation on military jet engines, it's safe to assume that one of those contractors was United Technologies' (NYSE:UTX) Pratt & Whitney, which is based in Connecticut and makes engines for the F-35. Other defense contractors in the area that are working on the F-35 include Lockheed Martin (NYSE:LMT), which owns the F-35, as well as its subcontractor Northrop Grumman (NYSE:NOC).

Lockheed Martin's F-35 is the United States' newest warplane, expected to replace the F-16, F/A-18, EA-6B, F-111, A-10, AV-8B, Harrier GR.7, Sea Harrier, AMX, and Tornado. The plane has been in the news a lot recently as it is hugely expensive, estimated to be 70% over budget, and seven years behind schedule.

How bad is it? In 2001 the plane was expected to cost $82 million per plane, and that figure has now risen to $159 million. With the military expected to order 2,443 planes, that really adds up. The original total cost of the program was $233 billion, but with the additional plane costs, the price tag has ballooned to $392 billion. And that's just the cost to order the planes. The total cost to run them for the next 55 years is expected to run between $850 billion and $1.1 trillion. The enormous costs have many wondering whether the military should cut its losses and focus on drones, which are far cheaper, don't risk a pilot's life, and cost less to operate.

While drones look to be financially a sound decision, I expect the F-35 program will continue as planned, as the plane is essential for the continued modernization of the U.S. warplane fleet. Nor will this arrest slow things down. U.S. military technology and defense contractors have constantly faced the threat of having foreign governments steal secrets, and this is just another case of a spy who got caught.

It's worth noting that the shipment and arrest took place as the five members of the U.N. Security Council and Germany were working to sign an agreement with Iran to ease sanctions. It remains to be seen whether there was any direct involvement with the Iranian government. The deal with Iran was signed on Sunday and provides limited sanction relief, including the ending of import restrictions for airplane parts, which might finally get Iran to curb its nuclear production activities. Assuming that Iran does so, the sanctions end, and the nation increases its oil exports back to historical levels, there could be a big boost to the global economy as oil prices decrease. Let's hope for the best but be prepared for the worst.

The real American superweapon?
U.S. News and World Report says this "will drive the U.S. economy." And Business Insider calls it "the growth force of our time." In a special report titled "America's $2.89 Trillion Super Weapon Revealed" you'll learn specific steps you can take to capitalize on this massive growth opportunity. But act now, because this is your shot to cash in before the fat cats on Wall Street beat you to the potentially life-changing profits. Click here now for instant access to this free report.

 

 

 

 

Find Dan Dzombak on Twitter, @DanDzombak, or on his Facebook page, DanDzombak. He has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.

 


Compare Brokers