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Terror Probe Points to Va. Muslims

Local Network Provided Millions in Financing, Agency Charges

By Douglas Farah
Washington Post Staff Writer
Saturday, October 18, 2003; Page A06

A secretive group of tightly connected Muslim charities, think tanks and businesses based in Northern
Virginia were used to funnel millions of dollars to terrorists and launder millions more, according to
court records unsealed yesterday.

An affidavit from Homeland Security agent David Kane said that the Safa Group, also known as the
SAAR network, in Herndon had sent more than $26 million in untraceable money overseas and that
leaders of the organization "have committed and conspired to ... provide material support to foreign
terrorist organizations."

The probe of the Herndon groups is the largest federal investigation of terrorism financing in the world,
authorities have said. And the unsealing of Kane's report marks the first time the government has alleged
the main purpose of the Virginia organizations, set up primarily with donations from a wealthy Saudi
family, was to fund terrorism and hide millions of dollars.

Kane said the convoluted nature of the myriad financial transactions and the fact that much of the money
was sent to tax havens with bank secrecy laws make it impossible to trace the final destination of much
of the money. But he said the pattern of the money's movement, coupled with the association of leaders
of the Safa Group with suspected terrorists, were strong indicators the group was financing terrorism.

"There appears to be no innocent explanation for the use of layers and layers of transactions between
Safa Group companies and charities other than to throw law enforcement authorities off the trail," Kane
wrote.

In March 2002 federal agents raided the organization's offices on Grove Street in Herndon as well as the
homes of eight of the leaders of the group. The raids prompted widespread protest among the Muslim
community. Muslim leaders accused law enforcement officials of carrying out a witch hunt and said the
raids, in which computers and other office equipment were seized, was hurting legitimate businesses.

The 101-page affidavit was released yesterday at the request of the Wall Street Journal. The document,
which also includes several lengthy attachments, lays out the government case in detail for the first time,
including alleged financial ties going back almost two decades between the Safa Group and groups
under investigation for terrorist ties in Florida and Dallas.

Yesterday, Nancy Luque, a lawyer for many of the individuals and companies cited in the affidavit, said
the document is filled with "rank speculation by agent Kane." She said that at the time the Safa Group
began its work with the Florida and Dallas groups, they were not under investigation.

"It doesn't show that one penny went to a terrorist or a terrorist organization," she said of the affidavit.
"Given the lack of evidence of any money going to any terrorist organization, it is no wonder the
government has released this affidavit, which to me means the case is at a dead end.... They can leave
it out there to smear everyone."

http://www.washingtonpost.com/ac2/wp-dyn/A43559-2003Octl 7?language=printer 10/20/03