Defense attorneys outraged as terror case switches to fraud (Michigan Mackinac Bridge case)

The Saginaw News ^ | Thursday, August 17, 2006 | JOE SNAPPER

[idsujmxzcg]

BAY CITY -- Lawyers for three Texas men once accused of plotting to blow up the Mackinac Bridge claim the government is bailing out an overzealous prosecutor by bringing unprecedented charges.

Until Wednesday, even the FBI said the business of buying and altering cell phones -- as the men claim was their only motive -- was a legal enterprise, and that the only issue was whether proceeds end up in terrorist coffers.

But now, the FBI and U.S. attorneys in Bay City say the entrepreneurial behavior of three Americans of Palestinian descent amounts to fraud, not terrorism.

<excerpted>

[idsujmxzcg]

Note that this is another case where terrorism charges have been dropped in a cellphone case. A virtually identical case was dropped in Ohio just a couple of days ago. In that case no subsequent charges were filed - they just let them go.

Now in this case the local prosecuter has made an ass out of himself and now the feds are bailing him out. Watch this fraud charge be quietly dropped too after the news cycle has moved on. Turns out that the three guys were not even Palestinian any more than I am German. Each one of them was born right here in the US.

It really frosts me that these guys are facing 20 years because the prosecutor wanted to be a big hero and blew it. The Feds should be charging the prosecutor with abuse of power.

[vbmoneyspender]

Cell-phone technology an explosive tool for insurgents

[JRandomFreeper]

Welcome to FreeRepublic.

[Michael.SF.]

Each one of them was born right here in the US

And how many of the guys involved in the recent UK plot were born in England?

[dasboot]

Things aren't always what they appear. Little fish, big fish, informants, deals, surveillance opportunities. Courage!

[operation clinton cleanup]

You are German?

[FreedomCalls]

The counterfeiting charge because they "altered" the software is ludicrous. As is the "money laundering" charge. If this is all it takes to be charged with money laundering: "They also were charged with money-laundering. Prosecutors say that they used proceeds from the cell phone transactions to buy more phones." -- then they have just criminalized all business in the United States.

[OPS4]

Arabs rule Michigan.

[mplsconservative]

How did you choose your screename?

Knew you wouldn't last here long with your terrorist apologetics?

[CindyDawg]

They are dropping the charges because they all have tracers now and are being tracked. We know where everyone of them are and we also know the phone numbers.

[calex59]

Until Wednesday, even the FBI said the business of buying and altering cell phones -- as the men claim was their only motive -- was a legal enterprise, and that the only issue was whether proceeds end up in terrorist coffers.

This is only a legal enterprise if the people involved had a business license and a resale license and were paying excise tax. Other wise it is tax evasion, both federal income and state excise tax. I don't for a minute believe people would buy trac phones without a battery charger and pay 18 bucks more than they could get them from Wal-Mart with a charger.

These people are lying and I hope they are prosecuted for whatever crimes they can get them on.

[Boiler Plate]

Where were these guys planning to sell 1000 trak cellphones?
Palestine, Iraq pehaps Lebanon?

[LiberalBassTurds]

Turns out that the three guys were not even Palestinian any more than I am German. Each one of them was born right here in the US.

You'll fit right in with the rest of the deep thinkers FR has attracted recently.

LBT
-=-=-

[mplsconservative]

They are dropping the charges because they all have tracers now and are being tracked. We know where everyone of them are and we also know the phone numbers.

I hope you'e right. I'm sick of these cell-phone apologists.

I've never had a need for a gazillion cell phones. In fact, I hate the one I have. :)

[FreedomCalls]

Aug. 15, 2006, 9:43AM

3 Dallas-area suspects known to resell phones

In Michigan, FBI says nothing indicates men have terror links

DALLAS — The three Dallas-area men arrested in Michigan on state terrorism charges are well-known to cell phone wholesale and retail shops here, where managers said Monday they are part of a brisk trade in buying phones from Wal-Mart and other discount stores and reselling them to smaller shops.

In Michigan, meanwhile, the FBI said it has no information to indicate that the three Palestinian-Americans arrested with about 1,000 cell phones in their van on Friday had any connections to terrorism.

Adham Othman, 21, his brother, Louai Othman, 23, and their cousin, Maruan Muhareb, 18, all from Mesquite, were stopped outside a Wal-Mart Store in Caro, about 80 miles north of Detroit in an agricultural region, after employees became suspicious over their purchase of 80 cell phones.

"For these guys, there is a lot of margin in these," said Sean Mobh, manager of Wireless Stop, a cell phone store on Harry Hines Boulevard in northwest Dallas. "There is a phone that they buy from Wal-Mart for 20 bucks and sell for $38."

Resale profit

Mobh said the group has come in "three or four" times in the last three months and he made one purchase of about 100 phones. They would usually sell prepaid TracFones, like the kind they were found with in Michigan, because Wal-Mart's discounts on them are so deep that they can make a nice resale profit.

"One trip and that's about $6,000 each minus gas and expenses," he said.

Mobh said the three men are among dozens of individuals in the competitive market of buying goods from Wal-Mart and other deep discounters and reselling them to other stores that mark them up and sell them retail or wholesale.

Mobh said he resells the phones in bulk in higher-priced markets such as New York or Los Angeles, or ships them abroad.

Wal-Marts in Dallas and other cities often are sold out of the most popular phones because of all the resellers about, so entrepreneurial types such as the Othman brothers and their cousin will travel long distances to find stores with inventory, several shopkeepers said.

"It looks like a case of these guys being in the wrong place at the wrong time," said Mobh.

'Weren't up to anything'

Across the street, at Wireless Way, a shop owner who did not want to be quoted by name said, "These guys are known up and down this street, all over here. I would swear to God and my children that they weren't up to anything."

He said he bought at least three shipments of phones, totaling perhaps 400, from the three men in the last several months.

Prepaid phones require no contract and are programmed with prepaid minutes, making them popular with people with no phone service and with immigrants who want to call home.

Louai Othman told a magistrate judge after his arrest, "All we did is buy the phone to sell and make money."

[dasboot]

Why were they opening them, taking out the batteries, and throwing the in seperate boxes? No way to treat merchandise!

[NormsRevenge]

CAIR
or
ACLU?

[Michael.SF.]

Note that this is another case where racketeering charges have been dropped in a bootlegging case. A virtually identical case was dropped in Chicago just a couple of days ago. In that case no subsequent charges were filed - they just let them go.

Now in this case the local prosecutor has made an ass out of himself and now the Kennedy's are bailing him out. Watch this charge be quietly dropped too after the news cycle has moved on. Turns out that Mr. Capone is not even Italian any more than I am liberal stooge posing here on FR. Al, just like Joe, was born right here in the US. It really frosts me that my good buddy Al is facing 20 years because the prosecutor wanted to be a big hero and blew it. The Feds should be charging Joe's son, Ted, with murder.

[ndt]

"Where were these guys planning to sell 1000 trak cellphones? "

Thats a question you have to answer before you charge people with a crime. If you can't show evidence of wrong doing, well exactly this happens. They will probably drop the other charges this week and try to bury this whole thing.

Overzealousness on the part of the LEOs. A little subtlety and investigation prior to arrest might have actually yielded something, or, maybe not.

[CindyDawg]

Where did you go?

[idsujmxzcg]

And how many of the guys involved in the recent UK plot were born in England?

I have no idea - but since you ask, from what I can tell none of those plotters are native born British. Those that are british citizens were naturalized.

But that's not the point. Just about every news report on the cellphone buying case labelled the men as "Palestinian-Americans", and they were even called Palestinian-Americans in articles that explicitly mentioned the fact that they were born in Texas and Puerto Rico. I suppose I should be used to sloppy journalism by the MSM by now, but it is still grating.

[vbmoneyspender]

to quote the cuckolded husband from Stalag 17 - "I believe it."

[idsujmxzcg]

They are dropping the charges because they all have tracers now and are being tracked. We know where everyone of them are and we also know the phone numbers.

Read the article. They are not dropping all the charges, just changing them. They dropped all the terrorism charges, but they are still pressing dubious fraud charges that could put these guys away for 20 years.

[idsujmxzcg]

Knew you wouldn't last here long with your terrorist apologetics?

Are you being thick? Every time an ambitious prosecutor cries wolf like this is endangers us all. It makes people numb to the real threats.

[FreedomCalls]

I don't for a minute believe people would buy trac phones without a battery charger and pay 18 bucks more than they could get them from Wal-Mart with a charger.

Look here.

[duckln]

It's seems like they have a lame excuse for buying cell phone. How many phones would you have to buy and sell phones for a profit?

Remember you need an outlet, car and gas expenses finding cell phones. If there ever was way to lose money, this has got to be it. Unless the buyers pay a premium with the intent of using phones illegally.

Being born here doesn't always wash, look at what's going on in England.

[FreedomCalls]

Why were they opening them, taking out the batteries, and throwing the in seperate boxes? No way to treat merchandise!

Then if they were using them for IEDs, the batteries would have to stay in them. Taking out the batteries is an argument for them not being used in terrorism.

[ndt]

Actually see post #15. If that is accurate they could actually make a pretty good living.

[dasboot]

Again, why were they tearing the phones out of the packaging, removing the batteries, and collecting them in separate boxes?????

That report simply does not square with the mens' purported intentions.

[dasboot]

Maybe, but what if you get an incoming wrong number during assembly?

[FreedomCalls]

Where were these guys planning to sell 1000 trak cellphones?

See my #15. Apparantly "Wireless Stop, a cell phone store on Harry Hines Boulevard in northwest Dallas" is one of the buyers who buy from them. They pay $38 each.

[Trailerpark Badass]

I have no idea - but since you ask, from what I can tell none of those plotters are native born British.

Wrong!

[FreedomCalls]

Maybe, but what if you get an incoming wrong number during assembly?

Are you even thinking this through? One would assume the phone would be off until it is prepared, then it would be turned on. They have an off/on switch.

[dasboot]

If they were employed in gathering devices for terrorist acts, they would need a good cover. If they were, they got one.

These bad guy ain't dumb.

[mplsconservative]

Are you being thick? Every time an ambitious prosecutor cries wolf like this is endangers us all. It makes people numb to the real threats.

Oh yes. The intelligent agrument. I'm being thick-skulled because some enterprising entrepreneur wants to re-sell phones for a profit, when they can be bought in bulk legitimately, and the purchase can be tracked. I think the IRS would like to hear about this little 'business' if anything. Not that I'm fond of the IRS.

[dasboot]

I'd assume an assembler would initiate 'failsafe' mode. Kinda like kickin' a stick into a woodchipper, otherwise. No?

[FreedomCalls]

Resellers rile phone companies

Dealers say it's legal to profit from prepaid cells; others call it fraud

Along Harry Hines Boulevard, three men arrested in Michigan last week weren't known as potential terrorists. To shop owners there, they were seen as ambitious young businessmen.

"They seemed like good guys, young, hard-working," said Jalal Charanya, owner of Wireless Way, which sells prepaid cellphones. "There are many guys selling these kinds of phones ... but they were probably my biggest supplier."

Louai Othman, Adham Othman and Maruan Muhareb have been cleared of terrorism allegations. However, they were charged Wednesday with fraud and money laundering in connection with their mass purchases and sales of cellphones.

They were known to sell as many as 200 cellphones at a time to Dallas businesses. Such commerce was not unusual for businessmen such as Mr. Charanya who are looking to buy cellphones for resale.

The trio is among a group of entrepreneurs who buy prepaid phones in stores and then resell them – some for use in the United States, others to be exported, stripped down, repackaged and resold for profit in places such as Hong Kong and other foreign markets.

The participants say the enterprise is legal. But federal officials in Detroit charged the Texas trio with fraud Wednesday. The officials allege that the men's practices were damaging the phone companies and misleading the consumers who eventually buy the phones.

Mr. Charanya said he does business with between 30 and 100 men in the area who buy discounted prepaid phones at places such as Wal-Mart and Target and then resell them to him for about $5 profit per device.

In turn, Mr. Charanya and other businesses unload the cellphones in bulk, either to other suppliers in Los Angeles, New York, or Miami, and occasionally overseas. He said the strongest international demand for prepaid cellphones is in Hong Kong.

There are at least a dozen businesses in Dallas and hundreds across the country that turn a profit on discounted prepaid cellphones. At each stop in the chain, from the original buyer, to the wholesaler, to the overseas merchant, the price of the cellphones increases.

So a discounted handset sold at Family Dollar in Dallas for $29.99 may eventually sell for more than $100 in Asia or the Middle East.

"All these phones are headed overseas," said Sean Mobh, manager of Wireless Wholesale Stop on Harry Hines Boulevard. "Nokia knows this is going on, Wal-Mart knows this is going on, there's no secret. Nobody says anything because everybody's making a few bucks' profit on these phones."

Many of the phones in the trio's possession were Nokia phones packaged by wireless phone company TracFone and sold by Wal-Mart Stores Inc.

[eeevil conservative]

LOL!

You think you are sly?

or coy?

let's play...

I love to play...

one man's "overzealous" prosecutor is another man's alert law enforement agent.

I do have to give you credit though.....your spelling and typing skills are much better than most of your friends.....

;-)

[mpoulin]

Walmart.com will ship the TracFone Motorola GSM C139-4 right to your door for $24.94

This story doesn't pass the smell test.

[FreedomCalls]

"Caro police said most of the phones were out of their factory packaging and placed in boxes. The batteries were removed and placed in separate boxes, police there said, adding that one of the men had used a box cutter to remove the packaging."

Oh my gosh! Oh my gosh! Oh my gosh! He used a "box cutter" to open the boxes. The same weapon used on 9/11! That confirms it, they must be terrorists!

[dasboot]

Now yer just gettin' silly.

[stands2reason]

He said he bought at least three shipments of phones, totaling perhaps 400, from the three men in the last several months.

Why would someone buy phones from a middleman who got them from Walmart? Do I smell a laundry operation?

[FreedomCalls]

If they were employed in gathering devices for terrorist acts, they would need a good cover. If they were, they got one. These bad guy ain't dumb.

How do I know you are not a terrorist using your cover as a commentor on FR to divert resources from chasing real terrorist leads to chasing cell-phone resellers so that your real group of terrorists can continue to plan their attack? That's just as absurd.

[dasboot]

Oooooh! Y' got me!

[FreedomCalls]

Now yer just gettin' silly.

So why did the policeman add the comment about using "box cutters' if it wasn't to make you think of terrorists? Who cares how the boxes were opened?

[dasboot]

Nobody calls them 'utility knives' any more.

[Cementjungle]

"...or ships them abroad"

I don't know for sure, but I doubt these phones would work abroad. We use CDMA here, and one needs GSM or other systems for abroad. Even if sold to another CDMA country, who would the carrier be (these phones have pre-paid minutes, right?).

[duckln]

Seems odd. Why not shoes, watches, or guns? When the 9/11 perps took 747 flying lessons a red flag should have gone up and acted on. Unfortunately the 'cops' are here not to prevent crime but catch those who break it.

Then it's to late. That's why W adopted a preemptively policy.

[FreedomCalls]

Why would someone buy phones from a middleman who got them from Walmart? Do I smell a laundry operation?

Someone's not paying attention. Walmart will sell no more than three at a time to any one person.

[mgstarr]

If there'd been anything to this case, the feds would have picked it up. They didn't and there isn't.