Holy Land Foundation defendants guilty on all counts

By JASON TRAHAN and TANYA EISERER

After more than 15 years of investigation and two trials, the Holy Land Foundation and five of its former organizers were found guilty of illegally funneling more than $12 million to the Palestinian terrorist group Hamas.

The verdicts by a Dallas federal jury are a significant victory for the Justice Department, which streamlined its case after a mistrial last year and worked hard to carefully educate jurors on the complex evidence presented in the massive case.

Guilty verdicts were read on 108 separate charges.

The verdicts are a major triumph for the outgoing administration of President George W. Bush, whose efforts at fighting terrorism financing have been troubled. Two other similar high-profile prosecutions targeting supporters of Palestinian militants have ended in acquittals, deadlocked juries or convictions on lesser charges.

"Today's verdicts are important milestones in America's efforts against financiers of terrorism," Patrick Rowan, assistant attorney general for national security, said in a prepared statement.

"This prosecution demonstrates our resolve to ensure that humanitarian relief efforts are not used as a mechanism to disguise and enable support for terrorist groups."

Peter Margulies, a Roger Williams University law professor who studies terrorism financing cases, said, "The government showed in a streamlined case that where special assistance to the families of terrorists is concerned, cash is the moral equivalent of a car bomb."

The jury also said Holy Land should forfeit $12.4 million because of several money-laundering convictions in the case. Prosecutors said the government probably will end up with about $5 million in Holy Land money frozen by federal authorities in 2001.

Monday's verdicts capped the government's second attempt to convict the men and the now-defunct Richardson-based Holy Land Foundation itself. It took the jury eight days of deliberations to reach its decisions – less than half the time it took jurors to end up with an almost complete mistrial last year.

"It's a sad day," said Mohammed Wafa Yaish, Holy Land's former accountant and a defense witness. "It looks like helping the needy Palestinians is a crime these days."

Defense attorneys declined to comment but are already discussing plans for appeals.

Prosecutor Jim Jacks called his nearly decade-long involvement in the case, gratifying.

"My kids were in junior high when we started this case. They're out of college now," he said. "We had a strong case last year. This year, we refined the case. ... We had the benefit of being able to talk to the jurors after that first trial."

Opening statements at the Earle Cabell Federal Building in downtown Dallas began Sept. 22. Prosecutors used more than 500 pieces of evidence to prove five former charity organizers used Holy Land, once the largest Muslim charity in the U.S., to funnel almost $60 million to the militant group.

Hamas was designated a terrorist organization by the U.S. in 1995, and the trial centered on the $12 million the government said Holy Land and supporters funneled to the group after that date. Prosecutors say Holy Land was formed about the same time as Hamas in the late 1980s and early on was designated as its chief financier in America.

The conspiracy, prosecutors alleged, was overseen by the Muslim Brotherhood, the Egypt-based Islamist group that authorities say is the parent organization of Hamas.

Douglas Farah, a former Washington Post foreign correspondent who is now an author and terrorism expert, said the "trial provides an invaluable forum for publicly showing the true agenda of the international Muslim Brotherhood and its organizations in the United States – the abolition of the United States government as we know it and support for a designated terrorist organization."

Defense attorneys argued that the foundation was a legitimate charity that helped distressed Palestinians under Israeli occupation. They accused the government of bending to Israeli pressure and of relying on evidence predating the 1995 designation.

"The community sentiment ... was that this was a political trial trying to achieve a government policy," said Mohamed Elibiary, president of the Freedom and Justice Foundation, a Muslim group based in Plano.

"Most sense that this isn't over," he said, adding that many in the Muslim community are still offended by the government's list of more than 300 unindicted co-conspirators, which includes Muslim leaders and groups in the U.S.

"That list implicates most of the Muslim community in a wider conspiracy," he said.

The FBI's investigation of Holy Land began in 1993 and the charity was shut down by the government in December 2001. The first trial ended in a hung jury in October 2007.

Terrorism experts say Monday's verdicts demonstrate that complicated terrorism financing cases can be successfully prosecuted in American criminal courts. The verdicts also lend credibility to the Treasury Department's oft-criticized program of designating terrorist entities and freezing assets.

The verdict "sends a crystal-clear message that the United States will neither allow itself to serve as a cash cow for terrorist groups nor allow the charitable sector to be abused by groups financing terrorism under the cover of charity," said Matt Levitt, a Hamas expert and former high-ranking government intelligence official who testified in both trials.

But critics of the government noted that it took untold millions of taxpayer dollars, 15 years of investigation and two long trials to get guilty verdicts.

"Retrials tend to favor the prosecution," said Tom Melsheimer, a former federal prosecutor in Dallas now in private practice. "The government can figure out what worked and what didn't and streamline their presentation of the evidence. The defense, on the other hand, has already shown their cards.

"To spend millions of dollars in time and expenses to prosecute people who were of no real threat to anyone, under the banner of a terrorism case, is a waste of precious federal resources," he said.

Mark Briskman, regional director of the North Texas office of the Anti-Defamation League in Dallas, said funding terrorism in any form is a big threat to national security.

"By funneling millions of dollars to Hamas, this organization and its leaders believed that it could help those who resort to violence to support their cause," he said. "All Americans should thank the Justice Department for their aggressive and tenacious pursuit of this group and its leaders."