MARCH 2004 Terrorism Awareness Project A Periodic Newsletter Updating the Chicago Connection to International Terrorism The Jewish Community Relations Council of the Jewish United Fund of Metropolitan Chicago Focus on Chicago Connections Three Local Groups Lose Tax-Exempt Status Benevolence International Foundation (BIF), Holy Land Foundation (HLF) and Global Relief Foundation (GRF) - all based in the Chicago area - were the first and so far the only groups impacted by a new law (effective 11/11/03) suspending the tax-exempt status of non-profits designated as supporting terrorism. This new law both prevents contributors from deducting donations from their federal income taxes and requires the groups themselves to begin paying federal income tax. Though the three groups had their assets frozen 12/01, some withdrawals were approved for select payments (legal fees and other vendors) and new contributions remained tax deductible. Supreme Court Rejects GRF’s Appeal; Man Admits Smuggling Funds for GRF In a lawsuit that reached the U.S. Supreme Court, Global Relief Foundation (GRF) argued that the government, by freezing their assets 12/01 for alleged support of Al Qaeda and Osama bin Laden, put them out of business without proof it was funneling money to terrorists. On 11/10/03 the Supreme Court refused to hear GRF’s appeal of the Seventh Circuit Court of Appeals’ ruling against the Bridgeview, Ill. group. In another GRF-connected case, a New Jersey man, Alaa AlSaadawi, was convicted 7/03 of plotting to smuggle about $650,000 out of the country. $20, $50 and $100 bills were found by U.S. Customs agents inside boxes of crackers, baby wipes and cereal carried within his father’s suitcase. Al-Saadawi, charged with being a key GRF fundraiser, told investigators he gave $10,000 to a GRF member in a bathroom stall at O’Hare Airport because he was “scared of gangsters” in Chicago. Al-Saadawi admitted he “was recruited by the presiding officers of GRF to travel around the U.S. giving speeches and raising money on their behalf.” On 12/11/03, Al-Saadawi was given the maximum sentence: over five years. Daily Southtown Salah Subpoenaed EXCLUSIVE INTERVIEW WITH CHICAGO ATTORNEY SUING ALLEGED LOCAL HAMAS SUPPORTERS — PAGE 5 According to his attorney, Bridgeview, Ill. resident Mohammed Salah, a U.S. Specially Designated Terrorist, was subpoenaed by a federal grand jury 11/03. Salah, arrested in Israel in 1993, confessed there to being a Hamas operative. He returned to the U.S. in 1997 after being released from prison Salah and in 1998 his assets were frozen as part of an investigation into the Quranic Literacy Institute (QLI), an Oak Lawn, Ill. group that employed him. A grand jury impaneled two years ago did not issue any indictments, reportedly because of key witness Sharif Alwan’s refusal to testify against Salah. (Alwan was deported 8/03, following a two-year prison term for his non-cooperation.) That case remains open. A 1998 FBI affidavit asserts the two men organized an explosives training camp for Hamas in Wisconsin that “included mixing poisons, development of chemical weapons, and preparing remote control explosive devices.” The affidavit said Salah gave a Hamas member more than $48,000 to buy weapons for use in attacks and suggested to Hamas leader Musa Abu Marzouk, then living in the U.S., that Palestinian negotiator Sari Nusseibeh be assassinated for promoting peace with Israel. His attorney claims that Salah was close to a settlement with the U.S. on his frozen assets, but that those talks ended abruptly after 9/11. His attorney says the government is still investigating Salah. Salah, allowed a living stipend from his frozen bank account, needs special U.S. Treasury Department authorization to conduct financial transactions and is prohibited from earning income in the U.S. However, for almost a decade he taught computing at Olive Harvey College and was a substitute teacher at a Chicago Public School. After a June 2003 ABC-TV News investigation and national broadcast that revealed his illegal employment, the schools fired him for failing to reveal his Israeli conviction on his employment application. Suspected Hamas Activist Out on Bond Although granted immunity from prosecution, Abdelhallem Ashqar was charged 9/03 with criminal contempt for refusing to talk to a Chicago impaneled federal grand jury investigating Hamas. While in custody Ashqar launched a hunger strike and was force-fed at a Chicago hospital. It was the second time he waged a hunger strike: in 1998 he spent 6 months in a New York prison for refusing to talk to a grand jury investigating terrorism. Focus on Chicago Connections Washington Post Out on Bond - continued form page 1 His lawyer claimed Ashqar would end his hunger strike if released on bond. A U.S. Magistrate Judge set bond 11/3/03, backed by $874,000 in property put up by his supporters. Ashqar is now under house arrest in Virginia. Al-Marri, a Bradley University graduate student arrested in late 2001, was charged with running a credit-card scam to fund Al-Qaeda. The FBI asserts al-Marri had direct ties to Osama bin Laden, 9/11 hijacker Mohammed Atta and alleged 9/11 money man Mustafa Ahmed al-Hawawi. The “circuit” reportedly begins with the terrorists entering the U.S. in San Francisco and L.A., proceeding to Phoenix and Denver, followed by Peoria and Champaign and finally, for some, onto New York City. Prosecutors are interested in Ashqar’s ties to Mousa Abu Marzouk, head of Hamas’ political wing. His attorney Ashqar admits Ashqar knew Marzouk, but “not well” years ago when Ashqar was at Gaza University. Rafeeq Jaber, president of the Islamic Association of Palestine (IAP), a group Marzouk helped found and bankroll, posted his Oak Lawn home as security for Ashqar’s bail. Peoria’s sheriff commented that Peoria and Champaign serve as ideal hosts for terrorists: each has a university with many Middle Eastern students, enabling Al-Qaeda operatives to blend more easily into these tight-knit communities. As Al-Arian and Chicago Co-Defendants Await Trial, Al-Arian Hires New Defense Attorneys; Documents Destroyed by Court Clerks UMAA Leader Appeals to U.S. Supreme Court Sabri Samirah, president of the United Muslim Americans Association (UMAA) and former president of the Islamic Association for Palestine (IAP), appealed his immigration case to the U.S. Supreme Court 1/28/04. During a layover at Ireland’s Shannon Airport while returning from a visit to his native Jordan in 01/03, immigration officials prevented him from continuing onto the U.S. Designating him a “national security risk,” the U.S. Attorney General revoked his “advance parole” that allowed him to leave the country before his application for permanent residency was approved. A district court upheld Samirah’s appeal, arguing that he should be allowed to return to the U.S. for the sole purpose of attending his own hearing. But then the Seventh Circuit court reversed that decision, ruling that the judicial branch cannot overturn the Attorney General’s national security determination. Sami Al-Arian, the former University of South Florida professor awaiting trial for raising money for terrorists, dismissed his court appointed attorneys 7/03, and after giving up on representing himself, has hired two new defense lawyers. Al-Arian is on trial with three co-defendants, including Chicagoans Ghassan Ballut and Hatim Naji Fariz. During hearings 1/04, Al-Arian’s lawyers asked U.S. District Judge James Moody to dismiss four major counts against him, arguing that he was exercising his free speech and association rights, and drew comparisons between his case and the prosecution of U.S. Communists in the 1950s and antiapartheid activists in South Africa. Meanwhile Ballut, now on a national “do not fly” list, was stopped 1/22/04 at Midway Airport trying to board a flight to Tampa for one of his hearings. Samirah’s classification as a “national security risk” is reportedly connected to his leadership of both UMAA and IAP. The U.S. labeled Hamas a terrorist organization in 1996 and former law enforcement officials and investigative journalists have described IAP as a “front group for Hamas” pointing to, amongst other things, IAP’s publishing and disseminating the Hamas charter. IAP has numerous links to UMAA, a political action committee that endorses and contributes to political candidates in Illinois: the two groups shared office space and leadership and often co-sponsored programs and issued joint statements. In the early 1990s, Ballut and Fariz served as president of the Martyr Izzedine al-Qassam Mosque (also known as the Chicago Islamic Center), which Al-Arian helped create on West 63rd Street on Chicago’s south side. Recently, a U.S. magistrate revealed that documents approving a 1995 search of Al-Arian’s home, office, and the Islamic Committee for Palestine (ICP) think tank with which he was associated, were accidentally destroyed by court clerks. Al-Arian’s new attorney argues that this should prevent any evidence garnered from the search from being admitted at trial. Prosecutors counter that the documents were unsealed in the mid-1990s and therefore copies may exist which would make it hard for defense attorneys to exclude as evidence. Peoria Journal-Star: City Described as Part of Terrorist Circuit Associated Press Former Peoria resident Ali Saleh Kahlah al-Marri, imprisoned as an enemy combatant, was part of what the FBI describes as a nationwide seven-city “circuit” that included Peoria and Champaign, the Peoria Journal Star reported 12/28/03. Al-Arian has been accused of using a think-tank at the University of South Florida and a charity to raise funds for the Palestinian Islamic Jihad, a terrorist designated organization. al-Marri 2 News from the Nation’s Capital Dilemma Over Frozen Assets Three years after the government froze assets belonging to three Chicago-area, self-described Muslim charities — HLF, BIF, and GRF — there is debate over what to do with such assets. Bill, Awaiting Presidential Signature, Creates Unit to Block Terror Funds Salam Al-Marayati, Executive Director of the Muslim Public Affairs Council, argued that the charities and their donors should designate another charity to allocate the frozen assets. Juan Zarate, the Treasury Department’s deputy assistant secretary for terrorist financing and financial crimes, indicated a willingness to explore that option. On 12/2/03 Congress sent President Bush legislation (HR 2417) creating a new intelligence unit focused solely on combating the funding of terrorism. How much authority the Treasury Department’s proposed Office of Intelligence and Analysis will have remains unclear. Attorneys and other advocates for terror victims oppose the new proposal, urging the assets go toward current and future victims’ needs and potential legal settlements. Reflecting similar concerns in Congress, Senator Richard Shelby is planning hearings in the Senate Banking, Housing and Urban Affairs Committee. This initiative immediately preceded the Senate Finance Committee questioning the Treasury Department’s Office of Foreign Assets Control (OFAC) ability to block terrorist money, citing examples of its failing to freeze the assets of identified terrorist financiers. In the meantime, lawyers for HLF, BIF, and GRF have submitted bills for $3 million, much of which has already been paid from the frozen assets. Senators cited OFAC for sloppy record keeping, not providing required information to Congress, and reliance on mere voluntary compliance by banks to impose sanctions against suspected terrorists. Although an internal investigation recommended OFAC to ensure the banks’ compliance, the agency has not taken steps to do so. Kahane Chai Redesignated as Foreign Terrorist Organization The U.S. renewed the designation of 26 groups — including Kahane Chai — as foreign terrorist organizations. The original certification, set to expire 10/3/03, made it illegal to provide them material support, requires U.S. financial institutions to freeze their assets, and denies visas to their foreign representatives. As part of its investigation of ties between tax-exempt organizations and terrorist groups the Senate Finance Committee requested 1/16/04 the IRS forward confidential tax and financial records, including donor lists, for dozens of Muslim charities. Documents were requested for several Chicago area groups: GRF, BIF, HLF, and IAP. Under the category of “aliases,” the government also now includes websites of these groups on its list of “foreign terrorist organizations.” The request marks a rare and unusually broad use of the Finance Committee’s power to obtain private financial records held by the government, and raises the possibility that individual contributors could be subjected to Senate scrutiny. Though it is illegal to provide money or other material support to the designated websites, the State Department acknowledges it isn’t clear how this would work in practice, in part because blocking access to the websites, if only for technical reasons, may not be possible. Study Finds Terrorism Prosecutions Often Fizzle A study by Syracuse University’s Transactional Records Access Clearinghouse released 12/7/03 found that the Justice Department has sharply increased prosecution of terrorismrelated cases since 9/11, but many fizzled and few produced significant prison time. Across the Country Founder of American Muslim Council Indicted According to government records, investigators referred about 6,400 people for criminal charges involving terror in the two years after the attacks, but less than 1/3 actually were charged and only 879 were convicted. The median prison sentence was 14 days and only five people were sentenced to 20 years or more. The Justice Department says that the lack of lengthy prison terms in many cases can be explained by the effort by prosecutors to stop would-be terrorists long before they are ready to attack, often charging them with lesser offenses, such as identity theft, document fraud and immigration violations. Alamoudi, stopped 8/03 in London with $340,000 in cash, pled innocent. Asserting that, “there is a risk and danger of flight,” U.S. District Court Judge Claude Hilton ordered him held without bail. Critics seized on the study’s findings to question whether the government has been overstating both the terrorist threat and the success of its anti-terrorism efforts. 3 L.A. Times Abdurahman Alamoudi, the founder of the American Muslim Council and one of the most prominent American Muslim activists, was indicted 10/23/03 in Virginia for money laundering and illegal financial dealings with Libya. Although not indicted on any terrorist related charges, Federal prosecutors have portrayed him as a terrorist supporter. Alamoudi Across the Country Founder Indicted - continued form page 3 fundraiser for Hezbollah, operating both in Lebanon and the U.S., which he entered illegally via Mexico. A federal affidavit claims Alamoudi had financial links to AlQaeda and Hamas and suggests that he was involved in a complex web of organizations designed to raise money through charities to fund terrorism. One such organization was the Jordan-based Humanitarian Appeal International, which the FBI claims is tied to both Hamas and HLF. Kourani has been in custody since 5/3/03, and pled guilty to a separate charge of harboring an illegal immigrant. Prosecutors alleged that the house-sharing arrangement was part of a continuing scheme to smuggle illegal immigrants from Lebanon to the U.S. through Mexico. He was sentenced to 6 months in that case and was set to be released 12/31/03. A federal immigration judge also ordered him deported. Ohio Imam Indicted; Terror Links Cited Associated Press Fawaz Mohammed Damrah, Cleveland’s leading Imam, was arrested 1/13/04 for alleged naturalization fraud for failing to disclose his affiliation with Palestinian Islamic Jihad – a U.S.-designated terrorist organization –when he applied for citizenship in 1993. If convicted of aiding Hezbollah, Kourani faces a maximum penalty of 15 years imprisonment and a $250,000 fine. Detroit Terror Case Revisited A Detroit judge is reviewing the verdict in a high-profile case involving four defendants – Abdel-Ilah Elmardoudi, Karim Koubriti, Ahmed Hannan and Farouk Ali-Haimoud – found guilty 6/03 of conspiracy to provide material support for terrorism and document fraud. An emergency hearing 12/12/03, called in response to the Justice Department divulging it failed to turn over evidence that might have helped the defense, has delayed sentencing. The prosecutor was removed 1/04, the head of Detroit’s FBI’s office has been temporarily recalled to Washington, and the names of government informants in the case were leaked to the media. Damrah Damrah is an unindicted coconspirator in the terrorism case against former University of South Florida Professor Sami Al-Arian. According to an FBI affidavit, a 1991 videotape shows Damrah soliciting donations for the Islamic Committee for Palestine, which he describes as “the active arm of the Islamic Jihad movement in Palestine,’’ explaining that for “security reasons,’’ only the initials “ICP” are used. Speaking months later at what has been reported to have been a Chicago venue, Damrah now acknowledges and expresses regret for urging followers to direct “all the rifles at the first and last enemy of the Islamic nation and that is the sons of monkeys and pigs, the Jews.” U.S. District Judge Gerald Rosen, ruling the new evidence “should have been turned over,” is considering defense’s motion for a new trial. Damrah acknowledges helping HLF — whose assets were frozen 12/01 for allegedly supporting Hamas - by raising money at his mosque as recently as spring 2001. The final two defendants – Patrice Ford and Jeffrey Battle – in an alleged Portland, Ore. terrorist cell pled guilty 10/16/03, agreeing to serve 18 years for plotting to wage war against U.S. troops in Afghanistan. Four others pled guilty earlier and one remains at large. Final Two of Seven Oregon Defendants Plead Guilty Damrah pled not guilty, posted his $160,000 house as bond, and was released. His trial is delayed until March 31 while prosecutors gather classified documents. Final Member of Virginia Jihad Network Sentenced If convicted, he faces a maximum five-year prison sentence, being stripped of his citizenship, and possibly deported. Even after being praised by prosecutors for his cooperation, a judge ruled 12/17/03 federal sentencing guidelines mandated that Mohammed Aatique – the last member of a “Virginia Jihad network” – be jailed for over ten years. Damrah claims that he no longer shares the radical views he once espoused, views that only came to light post 9/11. Other members of the network received sentences ranging from 11 years to four months. A federal grand jury charged the network conspired to fight with the Pakistani-based Lashkar-eTayyaba, designated as a foreign terrorist group by the U.S. that is trying to drive India from Kashmir. According to the indictment, the men purchased weapons and ammunition and trained at local firing ranges and by playing paintball games. Detroit News Michigan Man Charged with Aiding Hezbollah A federal grand jury in Detroit indicted Mahmoud Youssef Kourani for conspiracy to provide material support to Hezbollah, a Designated Foreign Terrorist Organization. The indictment, issued under seal 11/19/03, was unsealed 1/15/04. Judge orders Hamas to pay $116 million A federal judge in Providence, R.I., ordered Hamas to pay $116 million for the deaths of an American citizen and his Israeli wife in a 1996 drive-by shooting in Israel. Family members sued under the 1991 Anti-Terrorism Act allowing relatives of American victims of overseas terrorism to seek damages in U.S. courts. Between 1997 and May 2003, Kourani allegedly conspired with his brother Haidar – Hezbollah’s Chief of Military Security — and others in providing material support to Hezbollah. Mahmoud was a member, fighter, recruiter and Kourani 4 Wildman, Harrold, Allen & Dixon, LLP EXCLUSIVE INTERVIEW WITH CHICAGO ATTORNEY SUING ALLEGED HAMAS SUPPORTERS David Boim In May 2000 the family of David Boim, a 17-year-old American student killed by Hamas in 1996, filed a suit against US organizations – including several from Chicago – accusing them of supporting Hamas. JCRC spoke recently with Stephen Landes, a lawyer with the firm Wildman, Harrold, Allen & Dixon, LLP, who represents David Boim’s parents in the lawsuit. The case is scheduled to open April 2004. supported Hamas. The defendants claim to be supporting clinics and food kitchens. In truth, these “charities” are the Hamas “da’wa,” the “call” to an overarching apparatus that supports the terrorist network. The “charities” give the terrorists day jobs. The defendants admit supporting the families of “martyrs,” in effect providing incentive and rewards for suicide terrorism. What are the relevant statutes? Beginning in 1992, Congress passed anti-terrorism laws that give United States citizens who are victims of terror anywhere in the world a civil remedy against those who commit murder or assault. Boim is the first case brought under the statutes. What is the likelihood of success? It is always difficult to predict the outcome of litigation, particularly with a statute that has never been used before. This is the first time the law has been used to sue individuals in this country who raise money that support terrorists. Ultimately a jury will decide. The evidence shows clear links between the defendants and Hamas-supported institutions that provide the structure for terrorism. We can also prove that these defendants have had long-standing relationships with Hamas activists and have long known of Hamas’ terrorist activities. Who was David Boim? What happened to him? David Boim, a U.S. citizen, was 17-years-old in May 1996 when he was killed by terrorists in the West Bank. David was at a bus stop near his Israeli Yeshiva in Beit El when a car drove past, shooting at David and his classmates standing nearby. The two killers were members of Hamas; one later carried out a suicide bombing in Jerusalem and the other was “imprisoned” by the Palestinian Authority but his whereabouts are currently uncertain. What precedents are you relying on? Who are you are you suing and why? Boim is becoming the precedent, not in just setting a legal standard, but in establishing the fact that organizations that may perform charitable functions cannot separate themselves from terrorist elements integral to the larger structure. The case has foreshadowed significant current Congressional and Department of Justice investigations. The Holy Land Foundation claims that Boim prompted the government to shut down its operations and seize its assets. IAP has publicly appealed for funds because the litigation is taking a significant toll on its activities. The general Muslim community has reportedly backed away from supporting these types of organizations for fear of being identified with terrorists. Boim has raised the level of public and government awareness of the network of terrorist support groups in the U.S. The Sept. 6, 2003 decision by the European Union to seize funds of certain Hamas-oriented charities also validates what has been argued in Boim. On behalf of Stanley and Joyce Boim, David’s parents, we are suing those who enabled the perpetrators to kill David Boim namely the organizations and individuals in the U.S. that collected funds and provided other support for Hamas in the years preceding May 1996. These groups and their leaders have held themselves out as Islamic welfare and civil rights organizations and activists. In fact they are the major Hamas fronts and supporters in the United States. The defendants include The Holy Land Foundation for Relief and Development [HLF], the nation’s largest self-described Islamic “charity;” Islamic Association for Palestine [IAP], “the largest Palestinian grass roots organization” noted for publishing and disseminating the Hamas charter, calling its members “to Jihad” and bringing suicide bombing advocates to speak at its national conventions; Mousa Abu Marzook, the admitted political head of Hamas who was deported from the United States and is now believed to be living in Syria; and, Mohammed Salah, a Chicago resident who is the former military head of Hamas and spent time in an Israeli jail for admittedly organizing and funding Hamas activities. How is this a groundbreaking case? There was great skepticism when the case was filed in May 2000. Not only is the statute untested but so too is the theory that giving support short of actually paying for the weapon that killed David Boim should result in liability. The defendants made that very argument in their failed attempt to dismiss the lawsuit. How are you following the money trail? Through discovery we have been able to demonstrate that funds raised by these organizations and individuals directly Countinued on page 6 5 EXCLUSIVE INTERVIEW WITH CHICAGO ATTORNEY SUING ALLEGED HAMAS SUPPORTERS, CONTINUED Wildman, Harrold, Allen & Dixon, LLP Our law firm, Wildman, Harrold, Allen & Dixon, LLP, responded positively without hesitation to the opportunity to represent the Boims and give this anti-terrorism statute meaning. Wildman has a tradition of taking on novel cases. We are privileged to have such worthy clients. Does this case have any particular significance/meaning to you in comparison to your other cases? David Boim’s parents, Joyce and Stanley In January 2001, Judge George Lindberg denied defendants’ motions to dismiss but allowed an immediate appeal. Briefs were filed and the case was set to be argued on Sept. 25, 2001. Then came 9/11. The Court of Appeals, realizing the importance and novelty of the issues they were being asked to decide-remember this is the first private action under the statute-asked the Department of Justice to file an amicus brief. The DOJ supported our argument that any organization that contributes to a terrorist organization with knowledge that it engages in terrorism is an aider-and-abettor of the terrorism and liable for damages. The Court of Appeals, in an opinion written by Judge Ilana Rovner, accepted the Boims’ argument in a landmark decision issued June 5, 2002. The case is subsequently making headlines across the nation and setting a precedent for other victims. How did you and your law firm get involved in this case? The impetus for the case came from our co-counsel, Nathan Lewin, a noted constitutional law expert in Washington, D.C. I have worked previously with Nat on a number of cases and while we were excited when he asked us to join in the effort, we understood that this would be a significant undertaking. The case is significant for many reasons. Beyond the fact that lawyers relish the opportunity to “make new law, “ here we have the unique opportunity to apply our professional skills as part of the national effort to fight terrorism. And, when you meet clients such as the Boims, you see first hand how terror devastates a family. The case is sobering. We sit across a table and take testimony from people who direct a national “Jihadist” movement. They are implacable enemies of Israel who openly advocate its replacement with an Islamic state. Their intentions are not limited to Israel. These organizations reflexively advocate on behalf of those charged in the U.S. as being part of international terrorism. They openly support the culture that allows Hamas to nurture suicide bombers in Israel. We face a common threat. President Bush recently said, “We have made clear the doctrine which says, if you harbor a terrorist, if you feed a terrorist, if you hide a terrorist, you’re just as guilty as the terrorist.” Boim is part of that effort. Finally, like JCRC, we monitor closely the domestic war against terrorism. We are very impressed by the substantial enforcement efforts of the Justice Department. The government - including the U.S. Attorney’s office and FBI in Chicago - has taken significant action against groups who have supported terrorism. They deserve the commendation and support of all Illinois citizens. The Chicago Connection to International Terrorism makes for an excellent program topic. If your organization, company or place of worship is interested in hosting an educational speaker event on this important local issue, contact JCRC at 312-357-4770. All the content in this newsletter comes from open, public sources, mostly major media. For full annotation, call JCRC (312) 357-4770 or see: www.juf.org/pdf/worksheet.pdf For copies of this newsletter, see: www.juf.org/pdf/newsletter3/pdf For copies of past newsletters, see: www.juf.org/pdf/newsletter.pdf www.juf.org/pdf/newsletter2/pdf The Jewish Community Relations Council is the umbrella body for 47 major Jewish organizations in the Chicago area and is the community relations arm of the Jewish Federation/Jewish United Fund of Metropolitan Chicago. Ben Gurion Way * 1 South Franklin Street • Chicago, IL 60606-4694 • 312.357.4770 Fax 312.855.2476 E-mail jcrc1@juf.org • website www.juf.org