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.

[adam_az]

Not unheard of, but definately unusual.

Kind of like the shock of finding out about the Amish coke fiends. Whodathunk?

[fella]

Is not it amazeing what people will do for a little bit of money. Just look at any prostitute like a politician who will give away bilions of dollars of tax payers and consumers money just to get a few thousad for their next election campagian.

[berserker]

In an artist's rendering, 76-year-old Yehuda Abraham, right, makes a court appearance in front of Magistrate Andrew Peck, left, Wednesday, Aug. 13, 2003 in federal court in New York. Abraham is charged with conspiring to operate an unlicensed money transmitting business in conncection with a plot to smuggle shoulder-fired missiles into the United States, according to authorities. (AP Photo/Christine Cornell)

[Tom Jefferson]

Read post #56

[Beth Yiroel]

Before the war on iraq many people said that the war was a jewish plot. Somehow when the coalition won, everybody forgot that it was a jewish idea!

[dennisw]

Thanks. My take is the same as yours. You know the biz so fleshed it a bit. Also factor in that he (Jewish diamond merchant) was part of the Muslim Halawa money transfer system. I know you don't absolutely have to Muslim to be in it. I think some Hindus also participate.

[dennisw]

Yep that looks like him. Unlicensed money transmitting business is unlawful and he will get nailed for that.

[doosee]

My guess is this guy had no actual knowledge that the money would be used for munitions of any kind. However, what he was doing was illegal and I dont care if he is 26 or 76, he should get the maximum penalty. If a few more idiots like him worried more about the security of our nation rather than bagging a few bucks, we would all be a lot safer. I compare this guy to the flight school trainers who trained Muslims who commented that they didnt need to learn how to land. It was all about pocketing money. Not one thought about protecting the people of this nation.

[Tom Jefferson]

Dennis,

The Halawa or hundi money transfer wasn't started by Muslims and isn't strictly a Muslim activity. It was started by Indians and other South Asians, and was taken up by Chinese, Africans as well as Arabs. There is interesting information on it on the Interpol site. I think one of the earlier posts has the URL.

Regards,

Tom

[sheik yerbouty]

The underground Islamic finance system.

[mr.pink]

Sorry, but unlike yourself, I'm not at a point where I'm ready to support some racist dentist and his cohorts extracting their brand of justice on Americans.

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

That raises a very good point, and of course and obligtory question as well: Where extactly did the racist dentist and his gang get the funds to amass their arsenal?...and when did their connections to actually acquire the weapons come from?

I know my local gun shop doesn't stock claymore mines or rockets.

[mr.pink]

Kind of like the shock of finding out about the Amish coke fiends. Whodathunk?

Yeah, that is a weird one, but so's the number of Yeshiva students running Ectsasy from Holland.

Do you consider drug runners/dealers the equivalent of those plotting mass murder? Some folks do, I don't.

[adam_az]

No but there's no evidence so far, at least publicly released (who knows what the feds have up their sleeves) that this fellow knew what the money was for, only that he apparently violated cutrrency transaction laws and some other similar offenses. I only used the Amish Coke Fiends as a whodathunkit example, not an example of similar seriousness.

[tubavil]

Where extactly did the racist dentist and his gang get the funds to amass their arsenal?...and when did their connections to actually acquire the weapons come from?

It is not racist to want to kill those who are killing your fellow Countrymen and religionists. It is normal.

Regarding the illegal stuff, if you've read any articles you know what he had was described as being homemade or kitchen-counter. Books on how to make and maintain C4, napalm, grenades, and rockets are available at your local gun show or on the internet. I didn't see any article claim he had military gear.

That said, military gear is easy to come by. Ever live near a large US military base? Look in slimy surplus shops or make some contacts in the dive military bars. Somebody is always down on their luck, jammed up, or just wants fast cash.

'Connections' are easily acquired too, remember when Soldier of Fortune magazine used to advertise hit men in their classifieds?

There is nothing larger behind this episode, certainly not what you intimate.

[tubavil]

Regarding funding...what he had didn't require any real amount of money. As I mentioned before most of it was homegrown plus he was a dentist, it was easily afforded.

[mr.pink]

No but there's no evidence so far, at least publicly released (who knows what the feds have up their sleeves)

(who knows what the feds have up their sleeves)?...maybe stopping a terrorist ring and saving American lives?

[adam_az]

I'm talking about evidence for the legal case.

Your constant word-twisting and purposeful misunderstanding is both tiring and uninteresting.

Stop acting like a Marxist.

[mr.pink]

Stop acting like a Marxist.

Marxist?....Straight out of FR 101: always call the other guy a Marxist first... ya-a-a-a-a-awn.

How's `bout you stop acting like the scumbag's defense attorney?....and while you're at it also stop smearing the Amish, unless of course you're prepared to bring evidence of any terrorist participation by them into the discussion.

[adam_az]

No, twisting words, their meaning, and their context is a Marxist trait, which you have exhibited.

Lie and misrepresent when caught, a Marxist trait.

Yawn.

I'm NOT acting like his defense attorney, I'm pointing out to you that very little of the evidence has been publicly released so far, and the little that has are the equivalent of MONEY LAUNDERING charges.

I didn't mention anything about Amish and terrorism, you did.

I brought that case up as an example that incongrous things can happen occasionally, such as Amish Coke dealers or Orthodox Jews who associate with Islamic Terrorists. Ironically, it makes your point - that he very well might be guilty. I brought it up in the context of pointing out why people would be shocked at his participation, as this is not quite an every day occurance. It's very unusual, and therefore worthy of a modicum of skepticism. However, like the good little crypto-Marxist pseudo-deconstructionist you are, you have taken EVERYTHING I've written out of context.

On that note, buzz of, Mr. Red.