Saudi Charity Suspected of Aiding Terror

By WILLIAM McCALL
The Associated Press
Thursday, February 17, 2005; 10:27 PM

PORTLAND, Ore. - A U.S. arm of a large Saudi charity
suspected by the government of supporting terrorism
was indicted on fraud and tax charges, federal
prosecutors said Thursday.

The three-count indictment charges Al-Haramain Islamic
Foundation and its two officers, Pirouz Sedaghaty -
also known as Pete Seda - and Soliman Al-Buthe with
illegally sending $150,000 to Muslim fighters in
Chechnya.

The Bush administration last September designated the
charity as a group suspected of supporting terrorism
through its main location in Ashland and a mosque in
Springfield, Mo. Assets at both sites have been frozen
since last February.

Sedaghaty had been living in Dubai, United Arab
Emirates, but the whereabouts of Al-Buthe were
unknown. There was no word on any arrests.

A federal grand jury indictment Wednesday alleges an
Egyptian citizen contacted the foundation in Riyadh,
Saudi Arabia, seeking to donate money to Muslims in
Chechnya. The indictment said $150,000 was transferred
by wire to a foundation bank account in Ashland.

Al-Buthe flew from Saudi Arabia to Oregon, and then
went to an Ashland bank with Sedaghaty, where the pair
took out 130 $1,000 traveler's checks and a $21,000
cashier's check before Al-Buthe headed back overseas,
according to the indictment.

The men are charged with filing a false tax return for
2000, when Sedaghaty reported the Egyptian donor's
money was used to purchase a building in Missouri.
They are also charged with failing to acknowledge they
were transporting funds out of the United States.

"The system of charitable donations in the United
States is built on trust, honesty and integrity," U.S.
Attorney Karin Immergut said in a statement. "The
Department of Justice has a duty to investigate and
prosecute any cases where the trust is abused
criminally."

Larry Matasar, the attorney for Sedaghaty, said that
"as I've said before, Pete Seda is a man of peace. He
has consistently and actively opposed terrorism."

Matasar said the foundation's application for
incorporation in Oregon states the charity stands
against terrorism and believes such conduct is
contrary to Islamic principles.

The Saudi government dissolved Al-Haramain in June
after complaints from the United States and other
countries that it is suspected of funding the al-Qaida
terror network led by Osama bin Laden. The Saudi
government said it had no evidence the charity was
financing terrorism.

http://www.washingtonpost.com/wp-dyn/articles/A33365-2005Feb17.html?




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