By GLENN R. SIMPSON
Staff Reporter of THE WALL STREET JOURNAL
WASHINGTON -- Large sums from two offshore financial havens flowed through the accounts of several U.S.-based companies and charities raided Wednesday by Treasury Department agents investigating terrorism financing, tax and corporate records show.
The flow of funds through Panama and the Channel Islands, both of which have strict bank secrecy laws, obscures both the origin and the destination of the money.
There is no evidence directly connecting those funds to terrorism, but corporate and bank records do show connections between the U.S. firms and some individuals and entities abroad that the U.S. Treasury already has designated as aiding terrorism. These include Al-Taqwa Management, a recently liquidated Swiss company the U.S. government believes acted as a banker for Osama bin Laden's al Qaeda terrorist network.
In this week's raids, agents sought financial information on a web of trusts, charities and for-profit companies affiliated with Virginia businessman M. Yaqub Mirza, according to a search warrant. The warrant indicates the government is investigating possible ties between these entities and several terrorists and terrorist groups, including Palestinian Islamic Jihad, Hamas, al Qaeda, Abdul Aziz Odeh, Omar Abdel Rahman and Osama bin Laden.
Calls Thursday to Mr. Mirza and his lawyer weren't returned. Iqbal Unus, an official of the Mirza-supported foundation International Institute of Islamic Thought, said Mr. Mirza hasn't committed any wrongdoing. "He's a very clean person," Mr. Unus said.
The SAAR Foundation Inc., a defunct Virginia nonprofit formerly run by Mr. Mirza that is at the heart of the probe, gave $9 million in 1998 to a Channel Islands entity called the Humana Charitable Trust, according to its tax return. Humana is based in the Isle of Man. SAAR in 1998 also reported a $231,000 debt to Key Overseas Inc., a Panamanian company.
Key Overseas and another Panamanian company, Solemagic SA, made $9 million in loans in 1990 to another Mirza company, Mar-Jac Poultry Inc., other records show. Mar-Jac is among the companies named in the Treasury Department search warrant.
Mar-Jac, SAAR and several other companies and charities operate or have operated out of more than a dozen homes and offices located near each other in northern Virginia, the records show.
Two people affiliated with the companies and charities are linked by records to entities already designated as terrorist by the U.S. government. Hisham Al-Talib, who served as an officer of SAAR, the International Institute of Islamic Thought and Safa Trust Inc., another Mirza charity, during the 1970s was an officer of firms run by Youssef M. Nada, records show. Mr. Nada is a Switzerland-based businessman whose assets have been frozen by the U.S. for alleged involvement in terrorist financing, and is alleged by U.S. officials to be a key figure in the Taqwa network. Mr. Nada denies wrongdoing.
There was no answer Thursday at the phone listed for Mr. Talib at his address in Herndon, Va.
Jamal Barzinji, an officer of Mr. Mirza's company Mar-Jac and other entities, also was involved with Mr. Nada's companies in the 1970s, according to bank documents from Liechtenstein. A message was left Thursday for Mr. Barzinji at his address in Herndon. Mr. Barzinji and Mr. Talib live across the street from each other.
A third business associate of Mr. Nada, Ali Ghaleb Himmat (who also has been designated by the Treasury aiding terrorism), is listed as an official of the Geneva branch of another charity operated by Mr. Mirza, the International Islamic Charitable Organization. Neither Ali Ghaleb Himmat nor the International Islamic Charitable Organization was named in the U.S. government's search warrant. Mr. Himmat couldn't be located for comment.
Muslim leaders from the Washington area condemned this week's raids and accused the government of targeting innocent Muslims in hopes of catching a few guilty ones. "This is a blatant harassment of Islamic institutions and families," said Shaker Elsayed, coordinator of the National Muslim Leadership Summit.
The Muslim leaders -- including several from organizations whose offices were searched by federal agents -- condemn terrorism and the killing of "innocent civilians," said Jason Erb, government affairs director for the Council on American-Islamic Relations. Mr. Erb called the raids a "fishing expedition" by law-enforcement agencies. "Those who have been targeted are very moderate voices," said Louay Safi, director of research at the International Institute of Islamic Thought, whose Herndon offices were raided. "It seems like the government is declaring open season on Muslims in America," said Abdulwahab Alkebsi, executive director of the Islamic Institute in Washington. The groups are considering what further steps to take and expect Muslim clerics nationwide to raise alarms with their congregations during weekly prayers Friday.
--Michael M. Phillips contributed to this article.
Write to Glenn R. Simpson at glenn.simpson@wsj.com
Updated March 22, 2002
Funds Under Terror Probe Flowed From Offshore
GLENN R. SIMPSON - Wall Street Journal | March 22nd, 2002
