WASHINGTON -LRB- CNN -RRB- -- A man dubbed `` the Field Marshal '' by one advocacy group for alleged third-world arms dealing has been arrested on charges that he conspired to illegally export U.S. F-5 fighter jet engines and parts to Iran . An Iranian F-5 fighter jet lands in southern Iran during a military exercise on June 23 , 2009 . Jacques Monsieur , 56 , a Belgium native who currently lives in France , was arrested Friday in New York , officials said . An indictment also charges Dara Fotouhi , 54 , an Iranian living in France , with participating in the alleged crime . Fotouhi remains at large , official said . Monsieur pleaded not guilty at an arraignment Wednesday in Mobile , Alabama , where he is being held . He and Fotouhi are charged with conspiracy , money laundering and smuggling , as well as violations of the Arms Export Control Act and the International Emergency Economic Powers Act . According to the indictment and an affidavit filed in the case , both are experienced arms dealers who have been actively working with the Iranian government to procure military items . The F-5 Freedom Fighter , also called the Tiger , is built by Northrop and is used by the U.S. military for training . It is also sold overseas as a combat aircraft . The F-5 engine and parts are listed on the U.S. Munitions List and may not be exported from the United States without a license from the State Department , said John Morton , head of Immigration and Customs Enforcement , and they can not be exported to Iran without a license from the Treasury Department . In a 2002 report by the Center for Public Integrity , a citizen advocacy group , Monsieur was nicknamed `` the Field Marshal '' for allegedly acting as a middle-man in numerous arms deals with war-torn countries . The center 's report said Monsieur is `` believed to be among the biggest arms traffickers in Europe '' and said he `` violated a United Nations embargo by shipping arms to Bosnia and Croatia during the long , bloody conflict in those countries , with the approval , he later claimed , of both the U.S. Central Intelligence Agency and the ... French domestic intelligence service . '' Morton said his agency launched an investigation in February when Monsieur contacted an undercover federal agent and indicated he wanted to buy engines for F-5 or C-130 aircraft for export to Iran . In subsequent e-mails to the agent , Monsieur requested engines for F-5 jet fighters . Officials said the engines could be used as replacements in fighters sold to Iran by the United States before the imposition of sanctions in 1995 . In March , Monsieur met with the undercover agent in Paris and again requested engines and parts , the indictment alleges . They met again in May in London , where Monsieur introduced Fotouhi as a business associate and again discussed the export of F-5 engines to Iran , according to the indictment . During this negotiation , it says , Monsieur and Fotouhi asked the agent if he could use U.S. shipping or export authorization documents that falsely indicated the items were going to Colombia . In July , Monsieur and Fotouhi wired about $ 110,000 from a bank in the United Arab Emirates to one in Mobile , Alabama , the indictment says . `` The two believed the funds would be used for the purchase of F-5 aircraft parts , '' Morton said . Monsieur indicated he would deposit an additional $ 300,000 as a down payment for the purchase of two jet engines . `` This is part of our long-standing efforts to ensure that sensitive military equipment is not exported in violation of U.S. law and against the international interests of the United States , '' Morton said .