New York: The British arms dealer arrested by the Federal Bureau of Investigation (FBI) in an international sting operation has been charged by federal authorities with conspiring to sell missiles to terrorists with the aim of shooting down an American airliner.

Two others – Yehuda Abraham, an American jeweller and money remitter, and Moinuddeen Ahmed Hameed, a citizen of India living in Malaysia – have been charged with helping to fund the alleged deal.

Hemant Lakhani, who was arrested while allegedly trying to sell an Igla missile to an FBI agent posing as a Muslim extremist, was formally charged with attempting to provide material support to terrorists and attempting to sell arms without license.

According to an FBI affidavit, Lakhani had allegedly promised to supply 50 more shoulder-fired missiles at a price after securing one of the weapons, which he thought was intended to shoot an airliner.

The affidavit, based on 150 conversations recorded between December 2001 and August 13, 2003, reveals that Lakhani spoke of shooting down a commercial aircraft to "shake the economy" of the US.

US attorney Christopher Christie said the accused Briton had shown sympathy for al-Qaida leader Osama bin Laden in meetings with an informant posing as the representative of a Somali militant group.

"On many occasions in recorded conversations, he referred to… Osama bin Laden as a hero, who had done something right and set the Americans straight, Christie told reporters after the hearing.

The informant told Lakhani he wanted to buy one missile initially "with a purchase of greater number of missiles to follow," the affidavit says.

At a hotel in New Jersey in 2002, the informant told Lakhani that he wanted one shoulder-fired missile to be used for "jihad" and to shoot down a plane, the affidavit said, adding the Lakhani said he would work with the informant and offered as many as 200 missiles.

In December 2002, Lakhani told the informant to get copies of a magazine discussing the failed al-Qaida plot to down a jetliner in Mombassa. Lakhani was quoted as saying that the missile used in the attack was older and that "ours is much higher quality".

Lakhani then travelled to Moscow to finalise the sale of a Russian SA-18 Igla missile.

On Hameed's role, Christie said he had been summoned by Lakhani from Malaysia to launder a $ 500,000 down payment on an additional 50 missiles that undercover agents sought from Lakhani.

Hameed's lawyer Cathy Fleming said her client maintained his innocence. "He's upset, bewildered."

Christie said Abraham handled the funds for the initial missile purchase.

Though the informant has not been identified, the 'New York Times' reported that the witness is expected to testify against Lakhani.

The 'Times' quoting officials also said that the price for the first missile was $ 8,5000 to be paid in $ 100 bills, with a $ 30,000 down payment.

Abraham, Lakhani and Hameed are being held at the Passaic County Jail.

PTI