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Shariah Finance Must-Reads

Founder of Islamic Charity Convicted of Funneling Money to Chechen Jihadists

“After a week-long trial, a federal court in Eugene, Oregon has convicted Pete Seda, the founder of an Islamic charity accused of funneling $150,000 to Chechen mujahideen.... Qur'an 9:60 makes no such distinction when discussing groups to whom zakat may be allotted, including those fighting "in the cause of Allah" (jihad fi sabil Allah).”



Jihad Watch
September 11, 2010
Eugene, OR

Islamic "charities" supporting jihadists: funny how that keeps happening. And it does because there is not the traditional separation between combatant and charitable activities in zakat as there is in the Western tradition, where charitable groups are strictly non-combatant. Rather, Qur'an 9:60 makes no such distinction when discussing groups to whom zakat may be allotted, including those fighting "in the cause of Allah" (jihad fi sabil Allah).

An update on this story, and yet another report related to the "volatile Caucasus." One can't help but wonder which attack (or attacks) in our years archived stories about the region might have been the fruits of Sedaghaty's "charity."

"Founder of Islamic Charity Convicted," from Right Side News, September 11:

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Trial Exposes Charity Abuse

“Prosecutors presented evidence showing that despite a façade of charity and moderation, al Haramain was surreptitiously funneling money out of the country and possibly into the hands of Chechen mujahideen, all under the guise of humanitarian efforts.”



The Investigative Project on Terrorism
September 8, 2010
By Stephen I. Landman

The fate of an Oregon man whose Islamic charity is accused of financing Chechen terrorists is about to be in the hands of a federal jury.

In the five years since its indictment on allegations that the al Haramain Islamic Foundation (AHF) had funneled money to Chechen rebels, Pete Seda's now-defunct organization has wrangled with government attorneys over allegations that the government conducted unlawful surveillance, seized assets without a warrant, and overstepped its authority under the Patriot Act in seeking foreign bank records. And while at its core, this is a criminal tax case against Pirouz Sedaghaty, aka Pete Seda, the outcome has broader implications for the continuing efforts to counter-terrorist financing.

But in many ways, Seda's prosecution followed a familiar script. Prosecutors presented evidence showing that despite a façade of charity and moderation, al Haramain was surreptitiously funneling money out of the country and possibly into the hands of Chechen mujahideen, all under the guise of humanitarian efforts.

Seda was charged with conspiring to move $150,000 out of the United States without declaring it, as required by federal law, and with filing false tax returns to hide the fact that the money ever existed. As numerous law enforcement officials told the jury, the path that the money took from Europe to the United States and then to the Middle East was not just suspicious, but indicative of illicit financial activity.

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The Fast-Growing "New Economy of Terror"




Australian Conservative
September 6, 2010
By Steve Barber

1. Introduction – The Importance of the ‘New Economy of Terror’

Much was written in the late 1990s and early 2000s by the world’s economic pundits regarding the vaunted “New Economy”, a phrase coined to describe either the impact of the information and communications technology revolution on the global economy, or the economic implications of the new wave of globalisation that has in recent decades swept the world. However, this process of globalisation, in conjunction with the information and communications technology revolution, together with the ‘mutation’ or ‘evolution’ of both the “global illicit trade” (Naim, 2005, p. 7) and the new era “global Salafi jihad” (Sageman, 2004, p. 1) into new decentralised, network-based forms, have all conspired to create a much more “chilling and … critical phenomenon in this period of our history – the New Economy of Terror” (Napoleoni, 2005, p. xiii).

This ‘New Economy of Terror’ is important because it represents a fast-growing international economic sub-system, which has, thanks to the historical features mentioned above, become an integral part of the global economy (at both illicit and legitimate levels), “generating vast amounts of money … with a turnover of about $1.5 trillion, twice the GDP of the United Kingdom” (Napoleoni, 2005, pp. xviii-xix) and which represents the “feeding structure which sustains and nurtures” global Islamist terror (ibid., p. xiii). It provides the links through all points on a continuum from the global illicit trade (eg., drugs and arms dealing, people smuggling and money laundering), through seemingly legitimate banks, financial structures, trusts and charities, to the actual, direct or indirect support and logistical systems for Islamist terrorist groups and cells throughout the world. In so doing, it has “devastating effects on Western business ethics … and cements the many links, and opens new ones, between the ‘New Economy of Terror’ and legal economies” (Napoleoni, 2005, p. xix).

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Terror Groups Hijack Charity Cash

The EU Terrorism report for 2010 says: “Illegal sources for the financing of terrorism cover a wide range of criminal activities including fraud, counterfeit products, drug smuggling, kidnapping, human trafficking and extortion... Alongside criminal activities, funds can also be derived from legitimate sources. Charitable organisations continue to be misused by individuals who misappropriate voluntary contributions destined for genuine purposes to fund terrorist activities.”

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Daily Express
September 5, 2010

Europol, an arm of the European Union that gathers information from national police forces, says “substantial” amounts of money innocently donated to apparently good causes is ending up in the pockets of terrorists.

Even raffles are being used to con people, Europol believes.

It is also highlighting an increasing trend by terrorists to use women. A spokesman for Europol told the Sunday Express: “Women are involved in propaganda, support and financial activities. Men are more likely to be involved in actually perpetrating violence.

“Women are also used as cash couriers and they sometimes smuggle documents and take care of administrative matters.”

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Busted - Orlando Mosque Finances Hamas Fundraiser

This video is a Must-Watch! Holy Land Foundation Court Records: ISNA and NAIT caught funding Hamas. Imam Mahdi Bray, the Executive Director of the Muslim American Society Freedom Foundation, raises tax-deductible donations for Hamas as his organization is a non-profit. George Galloway, banned from Canada, “pimping” for terror organizations. The Al-Rahman Mosque in Orlando, FL raises money for Hamas. On June 14, 2009, over $55,000 was given from the Al-Rahman Mosque to George Galloway to support Hamas.


 
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Special Thanks to:

shariahfinancewatch.org
for mining many of these articles