A nine-count indictment unsealed today in United States District Court for the Eastern District of New York charges Nazem Ahmad and eight co-defendants with conspiring to defraud the United States and foreign governments, evade U.S. sanctions and customs laws, and conduct money laundering transactions.
The indictment alleges that Ahmad, a Lebanese resident and dual Belgian-Lebanese citizen, was sanctioned by the United States for being a financier for Hizballah, a foreign terrorist organization, since December 2019.
Despite being sanctioned, Ahmad and his coconspirators relied on a complex web of business entities to obtain valuable artwork from U.S. artists and art galleries and to secure U.S.-based diamond-grading services, while hiding Ahmad’s involvement in and benefit from these activities.
Approximately $160 million worth of artwork and diamond-grading services were transacted through the U.S. financial system, with the government obtaining seizure warrants for millions of dollars in assets, including a diamond ring, cash in an account, and artwork.
“The United States implemented terrorism sanctions so that terrorist organizations like Hizballah would be cut off from the goods and services needed to fund violent acts of terrorism,” stated United States Attorney Breon Peace.
“Our Office will continue to prosecute individuals who evade these sanctions and thereby offer a lifeline to designated foreign terrorist organizations,” added Peace.
One defendant was arrested today in the United Kingdom at the request of the United States, while the remaining eight defendants, including Ahmad, are believed to reside outside the United States and remain at large.
“This HSI investigation speaks to the unwavering commitment of the U.S. and U.K. governments to prevent art and diamond markets from becoming a haven of illicit financial activity,” said U.S. Immigration and Customs Enforcement Deputy Director Tae D. Johnson.
The charges were announced by Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; Tae D. Johnson, U.S. Immigration and Customs Enforcement Deputy Director and Senior Official Performing the Duties of the Director; and Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement (BIS).
Ahmad was involved in real estate development, the international trade of diamonds, and the international acquisition and sale of artwork, and operated a complex web of business entities to evade U.S. sanctions and customs laws.
The charges include conspiring to defraud the United States and foreign governments, evade U.S. sanctions and customs laws, and conduct money laundering transactions, as well as multiple counts of wire fraud, money laundering, and customs law violations.
Related Federal Cases
- Wall Street Firms, Financial Malfeasance, New York NY, 2023 · Washington
- Christopher Ferguson, PPE Scam, New York NY, 2023 · New Mexico
- Christopher Ferguson, Scheme to Inflate Order Numbers, New York NY,… · Washington
- Todd Faustin, Workers’ Compensation Fraud, New York NY, 2023 · New York
- Kenneth Thom Pleads Guilty to Investment Scam, New York NY, 2026 · New York
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News