Give money to Iraq charities, go to jail

[Declan McCullagh]

NEWS RELEASE
Glenn T. Suddaby, United States Attorney for the Northern District of New 
York, announced today that OSAMEH ALWAHAIDY has entered a plea of guilty in 
U.S. District Court, Syracuse to a prosecutor's Information charging him 
with violating the International Emergency Economic Powers Act (IEEPA) by 
sending money to Iraq in violation of the sanctions imposed on that country.

In entering his guilty plea, ALWAHAIDY, age 41, Fayetteville, New York, 
admitted that he assisted others at "HELP THE NEEDY" in sending money to 
Iraq, notwithstanding his knowledge that sanctions had been imposed on that 
country since 1990 prohibiting such transactions.  Specifically, ALWAHAIDY 
admitted allowing RAFIL DAHFIR to use checks from an account on which 
ALWAHAIDY was a signatory to transfer money from HELP THE NEEDY'S account 
to the private accounts of another indicted defendant, MAHER 
ZAGHA.   ALWAHAIDY further admitted that on October 25, 1999, November 9, 
1999, and February 23, 2000, he helped transfer $20,000, $50,000, and 
$30,000 respectively to MAHER ZAGHA's business account in Jordan knowing 
those funds would be forwarded to individuals in Iraq.
ALWAHAIDY stated in the plea agreement that he believed that the money was 
intended to help needy people, especially needy people in Iraq. The 
government noted in Court, however, that the purpose of the prohibitions on 
transfers of money into Iraq is to prevent money sent for any purpose from 
being misused once in Iraq and that it's investigation into the use of that 
money once it was sent to Jordan is still under investigation.
ALWAHAIDY had previously been charged with conspiracy to violate IEEPA in 
an Indictment that was made public on February 26, 2003.  Conspiracy to 
violate IEEPA is a charge that carries a maximum possible penalty of five 
years incarceration.  As a result of today's guilty plea, ALWAHAIDY faces a 
maximum possible penalty of ten years incarceration when he is 
sentenced.  In addition, he faces a maximum possible fine of $250,000.  A 
special assessment of $100 is also mandatory in a case of this type.
The plea agreement filed today provides that the conspiracy charge pending 
against ALWAHAIDY will be dismissed at the time of his sentencing and he 
will not be furthered charged in connection with this case.  Finally, the 
plea agreement contemplates that he will cooperate with the government in 
its ongoing investigation.
The Honorable Norman A. Mordue, U.S. District Court Judge, presided over 
today's proceeding.
The entry of this plea is a result of the continuing investigation 
undertaken by agents from the Federal Bureau of Investigation; the Internal 
Revenue Service; the Social Security Administration, Office of Inspector 
General; the Defense Criminal Investigation Service; the New York State 
Police; the United States Customs Service; the Immigration and 
Naturalization Service; the U.S. Postal Service; the Department of Health 
and Human Services, Office of Inspector General; and the United States 
Marshals Service.
Although additional information concerning this case will be limited at 
this time, further inquiries can be directed to  First Assistant U.S. 
Attorney Joseph A. Pavone at (315) 448-0672.