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Ex-FBI Official Who Helped Launch Crossfire Hurricane Charged With Laundry List Of Crimes


BY: MARGOT CLEVELAND | JANUARY 24, 2023

Read more at https://thefederalist.com/2023/01/24/ex-fbi-official-who-helped-launch-crossfire-hurricane-charged-with-laundry-list-of-crimes/

Oleg Deripaska at WEF
Monday’s news is a body blow to the FBI, which already has two black eyes from the last seven years of scandals.

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The Department of Justice unsealed twin indictments on Monday against Charles McGonigal, a former FBI section chief involved in the decision to launch the Crossfire Hurricane investigation against then-Republican presidential candidate Donald Trump.

Here are six takeaways from yesterday’s news.

1. McGonigal Charged with Conspiring with Russian Interpreter to Launder Money — and More.

Monday morning brought breaking news that the U.S. attorney’s office for the Southern District of New York had unsealed a five-count indictment that charged McGonigal and Sergey Shestakov with violating the International Emergency Economic Powers Act, or IEEPA, and with conspiring to launder money. Prosecutors also charged Shestakov with lying to the FBI. 

McGonigal, as the indictment explained, was previously a “senior official” in the FBI, having been employed by the bureau from 1996 to 2018, and working in Russian counterintelligence, organized crime matters, and counter-espionage. From 2016 until his retirement in 2018, McGonigal was the special agent in charge of the Counterintelligence Division of the FBI’s New York Field Office, a role in which he supervised and investigated Russian oligarchs, according to the indictment.

Shestakov, for his part, is described as a “former Soviet and Russian diplomat,” who was in that role from 1979 until his retirement in 1993. The press release announcing the charges notes that Shestakov is now a U.S. citizen, and he has “more recently served as an interpreter for United States federal courts and prosecutors.”

The indictment charged that McGonigal and Shestakov violated the sanctions imposed by the United States on Oleg Deripaska, a Russian oligarch, in violation of the IEEPA. Specifically, the indictment alleged the duo, in or about 2021, “agreed to and did investigate a rival oligarch of Deripaska in return for concealed payment from Deripaska.” 

According to Monday’s press release, McGonigal and Shestakov negotiated with a representative of Deripaska, identified as Agent-1 in the indictment, “to conceal Deripaska’s involvement” in the relationship “by, among other means, not directly naming Deripaska in electronic communications,” using instead various nicknames, such as “the big guy.” McGonigal, Shestakov, and Deripaska also allegedly used “shell companies,” to hide the payments coming from Deripaska.

McGonigal allegedly first met Deripaska’s representative, Agent-1, while still employed by the FBI, but then in the spring of 2021, after McGonigal had retired from the bureau, he was allegedly solicited to work directly for Deripaska. Specifically, the indictment charged that Deripaska hired McGonigal to investigate a second Russian oligarch with whom Deripaska had an ongoing dispute over control of a Russian corporation. In exchange, Deripaska allegedly agreed to pay the partners $51,280, followed by monthly payments of $41,790, although the payments were made to a New Jersey corporation, which then transferred the funds to McGonigal and Shestakov. 

The activities among McGonigal, Shestakov, and Deripaska’s intermediaries “largely” ceased, according to the indictment, upon the FBI executing search warrants and seizing McGonigal and Shestakov’s electronic devices on Nov. 21, 2021. Shortly before the FBI executed the search warrant, Shestakov allegedly lied to the FBI about his relationship with McGonigal, which formed the basis of the false statement charge against Shestakov.

2. McGonigal Is in More McTrouble

If the indictment in the Southern District of New York were not enough to shake McGonigal’s world, an hour later the Department of Justice released a second press release announcing the unsealing of a second indictment in the District of Columbia. This indictment charged McGonigal with making multiple false statements, concealing material facts, and falsifying records or documents — nine counts in total.

Underlying the nine criminal counts were allegations that McGonigal failed to accurately complete financial disclosure reports, which McGonigal was required to do on an annual basis, and failed to accurately report unofficial foreign travel and ongoing professional or official contracts with foreign nationals. 

The accusations are related to McGonigal’s alleged failure to accurately report his financial situation, connections with foreign nationals, and his relationship with several unnamed individuals. Those individuals are identified as Persons A, B, C, and D, with McGonigal receiving large cash payments in exchange for what appear to be questionable “favors.”

For instance, the indictment described Person A as a naturalized U.S. citizen who was born in Albania and who had previously worked for the Albanian intelligence agency. It then alleged McGonigal “hid aspects of his relationship with Person A,” including “that he had accepted more than $225,000 from Person A, had traveled to Europe with Person A, and met numerous foreign nationals through Person A.” 

It was McGonigal, according to the indictment, who approached Person A with the money-making scheme, when “no later than August, 2017,” he “inquired as to whether Person A could provide money to him.” Then on Sept. 7, 2017, Person A allegedly indicated he “was working on the money.” Thereafter, McGonigal traveled with Person A to Albania where he allegedly lobbied the Albanian prime minister on behalf of Person A. 

Over the next several months, McGonigal allegedly received three cash payments from Person A, ranging from approximately $65,000 to $80,000 each time. The indictment further charged that “McGonigal caused the FBI-NY to open a criminal investigation of a U.S. citizen in which Person A would serve as a confidential human source.” 

Specifically, on Nov. 25, 2017, McGonigal allegedly informed a federal prosecutor of “a potential new criminal investigation involving a U.S. citizen who had registered to perform lobbying work in the United States on behalf of an Albanian political party different from the one in which the Prime Minister was a member.” Then on Feb. 26, 2018, the FBI office “formally opened a criminal investigation focused on the ‘U.S. citizen lobbyist’ at defendant McGonigal’s request and upon his guidance.” 

The indictment suggests McGonigal opened the investigation into “the U.S. citizen lobbyist” to further his monetary relationship with Person A and others, with the allegations stressing that McGonigal remained in communication with the prime minister after Person A arranged for them to meet in September of 2017. Person A and Person B, the latter identified in the indictment as a former senior Albanian government official and informal adviser to the Albanian prime minister, both then assisted the FBI in the investigation of “the U.S. citizen lobbyist.” 

Elsewhere, the indictment charged that McGonigal attempted to arrange a meeting with Persons C and D and U.S. government authorities to benefit from the unnamed Person A. Among other things, the indictment claimed that McGonigal proposed Person D pay Person A’s company $500,000 in exchange for the scheduling of a meeting with a representative from the U.S. delegation to the United Nations. McGonigal then worked to coordinate the meeting, according to the charges.

3. The Shockwaves of This Latest FBI Scandal Hit Spygate

The two indictments alone represent another huge scandal to the FBI: McGonigal was no low-level agent but rather a special agent in charge of the Counterintelligence Division for the New York Field Office. And although McGonigal retired in 2018, some of his allegedly criminal conduct took place while still in that position and allegedly involved the launching of an investigation of a U.S. citizen who was lobbying for a political opponent of one of McGonigal’s foreign contacts.

In isolation, yesterday’s news is a body blow to the bureau, which already has two black eyes from the last seven years of scandals. But the New York indictment of McGonigal reverberates more directly to the SpyGate scandal and specifically the failure of the DOJ to pursue Christopher Steele for his own work for Deripaska.

The inspector general’s report on FISA abuse concluded that “Steele performed work for Russian Oligarch 1’s attorney on Russian Oligarch 1’s litigation matters,” with Deripaska the generically named “Oligarch 1.” Steele, the OIG report continued, “passed information to Department attorney Bruce Ohr advocating on behalf of one of Russian Oligarch 1’s companies regarding U.S. sanctions.” The report further found that Ohr and Steele’s communications concerning Deripaska occurred “in 2016 during the time period before and after Steele was terminated as a [confidential human source].”

Additionally, the OIG report connected that “Ohr said that he understood Steele was ‘angling’ for Ohr to assist him with his clients’ issues,” and that “Ohr stated that Steele was hoping that Ohr would intercede on his behalf with the Department attorney handling a matter involving a European company.”

Steele had reportedly also previously worked for Deripaska’s London-based attorney Paul Hauser, and Steele “appeared to lobby on behalf of Deripaska through a D.C.-based attorney, Adam Waldman.” Steele, however, never registered as a lobbyist under the Foreign Agent Registration Act, or “FARA.”

Yet Steele has never been charged with violating FARA. Why?

While this question has been asked again and again, the federal charges against McGonigal for his work on Deripaska’s behalf bring this question to the forefront again. 

4. Speaking of Deripaska, There’s Another SpyGate Scandal Unresolved

The raising of Deripaska’s name in yesterday’s indictment also offers the chance to revisit another SpyGate scandal yet unresolved — a lesser noticed one buried in the hundreds of pages of the inspector general’s report on FISA abuse.

As I previously detailed, the IG report noted that on Dec. 7, 2016, Bruce Ohr called an interagency meeting to discuss Deripaska. During that meeting, Ohr apparently suggested trying to work with Deripaska, and later told a subordinate that the basis for the suggestion was that “Steele provided information that the Trump campaign had been corrupted by the Russians,” and that the corruption went all the way to President-elect Trump. So Ohr apparently suggested cutting a deal with a Russian oligarch based on the fake Steele dossier. 

It also appears that agents considered cutting a deal with Deripaska to possibly ensnare Paul Manafort, with the end goal being to take down Trump — another startling possibility that would reveal our FBI viewing Trump as worse than the Russian oligarch.

To date, little has been explored of possible efforts by the DOJ or FBI to go easy on Deripaska for the great goal of getting Trump. But maybe the renewed focus on Deripaska will resurrect these overlooked details.

5. McGonigal’s Role in Crossfire Hurricane Raises Huge Red Flags

The charges against McGonigal also raise concerns about his role in the decision to launch Crossfire Hurricane. 

In his congressional testimony, FBI Agent Jonathan Moffa testified that from July 28 to July 31 of 2016, officials in FBI headquarters discussed whether to open a counterintelligence investigation on Trump, purportedly based on information provided by a “friendly foreign government.” That information consisted of an Australian diplomat telling his American counterpart that Trump’s volunteer campaign adviser George Papadopoulos had suggested the Russians had dirt on Hillary Clinton. In explaining how he had learned of the discussions over whether to open the investigation that became known as Crossfire Hurricane, Moffa testified he had received an email from McGonigal, the then-section chief in FBI headquarters, that contained the reporting from the friendly foreign government. 

After McGonigal helped decide to launch the Crossfire Hurricane investigation into the Trump campaign, FBI Director James Comey named him “the special agent in charge of the Counterintelligence Division for the New York Field Office” in October of 2016. In that position, McGonigal stayed engaged in aspects of the investigation, with his “team” questioning Carter Page in March of 2017. McGonigal would later also express concerns about the Page FISA leaking after a briefing to the House Intel Committee, and sure enough, a few weeks later the story leaked.

Given that if the allegations in the indictments are true, McGonigal has proven himself willing to be bought, his involvement in Crossfire Hurricane is extremely troubling. 

6. A New Life for Durham

While McGonigal’s involvement in the Crossfire Hurricane investigation raises serious concerns, it also provides one final chance to learn the depth of the SpyGate scandal. With McGonigal facing serious federal criminal charges in two different districts, the incentive for him to seek a deal with the government is high. Given his involvement in the decision to launch Crossfire Hurricane and his later involvement in at least portions of the investigation, he may just have something to offer Special Counsel John Durham.

And McGonigal may have just the attorney to cut that deal: Seth DuCharme. DuCharme is listed as McGonigal’s attorney of record in court filings, and emails released pursuant to FOIA requests show DuCharme previously worked for Durham.

Whether McGonigal has anything of value to Durham, however, remains to be seen.


Margot Cleveland is The Federalist’s senior legal correspondent. She is also a contributor to National Review Online, the Washington Examiner, Aleteia, and Townhall.com, and has been published in the Wall Street Journal and USA Today. Cleveland is a lawyer and a graduate of the Notre Dame Law School, where she earned the Hoynes Prize—the law school’s highest honor. She later served for nearly 25 years as a permanent law clerk for a federal appellate judge on the Seventh Circuit Court of Appeals. Cleveland is a former full-time university faculty member and now teaches as an adjunct from time to time. As a stay-at-home homeschooling mom of a young son with cystic fibrosis, Cleveland frequently writes on cultural issues related to parenting and special-needs children. Cleveland is on Twitter at @ProfMJCleveland. The views expressed here are those of Cleveland in her private capacity.

Media Does Damage Control on Their Refusal to Cover Hunter Biden Before the Election


Reported by Katie Pavlich Katie Pavlich |  @KatiePavlich | Posted: Dec 10, 2020 1:30 PM

Media Does Damage Control on Their Refusal to Cover Hunter Biden Before the Election

Source: (AP Photo/Visar Kryeziu)

Yesterday the Department of Justice officially revealed Hunter Biden is under investigation. In October, it became clear Biden may have been involved in money laundering and illegal foreign dealings with hostile governments, including China. It’s all on his laptop, which he failed to pickup from a local repair shop in Delaware. The owner of the shop turned it over to the FBI after becoming concerned it could contain information about crimes.

Despite a computer hard drive, emails, texts, photos and a lack of denial from the Biden family, so-called newsrooms across the country ignored it and called it a “non-story.”

In fact, Twitter aggressively censored a damning New York Post story about the details of Biden’s laptop and dismantled accounts of individuals who dared to share it. The New York Post Twitter page was blocked for weeks as Twitter executives demanded the story be taken down. The New York Post, America’s oldest newspaper, refused to do so and the details of their story were true. Twitter CEO Jack Dorsey admitted during recent testimony on Capitol Hill that he has no proof the story isn’t legitimate.

In fact, former Biden business partner Tony Bobulinski came out publicly to explain how Biden, and his father Joe Biden, operated. He also revealed he was working with the FBI and a number of Senators on Capitol Hill.

“I’m making this statement to set the record straight about the involvement of the Biden family. Vice President Biden, his brother Jim Biden and his son Hunter Biden in dealings with the Chinese. I’ve heard Joe Biden say that he’s never discussed business with Hunter. That is false. I have first-hand knowledge of this because I directly dealt with the Biden family, including Joe Biden,” Bobulinksi said on October 22, 2020, adding he was warned about coming forward. “The evidence sits on these three phones. I don’t want to go into anything further. This will be discussed with Senator Johnson and his committee and the American people can decide what’s fact.”  

Now, news outlets who deliberately refused to touch the story before the 2020 presidential election in order to protect Joe Biden, are finding new excuses for their dereliction of duty.

“Went largely unnoticed” is code for: Ignored and purposely censored. The evidence has been everywhere for months, even years.

FLASHBACK: Hillary Attacked Obama for his Ties to Pay-to-Play Schemer Tony Rezko


waving flagWritten by Philip Hodges

URL of the original posting site: http://eaglerising.com/36254/flashback-hillary-attacked-obama-for-his-ties-to-pay-to-play-schemer-tony-rezko/

Back in 2008 – when Obama and Hillary were both running for President – Hillary criticized Obama’s dubious connections to a convicted money-launderer and fraudster Tony Resko who had his own political pay-to-play scheme.

But Hillary and her campaign think that it’s totally ridiculous to even suggest that the Clinton Foundation has been anything other than a “life-saving” charitable organization run by the most self-sacrificing public servants in the world. To imply that somehow the foundation was being used as some sort of pay-to-play scheme is unconscionable.warning warning

The Associated Press reported recently that over half of all of then-Secretary Clinton’s meetings with private (non-government) individuals were Clinton Foundation donors. This revelation – at the very least – gives the impression that Hillary was granting access to herself and her political connections in exchange for sizable donations to her family’s foundation. But in response, Hillary simply emphasized the foundation’s supposed work in ending HIV and AIDS, and said that there’s “a lot of smoke” but “no fire.”

At the 2016 Democratic National Convention, President Obama lauded Hillary Clinton: “There has never been a man or a woman, not me, not Bill, nobody more qualified than Hillary Clinton to serve as president of the United States of America.”Leftist Propagandist

But eight years ago, the two were sworn enemies. They attacked each other as two politicians vying for power always do.

During their campaigns for president eight years ago, one of the things Hillary blasted then-Senator Obama for was his ties to a pay-to-play schemer and political fundraiser Tony Rezko, a man Hillary referred to as a Chicago “slumlord.” If you’re not familiar with Obama’s close relationship with Rezko, that’s probably because the media then saw only a lot of smoke, but no fire.

As it turns out, Rezko was convicted and jailed for fraud and money laundering in his own pay-to-play scheme. NPR reported in 2011:

Antoin “Tony” Rezko, who was an adviser and fundraiser for convicted former Ill. Gov. Rod Blagojevich (D) and also raised money for then-state Sen. Barack Obama before Obama’s election to the U.S. Senate in 2004, was sentenced today to serve seven more years in prison.

Rezko, as The Associated Press says, was convicted in 2008 on charges of “fraud, money laundering and plotting to squeeze $7 million in kickbacks from firms that wanted to do business with the state during Blagojevich’s tenure.” He has been in custody for about 3 1/2 years while awaiting sentencing. That sentencing was delayed while the cases against Blagojevich and several others were tried, even though Rezko was never called as a witness.

The Washington Times is now drawing attention to Hillary’s accusations against her primary opponent in 2008:

Eight years ago, it was Hillary Clinton who was accusing candidate Barack Obama of being swayed by his financial backers, including his connections with Tony Rezko, a fundraiser who was imprisoned for his role in “pay-to-play” schemes involving former Illinois Gov. Rod Blagojevich.

[…]

The last time Mrs. Clinton ran for president, her campaign was demanding more transparency in Mr. Obama’s relationship with Mr. Rezko, an Obama fundraiser who was convicted in June 2008 of charges tied to a kickback scheme involving the disgraced Blagojevich.

“We still don’t have a lot of answers about Sen. Obama and his dealings with Mr. Rezko,” Mrs. Clinton said in a 2008 interview with a television station in Washington.

In that campaign, Mrs. Clinton also strongly implied that Mr. Obama, then a U.S. senator from Illinois, was swayed in his actions in Congress by donations from the oil industry.

“Barack Obama accepted $200,000 from executives and employees of oil companies,” a narrator says in an ad from the 2008 presidential campaign. “Every gallon of gas takes three bucks from your pocket. But Obama voted for the Bush-Cheney energy bill that put $6 billion in the pocket of big oil. Hillary voted against it.”

Here’s a local news bit about the Obama-Rezko scandal back when it was breaking:

obamarezko

Bill Clinton defended his wife Wednesday regarding the fireless smoke surrounding his “charitable” organization, saying that “if there’s something wrong with creating jobs and saving lives, I don’t know what it is.”Leftist Propagandist

Hillary’s campaign spokesman Brian Fallon echoed Bill’s sentiments: “You know what? If any American voter is troubled by the idea that the Clintons want to continue to solve the AIDS crisis on the side while Hillary Clinton is president, then don’t vote for her. But I think most voters are pretty reasonable on that point.”Leftist Propagandist

Oh, please.

Tony Resko granted political favors to his business associates in exchange for kickbacks. He could have easily argued that he was only “creating jobs.” He could have said something like, “If there’s something wrong with giving back to my community, than I guess I’m ‘guilty as charged.’ I didn’t know that job-creation and taking care of other people and their families was a crime.”

The whole nature of a money-laundering scheme demands that the illicit funds hide in plain sight. You use an ostensibly legitimate organization – in this case a “charitable” foundation – to funnel your ill-gotten gains. Their “charity” has to at least have the appearance of a charity. They have to give some of their money away to various causes, making it look like any other charity.

But it doesn’t take a genius to see that the Clinton Foundation was little more than a conduit to finance the Clintons’ lifestyle.

Hillary tryant Clinton Democrat Party or a liar Never-Hillary-Egl-sm fight Picture1 true battle In God We Trust freedom combo 2

CA Democrat’s Alleged Arms Trafficking Scheme Linked to Islamist Rebels


http://www.breitbart.com/Big-Government/2014/03/26/Gun-Control-Senator-Allegedly-Tied-to-International-Weapons-Traffickers#

 The 137-page, FBI-sworn affidavit against California State Sen. Leland Yee, a Democrat who is also running for Secretary of State, and over two dozen other individuals reads like a crime thriller.

Beyond the widely reported stories of alleged wire fraud, money laundering, corruption, and bribery, the affidavit contains tales of alleged murder-for-hire plots involving a political consultant close to Yee, as well as large international weapons trafficking operations.

Indeed, while the media have fixated on the hypocrisy of a gun-control advocate–Yee sponsored legislation against detachable magazines, for example–alleged involvement in gun smuggling, few reports delve into the kind of weapons with which Yee was allegedly involved.

The FBI affidavit describes conversations about shipments of automatic weapons and talk of heavier weapons, including shoulder-fired missiles and artillery.

One arms trafficker Yee allegedly discussed sourced weapons from Russia. Another trafficker, in an alleged meeting with Sen. Yee, political consultant Keith Jackson, and the FBI informant on March 11, 2014, allegedly discussed arms to be obtained from the Philippines. The affidavit claims the arms trafficker claimed personal relationships with Islamic rebels in the Philippines, though the weapons were supposedly to be obtained from sources inside the Philippine military.

Throughout the document, a portrait emerges of a politician who is not only allegedly cavalier about campaign finance limits but who allegedly associates with violent criminals and drug traffickers.

And it is a rather sad picture: at one stage Yee allegedly confides that he does not enjoy his life and wants to live in anonymity in the Philippines.

The Los Angeles Times notes that the persona that emerges in the affidavit is a very different figure than the one Sen. Yee presented to the public: a local community leader and steadfast advocate for gun control whose efforts were nationally recognized.

The sworn testimony by FBI Special Agent Emmanuel Pascua paints Yee as a man who allegedly used corrupt relationships to finance his various campaigns and campaign debts.

Another theme throughout the affidavit is the skillful way in which the FBI manipulated the greed of some of the alleged criminals, who push each other into alleged conspiracies for fear of missing out on their own independent opportunities for self-enrichment.

Though the presumption of innocence must hold for now, the sheer scale and detail of the FBI’s work is impressive.

SEE NEWS REPORT HERE:

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Hamas-CAIR: Money Laundering Out of US Capital


http://freedomoutpost.com/2013/09/muslim-brotherhood-hamas-front-group-cair-money-laundering-us-capital/

 

By Pamela Geller

Our law firm, the American Freedom Law Center, has been engaged in a long and drawn out lawsuit against the Hamas front group, CAIR. Hamas-CAIR has been running a global criminal money laundering operation out of the nation’s capital. “The money laundering scheme was discovered in the course of legal discovery in unrelated federal litigation arising out of allegations by five of CAIR’s former clients that CAIR defrauded them by failing to provide the legal services they had been promised. (See here for the latest update in that case.”

To avoid reporting these millions of dollars from the dubious Islamist sources and to avoid registering as an agent for a foreign sovereign as required by federal law, CAIR created a separate company called CAIR-Foundation, Inc., to serve as an IRS-approved 501(c)(3) charitable organization. CAIR itself quit filing any federal tax returns from 2008-2010 and allowed the IRS to withdraw its status as a 501(c)(4), converting itself to a regular for-profit corporation. CAIR also stopped all of its operations and became simply a holding company, transferring, at least on the books, all of its employees and equipment to CAIR Foundation.

What has been revealed in discovery is devastating. I address this issue in my column today at WND, but this is the money….:

CAIR —the Largest Muslim Brotherhood-Hamas Front Group in America —is Running a Money Laundering Operation AFLC,  September 20, 2013.

The largest Muslim Brotherhood-Hamas front group in America is the Council on American-Islamic Relations (CAIR). After three years of litigation in federal court in Washington, D.C., AFLC has uncovered facts demonstrating that CAIR has been running a global criminal money laundering operation out of the nation’s capital.

The money laundering scheme was discovered in the course of legal discovery in unrelated federal litigation arising out of allegations by five of CAIR’s former clients that CAIR defrauded them by failing to provide the legal services they had been promised. (See here for the latest update in that case).

While CAIR bills itself as the nation’s largest Muslim civil rights organization, it has been named by the U.S. Department of Justice in federal litigation as a Muslim Brotherhood-Hamas front group and an unindicted co-conspirator in the Holy Land Foundation criminal trial, the nation’s largest terrorism finance prosecution to date, resulting in convictions in 2008 for all five leaders of the terrorist financing ring operating as the Holy Land Foundation Muslim charity. Prison sentences ranged from 20 years to 65 years.

As brought out in the Holy Land Foundation criminal trial, CAIR founders Nihad Awad and Omar Ahmad were participants in the conspiracy, although not formally charged. These two men formed CAIR in 1994 in an effort to create a front organization to further the Muslim Brotherhood goals in this country. But, like many criminal fronts, CAIR itself turns out to be a criminal organization.

Part of CAIR’s criminal operations included representing itself to be a public interest law firm created to protect the civil rights of Muslim Americans. In reality, however, CAIR has unlawfully employed non-lawyers to engage in legal services. In one case, CAIR employed a man by the name of Morris Days as its “Resident Attorney” who claimed to represent hundreds of CAIR clients in various state and federal litigation matters. In reality, CAIR and its “Resident Attorney” were not filing any actual lawsuits on behalf of these clients. Moreover, after the fraud was discovered, CAIR attempted to cover-up the whole affair with threats of litigation against the victims and finally with payoffs to other potential witnesses.

AFLC represents five of these former CAIR “clients” who had sought out CAIR’s legal services for various matters, including workplace discrimination, immigration, and family law matters. Three of these former CAIR clients are Muslims, including two African Americans and a Pakistani.

Specifically, in 2010, AFLC Co-Founder and Senior Counsel David Yerushalmi filed suit in federal court in Washington, D.C., against CAIR on behalf of these CAIR victims, alleging fraud, breach of fiduciary duty, and intentional infliction of emotional distress. After several years of legal discovery, which required Yerushalmi to go to court on numerous occasions to compel CAIR to turn over documents, which in turn led the court to warn CAIR’s in-house counsel, Nadhira Al-Khalili, that her conduct was unprofessional and would result in the court filing a formal Bar complaint against her if it did not cease. That case is now awaiting the court’s ruling on the extent of CAIR’s liability.

In the midst of gathering evidence to prove the plaintiffs’ case, AFLC discovered a massive criminal money laundering organization run out of CAIR’s D.C. offices. The scheme was created in 2005 by CAIR, which at the time was an IRS-approved 501(c)(4) lobbying organization. CAIR’s problem was that as a registered lobbying group it had to report to the IRS the source of funds received over $5,000. The specific problem was that CAIR was receiving millions of dollars from oil-rich Gulf Arabs, the same sources who were also financing the Muslim Brotherhood to prepare for the “Arab Spring” and even Al Qaeda operations in Iraq and Afghanistan. CAIR’s expensive headquarters in the nation’s capital was financed with a one million dollar grant from a Saudi Arabian bank. At one point, CAIR even sought one million dollars from Libya’s now dead strong man, Moamar Ghaddafi, in an effort to distribute to Muslim Americans Qurans with an Islamist translation and commentary together with Muslim Brotherhood literature.

To avoid reporting these millions of dollars from the dubious Islamist sources and to avoid registering as an agent for a foreign sovereign as required by federal law, CAIR created a separate company called CAIR-Foundation, Inc., to serve as an IRS-approved 501(c)(3) charitable organization. CAIR itself quit filing any federal tax returns from 2008-2010 and allowed the IRS to withdraw its status as a 501(c)(4), converting itself to a regular for-profit corporation. CAIR also stopped all of its operations and became simply a holding company, transferring, at least on the books, all of its employees and equipment to CAIR Foundation.

The result is that CAIR now receives millions of dollars from foreign Islamist sources every year, but only has to report the amounts of its income and not its sources. CAIR then transfers these monies to CAIR Foundation as loans or grants, and CAIR Foundation then only has to report its source as CAIR. The result is a criminal money laundering operation that allows CAIR to funnel millions of dollars from dubious foreign sources into a lobbying group fronting as a charity without the legally required disclosure of sources.

Indeed, CAIR is so brazen about its operation that it maintains only one website for CAIR, which does not even mention CAIR Foundation. In this way, CAIR receives smaller donations from presumably Muslim Americans made payable to “CAIR,” thus allowing CAIR to decide which “CAIR” will get the money. These small U.S. donations are then deposited into CAIR Foundation’s bank account, which in turn reports these small innocuous donations to the IRS. The big money transfers from the Gulf, however, are conveniently deposited in the CAIR bank account, which does not require any disclosure of the source of the funds. This presents no problem to the Gulf Islamist terror financiers because they are obviously not looking for a U.S. tax deduction. What CAIR does not explain of course is why a Gulf Arab would be transferring these kinds of sums to a holding company that has no employees or operations.

An interesting, but as yet unanswered question is why the IRS would have registered CAIR Foundation as a legitimate 501(c)(3) organization in 2005? An even more intriguing question is why, in 2012, the IRS re-registered CAIR Foundation as a legitimate 501(c)(3) charitable organization, particularly after it had lost its status because it failed to file the organization’s federal tax reports (on IRS form 990) for three consecutive years and in light of the obvious illegal use of CAIR as a money laundering front? This, at a time when the IRS was improperly holding up conservative and pro-Israel groups’ applications for the same 501(c)(3) status causes even heightened concerns.

CAIR’s criminal financial operations raise a whole host of questions the IRS and the Department of Justice should be investigating. The obvious question to be asked now is whether the IRS can get past its politically-motivated witch hunt of the Tea Party and pro-Israel groups and whether the Department of Justice will finally prosecute CAIR and its founders for their direct and indirect involvement in the material support of terrorism.

About the Author:

Pamela Geller is the founder, editor and publisher of Atlas Shrugs.com and President of the American Freedom Defense Initiative (AFDI) and Stop Islamization of America (SIOA). She is the author of The Post-American Presidency: The Obama Administration’s War on America, (foreword by Ambassador John Bolton), (Simon &Schuster). Stop the Islamization of America: A Practical Guide to the Resistance. She is also a regular columnist for World Net Daily, the American Thinker, and other publications.

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