US arrests two in Hamas financing case

12.00pm

WASHINGTON - US officials have arrested two men whom they accuse of funneling money to the Palestinian militant group Hamas for the past 15 years, the Justice Department said.

Mohammed Hamid Khalil Salah was arrested in Chicago and Abdelhaleem Hasan Abdelraziq Ashqar in northern Virginia on Thursday.

The United States issued an arrest warrant for a third man, Mousa Mohammed Abu Marzook, who was identified as the deputy chief of Hamas' political bureau and a former US resident who lives in Syria. A Justice Department spokesman declined to say whether the United States would seek his extradition.

"The individuals named in this indictment are alleged to have played a substantial role in financing and supporting international terrorism. They are alleged to be material supporters of a foreign terrorist organization," US Attorney General John Ashcroft told a news conference.

All three were charged with the racketeering conspiracy in an indictment which also seeks forfeiture of about US$2.7 million from accounts that the defendants control. All three men were accused of using US bank accounts to launder millions of dollars to support Hamas activities.

In addition to racketeering, Salah, 51, was charged with providing material support and resources to a foreign terrorist organization and obstruction of justice. The indictment accuses him of recruiting and training new Hamas members and helping funnel money to finance the militant group's operations.

He was expected to appear on Friday before a US magistrate in Chicago.

Ashqar, 46, was also charged with obstruction of justice and contempt of court. The indictment alleges that he served as a conduit for Hamas funds and an administrator for the group. He is expected to appear on Friday before a magistrate in Alexandria, Virginia.

Marzook, 53, has lived in Louisiana and northern Virginia. Ashcroft said he currently lives in Damascus.

The State Department formally designated Hamas a "foreign terrorist organization" in 1997.

Both Marzouk and Salah have previously been listed as "specially designated terrorists" by the Treasury.

The racketeering conspiracy charge carries a maximum penalty of life in prison. Providing material support to a terrorist organization carries a maximum term of 15 years.

- REUTERS