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Charity Pleads Guilty to Violating Sanctions
A Missouri-based charity, the Islamic American Relief Agency (IARA), has pleaded guilty to violating U.S. sanctions and transferring nearly $1.4 million to Iraq.
According to a federal indictment, IARA, formerly headquartered in Columbia, Mo., conspired to transfer the funds to Iraq in violation of federal sanctions.
The charity, which served as the U.S. office of the Islamic Relief Agency (ISRA), an international organization headquartered in Khartoum, Sudan, took in between $1 million and $3 million in contributions annually from 1991 to 2003. It also received funds from the United States Agency for International Development (USAID).
IARA pleaded guilty to one count of conspiracy to violate the International Emergency Economic Powers Act, one count of conspiracy to commit money laundering and one count of obstructing the administration of internal revenue laws.
The charity admitted that it secretly funneled $1,375,000 to Iraq in violation of United States economic sanctions. President George H.W. Bush declared a national emergency with respect to Iraq in August 1990, which resulted in sanctions against sending or transferring money, funds or goods directly or indirectly to any person in Iraq or to the government of Iraq.
IARA’s Executive Director, Mubarak Hamed, was sentenced to four years and 10 months in federal prison without parole. Hamed pleaded guilty to conspiring to illegally transfer more than $1 million to Iraq in violation of federal sanctions. He also pleaded guilty to obstructing the administration of the laws governing tax-exempt charities by misusing IARA’s tax-exempt status, providing false information to the IRS, and lying to federal agents.
The charity’s fundraiser, Abdel Azim El-Siddig, was sentenced to two years of probation. El-Siddig pleaded guilty to conspiring to lobby for IARA’s removal from a Senate Finance Committee list of charities suspected of having terrorist ties, while concealing this advocacy and not registering with the proper authorities.
IARA will dissolve itself as a corporation for all time upon resolution of this case. The charity and its board of directors agree that it will not form a new corporation to conduct the activities that IARA formerly conducted.
Location: Jefferson City, MO
Date: October 21, 2008
Sentence: IARA pleaded guilty and will dissolve itself as a corporation
Dollar Amount: $1,375,000
Key Facts
- State: Missouri
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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