DEA NEWS: FEDS ANNOUNCE SEIZURE OF $150 MILLION IN CONNECTION WITH HIZBALLAH-RELATED MONEY LAUNDERING SCHEME

DEA Administrator Michele M. Leonhart and United States Attorney for the Southern District of New York Preet Bharara today announced the seizure of $150 million in connection with a civil money laundering and forfeiture complaint filed in December 2011 alleging a massive, international scheme in which entities linked to Hizballah, including the now defunct Lebanese Canadian Bank (“LCB”), used the U.S. financial system to launder narcotics trafficking and other criminal proceeds through West Africa and back into Lebanon.

In September 2011, Société Générale de Banque au Liban (“SGBL”) agreed to purchase most of the assets of LCB, and at least $150 million in purchase price funds related to that sale are being held in escrow in Lebanon at the Banque Libano Française SAL (“BLF”). The seized funds are substitutes for the money in the LCB escrow account at BLF, and came from an account at a U.S. bank that is used by BLF to conduct U.S. currency transactions (the “correspondent account”). The funds were seized pursuant to seizure warrants issued on August 15, 2012. There are no allegations of wrongdoing against BLF, SGBL, or the U.S. bank that maintains the correspondent account for BLF in the U.S.

“As we alleged last year, the Lebanese Canadian Bank played a key role in facilitating money laundering for Hizballah controlled organizations across the globe,” Administrator Leonhart said. “Our relentless pursuit of global criminal networks showed that the U.S. banking system was exploited to launder drug trafficking funds through West Africa and into Lebanon. DEA and our partners are attacking these groups and their financial infrastructure, while establishing clear links between drug trafficking proceeds and terrorist funding.”

“Money is the lifeblood of terrorist and narcotics organizations, and while banks which launder money for terrorists and narco-traffickers may be located abroad, today’s announcement demonstrates that those banks and their assets are not beyond our reach,” U.S. Attorney Bharara said. “We will use every resource at our disposal to separate terrorists and narco-traffickers, and the banks that work with them, from their illicit funds, even those hidden in foreign accounts.”

According to the Complaint, the affidavit in support of the seizure warrants and other documents filed in the case:

From approximately January 2007 to early 2011, at least $329 million was transferred by wire from LCB and other financial institutions to the U.S for the purchase of used cars that were then shipped to West Africa. Cash from the sale of the cars, along with the proceeds of narcotics trafficking, were funneled to Lebanon through Hizballah-controlled money laundering channels. LCB played a key role in these money laundering channels and conducted business with a number of Hizballah-related entities. Hizballah is a U.S. Department of State designated Foreign Terrorist Organization, a Specially Designated Terrorist and a Specially Designated Global Terrorist.

On February 10, 2011, the U.S. Department of the Treasury, Financial Crimes Enforcement Network (“FinCEN”) issued a finding and proposed rule, pursuant to the USA Patriot Act, that LCB is a financial institution of primary money laundering concern, based on, among other things, FinCEN’s determination that there was reason to believe that LCB had been routinely used by drug traffickers and money launderers operating in various countries in Central and South America, Europe, Africa, and the Middle East. FinCEN also determined that there was reason to believe that LCB managers were complicit in the network’s money laundering activities.

After the FinCEN action, another Lebanese financial institution, SGBL acquired the assets and liabilities of LCB for $580 million, $150 million of which is being held in an escrow account at BLF (the “LCB Escrow Funds”). Because the LCB Escrow Funds are traceable to the assets of LCB, they are also subject to forfeiture, but since they are in an account in Lebanon, the U.S. is unable to seize the LCB Escrow Funds directly. However, pursuant to U.S. law, the U.S. can seize funds located in a bank’s correspondent accounts in the U.S. if there is probable cause to believe that funds subject to forfeiture are on deposit with that bank overseas. Based on this provision and others, the seizure warrants were executed. A total of $150 million was seized from BLF’s correspondent account. These funds will be transferred to a seized asset account maintained by the United States Marshals Service pending resolution of the forfeiture action.  

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Mr. Bharara thanked the DEA for its leadership and praised the New York Organized Crime Drug Enforcement “Strike Force” (“Strike Force”), for its outstanding work on this investigation, which he noted is ongoing. The Strike Force is comprised of agents and officers of the United States Drug Enforcement Administration, the New York City Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, the New York State Police, the United States Internal Revenue Service Criminal Investigation Division, the United States Marshal Service, Alcohol, Tobacco, Firearms and Explosive, Federal Bureau of Investigations, and the United States Attorney’s Office. The Strike Force is partially funded by the New York/New Jersey High Intensity Drug Trafficking Area, which is a federally funded crime fighting initiative. Mr. Bharara also thanked the U.S. Department of State, the U.S. Department of the Treasury, the Federal Bureau of Investigation, and the New Jersey State Police for their assistance.

Alleged Associate of Al Qaeda in the Arabian Peninsula Charged in New York with Providing Material Support and Receiving Military Training in Yemen

NEW YORK, NY—Minh Quang Pham has been indicted in Manhattan federal court on charges of providing material support to, and receiving military training from, al Qaeda in the Arabian Peninsula (AQAP), a designated foreign terrorist organization, as well as possessing and using firearms in furtherance of crimes of violence, and other violations.

The indictment was announced by Preet Bharara, the U.S. Attorney for the Southern District of New York; James W. McJunkin, the Assistant Director-in-Charge of the Washington, D.C. Field Office of the FBI; Janice K. Fedarcyk, the Assistant Director-in-Charge of the New York Office of the FBI; and Raymond W. Kelly, the Police Commissioner of the City of New York (NYPD).

U.S. Attorney Bharara said: “The international law enforcement cooperation that lead to today’s arrest of Minh Quang Pham, an alleged associate of a terrorist organization committed to killing Americans both here and abroad, underscores our joint commitment to identifying, prosecuting, and punishing those who would do harm to our country and our people.”

D.C. FBI Assistant Director-in-Charge McJunkin said: “Today, an indictment was unsealed charging Minh Quang Pham with providing material support to al Qaeda in the Arabian Peninsula and receiving military-style training while he was in Yemen. Together with our law enforcement partners, the FBI will continue to work both here and abroad to protect the United States and its citizens from terrorism.”

NY FBI Assistant Director-in-Charge Fedarcyk said: “The defendant not only allegedly pledged an oath to al Qaeda in the Arabian Peninsula and received military training from AQAP, he also helped design and disseminate its propaganda. The investigation that led to this indictment is the result of the kind of cooperation and coordination, domestically and internationally, that is essential in the effort to prevent acts of terrorism.”

NYPD Commissioner Kelly said: “These charges point to the ongoing threat posed by al Qaeda affiliates like AQAP, and the importance of law enforcement collaboration internationally in thwarting them.”

According to the indictment unsealed today in Manhattan federal court:

In December 2010, Pham traveled from the United Kingdom to Yemen, the principal base of operations for AQAP. While in Yemen, Pham took an oath of allegiance to AQAP; carried an automatic assault rifle; obtained training from and on behalf of AQAP; helped AQAP to prepare online propaganda; and worked alongside two U.S. citizens.

Pham returned to the United Kingdom from Yemen in 2011. He was arrested today based on the indictment described above. Prior to his arrest, Pham was held by British authorities in immigration custody.

The indictment charges Pham, 29, with five counts. Counts one and two of the indictment charge Pham with conspiracy to provide and providing material support to a foreign terrorist organization. Count three charges Pham with conspiracy to receive military-type training from a foreign terrorist organization. Count four charges him with receipt of military-type training from a foreign terrorist organization and count five charges him with use, carrying and possession of firearms (machine guns) in furtherance of crimes of violence.

If convicted on all counts, Pham would face a maximum sentence of life in prison, with a mandatory minimum sentence of 40 years in prison.

Mr. Bharara praised the extraordinary investigative work of the FBI’s Washington Field Office and the FBI’s New York Joint Terrorism Task Force—which principally consists of agents from the FBI and detectives from the New York City Police Department—for the critical role they played and continue to play in the investigation of Pham and his co-conspirators. In addition, Mr. Bharara thanked the Department of Justice’s National Security Division and its Office of International Affairs; various other U.S. government agencies; and British authorities, including the Metropolitan Police Service and the Crown Prosecution Service, all of whom provided extraordinary cooperation in the investigation.

This case is being handled by the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Stephen B. Ritchin, Benjamin Naftalis, Anna M. Skotko, and Sean S. Buckley are in charge of the prosecution.

The charges contained in the Indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

Leader of Revolution Muslim Sentenced to 138 Months for Using Internet to Solicit Murder, Encourage Violent Extremism

ALEXANDRIA, VA—Jesse Curtis Morton, aka Younus Abdullah Muhammed, 33, of New York City, was sentenced today to 138 months in prison, followed by three years of supervised release, for using his position as a leader of the “Revolution Muslim” organization’s Internet sites to conspire to solicit murder, make threatening communications, and use the Internet to place others in fear.

Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; and Raymond W. Kelly, New York City Police Commissioner, made the announcement after sentencing by U.S. District Judge Liam O’Grady.

“Jesse Morton sought to inspire Muslims to engage in terrorism by providing doctrinal justification for violence against civilians in the name of Islam. The string of recent cases with ties to Mr. Morton demonstrates that he was very successful,” said U.S. Attorney MacBride. “His crimes not only put people’s lives forever in danger, but they also chilled free expression out of fear of retaliation by violent terrorists.”

“Mr. Morton utilized the Internet to incite fear and terror by encouraging violence and radicalization, and he will now pay for those crimes with today’s sentence,” said Assistant Director in Charge McJunkin. “Together with our partner law enforcement agencies, and with the assistance of the community, the FBI will continue to pursue those who support violent extremism and promote the radicalization of others, whether online or in person.”

Morton pleaded guilty on February 9, 2012. According to court records, in 2007, Morton founded Revolution Muslim, an organization that operated Internet platforms and websites supportive of violent extremism. Morton and his associates used the organization’s websites to encourage Muslims to engage in violence against those they believed to be enemies of Islam and to support Osama bin Laden, Anwar Al-Awlaki, al Qaeda, the Taliban, and others espousing violence. They posted messages in support of the terrorist attacks on September 11, 2001, the November 2009 killings at Ft. Hood, and attacks and future threats against Jewish organizations, among others.

Through his online forums, Morton conspired with Zachary Chesser, of Fairfax County, Virginia, and others to solicit the murder of an artist tied to the “Everybody Draw Mohammed Day” movement in May 2010, including posting online a magazine that included the artist in a hit list for violent extremists to take out and a message from Anwar Al-Awlaki that explicitly called for the artist’s assassination. In justifying these actions, Morton posted online a speech of his asserting that “Islam’s position is that those that insult the Prophet may be killed” and exhorting his listeners to fight the “disbelievers near you.”

In addition, Morton admitted that he aided Chesser in taking repeated steps in April 2010 to encourage violent extremists to attack the writers of “South Park” for an episode that featured Muhammad in a bear suit, including highlighting their residence and urging online readers to “pay them a visit.” Among the steps they took were posting on multiple occasions speeches by Anwar Al-Awlaki, which explained the Islamic justification for killing those who insult or defame Muhammad. Morton worked with Chesser to draft a message for the website regarding the “South Park” threats, including a quote from Osama bin Laden: “If there is no check in the freedom of your words, then let your hearts be open to the freedom of our actions.” Morton and Chesser posted the final version of this statement on various extremist online forums, and Chesser told Morton that he expected the statement would “scare the kuffar.” Kuffar is an Arabic term referring to an unbeliever, or disbeliever, in Islam.

Chesser was arrested on July 21, 2010, charged with providing material support to Al-Shabaab and later also pled guilty to communicating threats and soliciting violent extremists to desensitize law enforcement. Four days after Chesser’s arrest, Morton fled to Morocco, where he resided until his arrest on U.S. charges on May 26, 2011.

This investigation is being conducted by the FBI’s Washington Field Office and the New York Police Department’s Intelligence Division. Assistant U.S. Attorney Gordon D. Kromberg of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney John T. Gibbs of the Counterterrorism Section in the National Security Division are prosecuting the case on behalf of the United States.

Al Shabaab Associate Pleads Guilty in Manhattan Federal Court to Conspiring to Support and Receive Military-Type Training from a Foreign Terrorist Organization

Preet Bharara, the United States Attorney for the Southern District of New York; Janice K. Fedarcyk, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Raymond W. Kelly, the Police Commissioner of the City of New York (“NYPD”), announced that MOHAMED IBRAHIM AHMED pled guilty today to conspiring to provide material support to and receive military-type training from al Shabaab, a terrorist organization based in Somalia. The U.S. Department of State has designated al Shabaab as a Foreign Terrorist Organization. AHMED pled guilty before U.S. District Judge P. Kevin Castel.

Manhattan U.S. Attorney Preet Bharara said: “Mohamed Ibrahim Ahmed traveled a long way from his home in Sweden to Somalia, where he took up the cause of al Shabaab, a deadly terrorist organization and sworn enemy of the United States and its people. Protecting Americans from the threat of terrorism both at home and abroad is the highest priority of this office, and today’s plea is yet another victory in that fight.”

FBI Assistant Director in Charge Janice K. Fedarcyk said: “The guilty plea entered today, by a man so dedicated to a known terrorist group that he traveled to Somalia to train with al Shabaab and give them financial support, emphasizes the need for continued vigilance in the fight against terrorism worldwide. The FBI is committed to working with our law enforcement partners here and abroad to thwart would-be terrorists.”

NYPD Commissioner Raymond W. Kelly said: “This plea is important to the ongoing efforts by the NYPD and federal partners to deter terrorist organizations and their followers, who continue in their attempts to put New York City and the United States at risk.”

According to the superseding information filed today in Manhattan federal court and prior court filings:

In early 2009, AHMED left his home in Sweden and traveled to Somalia in order to support and receive military-type training from al Shabaab. Al Shabaab has used violent means to destabilize the government of Somalia and to force the withdrawal of foreign troops from the country. The group has recruited foreign fighters to join in its “holy war” in Somalia, resulting in men from other countries, including the United States, traveling there to engage in violent jihad. Al Shabaab has also made numerous public statements demonstrating its intent to harm the United States.

While in Somalia, AHMED contributed approximately 3,000 Euros to al Shabaab, received training and instruction with respect to bomb-making and bomb-detonation, and purchased an AK-47 rifle, additional magazines, and two grenades. AHMED subsequently provided the rifle and magazines to an al Shabaab military commander.

AHMED, 38, a native of Eritrea and a lawful resident of Sweden, was arrested in Nigeria in November 2009. On March 6, 2010, AHMED was transferred to the custody of the United States and subsequently transported to the Southern District of New York for prosecution.

AHMED pled guilty to one count of conspiracy to provide material support to a Foreign Terrorist Organization (al Shabaab) and one count of conspiracy to receive military-type training from a Foreign Terrorist Organization (al Shabaab). He faces a maximum sentence of 10 years in prison, and is scheduled to be sentenced by Judge Castel on November 2, 2012 at 11:30 a.m.

Mr. Bharara praised the outstanding investigative work of the New York-based Joint Terrorism Task Force—which principally consists of special agents of the FBI and detectives of the New York City Police Department. He also expressed gratitude to the U.S. Department of Justice’s National Security Division, the Office of International Affairs, and the U.S. Department of State for their extraordinary assistance in the case. Mr. Bharara also thanked the Governments of Sweden and Nigeria for their assistance in this matter.

This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Benjamin Naftalis, John P. Cronan, Rachel P. Kovner, and Christopher LaVigne are in charge of the prosecution.

Albanian National Arrested En Route to Fight Jihad Pleads Guilty to Attempting to Support Terrorists

Agron Hasbajrami, an Albanian citizen and resident of Brooklyn, pled guilty today in United States District Court for the Eastern District of New York before the Honorable John Gleeson to attempting to provide material support to terrorists. At sentencing, Hasbajrami faces up to 15 years in prison. As a condition of his plea, Hasbarjrami has agreed to be deported from the United States.

The guilty plea was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York; Janice K. Fedarcyk, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office; and Raymond W. Kelly, Commissioner, New York City Police Department.

According to court documents, Hasbajrami attempted to travel to the Federally Administered Tribal Areas of Pakistan (the FATA) for the purpose of joining a radical jihadist insurgent group. In addition, Hasbajrami sent over $1,000 in multiple wire transfers abroad to support terrorist activities in Pakistan and Afghanistan. In pursuing his goal of fighting jihad, Hasbajrami exchanged e-mail messages with an individual in Pakistan who told him that he was a member of an armed group that had murdered American soldiers. In order to preserve the secrecy of their communications, Hasbajrami and the individual used multiple e-mail addresses to disguise their correspondence. In one e-mail message, Hasbajrami stated that it was difficult to ask for money from fellow Muslims because they became apprehensive “when they hear it is for jihad.” In another e-mail, Hasbajrami stated that he wished to travel abroad to “marry with the girls in paradise,” using jihadist rhetoric to describe his desire to die as a martyr.

On September 5, 2011, Hasbajrami purchased a one-way airline ticket to travel to Turkey the following day. Based on Hasbajrami’s e-mail communications, he intended to travel from Turkey to the FATA to join a jihadist group. On September 6, 2011, Hasbajrami was arrested at an international departures terminal at John F. Kennedy International Airport in Queens, New York. At the time of his arrest, Hasbajrami was carrying a tent, boots, and cold-weather gear. Following his arrest, a search of Hasbajrami’s residence revealed, among other items, a note reading, “Do not wait for invasion, the time is martyrdom time.”

“The defendant reached across the ocean from Brooklyn to Pakistan, seeking out terrorists in the hopes of becoming one. Once he found what he sought, he pledged his money, his energy, and the end of his own life to the goal of spreading terror abroad. As this case demonstrates yet again, law enforcement in New York and across the United States has the vigilance, capability, and skill to catch terrorists before they strike,” stated United States Attorney Lynch. “We will continue to bring to justice those who intend to harm Americans and hold them accountable for their actions.”

FBI Assistant Director in Charge Fedarcyk stated, “The defendant has admitted to attempting to provide material support to terrorists, but this entailed much more than the money he wired overseas. If not for his arrest, he would have traveled to Pakistan to wage jihad and aim to kill American soldiers. Our mission includes not only preventing acts of terrorism here but also preventing would-be terrorists from going abroad to harm Americans.”

“The plea demonstrates that Brooklyn is no place from which to launch terrorist aspirations without the good chance of being captured and prosecuted,” Police Commissioner Kelly said. “Vigilance paid dividends again.”

The government’s case is being prosecuted by Assistant United States Attorneys Seth D. DuCharme and Matthew S. Amatruda, with assistance provided by Trial Attorney Courtney Sullivan of the DOJ Counterterrorism Section.