Spaniards and Iranians busted in Madrid for illegal helicopter deal

A network of Spanish businessmen, known in the aeronautical industry as "respectable dealers," has allegedly imported transport helicopters from Israel with the purpose of reselling them to countries such as Iran and Venezuela, authorities said.

Police surprised five of the men at the Navas del Rey industrial complex near Madrid on Wednesday as they were closing a deal with three Iranian representatives. The five men, as well as the Iranians, who had arrived in Madrid on Monday, and a group of technicians and middlemen were all arrested.

The suspects have not been identified.

Police confiscated nine Bell-212 helicopters at the industrial park and in Barcelona. The choppers were to be dismantled at a Madrid warehouse for transport to Iran and Venezuela, police said in a statement.

Deputy Prime Minister Alfredo Pérez Rubalcaba called the undercover operation an "important" one, saying that it took months of investigating many angles. "Spain is at every front when it comes to fighting crime."

The US-made Bell helicopters are capable of transporting troops and military equipment. The United Nations has banned arms sales to Iran, while Spain strictly controls the sale of military equipment to Venezuela.

Police estimated the value of the sale, including parts and other materials, at 100 million euros. Authorities also confiscated documents and raided offices in Cádiz, where the transactions reportedly took place.

While the helicopters were found intact, police still don't know through which port they managed to enter Spain undetected. The dealers had gone to Israel to buy the choppers after the Israeli army decided to sell them as surplus.

"It is a legal transaction that is done quite frequently," said one police source. Spanish companies buy helicopters from other countries and, after they are refurbished, resell them to regional governments to use for transport or fire-fighting.

The police statement said that the dealers tried to hide the export sale by listing it as "legal aviation repairs."

Dubbed Operation Nam, the investigation is ongoing and police predict that there could be more arrests in the coming days. There is not one particular company that is exclusively involved but authorities believe a conglomerate that has probably conducted illegal weapons transactions in the past is behind the deal.

Investigators say that they will review the computer records and other documents found during the raid in Cádiz.

Neither Iran nor Venezuela made any immediate comments about arrests. In 2006, the United States stopped Spain from selling Venezuela 12 EADS-CASA military planes that use US technology. In its refusal to allow Spain to transfer the license, US government officials argued that "even though the government of Hugo Chávez has been democratically elected, it has suffocated democratic institutions."

All the suspects are expected to appear in court on Friday. Among the charges the Spaniards could face are failing to obtain a proper export license for military material and goods that could have military applications.