Defense Contractor Latifi Awarded Legal Fees In Wrongful Prosecution

Alex Latifi, the Iranian-born US citizen whose Huntsville, Alabama defense contracting firm Axion Corporation was essentially destroyed because of an incompetent and possibly malicious prosecution for allegedly violating arms export rules (earlier), has been awarded government reimbursement for his legal fees, filing costs and expert witness costs. In a ruling last week in Birmingham, US District Judge Inge Johnson ordered the DOJ to pay Axion and Latifi under the Civil Asset Forfeiture Reform Act (CAFRA), a 2000 law designed “to give owners innocent of any wrongdoing the means to recover their property and make themselves whole after wrongful government seizures.” Latifi’s defense costs are estimated at $500,000. However, the firm is still closed as a result of the government’s long freeze on the firm’s assets and Latifi’s personal assets. Judge Johnson dismissed all counts against Latifi and Axion last October after seven days of trial and ordered the government to post notice of the acquittal.

The ruling is unprecedented, according to Latifi’s attorney Henry Frohsin of Baker, Donelson: “We believe Axion is the only company ever to win such a ruling in an arms export control case.” USA Alice Martin said the ruling means her office cannot make another attempt to seize assets and that it does not wish to. Russell Hubbard in the Birmingham News, Harper’s commentary by Scott Horton, Baker, Donelson press release.