Pleadings Filed by Prosecution and Defense Attorneys Argue Lewis Dismissal Motion in US v. Khouli et al.

Lawyers for Joseph Lewis, II this past Friday filed a reply memorandum in support of their earlier motion to dismiss.  They claim that the prosecution does not have the evidence to prove Lewis guilty.  Federal prosecutors, meanwhile, demand that trial is the place where they will prove their case.

A federal grand jury in New York last year indicted Lewis and three others for their alleged roles in an Egyptian antiquities smuggling ring that involved sarcophagi and other artifacts.  All defendants are considered innocent unless proven guilty beyond a reasonable doubt in a court of law.

Lewis' pleading  lays out three separate arguments.  But the thrust of the defense counsels' memorandum is that Lewis was not deceitful about importing Egyptian cultural artifacts into the United States because he was neither involved with the importation process nor agreed to import the pieces unlawfully. "[T]here is no witness, no document, and no email that even alludes to Joseph Lewis participating in the importation process or agreeing with others that it would be handled deceitfully," the memorandum states.  The lawyers point out that Lewis "is not charged with importing contraband or of participating in a conspiracy to import contraband."

In support of the memorandum of law, defense lawyers for Lewis produced an email reportedly between Lewis and co-defendant Moussa Khouli dated April 12, 2009.  That email, in part, says the following:

"Hey Morris,

I am ready to wire the funds in the morning but because its a lot of $$$$, just to make sure that there are no misunderstandings; I want to doublecheck that you do guarantee the following:

1 - Provenance from your late father's collection, Israel 1960s; you have therefore established to the best of your knowledge, these items have not been illegally obtained from an excavation, architectural monument, public institution or private property.
2 - Clearance by US Customs (if the items are seized or detained more than 30 days upon arrival into the US you will issue a full refund)...."

The defendant's memorandum came in response to prosecutors' February 10, 2012 objection to Lewis' original motion to dismiss.  In that pleading, government lawyers reiterate that Lewis is charged with purchasing smuggled Egyptian antiquities transported into the United States, smuggling three Egyptian nesting coffins, conspiring to smuggle, and money laundering in support of smuggling.

The prosecution argues that "[i]t is 'axiomatic' that a criminal defendant 'may not challenge a facially valid indictment prior to trial for insufficient evidence,'" quoting federal case law.  Prosecutors add that "[t]he proper venue for testing the sufficiency of evidence is a trial, not a pre-trial motion based on 'defense counsel’s forecast of the ultimate trial evidence.'"  "Moreover, Lewis's characterization of the government's proof is based on a complaint against co-defendant Khouli and a series of search warrant applications, each of which explicitly states that it does not set forth all facts learned during the course of the government's investigation."

Federal prosecutors make efforts to resist presenting their case prior to going to trial.  They write:  "Accordingly, the government declines to respond to the particulars of Lewis's factual arguments, to correct misstatements of the government's legal theories, or to highlight relevant facts produced in discovery or know to Lewis that Lewis omitted from his factual recitation."

CONTACT: http://www.culturalheritagelawyer.com/

Court Denies Alshdaifat Motion to Change Venue in United States v. Khouli et al.

The US District Court for the Eastern District of New York has denied Salem Alshdaifat's request to move the trial from the Empire State to his home state of Michigan.  Alshdaifat is charged in the case of United States v. Khouli et al. with participating in an antiquities smuggling ring along with three other co-defendants.  Like any defendant, Alshdaifat is presumed innocence unless the prosecution proves its case beyond a reasonable doubt.

Alshdaifat's attorney filed a motion in November to move the court case to Detroit's federal court, citing personal and financial hardships.  The prosecution objected.  In a February 12, 2012 pleading, Assistant United States Attorney Karin Orenstein argued, among other points, that venue in New York is presumed to be proper, that having multiple trials in two separate circuit jurisdictions is unreasonably cumbersome, and that handling and presenting delicate cultural artifact evidence favors presenting the case in New York.

Judge Edward Korman's February 29, 2012 order states simply: "Argument heard.  Motion denied w/o prejudice to renew."

CONTACT: www.culturalheritagelawyer.com

Lewis Defense Lawyers File Motion to Dismiss in US v. Khouli et al.

Even before trial begins and testimony is heard, the case against Joseph Lewis, II must be dismissed because the government cannot prove its case.  That is what defense lawyers argue in a motion filed today in the US District Court, Eastern District of New York in the case of US v. Khouli et al.  The lengthy memorandum of law contends that the government lacks sufficient evidence to proceed to trial based on the information supplied in discovery materials.

Evidence in US v. Khouli et al.
Source: ICE

A federal grand jury indicted Joseph Lewis, Moussa Khouli, and two others in July 2011 alleging, in part, that Lewis illicitly bought Egyptian antiquities that were illegally imported into the United States through Dubai. The indictment also alleges that the four conspired together and with unidentified “others” in a smuggling operation.  (A defendant is presumed innocent unless the government proves guilt beyond a reasonable doubt).  The objects involved in the case include a Greco-Roman style Egyptian sarcophagus and a three-part nesting coffin set. See here for background.

Despite being accused of wrongdoing related to the import of ancient Egyptian antiquities, defense lawyers contend that Lewis was not involved with the importation process at all.  In fact, the only co-defendant Lewis had contact with at any time was Moussa Khouli, and that contact was after any object was imported into the United States, according to attorneys.  This argument is buoyed by defense lawyers' statements asserting that Lewis had neither sent nor received any emails discussing importation of cultural artifacts with Khouli.  Therefore, Lewis' lawyers argue that Lewis had no participation in the import process. 

Lewis had every reason and motive to want the import process to be legal, the defense attorneys claim.  Email exchanges between Khouli and Lewis never hinted at any illegal activity, they say.  Lewis, in fact, never had any idea that any pieces were stolen, particularly after having been informed by Khouli in writing at least seven times that the Egyptian pieces were part of Khouli’s father’s collection in Israel during the 1960’s.

Moreover, defense counsel contends that prosecutors cannot prove that the items in questions were stolen.  They highlight that there has been no assertion by Egypt that the items are in fact stolen.  And if the prosecution argues that the incomplete provenance of the artifacts should have informed Lewis that the objects may have been stolen, defense lawyers cite journal articles to show that lack of provenance is common in the antiquities market and does not demonstrate that a cultural object is in fact stolen.

 Lewis’ lawyers conclude that the lack of evidence cannot sustain a conviction, warranting a dismissal of the government's criminal case.

Contact: www.culturalheritagelawyer.com

Change of Venue Motion Filed in US v. Khouli et al. Previews Possible Defenses in Alleged Antiquities Trafficking Case

Federal courthouse in Brooklyn, NY.
Photo by Jim Henderson.  CC

The latest pleading filed by Salem Alshdaifat’s attorney in the case of US v. Khouli et al. asks for a change of venue. The defense argues that personal and financial hardships faced by Alshdaifat, a Michigan resident, urge a transfer of the case from the federal district court in New York to Detroit.

The motion provides a possible preview into some of the defenses that may be available in the case, including:

• a characterization of the charged conduct as “regulatory-based criminal charges,”
• a claim that the objects that are the subject of the multi-count indictment are neither stolen nor contraband, and
•  an argument that Alshdaifat was a middle man who did not possess criminal intent.

A federal grand jury charged Alshdaifat in May 2011 with conspiracy to smuggle, alleging that he directed Mousa Khouli to wire $20,000 to Ayman Ramadan’s UAE bank account and that Alshdaifat received an airway bill from Ramadan showing that “wooden panels” were being shipped by Ramadan’s company in the United Arab Emirates to JFK airport in New York.  Moreover, Alshdaifat is charged with money laundering conspiracy.  He is also charged with smuggling goods into the country as well as fraudulent importation and transportation of goods.  The indictment describes the goods as an Egyptian inner coffin, Egyptian funerary boats and limestone figures, and a portion of an outer lid of a nesting Egyptian coffin set.  (A grand jury indictment is a mechanism that initiates a criminal case; it is not a finding of guilt.)

Writing in support of the motion for change of venue, Alshdaifat’s attorney previews the possible defenses in the case.  The following are excerpts from the Memorandum of Law dated November 21, 2011:

• “The facts surrounding these charged criminal violations of the Customs laws arise out of the importation of rare Egyptian antiquities, including a three-piece set of sarcophagi and other funerary objects. These artifacts were allegedly shipped to the United States in several packages, variously by international air mail and by private air and sea carriers. The government does not claim that the Egyptian artifacts were stolen or were otherwise contraband when they entered the country. Instead, the government's charges rest on a theory that the alleged conspirators willfully falsely or vaguely declared these artifacts in entry documents into the United States because the importer purportedly had insufficient or incomplete documents of origin for the objects and this might have caused them to be detained at a United States port-of-entry if detected.” (emphasis in the original)

•  “Mr. Alshdaifat was neither the U.S. importer nor the foreign exporter of the subject Egyptian artifacts. Based on the government's own claims, he is alleged to have been the “finder” or middleman that put the alleged foreign source of the artifacts (defendant [Ayman] Ramadan) in contact with the U.S. importer, or interested antiquities dealer (defendant [Mousa] Khouli). Despite being charged with a role that essentially ended prior to the importation process, Mr. Alshdaifat is charged with his co-defendants for knowingly participating in making false or intentionally incomplete statements on shipping labels on various shipments of these Egyptian antiquities.  The government's claims against Mr. Alshdaifat, therefore, rely on findings that he knew and intentionally joined a conspiracy to falsely declare the Egyptian artifacts in their shipment to the United States after his role in being a broker to the transactions was already completed.” (emphasis in the original)

•  “In the Egyptian sarcophagi transactions, however, Mr. Alshdaifat only had a broker's interest and did not deal in the artifacts himself. Somehow, however, he now finds himself charged together with the principals of those transactions for allegedly violating technical Customs laws in the mailing and shipping of the merchandise, a process in which he did not participate.”

• “The government’s position in support of criminal liability on the charged air mail shipments is based largely on the claim that Mr. Alshdaifat's co-defendants put these pieces in international mail or on an airplane as air cargo without completing more formal U.S. Customs paperwork with the specific intent to avoid Customs’ detection of these shipments and break U.S. Customs' law.  No lay witnesses exist to testify as to whether a defendant's act of putting these parcels in the mail or on an airplane constituted an intentional and clandestine conspiratorial effort to get the charged, legal merchandise into the United States.” (emphasis in the original and footnote omitted)

•  “In any event, Mr. Alshdaifat is not even implicated in the government's discovery with doing anything – in New York or elsewhere – to assist in the importation of the merchandise. He is charged with putting the alleged source of the Egyptian coffins and artifacts (defendant [Ayman] Ramadan) in contact with the New York antiquities dealer who purchased them (defendant [Mousa] Khouli). The government must concede that Mr. Alshdaifat was neither the importer nor exporter of the charged shipments, and therefore had no role in the actual shipment of the merchandise, i.e., the packaging, labeling and placing of the merchandise in international mail.  As such, he never had any contacts with New York.”

•  “The government does not charge that the Egyptian coffins and funerary objects were stolen property. The objects imported, therefore, are not contraband or unlawful to possess in the United States. The government's claims in this Indictment rest instead on the precarious theory that the method in which the artifacts were shipped into the United States was intentionally fraudulent even though the goods themselves were not banned or prohibited from entry. Indeed, the government does not even claim that the method of importation was intentionally fraudulent to avoid import duties, since antiquities are excluded from any import tax.” (emphasis in the original)

The defense contends that the government’s conduct materially affected Alshdaifat’s business.  Alshdaifat writes in a Declaration to the court dated November 21, 2011 that he started dealing in ancient coins in Canada, selling them primarily over the internet and at international trade shows.  He describes himself as a specialist in ancient Judean coins who gained admission to many coin auction houses and membership associations.  Alshdaifat adds that he was the moderator of the “Judean ancient coin section for the largest numismatic worldwide web community.”  Defense counsel’s Memorandum of Law explains:

“Mr. Alshdaifat's circumstances are particularly extraordinary. These include the fact that from his initial arrest, the government stacked the deck against him, making it untenable for him to get his fair day in court. On July 13, 2011, the government arrested Mr. Alshdaifat in his Michigan home and confiscated his entire business inventory of ancient coins, thereby effectively shutting his business down.  It did so despite the fact that the criminal charges in the Indictment had nothing to do with Mr. Alshdaifat's coin business. Subsequently, the government returned his coins but not until his business suffered a crushing, and possibly, fatal blow. Mr. Alshdaifat's reputation as an honest coin dealer has been battered; more importantly, he has been removed or suspended from all of the auction houses where he sold his coins. His business is in dire shape.” (emphasis in the original)

Information supplied to the court describes the relationship between Alshdaifat and co-defendant Ayman Ramadan.  Court papers remark that “Mr. Alshdaifat has purchased ancient coins before from defendant Ramadan in the United Arab Emirates ("U.A.E.") and has sold coins to defendant Khouli in New York.  That is how he knew two of the other parties charged in this Indictment.”

CONTACT: www.culturalheritagelawyer.com

Status Conference Held in Case of US v. Khouli, Alshdaifat, Lewis

Egyptian coffin seized by ICE
in the case of US v. Khouli et al.
Photo: ICE

The US District Court for the Eastern District of New York held a status conference in the criminal matter of United States v. Khouli et al. on November 17, 2011.  The court waived all three of the defendants’ presence at the hearing.  The defendants include Mousa “Morris” Khouli, Salem Alshdaifat, and Joseph A. Lewis II.  Ayman Ramadan remains a fugitive.

By way of letter dated November 4, 2011 and written by his attorney, Khouli sought leave to attend a coin show in Baltimore, Maryland, reportedly scheduled for November 16 and 20.  The short letter explained: “As an antiquities dealer, Mr. Khouli’s livelihood depends on his ability to attend coin shows and other similar events.”  The court granted Khouli’s request and extended the ruling, waiving the appearance of the other co-defendants.

Internet records reveal that the Whitman Coin & Collectibles Baltimore Expo was held during this time.  Palmyra Heritage, the name of the business owned and operated by Khouli, was listed as occupying booth #1107 while Holyland Numismatics, the name of the business owned and operated by Alshdaifat, was listed as occupying booth #1154 at the event that took place at the Baltimore Convention Center.

Salem Alshdaifat’s attorney filed documents soon after the November 17 status hearing requesting a change of venue in an effort to curtail any hardship to Alshdaifat, who lives in Michigan.  Submitted on November 21, the pleadings reveal more information about Alshdaifat’s background and his association with co-defendant Ayman Ramadan.  The pleadings also supply a preview of Alshdaifat’s possible legal defenses.  These topics are discussed here.

The next court status conference is scheduled for January 27, 2012.

CONTACT: www.culturalheritagelawyer.com.

Khouli +3 Case Update: Search Warrant Affidavit Describes HSI Investigation

Homeland Security Investigations (HSI) petitioned for a warrant on July 12, 2011 to search Salem Alshdaifat’s home-based business and seize “antique coins and[/]or other antiquities or any other works of art or cultural antiquities of Greek, Roman, Mesopotamian, Islamic, European, Egyptian origin . . .” HSI also requested business records, correspondence, photos of merchandise, bank records, import records, and the like located at the home.

An HSI special agent applied to the United States District Court for the Eastern District of Michigan for the warrant to search the home. That is the location where it is reported that Alshdaifat runs the ancient coins business called Holyland Numismatics. The affidavit, now unsealed, reveals further details about the antiquities smuggling investigation into Alshdaifat and three other co-defendants--Mousa Khouli, Ayman Ramadan, and Joseph A. Lewis, II.

It should be noted that a search warrant affidavit is a narrative that a law enforcement official or prosecutor supplies to a judge. It is meant to demonstrate the probable cause to believe that an object or thing is at a specified location and that it is probable evidence of a crime. Information contained in a search warrant affidavit may or may not be admitted as evidence at a trial. That is why an affidavit should not be read to form a conclusion of criminal guilt. Only a jury can decide whether there has been a violation of law, basing its decision only on legally admissible evidence.

In the present case, the federal agent’s affidavit called attention to several observations and actions of interest. For instance, the search warrant petition was filed following a review of Alshdaifat’s Yahoo! email account. Also reported were Alshdaifat’s alleged sale of ancient Egyptian artifacts in 2009 and his alleged importation of ancient coins in Detroit in 2010.

Writing in the July 2011 affidavit, the HSI special agent explained that a March 29, 2010 search warrant probe of “Alshdaifat’s e-mail records . . . confirm[] that he uses e-mail to communicate with sellers, purchasers, dealers and transporters of cultural property including stolen and/or smuggled cultural property.” A January 2009 email exchange was described where Alshdaifat allegedly offered a hoard of coins “[u]ncleaned at $4.5 each.” The email continued: “[T]he hoard came from Egypt and [is] now in Dubai[.] I asked my partner to ship directly from Dubai to you. [T]his hoard came from Banha, I think we bought coins that we sold you befor[e] from Banha, it is very big Roman city. [Y]ou can wire the funds to my bank account.”

The partner referred to is Ayman Ramadan of Nafertiti Eastern Sculptures Trading in Dubai (NEST). Alshdaifat referred to NEST as his Dubai office, and that “Ramadan ships antiquities from the UAE to Alshdaifat’s customers on Alshdaifsat’s behalf,” declared the affidavit.

A second email dated February 22, 2010 from Alshdaifat reportedly said:
“[F]or a hoard from Egypt this is real[l]y a[]lot :) , you got a small group[], we usually don[‘]t see them at all in Egypt, I was told today that they found in the same spot while they are making the hole bigger another group[] around 800 coins, they are still working in the area, I hope it will[] be bigger than what I think. [N]ext week I will get those 800 tog[e]ther with the 2000 coins. [I]t is much easy to sell uncleaned, I notice[e] that they already tried to clean some, but I told them to stop[.]”

The HSI investigating agent, without supplying specific details, added that Alshdaifat’s email account allegedly showed that he “has offered customers hoards of coins taken directly from Petra, Jordan and from Kyrene, Libya.”

Perhaps most directly related to the current federal indictment, the affidavit described allegations that Alshdaifat in May 2009 “offered a New York dealer a set of ancient Egyptian funerary boats and limestone figures for $40,000.” The New York dealer found a customer interested in purchasing these antiquities . . . and resold them to the customer for a higher price. Ramadan shipped the ancient boats and limestone figures to the New York dealer via mail from the UAE.” The shipping label said “antiques.”

On December 20, 2010, Alshdaifat carried coins through the Detroit Metropolitan Airport on his way back from Amman, Jordan, according to the affidavit. Customs reportedly seized the coins because Alshdaifat presented inconsistent sets of invoices during two separate airport inspections. The first invoice presented was from NEST to Holyland Numismatics for Byzantine gold coins and Byzantine gold tremissis coins totaling $234,875. The invoice stated that they originated from Syria, according to the affidavit. Alshdaifat then reportedly offered a second set of invoices listing Byzantine gold coins and Roman-Egyptian billion tetradrachms. When Alshdaifat returned later with two mail packages of similar coins in an attempt to convince federal authorities to release the detained coins, customs officials seized these packages too because they were without entry paperwork, declared the affidavit.

Federal agents staked out Alshdaifat’s home in June 2011. After seeing a “for sale” sign posted, two HSI agents posed as potential buyers of the house and entered the home with a real estate agent. Alshdaifat was at the residence at the time. The agents reportedly observed pictures of coins on Alshdaifat’s computer and as well as books about ancient coins and artifacts.

Based on this information, federal authorities applied for a search warrant of Alshdaifat’s Michigan home. That search warrant preceded the eventual multiple count indictment against Alshdaifat and the three named co-defendants on charges related to antiquities trafficking.

Photo courtesy of ICE.

Contact information may be found at www.culturalheritagelawyer.com.

Khouli +3 Update: Salem Alshdaifat’s Coin Inventory Returned

Salem Alshdaifat’s attorney sent two letters on August 17, 2011 to complain that coins seized from his client were not properly cared for by Immigration and Customs Enforcement and to request an inspection of the items after an initial effort to examine the coins resulted in objections from federal officials. Alshdaifat’s lawyer asserted that his client possessed documentation to prove bona fide ownership of the property. The court treated the correspondence as a motion for return of property.

A federal district court in Michigan issued an order on September 6 that recognized the issue as moot. That is because the US Attorney’s Office for the Eastern District of New York and Alshdaifat’s attorney reportedly reached an agreement to return the inventory. The terms of that agreement are unknown.

Meanwhile, highlights of the letters written by Alshdaifat's legal counsel reveal the following:

• “[T]he agents took the entirety of Mr. Alshdaifat's business inventory and related documentation . . . .”

• “Mr. Aishdaifat operates an ancient coins business from his home in Orchard Lake, Michigan. He has been in the business of trading ancient coins ever since he left his home country of Jordan more than ten years ago. He has been a student of numismatics his entire life. On July 13, 2011, federal agents from Immigration and Customs Enforcement ("ICE") raided his home and seized his entire inventory of ancient coins, estimated at over 7,000 coins, and other property.”

• “ICE and CBP had decided to transfer custody to the ICE case agent in Brooklyn, New York all of the seized property from the four seizures of Mr. Alshdaifat's property that occurred in the Detroit area. These include: (1) the December 20, 2010 seizure of ancient coins at the Detroit Metro Airport; (2) the December 2010 seizure of two mail packages that were voluntarily brought by Mr. Alshdaifat to ICE offices in Detroit and [an agent]; (3) the February 2011 seizure of a Federal Express package for export to Singapore; and (4) the July 13, 2011 seizure of thousands of coins and other property from Mr. Alshdaifat's . . . home.” (For information related to most of these seizures, see the September 23, 2011 blog entry here).

• Additionally, through his attorney, Alshdaifat advised federal officials to store groups of coins “in open containers, not in closed plastic bags.” “The coins,” he said, “should also be stored in a dry environment, preferably with a dehumidifier.” He further recommended that authorities “[s]eparate the "diseased" coins from the rest. These coins can be identified by the green powdery substance on the surface of the coins. . . . The diseased coins should be handled with gloves, and when doing so agents should avoid exposure in closed areas with little air circulation.” Alshdaifat also advised that “[t]he silver and gold coins should be kept in individual coin holders” and that coins found in acid baths “needed to be washed in hot, running water and dried individually.” Finally, he requested that “[t]hose coins with soil incrustation should be separated from others with similar incrustation. Because soil taken from different places consists of various different minerals and it would be impossible to know if incrusted coins came from the same soil, those coins that are incrusted should simply be separated to avoid any chemical reaction from the interaction of different soil minerals.”


Contact information may be found at www.culturalheritagelawyer.com. DISCLAIMER: The information provided on this web site/email/blog/feed/podcast is general information only, not legal advice, and not guaranteed to be current, correct, or complete. No attorney-client relationship is formed, and no express or implied warranty is given. Links or references to outside sources are not endorsements. This site may be considered attorney advertising by some jurisdictions. The attorney is licensed in NH. The attorney is not certified by the TX Board of Legal Specialization, nor certified by NY regulators as a so-called "specialist" or "expert." Do not send confidential communications through this web site or email.

Ayman Ramadan and Nafertiti Eastern Sculptures Trading

Readers will recall that the US Justice Department issued a press release in July 2011 announcing the unsealing of a multiple count indictment charging four men charged with antiquities smuggling and money laundering. Ayman Mohammad Ramadan was one of the men indicted. (Note: an indictment is not a finding of guilt.) He is currently a fugitive.

The US Attorney’s Office, Eastern District of New York, summarized the alleged facts of the case in this way: “[F]rom October 2008 through November 2009, [Joseph] Lewis [of Virginia] purchased a Greco-Roman style Egyptian sarcophagus, a nesting set of three Egyptian sarcophagi, a set of Egyptian funerary boats and Egyptian limestone figures from [Moussa “Morris” Khouli, who earlier acquired those items from [antiquities dealer Salem] Alshdaifat and [antiquities dealer Ayman] Ramadan. Each of these antiquities was exported from Dubai, United Arab Emirates, and smuggled into the United States using a variety of illegal methods intended to avoid detection and scrutiny by U.S. Customs & Border Protection (“Customs”).”

Ayman Ramadan is described by US Customs in a July 2011 press release as “a Jordanian antiquities dealer and operator of Nafertiti Eastern Sculptures Trading . . . . Ramadan was shipping goods to Windsor Antiques, a New York City gallery that showcased antiquities from around the world."

There is information to suggest that Ayman Ramadan may go by the name of Ayman Libzo. A Facebook profile bearing the name Ayman Libzo describes this named individual as the owner and president of Nafertiti Sculptures Trading L.L.C. It also lists Dubai as the place where this individual lives.

Paul Barford, in his blog on Portable Antiquity Collecting and Heritage Issues, referenced Nafertiti Sculptures Trading in a 2010 entry. Commenting on a sale of artifacts by Salem Alshdaifat, Barford posted the following on September 4, 2010 to show what was reportedly advertised online by Alshdaifat, an apparent business associate of Ramadan and a co-defendant. The information suggests a business connection with Ayman Ramadan’s company, Nafertiti Eastern Sculptures Trading.

"10 Ancient Egyptian Blue Faience Ushabti C.600 BC. Size around 3 inches high .(7 - 8cm long) Rare items in great looking blue Faience (paist clay and glazed) Mummyform ushabti (servant for the next life) . perfect condition for the type, a real rare chance to get them in this condetion, Guaranteed Authenticity. this lot will be shipped from our office in Dubai Nefertiti Eastern Sculptures Trading Co P.O Box: 111301 Bar Dubai, Dubai. United Arab Emirates. Price US$ 1,300.00" (Errors in the original.)

A recent search on the government of Dubai’s web site reveals no current trade names or active trade licenses for Nafertiti Eastern Sculptures Trading or any variation of that name. There are also no companies listed that are associated with the names Ayman Ramadan or Ayman Libzo.

(As a side note, it is of interest that the government of Dubai maintains a relevant trade name category called “Authentic Antiques, Artefacts & Artworks Trading," classified by Activity Code 513969. Many art and antiques dealers, however, seem to place themselves in the “Novelties Trading” or “Gifts Trading” company category as a matter of course.)

There is also no listing in the UAE yellow pages or the Dubai commercial directory for Ayman Ramadan, Ayman Libzo, or any reasonable variation in spelling of Nafertiti Eastern Sculptures Trading.

There is information on a web page, nevertheless, that an “Ayman Libzo for Ancient Antiquity” existed. What remains of the now inactive and sparsely archived web page, copyrighted 2008, is a ‘browse catalog” link, a generic Dubai business location, and a Dubai-based cell phone number. The catalog link is inaccessible. The other information listed on the web page states that the company is part of the Trocadero network, which is a fine arts and antiques online selling platform. The Ayman Libzo for Ancient Antiquity web site once bore the web address of www.trocadero.com/aylibzo/, as suggested by archived internet records.

There apparently was also an online store bearing the name “Ayman Libzo for Ancient Antiquity” at one time. It was likely located on eBay.es, the Spanish eBay. That page does not exist today and is not archived. It was referenced, however, in an eBay “arqueologia y falsificaciones” (archaeology and forgery) discussion group during a 2008 conversation about Egyptian artifacts.

US Immigration and Customs Enforcement asks that anyone with information on the whereabouts of Ayman Ramadan contact the Tip Line at 866-DHS-2-ICE.



Contact information may be found at http://www.blogger.com/www.culturalheritagelawyer.com. DISCLAIMER: The information provided on this web site/email/blog/feed/podcast is general information only, not legal advice, and not guaranteed to be current, correct, or complete. No attorney-client relationship is formed, and no express or implied warranty is given. Links or references to outside sources are not endorsements. This site may be considered attorney advertising by some jurisdictions. The attorney is licensed in NH. The attorney is not certified by the TX Board of Legal Specialization, nor certified by NY regulators as a so-called "specialist" or "expert." Do not send confidential communications through this web site or email.

Prosecutors Reveal Further Details in Khouli Case: Allege One Half Million Dollars Paid Abroad, Smuggled Antiquities Found in Garage, Ancient Artifacts Labeled 19th Century "English Glass Bottles"

The US Attorney’s Office, Eastern District of New York, brought an in rem action (Latin for “against the thing”) on June 14, 2011 to forfeit cultural property seized from Mousa “Morris” Khouli, an antiquities dealer who operated Windsor Antiques in New York. The objects sought to be forfeited are three Egyptian wood nesting coffins, two wooden horses, wood furniture, $80,488.99 in cash, thirty-seven Luristani bronzes, eighteen Iraqi glass vessels, twenty-one clay relief plaques, and sixty-five stone flat faces.

A grand jury in May indicted Khouli and three co-defendants on criminal charges stemming from their involvement in an alleged antiquities smuggling ring. Now the government’s civil complaint is unsealed, providing further details about the case.

A summary and timeline containing the latest information has been created below. All quotations come from the government’s thirty-seven page in rem complaint dated June 24, 2011. Moreover, the government’s assertions must be proven in court by prosecutors; they remain allegations at this stage of the proceedings.

Authorities say that Windsor Antiques listed many imported cultural objects to have originated from the United Arab Emirates. Federal prosecutors allege illegal entry of these goods by means of false statements and smuggling.The US Attorney’s Office charges that “[u]pon information and belief, Windsor [Antiques] has sold stolen Iraqi cultural property in violation of Iraqi patrimony laws and has imported Egyptian antiquities and other antiquities in violation of 18 U.S.C. §§ 542 and 545.”

“All the [cultural objects] were imported, sold, purchased, and/or are proceeds of an extensive scheme by Khouli, and others, to smuggle cultural property and launder money, by and through their respective entities, Windsor, and other entities.”

“Although Khouli and Windsor have been on notice [since 2003] of the need to accurately declare country of origin, Customs entry records for the past five years reveal that 75% of Windsor’s declared cultural property listed the United Arab Emirates (‘UAE’) as the country of origin.” “[F]ifteen out of twenty cultural property importations . . . by Windsor listed the UAE as the country of origin. Given Khouli’s February 10, 2009 representation [to authorities] that none of his merchandise originated in the UAE, all of these declarations were false and contrary to Title 18, United States Code, Section 542 and 545.”

(It should be noted that there is no mention by the government of Khouli’s spin-off company known as Palmyra Heratige (sic). As reported in this blog on July 18, 2011, Khouli’s sole-proprietorship, known as Windsor Antiques, Inc., was created on September 28, 1995 and dissolved on December 27, 2010, roughly one year after the government moved to dismiss initial criminal charges against Khouli. Palmyra Heratige (sic), Inc., Khouli’s newly formed company, emerged on May 28, 2010, about three and a half months after federal authorities searched Khouli and his business. That February 12, 2010 search, described below, netted several ancient Iraqi artifacts.)

On May 23, 2003 federal authorities seized four FedEx packages originating from the United Kingdom. Waybills described the export country and country of origin as English even though the majority of the objects were ancient Iraqi.“For example, two of the FedEx waybills included “English glass bottles circa 1860 A.D.” in their respective list of contents. However, experts in archeology and Iraqi antiquities determined that the glass bottles in these shipments were . . . dated from the third century B.C. to 8 century A.D.”

“Upon information and belief, Windsor/Khouli abandoned its claims to these glass bottles after they were seized by Customs/ICE, and they have since been repatriated to the Iraqi authorities.”

Between 2003-2005, Windsor Antiques offered an unusually high number of Luristani bronzes for sale, suggesting illegal excavation of the antiquities.“While a small percentage of an area’s artifacts can be expected to move to other regions during antiquity, the volume of Luristani bronzes offered for sale by Windsor—over 300 between 2003 and 2005—is consistent with illegal excavation from Iran and Iraq, rather than sporadic findings in other locations due to ancient movement. Indeed, Luristani bronzes are known to have been the subject of significant looting from excavations in the Luristan region.”

In October 2006, federal officials seized Luristani artifacts that were marked as originating from the United Arab Emirates.“Emirates Post, an international mail carrier, shipped to Windsor, using an informal entry, 19 copper daggers. The label on the package being shipped to Windsor described its contents as 19 copper daggers and handles valued at $350 whose country of origin was the UAE. Customs officers examined the contents and took photographs of the daggers. The photographs were identified by an expert on Iraqi antiquities as ‘Luristani bronzes’ originating from Luristan, a province in western Iran, with some pieces found in eastern Iraq near the Iraqi-Iranian boarder.”

Between January 2008 and February 2008, stone faces were smuggled out of the United Arab Emirates and into to the United States. They were described as made in India, originating in Yemen, being south Arabian, or as “other antiques.”“Correspondence between Khouli and the UAE between approximately January and February 2008, demonstrate that Khouli attempted to arrange and/or arranged for as many as 89 Stone Flat Face Antiquities to be smuggled out of the UAE and imported into the United States with false or fraudulent customs declarations, invoices, and countries of origin.”

“For example, as a result of these correspondences, a shipping invoice from an entity ‘Palace Arts’, in Dubai, UAE to Windsor in New York, dated January 29, 2008, was created and indicated ‘89 Decorative Stone Carved Heads;’ ‘Origan [sic] made in India;’ and with a unit price of $75 U.S. dollars, for a total price of $6,675 in U.S. currency.”

“Another shipping invoice, apparently from the same UAE entity to Windsor, New York, for this same shipment and also dated January 29, 2008, was also created and indicated ‘89 Decorative Stone Carved Heads;’ ‘All antque [sic] and over one hundred years old;’ ‘Country of Origan [sic] Yemen;’ and with a unit price of $140 U.S. dollars, for a total price of $12,460 in U.S. currency.”

“On February 6, 2008, upon entry into the United States to John F. Kennedy Airport via Emirates Sky Cargo, from the UAE, this shipment was declared to Customs as 465 kilograms of ‘other antiques over 100 Years Old.’”

“Upon information and belief, within a couple days after smuggling these Stone Flat Face Antiquities from the UAE into the United States with multiple invoices, containing different countries of origin and with different values, Khouli attempted to sell at least one of these items for approximately $700 describing it as ‘Limestone Yemen head’ circa 200 A.D.”

“Further, upon information and belief, on or about September 2008, Khouli sold one of these items for approximately $2,000 describing it as a ‘South Arabian limestone steale’ circa 1-2nd Century A.D.”

From December 2007 through May 2008 over one half million dollars was paid out by Khouli or his shop, contrasted with slightly more than $32,000 claimed by Windsor Antiques for all US imports taken in.“[A]n analysis of the WINDSOR ACCOUNT for the six month period of December 2007 through May 2008 indicates that Khouli/Windsor sent via wire transfer or otherwise, a minimum of approximately $527,620 in U.S. currency abroad, including to the UAE. Yet for the same six month period, U.S. Customs databases and invoices of declared imports by Windsor into the United States indicate that Windsor claimed imports valued worth only $32,360. This discrepancy suggests that Windsor has purchased significantly more cultural property using the WINDSOR ACCOUNT than it has declared on its imports into the United States.”

Immigration and Customs Enforcement (ICE) conducted searches on September 8, 2009 that yielded seized cultural property and money. Khouli was placed under arrest.“On September 8, 2009, pursuant to a consent search of Khouli’s residence . . . various antiquities and items of cultural property, including but not limited to, the INNER EGYPTIAN WOOD SARCOPHAGUS . . . and 61 of the 65 STONE FLAT FACE ANTIQUITIES . . . were seized by ICE.”

The inner Egyptian wood coffin was “consensually seized from Khouli’s garage.”

“On September 8, 2009, pursuant to a court authorized search warrant issued by the United States District Court for the Southern District of New York for Windsor, various antiquities and items of cultural property, including but not limited to, 3 of the 65 STONE FLAT FACE ANTIQUITIES . . . the 37 LURISTANI BRONZES . . . seized by agents of the Department of Homeland Security, United States Immigration and Customs Enforcement (‘ICE’).”

“Approximately Sixty-Five (65) of these smuggled Stone Flat Face Antiquities, have been located and seized by ICE: 61 were found in Khouli’s garage during the consent search on September 8, 2009; one was found, mounted on a stand, and seized at Windsor during the consent search on September 8, 2009 . . . .”

“In addition to Khouli’s history of importing from UAE and selling in the United States an unusually large volume of ‘Luristani’ bronzes . . . on September 8, 2009, during the execution of the search and seizure warrant at Windsor, agents found and seized approximately 37 additional ‘Luristani’ bronzes pieces which Khouli/Windsor had available for sale.”

“Upon information and belief, no certificates of origin or documentation exist to substantiate how the[se objects] entered the United States or their country of origin.”

“In addition, on or about September 8, 2009, pursuant to a court authorized seizure warrant issued by the United States District Court for the Eastern District of New York, all funds in the WINDSOR ACCOUNT . . . were seized by ICE. At the time of seizure, the WINDSOR ACCOUNT contained approximately $80,489.00 in U.S. currency.”

Between September 8, 2009 and November 4, 2009, Khouli arranged to deliver and sell illicit antiquities.“…Khouli sent and received numerous communications in order to arrange for: (a) portions of the smuggled Egyptian sarcophagus set and other Egyptian antiquities to be delivered into the United States; (b) monies to be sent from the WINDSOR ACCOUNT . . . to accounts outside the United States in order to pay for the smuggled Egyptian sarcophagus set and other Egyptian antiquities to be delivered into the United States; (c) invoices to be created in order to sell and/or attempt to sell the smuggled Egyptian sarcophagus set and other Egyptian antiquities with false or improper provenance documentation; and (d) monies to be sent to bank accounts owned and/or controlled by Khouli/Windsor that were located in and outside the United States, including but not limited to the WINDSOR ACCOUNT, for the anticipated sale or attempt to sell the smuggled Egyptian sarcophagus set and other Egyptian antiquities.”

Between October 2008 and November 2009, Khouli’s communications displayed efforts to engage in illegal antiquities trafficking.“Communications between Khouli and others between at least October 2008 and November 2009, further demonstrate that Khouli arranged for and/or caused to be wire transferred over $5,000 in U.S. currency from or through the WINDSOR ACCOUNT, to a place outside the United States in order to pay for portions of the smuggled Egyptian sarcophagus set and other Egyptian antiquities.”

“Similarly, communications between Khouli and others between at least October 2008 and November 2009, further demonstrate that Khouli arranged for and/or caused to be wire transferred tens of thousands of dollars in U.S. currency into or thorough the WINDSOR ACCOUNT, as well as other accounts held by Windsor/Khouli located outside the United States, in order to buy, smuggle, sell or attempt to sell portions of the smuggled Egyptian sarcophagus set and other Egyptian antiquities with false or improper provenance documentation.”

On November 4, 2009, federal authorities seized Egyptian cultural objects in New Jersey that were bound for Khouli/Windsor Antiques.“On or about November 4, 2009, pursuant to a border search at the Port of Newark, New Jersey, the INNER EGYPTIAN WOOD SARCOPHAGUS AND OUTER SARCOPHAGUS LID . . . and the 2 WOOD HORSES AND MULTIPLE PIECES OF WOOD FURNITURE . . . were found in a shipment from the UAE to Windsor/Khouli. This shipment was detained and seized by Customs/ICE.”

“Furthermore, the import documents accompanying the shipment from UAE to Khouli/Windsor that arrived in the Port of Newark, New Jersey before November 4, 2009, included an invoice, packing list, and ‘Certificate of Origin,’ indicating that it: (a) came from “Amal Star Antiques” in Dubai, UAE; (b) was shipped to Windsor, New York, New York; (c) contained fifteen pieces of “artistic hand made furniture”; (d) all pieces were ‘wooden’; (e) the country of origin was ‘India;’ and (f) the total value of the shipment was $13,700 in U.S. dollars.”

“Amidst this shipment, [the EGYPTIAN WOOD INNER SARCOPHAGUS AND OUTER SARCOPHAGUS LID were] . . . undeclared and/or falsely declared and found tightly wrapped in heavy bubble wrapping, in contrast to the other pieces of the shipment, [specifically the horses].”

On December 16, 2009 the government filed a motion to dismiss the criminal charge against Khouli.

On February 12, 2010, federal agents seized several illicit Iraqi items from Khouli.“On February 12, 2010, pursuant to a second court authorized search warrant of Windsor issued by the Southern District of New York, various antiquities and pieces of cultural property including, the 18 PIECES OF IRAQI GLASS . . . ; and the 21 IRAQI CLAY PLAQUES . . . ; and 1 of the 65 STONE FLAT FACE ANTIQUITIES . . . seized by ICE.”

“… [A]nd three more, [Stone Flat Face Antiquities ] also mounted on stands, were found at Windsor during execution of the February 12, 2010 search warrant.” (Author’s note: Other paragraphs of the government’s complaint, like the one above, appear to indicate that only one stone face was seized on this date.)

“A review by an expert in ancient history and Mediterranean archeology of the 21 clay relief plaques seized from Windsor on or about February 12, 2010, indicated that they appear to be ancient and are of a type produced in central and southern Iraq (Babylonia) from around 2000-1600 B.C.”

“Upon information and belief, no certificates of origin nor any other documentation exists to substantiate how [the 21 clay relief plaques] entered the United States or their country of origin.”

On May 4, 2011 a federal grand jury handed up an indictment against the Khouli + 3 defendants, and on June 14, 2011 the government filed an in rem action to forfeit the antiquities and money seized from Khouli.

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Seized Cultural Property Identified in Khouli + 3 Case

A specific description of objects and papers in the possession of federal authorities is now available in the criminal case involving Mousa "Morris" Khouli, Joseph A. Lewis II, Salem Alshdaifat, and Ayman Ramadan. They are charged with participating in an alleged antiquities smuggling ring. (See this blog's July 16, 2011 post for background.)

Included are objects from ancient Egypt, Iraq, and Iran. Some of the descriptions are reprinted below, quoted from August 11, 2011 discovery letters issued by the United States Attorney, Eastern District of New York:

• set of three nesting Egyptian wood sarcophagi, bearing the name “Shesepamutayesher” and the title “Lady of the House,” circa 664-111 B.C., including: (a) one Egyptian wood inner sarcophagus seized on or about September 8, 2009 from defendant Khouli’s residence in Brooklyn, New York; (b) one Egyptian wood inner sarcophagus seized on or about November 4, 2009 at the Port of Newark, New Jersey; and (c) one Egyptian wood outer sarcophagus lid seized on or about November 4, 2009 at the Port of Newark, New Jersey;

• one Greco-Roman style Egyptian sarcophagus seized on or about July 13, 2011 from defendant Lewis’s residence in Chesterfield, Virginia;

• one set of Egyptian funerary boats seized on or about July 13, 2011 from defendant Lewis’s residence in Chesterfield, Virginia; and

• one set of limestone figures seized on or about July 13, 2011 from defendant Lewis’s residence in Chesterfield, Virginia.

• [T]wo wood horses and multiple pieces of wood furniture seized on or about November 4, 2009 at the Port of Newark, NJ;

• approximately thirty-seven (37) “Luristani bronze” objects seized on September 8, 2009;

• approximately eighteen (18) Iraqi glass vessels seized on February 12, 2010;

• approximately twenty-one (21) Iraqi clay relief plaques seized on February 12, 2010; and

• approximately sixty-five (65) stone flat face antiquities seized on September 8, 2009 and February 12, 2010.

• Photographs of a shipment of Luristani bronzes en route to Khouli in October 2006 (KHOULI 2094-2099);

• Trocadero.com printouts for the Windsor Antiquities storefront and sale of a terre-crue head (KHOULI 2100-03);

• Photographs of terre-crue head after excavation at Isin excavation site in May 2003 (KHOULI 2104-07).

Photos: US Immigration and Customs Enforcement

Salem Alshdaifat and his company, Holyland Numismatics

Holyland Numismatics is owned and operated by Salem Alshdaifat, the recently indicted co-defendant charged by a federal grand jury in New York with crimes associated with antiquities smuggling.  Court records indicate that he is a Canadian and Jordanian citizen who holds a US green card.  An indictment is not a finding of guilt.

Alshdaifat’s cached Facebook page indicates that Alshdaifat is the founder and president of the company since 2006. But Holyland Numismatic’s company web site states that the company was “[f]ounded in 2004 in Ontario, Canada, and moved in Michigan 2009, USA.”

Holyland Numismatics is apparently a sole proprietorship run out of Alshdaifat’s residence in Orchard Lake, Michigan. That community, near Detroit, is less than an hour from the Canadian border and less than 5 hours from Toronto.

Oakland County, Michigan records show that Holyland Numismatics registered its assumed business name on July 22, 2009, but discontinued that registration on December 15, 2009. The business owner was listed as Alshdaifat’s spouse, not Alshdaifat himself. But new registration papers filed on December 15, 2009 show Salem Alshdaifat to be the owner of Holyland Numismatics.

Holyland Numismatics’s web site lists a location in West Bloomfield, MI as its mailing address. That address is a Goin’ Postal mailbox store according to an internet search. The business location given by county records is an Orchard Lake, Michigan address, which is Alshdaifat’s residence. This business location is not displayed on the company's web site. Public property records for the Orchard Lake address reveal that it is a home owned in the name of Alshdaifat’s wife. The property appears to have been placed for sale as of June 2, 2011, but criminal court orders require the removal of this property from the real estate market since the house serves as collateral for Alshdaifat’s bail.

Holyland Numismatics’ web site remains active, suggesting that the company is operational. Since Alshdaifat is confined to his home under the terms of his bail and since his home appears to be his place of business, one reasonably can conclude that the business will continue to function as the criminal case against Alshdaifat moves forward.

Bail Set, Lawyers File Appearances in Khouli Antiquities Smuggling Case

A multiple count felony indictment against Moussa "Morris" Khouli, Joseph A. Lewis II, Salem Alshdaifat, and Ayman Ramadan charges the defendants with antiquities smuggling crimes. Three defendants are now actively engaged in their cases that are before the federal court of the Eastern District of New York. Ramadan remains at large.

Khouli has been released on a $250,000 bond. Lewis has been released on a $250,000 personal recognizance bond. Meanwhile, the prosecution and the defense agreed to place Alshdaifat on a $500,000 bond along with conditions that include house arrest, electronic monitoring, and a waiver of extradition from Canada.

Lawyers for the three defendants have filed appearances, including attorney Gerald Shargel for Khouli, the firm of Mintz Levin for Lewis, and attorney Henry Mazurek for Alshdaifat. Khouli’s earlier attorneys have withdrawn from the case. Meanwhile, the United States is represented by Karin Orenstein and Claire Kedeshian.

A June 23 press release shows that this is the second major case Orenstein has been assigned recently. She also serves as the prosecutor in a ten person Oxycodone distribution case.

A Closer Look at the Case Against Mousa “Morris” Khouli and the Greco-Roman Coffin

A multiple count indictment publicly released last week implicates Mousa “Morris” Khouli and three others (Joseph A. Lewis, II, Salem Alshdaifat, and Ayman Ramadan) in an antiquities smuggling ring. Khouli is charged with conspiracy to smuggle, conspiracy to commit money laundering, smuggling as well as fraudulent importation and transportation (5 counts), and making false statements (2 counts).  Keep in mind that an indictment is simply a process that brings a person before the court. The government must prove its case beyond a reasonable doubt before a person may be found guilty.

Those familiar with the case know by now that Khouli is a New York based antiquities and ancient coin dealer. Because he faces more charges than the other named co-conspirators—-nine criminal counts—-and because federal prosecutors looked to Khouli to provide information two years ago, his case bears some examination.

The 17 page federal grand jury indictment recites that Khouli operated a business called Windsor Antiquities (sic), selling items both from his physical location in Manhattan and on the internet. He is alleged to have illegally imported antiquities and to have sold them to a collector whose home is in Virginia. From the available court documents, the specific item that appears to have begun the investigative probe in to Khouli’s activities is a Greco-Roman coffin.

The recently released indictment and Immigration and Customs Enforcement (ICE) press releases of July 14, 2011 describe that:

• Khouli sold Egyptian antiquities to Pharma Management Corp. CEO and Virginia collector Jospeh Lewis, II. The objects included the Greco-Roman coffin.

• Khouli bought the Egyptian antiquities from Michigan dealer Salem Alshdaifat of Holyland Numismatics and Dubai dealer Ayman Ramadan of Nafertiti (sic) Eastern Sculptures Trading.

• Around October 30, 2008 Khouli made a bank transfer of $10,000 into Ramadan’s bank account in Dubai. Then Ramadan had the Greco-Roman coffin shipped by air from the United Arab Emirates to JFK International Airport in New York, arriving on November 20, 2008.

• The Greco-Roman coffin was seized from Joseph Lewis’ home by federal agents on July 14, 2011.

• HSI special agents seized almost $80,000 and more than 200 smuggled antiquities from Khouli worth approximately $2.5 million. Other seizures from Khouli's store included a variety of antiquities and thousands of ancient coins valued at $1 million.

Additional unsealed court documents shed further light on the facts alleged in the indictment. Writing in a September 4, 2009 affidavit in support of Mousa Khouli’s arrest, an ICE special agent explained how, around November 2008, he discovered that a particular shipment entered JFK airport in New York. The Customs database told the agent that the shipment was described as “Wood Panels, Antiques of Age Exceeding One Hundred Years.” The database also listed the country of origin as the United Arab Emirates. The agent’s suspicions were aroused because "it is extremely unlikely that antique wood panels would originate in the UAE. The soil is almost entirely sandy . . . ,” he wrote.

Based on this information, the special agent met with Khouli on February 10, 2009. “Khouli then showed me five old, painted wood panels. I asked Khouli where the panels were from and he said they were Egyptian. When asked whether he had any merchandise originating in the UAE, Khouli responded that he sometimes imports from the UAE, but that the UAE is not the country of origin for any of his merchandise.”

Khouli signed a statement for the ICE agent that said that the wood panels did not originate from the UAE; they were imported from the UAE. The special agent noted in the affidavit that Khouli violated the law, particularly where fifteen of twenty imports over a five year period were claimed to have originated from the UAE. The ICE agent recited familiar cultural property law, specifically that the entry of cultural property in the United States in contravention of a foreign cultural patrimony law is punishable by the National Stolen Property Act, referencing United States v. Schultz. The agent also stated that lying about the country of origin on customs documents constitutes a material false statement in violation of the federal criminal code, citing United States v. An Antique Platter of Gold.

The court sealed the government’s affidavit and complaint because the case remained under investigation. Even after authorities arrested Khouli on September 8, 2009 the case remained under seal. Khouli apparently appeared for arraignment on October 22, 2009 as “John Doe” at the request of the US Attorney’s Office, according to now publicly available court documents.

The government charged Khouli in 2009 with smuggling cultural property into the United States. But federal prosecutors wanted Khouli as an informant. A previously sealed prosecution letter to the court dated October 19, 2009 explains: “Khouli has expressed an interest in cooperating proactively against others who deal in stolen cultural property . . . . These crimes are difficult to detect and prove because they are committed by falsifying importation documents and provenances. Khouli’s cooperation is therefore of great value to the government and will not only contribute to the investigation of others who smuggle and deal in stolen cultural property, but will enable the United States government to seize and repatriate stolen cultural property to the countries that own the property under applicable treaties and patrimony laws.”

The prosecution on December 16, 2009 moved to dismiss the criminal case against Khouli, perhaps for the purpose of utilizing Khouli as a cooperating witness but this information is unknown for certain. In May 2011, however, Khouli and the three co-defendants were indicted. The indictment remained under seal until last week. And on July 14, 2011, Khouli posted a $250,000 secured appearance bond.

According to the records of the New York Department of State, Division of Corporations, Khouli’s business was actually known as Windsor Antiques, Inc. Created on September 28, 1995, the public records show that the business dissolved on December 27, 2010. Khouli was listed as the CEO, with an address in New York, NY and a principal office located in Brooklyn. A new company, Palmyra Heratige (sic), Inc., emerged on May 28, 2010 according to the corporation division’s records, listing an address located at the Manhattan Arts and Antiques Center. Khouli is associated with both Windsor Antiques and Palmyra Heratige (sic), Inc.

Although the Palmyra Heratige (sic) web site is down, a Yahoo! search revealed the following cached web autobiography as of July 11, 2011 (http://www.vcoins.com/palmyraheritage/store/info.asp?page=AboutUs):

“I am Morris Khouli. I moved to New York City in 1992 with my family and opened a gallery in New York City in 1995. My father had a gallery in Damascus for 35 Years, and he learned the business from my Grandfather who was in the business as well. I am the third generation in this business. Thanks to my dad, he taught me the business and I learned to love ancient coins and antiquities ever since I was a little boy.

Many collectors and dealers know me since I do a lot of shows in New York, California, Maryland, Florida, Illinois, and the ANA show, wherever it is since 1993. You may visit my gallery in the heart of Manhattan in the beautiful Manhattan Art and Antiques Center. We are open to the public Monday through Friday 10:30 AM to 5:00 PM. Located at 1050 Second Avenue between 55 and 56 streets Gallery Number 16 New York NY 10022 Tel 212-3191077 and fax 212-3191169.

We guarantee all of our items to be authentic and if for any reason you are not happy with the item, you can return it for a full refund. Try us--you will be happy.

Thank you,
Morris Khouli”

Palmyra Heratige (sic) apparently sold various types of antiquities. The Manhattan Art and Antique Center lists a web page for Palmyra Heritage at http://www.the-maac.com/Streamline?p=viewPage.jsp&id=61&gid=123. It displays two ancient coins, an Apulian amphora, a Roman bust, and an Illyrian bronze helmet.

As the case continues through the federal court system some important questions that perhaps may be answered include:

• how the Greco-Roman coffin was originally acquired and who facilitated its acquisition and transfer;

• who packed and transported the coffin to the UAE, how was it done, and which countries did the coffin pass through;

• which foreign government authorities failed to detect the movement of the coffin and why;

• how much money was paid for the coffin and how was the money transferred;

• whether the coffin was conserved or restored and who did the work if it was;

• how the coffin got from JFK airport to Lewis’ home, who packed it, and who transported it;

• why HSI waited two years to seize the Greco-Roman coffin (which is a good decision if it served to further HSI’s investigation, of course); and

• who are the unnamed co-conspirators in this case?

Antiquities Conspirators Charged

This week federal authorities publicly released a sealed indictment charging four men with antiquities trafficking. A federal grand jury in New York alleges that an antiquities trafficking ring conspired to smuggle ancient artifacts from Egypt, engaging in money laundering and false statements in the process.

The multiple count indictment charges
• collector Joseph A. Lewis, II, president and CEO of Pharma Management Corp. in Virginia.
• Mousa Khouli of Windsor Antiquities in New York,
• Michigan coin dealer Salem Alshdaifat of Holyland Numismatics, and
• dealer Ayman Ramadan of Nefertiti Eastern Sculptures Trading from Dubai.

The indictment alleges, in part, that Lewis illicitly bought Egyptian antiquities, which were illegally imported into the United States through Dubai. The indictment also alleges that the four conspired together and with unidentified “others” in an antiquities smuggling operation.

ICE issued a July 14 press release stating that it "seized Egyptian antiquities to include but are not limited to a Greco-Roman style Egyptian sarcophagus, a unique three-part coffin set belonging to Shesepamuntayesher from the Saite period or 26th Dynasty, approximately 664-552 B.C. In addition to Egyptian antiquities, other Middle Eastern and Asian artifacts along with more than a thousand antique coins have been recovered.”

U.S customs agents executed a search warrant at Lewis' home on July 13 in Chesterfield, VA. The Richmond Times-Dispatch reports that they "recovered the Greco-Roman sarcophagus, the funerary boats and the limestone figures" there. The newspaper also reports that Lewis was convicted of illegal importation of wildlife in 1991, a charge plea bargained down from a felony to a misdemeanor. He reportedly served 30 days in home confinement, paid a $7500 fine, was placed on probation for 5 years, and was sentenced to perform community service

Ramadan remains a fugitive as of this writing.

Meanwhile, no indictments have been handed up thus far that involve the coins or Asian goods.

It should be noted that an indictment is not a finding of guilt.  A criminal defendant is presumed innocent unless the prosecution can prove its case beyond a reasonable doubt in a court of law.