(AP) FBI agent says money never went to charities
SYRACUSE, N.Y.
A charity founded by a Muslim doctor to help poor children in Iraq sent
more than $400,000 to a clothing merchant in Jordan during its first two
years of existence, according to a federal investigator.

FBI Special Agent Jim Kolbe said no money raised by Help The Needy in
1995 and 1996 went to any charitable organizations, as contributors were
led to believe.

Instead, Kolbe told a U.S. District Court jury that all the
contributions to Help The Needy in those first two years went to
"commercial entities," including textile and electronic companies.

Dhafir, 56, of Manlius, is on trial for conspiring to violate the
then-U.S. embargo against Iraq, as well as defrauding Medicare out of
$274,000 through his former Rome oncology practice. He is also accused
of evading $400,000 in federal income tax payments by writing off the
illegal charity donations.

According to the government, Help The Needy solicited more than $5
million over the Internet and by mail between 1995 and February 2002,
claiming it would help starving and oppressed Iraqis.

However, the government says only about $160,000 made it to Iraq, even
though the charity transferred nearly $4 million from its U.S. bank
accounts to a bank in Jordan. The transfer was made under the name of
Maher Zagha, one of the Help The Needy members charged along with
Dhafir. Zagha remains a fugitive in Jordan.

Kolbe began testifying Wednesday and continued Thursday. Defense
attorney Deveraux Cannick said he would discredit Kolbe's testimony when
he cross-examines him next week when the trial resumes.

Kolbe also testified that false information appeared on the paperwork
that Help the Needy officials submitted to the government. Among them
was a phony name that Dhafir used to set up an electronic bank account
at Key Bank, Kolbe said.

Help the Needy's paperwork also included a phony Social Security number
for one officer, fake dates of birth for others, and the tax
identification number of an actual tax-exempt organization, Somali
Relief Fund of Troy, Kolbe testified. The president of that company
pleaded guilty to filing false tax documents to let Help the Needy hide
its money.

Dhafir was arrested in February 2002 in a high-profile raid, and labeled
a suspected terrorist by U.S. Attorney General John Ashcroft. The
government, however, has since backed away from linking Dhafir to
terrorism.



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