U.S. space entrepreneur accused of helping Iran

This file photo released June 16, 2011, by the Iranian Defense Ministry claims to show the launching of the Safir, or Ambassador, satellite carrier from an undisclosed location.
AP Photo/Iranian Defense Ministry

WASHINGTON - Growing up in a provincial town in Iran, Nader Modanlo was fascinated by the flickering TV images of astronauts walking on the moon.

As a teenager, he came to the United States, where he earned degrees in aerospace engineering, became a U.S. citizen and co-founded a pioneering satellite telecommunications company that at one point was worth up to $500 million. He seemed on the verge of the kind of success that immigrants dream of achieving.

Today, those dreams are burning up like a spacecraft in steep re-entry.

Modanlo's company is bankrupt, his U.S. and Iranian passports have been confiscated and a federal judge has ordered him to wear an electronic monitoring bracelet while he sleeps.

A federal grand jury indicted the Potomac, Md., resident last year on charges he secretly brokered the launch from Russia of the first Iranian-owned satellite in 2005, in violation of the U.S. sanctions against Iran. If convicted on all counts, he could be sentenced to 65 years in prison and ordered to pay $10 million. Five Iranian nationals were also indicted, but none are in custody.

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Iran went on to launch its first satellite aboard an Iranian-built rocket in 2009 and its second earlier this month. Jonathan McDowell of the Harvard-Smithsonian Center for Astrophysics said the June 15 launch of the tiny Rashad-1 satellite, a 34-pound orbiter, shows the country is well on its way to mastering the multi-stage rocket technology that would be needed for long-range nuclear missiles.

McDowell called it an impressive record for a country in the early stages of its space program.

"They might have a couple of more failures in the next couple of launches," he said. "But after that, they will basically have the capability to know what they're doing."

Modanlo, 50, denies that he violated U.S. sanctions and is free on $250,000 bond. He declined through his lawyers to be interviewed, and officials from the Justice Department and U.S. Immigration and Customs Enforcement likewise declined to discuss the case. But experts, court documents and other public records describe how his ambitions might have led him into trouble. The trial is expected to begin in October 2012.

The 2005 launch from Russia of the Sina-1 satellite came one day after newly elected Iranian President Mahmoud Ahmadinejad said Israel must be "wiped off the map." To many, the launch seemed to back up this threat.

David Albright of the Institute for Science and International Security, an expert on nuclear proliferation, said Iran is focused on the military applications of space science. "One of the goals of the program, and it appears to be an ongoing program, is to develop a missile that can carry a nuclear warhead if Iran decides to build one," he said.

Iranian officials insist that they are pursuing nuclear technology strictly for peaceful purposes. But their refusal to disclose all their nuclear activities has raised international suspicions, and has led to four rounds of United Nations sanctions since 2006.

A recent International Atomic Energy Agency report said there was evidence Iranian scientists were studying ways to build nuclear warheads compact enough to be carried by a missile. Ahmadinejad recently announced Iran was expanding its uranium enrichment program, bringing the country another step closer to the capacity to build weapons.

The Justice Department said Modanlo's case is just one of more than 150 filed by prosecutors in the past four years against arms traders and middlemen suspected of helping Tehran illegally acquire U.S. technology. Defendants have been accused of using shell companies, offshore bank accounts and faked end-user certificates to supply Tehran with everything from U.S.-made component parts for missile guidance systems to the ultra-high-strength steel needed to build centrifuges that enrich uranium.

Yet Modanlo's case stands out. Unlike most of those prosecuted under the act, he isn't charged with shipping U.S. technology to Iran. Instead, he is suspected of using his business contacts and aerospace engineering experience to help launch Iran's space program.

Modanlo said he came to the U.S. from the Iranian city of Sari on the Caspian Sea coast in 1979 — the year of the Islamic revolution, according to interviews with The Washington Post and other publications in the 1990s. After earning degrees in engineering and aeronautics from George Washington University, he worked on projects for the Defense Department and NASA.

Modanlo and business partner Michael Ahan in 1992 founded Final Analysis Inc., based in offices near NASA's Goddard Space Flight Center. They planned to loft a network of up to 32 small, low-earth orbiting telecommunications satellites that were designed to provide low-cost messaging and cargo tracking services.

"It was a good idea, and he (Modanlo) was one of the early guys thinking about it," said researcher David Boyle of Texas A&M University, whose lab developed communications gear for Final Analysis.