Then its Marxist ideals ran afoul of Khomeini's clericalism; the Mujahedin went into exile, eventually settling in Iraq in 1986. Since then, the group has been fed, clothed and armed by Saddam Hussein.
According to a 1994 State Department report, "Saddam Hussein has been one of [its] primary financiers, providing weapons and cash totaling an estimated hundreds of millions of dollars."
But it hasn't been a free lunch. In addition to periodic hit-and-runs inside Iran and embassy stormings overseas, the group has served as proxy troops in Saddam's campaign to squash domestic uprisings. In at least one instance, it participated in a battle against northern Kurds in which chemical weapons were used.
A counterterrorism official at State says the People's Mujahedin are "still engaged in acts of international terrorism" and "still pose a threat." But - despite repeated briefings by State Department officials regarding the group's activities - Torricelli has been a staunch ally of the People's Mujahedin.