Feds Probe Possible Terror Tie to Badges

Federal officials said Wednesday that an illegal cache of about 1,000 counterfeit law enforcement badges were "some of the best we've ever seen" as they investigated whether the discovery was related to terrorism.

A spokesman for U.S. Immigration and Customs Enforcement (search) said that the seizure of the badges was a "major vulernability."

Federal agents arrested Sergio Khorosh on Monday at his Bronx home after he accepted delivery of about 100 fake U.S. Marshals Service (search) shields. The delivery was being monitored by the agents, who had first intercepted the badges last month in a shipment from Taiwan to San Francisco.

"This investigation is looking into possible terror connections. At this point, we can't say yes or no. The badges are extremely sophisticated," the spokesman said, adding that the badges represented 35 different agencies.

During a search of Khorosh's home, agents discovered about badges resembling those of the FBI (search), Drug Enforcement Administration (search) and New York Police Department (search), court papers said. Also found were six firearms, including semiautomatic pistols.

In addition to the badges, the suspect also had a number of uniforms, including those for the New York Police Department, in his apartment.

"There is no information that the badges were supplied to terorrists but we have to run down every lead, every single one," one law enforcement source told FOX News.

The suspect had four computers in his apartment, which officials said raised a number of red flags.

Authorities were investigating whether Khorosh was supplying police impersonators.

"We think this goes way beyond collectors," said Martin D. Ficke, special agent in charge for ICE's New York office.

Khorosh faces charges of illegal transport of counterfeit badges and weapons possession. He was ordered held on $50,000 bail.

FOX News' Catherine Herridge and The Associated Press contributed to this report.