Orthodox Jewish Dealer Is Said to Aid Scheme on Terrorist Funds

The New York Times ^ | August 14, 2003 | MICHAEL SLACKMAN

[the_greatest_country_ever]

Orthodox Jewish Gem Dealer Is Said to Aid Scheme on Terrorist Funds

Yehuda Abraham is a slight, stooped 76-year-old gem dealer, with a house in Queens, an office in New York's diamond district and shops around the world.
One night last October, prosecutors say, a client entered Mr. Abraham's 12th-floor Midtown office and handed him $30,000 in hundred dollar bills, an odd, if believable transaction in the world of international gem dealers.
Mr. Abraham, by the government's account, counted out every note, then gave the client his business card. But this was not a jewelry sale, prosecutors allege. It was a secretive deal, with a code number and a cash commission, in which Mr. Abraham agreed to transfer the client's money to a bank account in Europe, out of the sight of federal regulators.
That transaction, if it occurred as federal prosecutors say, has landed Mr. Abraham, an immigrant who came to America nearly half a century ago, in the middle of an international dragnet that prosecutors said took into custody a dangerous arms dealer and his accomplices who were willing to bring missiles into the United States to shoot down passenger jetliners.
Prosecutors said in federal court yesterday that Mr. Abraham was the money man, a shadowy figure who facilitated the work of terrorists by giving them the means to finance their actions — the purchase of the missiles — through an informal money transfer system, known as hawala, which is common in the Middle East and a preferred method of finance for terrorists.
Mr. Abraham walked slowly into a federal courtroom in Manhattan yesterday, a curious figure described by some as an honest businessman and prominent member of the Jewish community in Rego Park. His rabbi showed up to offer moral support, and his brothers and sisters and children filled two aisles in the courtroom, as Mr. Abraham's lawyer, Larry Krantz, insisted this was a misunderstanding.
"I think there is a misconception to his role in this case," Mr. Krantz said.
Mr. Abraham, president of Ambuy Gem Corp., was arrested Tuesday by federal agents along with two other men — Hemant Lakhani, a British citizen, and Moinudden Ahmed Hameed, of Malaysia.
Mr. Lakhani has been identified by prosecutors as an international arms dealer and charged with providing material support to terrorists as well as selling arms without a license. Prosecutors said he was trying to peddle shoulder-launch missiles to terrorists. Despite the prosecutors' claim that Mr. Abraham and Mr. Hameed aided Mr. Lakhani's terrorist dealings, the two have been charged only with conspiring to operate an unlicensed money transmitting business, a charge that at the most could mean five years in prison.
"Yes, this elderly gentleman in poor health significantly helped broker the sale of a surface to air missile," said Assistant U.S. Attorney Michael Purpura as he asked a judge to hold Mr. Abraham without bail.
But Federal Magistrate Judge Andrew J. Peck was not persuaded.
"I fail to see any allegation that could be read fairly proving or alleging that Mr. Abraham was providing money for weapons as opposed to any other black-market activity," Judge Peck said. He set bond and conditions of release pending trial, but stayed his decision until Mr. Abraham appears in court in Newark today.
Mr. Abraham has lived and worked for the last 40 years as a New York gem dealer, a career that has taken him as far away as Hong Kong and Saudi Arabia. Yesterday, men who worked with him for years on West 47th Street described him as a grandfather, an observant Jew and a well-known proprietor. Their reaction was one of disbelief.
"For a Jew to do something like that, I cannot believe it or understand it," said a 49-year-old jewelry wholesaler whose shop is on 47th Street. "He's a prominent member of our community. To do something like that is crazy."
The world of the diamond district, though, is a cash-rich one, where unset gems must often be purchased in cash, and where wealthy customers will often pay in bundles of bills. A law enforcement official said yesterday that behind the bustling facade of the diamond district is a nebulous world of murky financial transactions where federal agents have long focused on money laundering and other crimes.
Gem merchants acknowledged yesterday that large amounts of cash flow across international borders every day, but insisted that it is done in legal and documented ways. "This business is very sensitive. People are very careful," the jewelry wholesaler said.
Mr. Abraham's relatives appeared stunned and angry as they left the court yesterday. They refused to comment, and the lawyer, Mr. Krantz, also refused to discuss Mr. Abraham's life, his work or the charges against him. In court, Mr. Krantz and the prosecutors described Mr. Abraham as a wealthy and successful man with more than $1 million equity in his home and shops in Europe, the Middle East and Asia.
But in court papers, prosecutors painted a more sinister picture of Mr. Abraham. The papers suggest that he was also involved in the hawala cash transfer system for some time and that he had a good reputation among those who used it.
In 2002, the prosecutors said, Mr. Lakhani, interested in proving his good faith with missile dealers overseas, enlisted Mr. Abraham to send $30,000 to a bank in Europe. He was described, in tape-recorded conversations with other participants, as trustworthy and well known. To ensure security of the deal, there would be a code. The person posing as a buyer of missiles — actually a government co-operator — was given the serial number of a one dollar bill. Later, the authorities say, after Mr. Abraham counted out the $100 bills in his office, he reached into his pocket and turned over a dollar bill with the exact serial number. The deal was complete, except for Mr. Abraham's fee of $1,500, prosecutors said.

[mr.pink]

...please don't tell me they are going to sweep this one under the rug!

Well the Florida dentist and his accomplices, armed to the teeth (quasi- militarily....50 cals., rockets, full atuos and land mines) and with plans to inflict mass carnage, were given extremely soft sentences in minimum security prisons (mastermind out in 12, accomplices out in 3).

I have to expect this guy will get special treatment as well.

[dennisw]

He had to know he was transacting with a Muslim........


One article claims the man is Hindu.

[dennisw]

You get all excited because this 76 year old "terrorist" is Jewish. I doubt he was told anything more than what he needed to know to transfer (launder?) money for this scheme. IOW he's a money man and not a plotter of terror.

[mr.pink]

The double standard you are displaying is wonderful to behold. I've never seen you extend so much benefit of the doubt to an active participant in the pursuit of inflicting mass terror on your fellow Americans before. I 100% sure you'd be equaly as charitable if this terrorist enabler/profiteer was French. ;o)

You either "with us"...or your "with the terrorists", right dennis?

I know where I am.

[xm177e2]

He laundered the money and knew nothing about the plot to fire a missile at at civilian airplane.

That's his story and he's probably telling the truth. Why would the other guys want to tell him what the money was really for?

Still, he committed crimes that helped terrorists. If you drive drunk and accidentally kill someone, you end up with a bigger punishment than if you drive drunk and get pulled over by a cop for swerving in your lane. Lock him and make an example of him. Money launderers should especially not be helping Arabs or Muslims.

[dennisw]

Your comments are a hoot. Some 76 year old Jewish diamond merchant hardly fits the terrorist profile. He is a money man who got in over his head and knows nothing about any missile. That's my reasonable read of the situation.

[dennisw]

Why would the other guys want to tell him what the money was really for? ..........

Terrorism and plotting is done on a need to know basis. Unless they are totally dumb and are loud mouths.

[mr.pink]

Geez dennis, now being 76 is an excuse? You should import a midi of nice violin music into your post...it would really help set a sympathetic tone and help sell your sob story of a feeble old man getting snookered.

Again, your double standards are showing and I'm enjoying (but not the least surprised) that you're exposing of yourself as intellectually inconsistent.

[mr.pink]

Some 76 year old Jewish diamond merchant hardly fits the terrorist profile.

A florida dentist didn't really fit the terrorist profile, nor did Tim McViegh....but that they were none the less.

[Alouette]

Maybe he belongs to this gang of freaks?

[tubavil]

This government sting stinks.

We have an implausible scenario, a snitch up on federal drug charges (aka government key witness), the KGB supplying the FBI with a dummy missile, and an Orthodox Jew as the money man.

[adam_az]

Not just that, an Orthodox Jew who allagedly participates in the secretive hawala system, which is widely in the Middle East - by Muslims!

The story just broke, and not a whole lot of information has been released yet. I hope they caught some real terrorists, but I'm awful skeptical of "sting" operations, especially ones involving foreign intelligence services that are only a modicum of friendly to us.

TO those who say it's a double standard to automatically accept that a Muslim is a terrorist but a Jew is not, well, it's not if you consider statistical probability. There are daily Islamic terrorist attacks around the world, but when's the last time you heard of a Jewish suicide bomber, or Jews trying to shoot down commercial aircraft with missiles? It's definately atypical behavior, and therefore I belive worthy of some skepticism.

[mr.pink]

...but when's the last time you heard of a Jewish suicide bomber, or Jews trying to shoot down commercial aircraft with missiles?

Well, it was only about three months ago when the florida dentist and his accomplices were prevented from a perpetrating massive quasi-military attack terrorist attack on Americans.

Is it "atypical behaviour"?...why yes....but it's certainly not unheard of.

[Alouette]

Not just that, an Orthodox Jew who allagedly participates in the secretive hawala system

OK, I'll bite. I've heard of pulsa denira and there is nothing secretive about havdalah but what in the heck is hawala?????

[tubavil]

Well, it was only about three months ago when the florida dentist and his accomplices were prevented from a perpetrating massive quasi-military attack terrorist attack on Americans

The target was an islamic center, Americans in only the most peripheral sense.

His effort was in direct response to the islamic terror called 9-11.

islamic centers here teach hatred death and destruction of Jews, Christians, and anyone non-muslim.

Their funding comes primarily from saudi arabia, just like the 9-11 terrorists.

It's a very short program.

[Tom Jefferson]

I don't know this individual but I have some familiarity with the gem business. A lot of gems - diamonds, rubies,sapphires, etc. are bought for cash. It is a business where the dealers avoid reporting gains for tax purposes by dealing in cash. I am not condoning that activity, merely reporting it.

Because it is not easy to make bank deposits of cash in this country, the sellers of gems who receive cash give the cash to people like Mr. Abraham who pass it on to others for deposit abroad. They take a commission of 5% for arranging the transfer. It is a daily part of the gem business. It is not legal because of the avoidance of reporting to the IRS, but occurs all the time.

Not knowing the circumstances, I would guess that Mr. Abraham, who probably arranges the cash transfers frequently for gem dealers, did not know the purpose of the money.

That is my take on the situation.

[af_vet_1981]

The money man should be prosecuted to the fullest extent. If he can provide information and testimony on other illegal monetary transactions perhaps he can earn a deal.

Interesting quote from a Saudi prince: "He who protects or sympathizes with a terrorist is himself a terrorist and will receive his just punishment," Abdullah bin Abdulaziz told a gathering of security officials and citizens.

[swarthyguy]

Consider the following...this was going to be an undercover operation using Lakhani to penetrate terror orgs.....

One report says the BBC reported on the case thereby nullifying Lakhani's usefulness as an informant and the Feds were forced to bring down indictments.

A partial success but not what the Feds were after; an arms dealer strongarmed by the Feds into reporting on future arms for terror transactions.

[rmlew]

Stone him.

[adam_az]

http://www.interpol.int/Public/FinancialCrime/MoneyLaundering/hawala/default.asp

I prefer the Shabbat Havdala, personally - after all, you get to consume the fruit of the vine. ;)