Billion-Dollar Arms Fraud Accuses Americans, South Africans (old news)

PHILADELPHIA (AP) _ The founder of a Pennsylvania arms company accused of smuggling weapons that ended up in Iraq has reached a deal with prosecutors and is cooperating in the investigation, his attorney said. James Guerin, 61, formerly of Lancaster and now living in Naples, Fla., was charged in a federal indictment Thursday with masterminding the billion-dollar fraud and heading the scheme to ship equipment in defiance of U.S. laws and United Nations ban. Some of the equipment was sent by the South Africans to Iraq, which used it against American troops in the Gulf war, U.S. Attorney Michael Baylson said.
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