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Founded in 1976, Faisal Islamic Bank of Egypt (FIBE) is part of the banking empire built by Saudi Prince Mohammed al-Faisal. Several of the founding members are leading members of the Muslim Brotherhood, including the “Blind Sheikh,” Sheikh Omar Abdul-Rahman. The growth of Islamic banking directly funds the political growth of the Islamist movement and allows the Saudis to pressure poorer Islamic nations, like Egypt, to shift their policies to the right. The Islamic banking boom is closely associated with the neoliberal free-trade philosophy of the Chicago School of Economics, with the free-trade prescriptions of the International Monetary Fund, and with conservative think-tanks like the Virginia-based Islamic Free Market Institute. FIBE is also closely associated with the infamous Bank of Credit and Commerce International (BCCI), which will be found to be deeply implicated in the illegal arms and narcotics trades, and with the funding of terrorist organizations when it collapses in 1991. Investigators will also find that BCCI held $589 million in “unrecorded deposits,” $245 million of which were placed with FIBE. [Dreyfuss, 2005, pp. 164 - 175]

Entity Tags: Operation Bright Star, Omar Abdul-Rahman, Mohammed al-Faisal al-Saud, Chicago School of Economics, Bank of Credit and Commerce International, Faisal Islamic Bank of Egypt, Muslim Brotherhood

Timeline Tags: Complete 911 Timeline

Agha Hasan Abedi.Agha Hasan Abedi. [Source: Terry Kirk / Financial Times]The Safari Club, a newly formed secret cabal of intelligence agencies (see September 1, 1976-Early 1980s), decides it needs a network of banks to help finance its intelligence operations, investigative journalist Joseph Trento will later report. Saudi Intelligence Minister Kamal Adham is given the task. “With the official blessing of George H. W. Bush as the head of the CIA, Adham transformed a small Pakistani merchant bank, the Bank of Credit and Commerce International (BCCI), into a worldwide money-laundering machine, buying banks around the world to create the biggest clandestine money network in history.” BCCI was founded in 1972 by a Pakistani named Agha Hasan Abedi, who was an associate of Adham’s. Bush himself has an account at BCCI established while he was still director of the CIA. French customs will later raid the Paris BCCI branch and discover the account in Bush’s name. [Trento, 2005, pp. 104] Bush, Adham, and other intelligence heads work with Abedi to contrive “a plan that seemed too good to be true. The bank would solicit the business of every major terrorist, rebel, and underground organization in the world. The intelligence thus gained would be shared with ‘friends’ of BCCI.” CIA operative Raymond Close works closely with Adham on this. BCCI taps “into the CIA’s stockpile of misfits and malcontents to help man a 1,500-strong group of assassins and enforcers.” [Trento, 2005, pp. 104] Soon, BCCI becomes the fastest growing bank in the world. Time magazine will describe it as not just a bank, but also “a global intelligence operation and a Mafia-like enforcement squad. Operating primarily out of the bank’s offices in Karachi, Pakistan, the 1,500-employee black network has used sophisticated spy equipment and techniques, along with bribery, extortion, kidnapping, and even, by some accounts, murder. The black network—so named by its own members—stops at almost nothing to further the bank’s aims the world over.” [Time, 7/22/1991]

Entity Tags: Raymond Close, Safari Club, George Herbert Walker Bush, Agha Hasan Abedi, Kamal Adham, Central Intelligence Agency, Bank of Credit and Commerce International

Timeline Tags: Complete 911 Timeline, War in Afghanistan

Kamal Adham.Kamal Adham. [Source: Adham Center]Beginning in 1978, a group of foreign investors attempt to buy First American Bankshares, the biggest bank in the Washington, D.C., area. This group is fronted by Kamal Adham, the longtime Saudi intelligence minister until 1979. In 1981, the Federal Reserve asks the CIA for information about the investors, but the CIA holds back everything they know, including the obvious fact that Adham was intelligence minister. As a result, the sale goes through in 1982. It turns outs that Adham and his group were secretly acting on behalf of the criminal Bank of Credit and Commerce International (BCCI), and BCCI takes over the bank. [Washington Post, 7/30/1991; US Congress, Senate, Committee on Foreign Relations, 12/1992] Time magazine will later report that “the CIA kept some accounts in First American Bank, BCCI’s Washington arm.” But additionally, “Government investigators now have proof that First American had long been the CIA’s principal banker. Some of the more than 50 agency accounts uncovered at the bank date back to the 1950s. BCCI owned the CIA’s bank for a decade.” [Time, 3/9/1992] The CIA soon learns that BCCI secretly controls the bank, if the CIA didn’t already know this from the very beginning. By 1985, the CIA will secretly inform the Treasury Department on the bank’s control by BCCI, which would be illegal. But no action is taken then or later, until BCCI is shut down. Sen. John Kerry’s BCCI investigation will later conclude, “even when the CIA knew that BCCI was as an institution a fundamentally corrupt criminal enterprise, it used both BCCI and First American, BCCI’s secretly held US subsidiary, for CIA operations. In the latter case, some First American officials actually knew of this use.” [US Congress, Senate, Committee on Foreign Relations, 12/1992]

Entity Tags: US Federal Reserve, First American Bankshares, Central Intelligence Agency, Bank of Credit and Commerce International, Kamal Adham, US Department of the Treasury

Timeline Tags: Complete 911 Timeline

By 1979, Pakistan’s economy is on the brink of collapse. Pakistan owes large debts to international organizations such as the World Bank and the International Monetary Fund (IMF), but lacks the money to pay off its loans. The criminal BCCI bank led by Agha Hasan Abedi comes up with a scheme to save Pakistan’s economy. In 1979, the IMF says that if Pakistan increases its hard currency reserves by at least $50 million for 90 days, Pakistan’s State Bank can raise the lending limits for commercial banks. With banks able to make more loans, the economy will be able to perform better. BCCI secretly loans the State Bank the hard currency until the 90 days are over and then takes it back. Having established this system, BCCI helps Pakistan’s State Bank numerous times in subsequent years to avoid financial limitations placed on Pakistan. BCCI will finally collapse in 1991 (see July 5, 1991). [Beaty and Gwynne, 1993, pp. 292-293]

Entity Tags: Bank of Credit and Commerce International, International Monetary Fund, Pakistan State Bank, World Bank

Timeline Tags: Complete 911 Timeline

Pakistani finance minister Ghulam Ishaq Khan (left) and A. Q. Khan.Pakistani finance minister Ghulam Ishaq Khan (left) and A. Q. Khan. [Source: Adrian Levy and Catherine Scott-Clarke]In 1981, the criminal BCCI bank sets up a charity called the BCCI Foundation. Pakistani Finance Minister Ghulam Ishaq Khan grants it tax-free status, and it supposedly spends millions on charitable purposes. Khan serves as the chairman of the foundation while also running the books for A. Q. Khan’s Kahuta Research Laboratories. Ghulam Ishaq Khan will be president of Pakistan from 1988 to 1993. [Levy and Scott-Clark, 2007, pp. 126-127] BCCI founder Agha Hasan Abedi announces that he will donate up to 90% of BCCI’s profits to charity through the foundation, and he develops a positive reputation from a few well-publicized charitable donations. But the charity is actually used to shelter BCCI profits. Most of the money it raises goes to A. Q. Khan’s nuclear program and not to charitable causes. For instance, in 1987 it gives a single $10 million donation to an institute headed by A. Q. Khan. Millions more go to investments in a front company owned by BCCI figure Ghaith Pharaon. [Beaty and Gwynne, 1993, pp. 290-291] An investigation by the Los Angeles Times will reveal that less than 10% of the money went to charity. [Los Angeles Times, 8/9/1991] BCCI uses other means to funnel even more money into A. Q. Khan’s nuclear program (see 1980s).

Entity Tags: Ghaith Pharaon, Bank of Credit and Commerce International, Kahuta Research Laboratories, Ghulam Ishaq Khan, Abdul Qadeer Khan, Agha Hasan Abedi, BCCI Foundation

Timeline Tags: Complete 911 Timeline, A. Q. Khan's Nuclear Network

CIA covert weapons shipments are sent by the Pakistani army and the ISI to rebel camps in the North West Frontier province near the Afghanistan border. The governor of the province is Lieutenant General Fazle Haq, who author Alfred McCoy calls Pakistani President Muhammad Zia ul-Haq’s “closest confidant and the de facto overlord of the mujaheddin guerrillas.” Haq allows hundreds of heroin refineries to set up in his province. Beginning around 1982, Pakistani army trucks carrying CIA weapons from Karachi often pick up heroin in Haq’s province and return loaded with heroin. They are protected from police search by ISI papers. [McCoy, 2003, pp. 477] By 1982, Haq is listed with Interpol as an international drug trafficker. But Haq also becomes known as a CIA asset. Despite his worsening reputation, visiting US politicians such as CIA Director William Casey and Vice President George H. W. Bush continue to meet with him when they visit Pakistan. Haq then moves his heroin money through the criminal Bank of Credit and Commerce International (BCCI). A highly placed US official will later say that Haq “was our man… everybody knew that Haq was also running the drug trade” and that “BCCI was completely involved.” [Scott, 2007, pp. 73-75] Both European and Pakistani police complain that investigations of heroin trafficking in the province are “aborted at the highest level.” [McCoy, 2003, pp. 477] In 1989, shortly after Benazir Bhutto takes over as the new ruler of Pakistan, Pakistani police arrest Haq and charge him with murder. He is considered a multi-billionaire by this time. But Haq will be gunned down and killed in 1991, apparently before he is tried. [McCoy, 2003, pp. 483] Even President Zia is implied in the drug trade. In 1985, a Norwegian government investigation will lead to the arrest of a Pakistani drug dealer who also is President Zia’s personal finance manager. When arrested, his briefcase contains Zia’s personal banking records. The manager will be sentenced to a long prison term. [McCoy, 2003, pp. 481-482]

Entity Tags: Bank of Credit and Commerce International, Muhammad Zia ul-Haq, Central Intelligence Agency, Pakistan Directorate for Inter-Services Intelligence, Fazle Haq, William Casey, George Herbert Walker Bush, Pakistani Army

Timeline Tags: Complete 911 Timeline, War in Afghanistan

According to Alfred W. McCoy, author of The Politics of Heroin, in 1983 Pakistani President Muhammad Zia ul-Haq allows Pakistani drug traffickers to deposit their drug profits in the BCCI bank without getting punished. The criminal BCCI bank has close ties to the Pakistani government and the US funding of the Afghan war. It will be shut down in 1991. BCCI also plays a critical role in facilitating the movement of Pakistan’s heroin money. By 1989, Pakistan’s heroin trade will be valued at $4 billion a year, more than all of Pakistan’s legal exports. [McCoy, 2003, pp. 480]

Entity Tags: Muhammad Zia ul-Haq, Alfred McCoy, Bank of Credit and Commerce International

Timeline Tags: Complete 911 Timeline

By 1984, huge amounts of arms and ammunition for the mujaheddin fighting the Soviets in Afghanistan are pouring into Pakistan. These weapons are funded by the CIA and Saudi government, and generally come into the port of Karachi. The criminal BCCI bank has an enforcement arm nicknamed the “Black Network.” Time magazine reporters Jonathan Beaty and S.C. Gwynne will later describe it as “a Karachi-based cadre of bank operatives, paramilitary units, spies, and enforcers who handled BCCI’s darkest operations around the globe and trafficked in bribery and corruption.” By 1984, BCCI and its Black Network takes effective control of Karachi’s port, dominating Pakistan’s customs service there with bribery and intimidation. BCCI is thus in a position to dominate the flow of supplies to the mujaheddin. Pakistan’s military handles the flow of weapons from Karachi to the Afghan border, but once there the supplies have to be carried by mules to reach the mujaheddin fighting in remote Afghan mountain ranges. BCCI controls this part of the supply chain as well. Sometimes BCCI personnel simply transport the supplies across Afghanistan to Iran and then sell them there for a profit. [Beaty and Gwynne, 1993, pp. 66, 315-316] The US government is aware of BCCI’s support role and cooperates with it. For instance, in 1987 USAID asks BCCI to buy 1,000 more mules to help the mujaheddin. [Los Angeles Times, 9/3/1991] At almost every step of the way, BCCI takes a cut of the profits and often steals some of the supplies. [Beaty and Gwynne, 1993, pp. 66, 315-316]

Entity Tags: Black Network, Bank of Credit and Commerce International, Central Intelligence Agency, USAID

Timeline Tags: Complete 911 Timeline, War in Afghanistan

In January 1985, the CIA delivers a secret report about the criminal BCCI back to the Treasury Department. In an extraordinary departure from standard procedure, the report is hand-delivered by a CIA agent and printed on plain paper with no markings to indicate it came from the CIA. The report is given to Douglas Mulholland, a Treasury official serving as the CIA’s main link to that department. Mulholland then hand-delivers the report to Treasury Secretary Donald Regan, and calls its contents “dynamite.” It is not known what is in the report, but the Treasury Department sends back word that it wants to know more. However, as Time magazine reporters Jonathan Beaty and S. C. Gwynne will later relate: “Suddenly, and for no apparent reason, Treasury lost all interest in BCCI.… Someone had… gotten to Regan and Mulholland, and the message had been unambiguous: back off.” The Treasury Department takes no action against BCCI, even though the evidence of the bank’s involvement in money laundering by this time is overwhelming. [Beaty and Gwynne, 1993, pp. 325-328]

Entity Tags: Central Intelligence Agency, Douglas Mulholland, US Department of the Treasury, Donald Regan

Timeline Tags: Complete 911 Timeline

Wreckage from the Gander crash.Wreckage from the Gander crash. [Source: Canadian Broadcasting Corporation]Shortly after takeoff from Gander, Newfoundland, Arrow Air Flight 1285 stalls and crashes about half a mile from the runway. All 256 passengers and crew on board are killed, including 248 US soldiers. The plane was coming from Egypt and refueling in Newfoundland before continuing on to the US. The crash will initially be widely reported to have been an accident, caused by icing on the airplane wings. Official US and Canadian investigations will also support this conclusion. However, information will later come out suggesting it was not an accident:
bullet Members of Islamic Jihad, a branch of the Hezbollah militant group (not to be confused with the Islamic Jihad group headed by Ayman al-Zawahiri), immediately take credit for the crash. In one call to the Reuters news agency in Beirut, the caller knows details of the plane flight not yet mentioned in the press.
bullet Within hours of the crash, Major General John Crosby arrives at the crash site and reportedly tells maintenance workers he wants to “bulldoze over the crash site immediately.” The White House also quickly publicly claims there is “no evidence of sabotage or an explosion in flight,” despite the fact that Hezbollah has just taken credit for the crash and the investigation is just beginning. While the site is not bulldozed, there is no effort to meticulously sift the wreckage for clues, which is standard procedure for such air crashes.
bullet An FBI forensic team flies to Newfoundland within hours of the crash, but then merely sits in a hotel room. After 36 hours, the team accepts a declaration that terrorism was not involved and returns home. The FBI will claim the Canadian government did not allow its team to visit the site. [Time, 4/27/1992]
bullet In 1988, the nine-member Canadian Aviation Safety Board will issue a split verdict. Five members will attribute the crash to ice formation and four members will claim it was the result of an explosion. A former Canadian Supreme Court justice will be appointed to decide if there should be a new investigation. He will conclude that the available evidence does not support ice on the wings as being a cause, let alone a probable cause, of the crash. But he will also rule against a new investigation, saying it would cause more pain to the victims’ families. [Time, 4/27/1992; Canadian Broadcasting Corporation, 12/12/2005]
bullet Later declassified autopsy reports will show that soldiers had inhaled smoke in the moments before they died, indicating there was a fire on board before the plane hit the ground. [Canadian Broadcasting Corporation, 12/12/2005]
bullet Five witnesses in the remote location where the plane crashes will sign sworn statements that they saw the plane burning before it fell.
bullet An examination of the fuselage will show outward holes, indicating an explosion from within.
bullet Four members of the refueling crew will assert there was no icing problem before the plane took off. The plane crashed about one minute after take off.
bullet Six heavy crates were loaded into the plane’s cargo bay in Egypt without military customs clearance. Witnesses will claim that weapons, including TOW anti-tank missiles, were being stockpiled in Egypt near where the plane took off. At the time, the US was secretly selling these types of missiles to Iran as part of an arms-for-hostages deal.
bullet In the wake of public exposure of the Iran-Contra affair, it will be revealed that Arrow Air is a CIA front company and was regularly used by Lieutenant Colonel Oliver North to ship arms.
bullet Most of the crash victims are US Airborne troops returning from multinational peacekeeping duties in Egypt, but more than 20 Special Forces personnel were also on board. They were from elite counterterrorist units often used on hostage rescue missions.
bullet Just days before the crash, Iranian officials threatened to retaliate after North sent them a shipment of the wrong missiles. North wrote three days earlier that he was determined to continue arms shipments. “To stop now in midstream would ignite Iranian fire,” he wrote, adding, “Hostages would be our minimum losses.” One theory will be that Iran used militant surrogates connected to Hezbollah to punish North for sending the wrong missiles. [Time, 4/27/1992]
bullet Gene Wheaton, a private investigator hired by victims’ relatives unsatisfied with the official explanation, will claim that a duffel bag stuffed with US currency was found in the wreckage. Two men in civilian clothes, who other personnel at the crash cite believe were from the CIA, took custody of the money. Neither the money nor the heavy crates will be mentioned by the official investigation.
bullet In the early 1990s, two Time magazine reporters will be writing a book about the BCCI bank scandal. They will develop a reliable source, a private arms dealer using the alias Heinrich. Heinrich will tell them that a large amount of cash was on the Gander flight and he will tell them this before any accounts of cash being on the plane are reported in the media. Heinrich, who takes part in numerous arms deals with high-level BCCI officials, will tell the reporters: “This money on the plane was money that [BCCI founder Agha Hasan] Abedi, money that the bank had provided US intelligence for covert operations. The money was being used by the American military. I have no idea what for. You don’t ask these kinds of questions of these people.…. One of the bank men—perhaps I should call him an associate of the bank men—was a little angry about this money. He believed it was being, ah, appropriated, by some of the Special Forces soldiers. Someone else thought perhaps it was being diverted to another operation. I only know that the subject of the Gander crash came up and these people talked about BCCI money going down with it.” [Beaty and Gwynne, 1993, pp. 231-233]

Entity Tags: Federal Bureau of Investigation, “Heinrich”, Agha Hasan Abedi, Central Intelligence Agency, Oliver North, Bank of Credit and Commerce International, Hezbollah, Islamic Jihad Organization, Gene Wheaton, John Crosby

Timeline Tags: Complete 911 Timeline, Iran-Contra Affair

Months before the National Security Council (NSC)‘s Oliver North sets up his network to illegally divert funds from Iranian arms sales to the Nicaraguan Contras (see December 6, 1985 and April 4, 1986), the NSC uses the Bank of Credit and Commerce International (BCCI—see July 22, 1991) to channel money to the Contras. This money is sent from White House-controlled funds to Saudi Arabia to “launder” its origins, then deposited into a BCCI bank account controlled by Contra leader Adolfo Calero. [Time, 7/22/1991]

Entity Tags: Reagan administration, Adolfo Calero, Bank of Credit and Commerce International, Oliver North, National Security Council, Contras

Timeline Tags: Iran-Contra Affair

By 1987, Abu Nidal is the world’s most well-known terrorist. His group has killed over 300 people. But in 1987 his attacks generally come to a halt. A French intelligence report in 1988 explains this is because Middle Eastern governments begin paying large sums of protection money in order not to be attacked. For instance, the government of Kuwait deposits $80 million into Nidal’s BCCI bank account in London in 1987. Kuwait will later deny the payments took place, but counterterrorism experts will dismiss the denials and say that such payments to Nidal were common. In 1988, the Defense Department will conclude that one third of Nidal’s money comes from his own businesses (he is an illegal arms dealer), one third from Arab governments, and one third from various blackmail schemes. Most of these transactions, including Nidal’s arms dealing transactions, are made through Nidal’s BCCI bank account in London, and US and British intelligence has been monitoring his account there since at least 1986 (see 1984 and After). But apparently they merely gather information and make little attempt to shut down Nidal or his finances. Nidal will eventually close out his London accounts in 1990. [Wall Street Journal, 8/9/1991; Los Angeles Times, 9/30/1991] Nidal will finally be murdered in mysterious circumstances in Iraq in August 2002. He will apparently stop his attacks around 1994. [Guardian, 8/20/2002]

Entity Tags: UK Secret Intelligence Service (MI6), UK Security Service (MI5), Bank of Credit and Commerce International, Abu Nidal, Abu Nidal Organization, Central Intelligence Agency, Kuwait

Timeline Tags: Complete 911 Timeline

The CIA sets a trap to catch operatives connected to Pakistan’s nuclear weapons program who are buying components in the US, but “two high-ranking US officials extremely close to the White House” tip off Pakistan and only a minor player is caught. Initially, a Pakistani businessman contacts a Pennsylvania company called Carpenter Steel and asks to buy a specific type of metal used only in constructing centrifuges to enrich uranium. The Department of Energy learns of the contact and informs Richard Barlow, a CIA analyst focused on Pakistan’s nuclear program. Barlow realizes that both the businessman, Arshad Pervez, and his handler, Inam ul-Haq, a retired brigadier in the Pakistani army, are well-known Pakistan government operatives. Barlow and US Customs set up a sting at a bugged hotel room, but Pervez arrives without ul-Haq, the main target. Barlow then finds that the officials have tipped off Pakistan, even though the information about the operation was closely held (see Mid-1986 and After). Barlow finds cables implicating the two high-ranking officials in the tip-off: Robert Peck, Deputy Assistant Secretary of State of Near East Affairs, and another official at the under secretary level. A trail of paperwork definitively proves sabotage within the State Department and the tip-off is found “buried within the lawyerly language of a demarche to Islamabad, subtly phrased so as to protect those who had sent it.” Barlow will later comment: “The CIA went mad. These were criminal offenses.” However, the State Department argues an inquiry would disclose state secrets and the investigation is abandoned, just before President Ronald Reagan again certifies that “Pakistan does not possess a nuclear explosive device.” There will later be a stormy congressional hearing about the affair (see July 1987 or Shortly After). [New Yorker, 3/29/1993; Levy and Scott-Clark, 2007, pp. 169; Guardian, 10/13/2007] Ul-Haq will later be arrested in Germany and extradited to the US, but he will only serve a very short sentence. His nuclear transactions in the US will also be linked to the criminal BCCI bank (see July 11, 1991).

Entity Tags: US Department of State, Robert Peck, Arshad Pervez, Richard Barlow, Central Intelligence Agency, Office of Scientific and Weapons Research (CIA), Inam ul-Haq, Pakistan

Timeline Tags: A. Q. Khan's Nuclear Network

1988: Bin Ladens Bail Out George W. Bush?

Bush during his Harken days.Bush during his Harken days. [Source: Lions Gate Films]Prior to this year, President George W. Bush is a failed oilman. Three times, friends and investors have bailed him out to keep his business from going bankrupt. However, in 1988, the same year his father becomes president, some Saudis buy a portion of his small company, Harken, which has never performed work outside of Texas. Later in the year, Harken wins a contract in the Persian Gulf and starts doing well financially. These transactions seem so suspicious that the Wall Street Journal in 1991 states it “raises the question of… an effort to cozy up to a presidential son.” Two major investors in Bush’s company during this time are Salem bin Laden and Khalid bin Mahfouz. Salem bin Laden dies in a plane crash in Texas in 1988. [Intelligence Newsletter, 3/2/2000; Salon, 11/19/2001] Salem bin Laden is Osama’s oldest brother; Khalid bin Mahfouz is a Saudi banker with a 20 percent stake in BCCI. The bank will be shut down a few years later and bin Mahfouz will have to pay a $225 million fine (while admitting no wrongdoing) (see October 10, 2001)). [Forbes, 3/18/2002]

Entity Tags: George W. Bush, Salem bin Laden, Khalid bin Mahfouz, Harken

Timeline Tags: Complete 911 Timeline

US Justice Department headquarters.US Justice Department headquarters. [Source: GlobeXplorer]Sen. John Kerry (D-MA) stumbles across the criminality of the Bank of Credit and Commerce International (BCCI) while investigating international drug trafficking as part of a congressional oversight committee. He soon starts a vigorous congressional investigation of BCCI, and New York district attorney Robert Morgenthau launches a vigorous investigation as well. [New York Times, 7/29/1991] However, Kerry’s and Morgenthau’s investigations are consistently stifled. Kerry will later say that, “with the key exception of the Federal Reserve, there was almost [no]… information or cooperation provided by other government agencies.” [US Congress, Senate, Committee on Foreign Relations, 12/1992] Kerry will later conclude that the Justice Department in particular went to great lengths to block his and Morgenthau’s investigations “through a variety of mechanisms, ranging from not making witnesses available, to not returning phone calls, to claiming that every aspect of the case was under investigation in a period when little, if anything was being done.” After the Bank of England shuts down BCCI in July 1991 (see July 5, 1991), making big headlines, Under Assistant Attorney General Robert Mueller takes over Justice Department efforts on BCCI and assigns many new attorneys to the case. But Kerry will ultimately conclude that the indictments the Justice Department brings forth against BCCI after that time were narrower and less detailed than those of Morgenthau’s, and often seemed to be in response to what Morgenthau was doing. [US Congress, 12/1992] Kerry submits his report on BCCI in December 1992, and after that investigations into BCCI peter out. President Bush will appoint Mueller to be director of the FBI shortly before 9/11 (see September 4, 2001).

Entity Tags: Robert Morgenthau, John Kerry, Bank of Credit and Commerce International, Robert S. Mueller III, US Department of Justice

Timeline Tags: Complete 911 Timeline

William von Raab.William von Raab. [Source: Sobran.com]In 1991, the Financial Times will report, “[T]here are persistent allegations that slush funds [at the criminal BCCI bank] were used for illegal, covert CIA operations.” US Customs Commissioner William von Raab will later allege that in the autumn of 1988, as he is preparing arrests regarding drug money laundering charges against a BCCI subsidiary in Florida, he approaches CIA Deputy Director Robert Gates for help. Gates does give Raab a CIA document about BCCI. But, according to the Times, “Gates failed to disclose the CIA’s own use of BCCI to channel payments for covert operations, which the customs chief learned about only later—and thanks to documents supplied to him by British customs agents in London.” The Times will cite the Iran-Contra arms-for-hostages scandal as one example of how the CIA used BCCI for covert operations. [Financial Times, 8/10/1991]

Entity Tags: William von Raab, Central Intelligence Agency, Bank of Credit and Commerce International, Robert M. Gates

Timeline Tags: Complete 911 Timeline, Iran-Contra Affair

Khalid bin Mahfouz.Khalid bin Mahfouz. [Source: CBC]Shortly after 9/11, the London Times will report that Osama bin Laden stayed at the London estate of Saudi billionaire Khalid bin Mahfouz. “Sources close to the bin Mahfouz family say that about 10 years ago, when bin Laden was widely regarded as a religious visionary and defender of the Muslim faith, he visited the property and spent ‘two or three days’ on the estate, relaxing in its open-air swimming pool, walking in the grounds and talking to bin Mahfouz. What the men discussed remains a mystery.” Bin Mahfouz was a major investor in the criminal Bank of Credit and Commerce International (BCCI), which is closed down around this time (see July 5, 1991). [London Times, 9/23/2001] Bin Laden was also heavily invested in BCCI at the time (see July 1991). There are other reports of bin Laden visiting London around this time (see Early 1990s-Late 1996), and even briefly living there (see Early 1994). The name “bin Mahfouz” appears on the “Golden Chain,” a list of early al-Qaeda financial supporters (see 1988-1989). Bin Mahfouz denies any terrorist link to bin Laden.

Entity Tags: Khalid bin Mahfouz, Osama bin Laden, Bank of Credit and Commerce International

Timeline Tags: Complete 911 Timeline

In March 1991, Sen. John Kerry’s Senate investigation of the criminal Bank of Credit and Commerce International (BCCI) investigation hears about a secret CIA report on BCCI that was given to the Customs Service. Kerry’s office asks the CIA for a copy, but is told the report does not exist. After months of wrangling, more and more information about the CIA’s ties to BCCI comes out, and the CIA eventually gives Kerry that report and many other reports relating to BCCI. But crucially, the CIA does not share documents on CIA operations using the bank. Kerry’s public report will conclude, “Key questions about the relationship between US intelligence and BCCI cannot be answered at this time, and may never be.” [Nation, 10/26/1992; US Congress, Senate, Committee on Foreign Relations, 12/1992]

Entity Tags: Bank of Credit and Commerce International, Central Intelligence Agency, John Kerry

Timeline Tags: Complete 911 Timeline

BCCI logo.BCCI logo. [Source: BCCI]In early 2001, anonymous US officials will say that when the notorious Bank of Credit and Commerce International (BCCI) is shut down in July 1991 (see July 5, 1991), Osama bin Laden suffers a heavy blow because he has put much of his money in the bank and he loses everything he invested there. As a result, he begins to launder money from the drug trade to make up for the lost revenue. He cooperates with Afghan warlord Gulbuddin Hekmatyar, who is already diverting profits from the Afghan drug trade to help finance Islamic terrorist movements. Others claim bin Laden begins his involvement with the drug trade several years later. [United Press International, 3/1/2001] It also seems that bin Laden’s financial network eventually grows to at least partly replace the role of BCCI for Islamist militant financing (see After July 1991).

Entity Tags: Gulbuddin Hekmatyar, Osama bin Laden, Bank of Credit and Commerce International

Timeline Tags: Complete 911 Timeline

July 5, 1991: Criminal BCCI Bank Is Shut Down

A Time magazine cover story on BCCI.A Time magazine cover story on BCCI. [Source: Time Magazine]The Bank of England shuts down Bank of Credit and Commerce International (BCCI), the largest Islamic bank in the world. Based in Pakistan, this bank financed numerous militant organizations and laundered money generated by illicit drug trafficking and other illegal activities, including arms trafficking. Bin Laden and many other militants had accounts there (see July 1991). [Detroit News, 9/30/2001] One money-laundering expert later claims, “BCCI did dirty work for every major terrorist service in the world.” [Los Angeles Times, 1/20/2002] Regulators shut down BCCI offices in dozens of countries and seize about $2 billion of the bank’s $20 billion in assets. BCCI is the seventh largest bank in the world. Sheikh Zayed bin Sultan Al Nahyan, the President of the United Arab Emirates (UAE), owns 77% of the bank at the time of its closing. He and the UAE government will end up losing about $8 billion. About 1.4 million people had deposits in the bank and will end up losing most of their money. [Levy and Scott-Clark, 2007, pp. 98-99] American and British governments were aware of its activities yet allowed the bank to operate for years. The Pakistani ISI had major connections to the bank. [Detroit News, 9/30/2001] The Bank of England is forced to close BCCI largely because of outside pressure. Beginning in February 1991, the mainstream media began reporting on BCCI’s criminal activities as more and more whistleblowers came forward. [Levy and Scott-Clark, 2007, pp. 95] However, as later State Department reports indicate, Pakistan remains a major drug trafficking and money-laundering center despite the bank’s closing. [Detroit News, 9/30/2001] Most of the bank’s top officials will escape prosecution, and remnants of the bank will continue operating in some countries under new names (see August 1991). A French intelligence report in 2001 will suggest the that Osama bin Laden will later build his financial network on the ruins of the BCCI network, oftentimes using former BCCI officials (see October 10, 2001). [Washington Post, 2/17/2002]

Entity Tags: Central Intelligence Agency, Osama bin Laden, Pakistan Directorate for Inter-Services Intelligence, Bank of Credit and Commerce International, Bank of England, Zayed bin Sultan Al Nahyan

Timeline Tags: Complete 911 Timeline

On July 11, 1991, retired Pakistani Brigadier General Inam ul-Haq is arrested by German authorities in Frankfurt. His arrest sheds light on the links between the criminal BCCI bank, the Pakistani government, and the A. Q. Khan nuclear network. In 1987, US intelligence attempted to arrest ul-Haq in the US for buying nuclear components there meant for Pakistan’s nuclear program, but some US officials tipped off the Pakistani government about the sting and only a low-level associate of ul-Haq’s was caught (see Before July 1987). [Wall Street Journal, 8/5/1991] The CIA had long known that ul-Haq was one of A. Q. Khan’s key procurement agents, in addition to being close to the Pakistani ISI. [Levy and Scott-Clark, 2007, pp. 161] Ul-Haq’s arrest comes just one week after BCCI was shut down worldwide, and he seems linked to that bank as well. In the sting four years before, the Luxembourg and London branches of BCCI helped finance a shipment of nuclear materials out of the US. Shortly after his arrest, Senator John Glenn (D-OH) says that BCCI involvement in his could be a “smoking gun” for US investigators to learn how Pakistan’s nuclear program was financed. [Wall Street Journal, 8/5/1991] Ul-Haq is extradited to the US and convicted in 1992 of attempting to export nuclear related materials to Pakistan. He could have been sentenced to 10 years in prison and a $500,000 fine, but the judge merely sentences him to time served (several months in prison) and a $10,000 fine. [Levy and Scott-Clark, 2007, pp. 228]

Entity Tags: Inam ul-Haq, Bank of Credit and Commerce International, Abdul Qadeer Khan, Central Intelligence Agency, Pakistan Directorate for Inter-Services Intelligence

Timeline Tags: Complete 911 Timeline, A. Q. Khan's Nuclear Network

According to investigators working with Iran-Contra special prosecutor Lawrence Walsh (see December 19, 1986), the Iran-Contra affair is closely linked to the burgeoning scandal surrounding the Bank of Credit and Commerce International (BCCI—see Shortly After September 1, 1976, 1978-1982, 1981-1991, 1981-1983, 1984-1986, January 1985, December 12, 1985, February 1988-December 1992, March 1991-December 1992, and July 5, 1991.) Former government officials add that the CIA kept secret funds hidden in BCCI accounts, and used the monies to fund covert operations in Nicaragua and elsewhere. Investigators confirm that a US defense intelligence organization used BCCI to maintain a secret “slush fund” for financing covert operations. And, months before National Security Council (NSC) official Oliver North set up his network for diverting funds to the Contras (see December 6, 1985 and April 4, 1986), the NSC used BCCI to divert funds to the Contras (see Early 1986). [Time, 7/22/1991]

Entity Tags: Central Intelligence Agency, Bank of Credit and Commerce International, Oliver North, National Security Council, Lawrence E. Walsh, Contras

Timeline Tags: Iran-Contra Affair

Ghaith Pharaon.Ghaith Pharaon. [Source: Mike Stephens / Getty Images]In the wake of the July 1991 shutdown of the criminal BCCI bank (see July 5, 1991), the Pakistani government indicates that it is willing to shelter BCCI figures wanted in other countries. For instance, an international arrest warrant is issued for BCCI front man Ghaith Pharaon, and Pakistan has signed an extradition treaty with the US and other countries. But in August 1991, Pakistani Interior Minister Shujaat Hussain, who has authority to block extraditions, states flatly that Pharaon is his friend and he will give him citizenship, protection from extradition, and even immunity from local prosecution. Furthermore, the Los Angeles Times reports that some other senior and mid-level BCCI managers being investigated in the US have already fled to Pakistan. Technically, BCCI is not a Pakistani bank, but 10,000 out of BCCI’s estimated 12,000 employees are Pakistani. The Times reports that Hussain has made clear that “BCCI’s blameless and blamed alike can find shelter from investigations into the bank’s conduct in any of the more than 70 countries where it operated.” Asked if Pakistan would extradite BCCI founder Agha Hasan Abedi, Hussein flatly states, “We will not allow it.” Furthermore, BCCI’s offices remain open in Pakistan and the government has stated that it will not investigate the bank. [Los Angeles Times, 8/12/1991] A majority of the bank is owned by Sheik Zayed bin Sultan al-Nahayan, President of the United Arab Emirates (UAE), and the UAE similarly indicates that it will not extradite any of the 18 top BCCI managers living there. The UAE is also sitting on most of BCCI’s financial records. [Time, 8/3/1992] BCCI branches in the UAE are not shut down either, but are simply renamed to become the National Union Bank. [BBC, 8/5/1991] Many years later, Pakistan will still be protecting BCCI figures such as Pharaon (see June 8-August 10, 2006 and June 8-August 10, 2006).

Entity Tags: Bank of Credit and Commerce International, Zayed bin Sultan Al Nahyan, Shujaat Hussain, Agha Hasan Abedi, Ghaith Pharaon

Timeline Tags: Complete 911 Timeline

The dead body of Daniel Casolaro, a journalist investigating the Inslaw affair and matters he believed to be related, is found in a hotel room in Martinsburg, West Virginia. The body is found in the bathtub with both of its wrists slashed several times. There is no sign of forced entry into the hotel room nor of a struggle. A short suicide note is found. The police initially think the death is a suicide and the scene is not sealed and protected, which, according to the House Judiciary Committee, “potentially allow[s] for the contamination of the possible crime scene.” In addition, the room is reportedly cleaned before a thorough criminal investigation can be conducted. A brief preliminary investigation leads the police to confirm their initial suspicion of suicide. Casolaro’s work on a story about the alleged theft of an enhanced version of PROMIS software by the Justice Department from Inslaw had led him to believe that it was related to other scandals, such as those involving the Bank of Credit and Commerce International (BCCI) and Iran-Contra. Casolaro had told his family and friends that he was going to Martinsburg to meet a source who had important information, although the source’s identity is unknown. Following his death, all Casolaro’s notes and papers disappear. A stack of typed pages that usually sat on top of his desk at home vanish. In addition, notes Casolaro always kept with him disappear. His brother Anthony will later say that he finds the disappearance of all the papers surprising. “Somebody cleaned out his car and his room,” Anthony will say. “If my brother did that [killed himself], it seems as though [his papers] should have been found.” [US Congress, 9/10/1992]

Entity Tags: Anthony Casolaro, Daniel Casolaro

Timeline Tags: Inslaw and PROMIS

Former Drug Enforcement Agency (DEA) agent Lester Coleman submits a sworn affidavit to a court hearing the dispute between Inslaw and the Justice Department about the alleged theft of PROMIS software.
PROMIS Allegedly Provided to Middle Eastern Countries - Coleman says that in spring 1988 he worked with a DEA proprietary company in Nicosia, Cyprus. He found that the DEA was using the company to sell computer software called “PROMISE” or “PROMIS” to drug abuse control agencies in Cyprus, Pakistan, Syria, Kuwait, and Turkey. Coleman claims to have seen reels of computer tapes and computer hardware being unpacked at the Nicosia Police Force Narcotics Squad. The boxes allegedly bore the name and red logo of a Canadian corporation with the words “PROMISE” or “PROMIS” and “Ltd.” According to Coleman, the DEA’s objective in aiding the implementation of this system in these countries was to enhance the United States’ ability to access sensitive drug control law enforcement and intelligence files. Coleman adds that a DEA agent was responsible for both the propriety company, Eurame Trading Company, Ltd., and its initiative to sell “PROMIS(E)” computer systems to Middle Eastern countries.
Apparent Link to Case against Michael Riconosciuto - Coleman also says he believed the agent’s reassignment in 1990 to a DEA intelligence position in Washington State prior to the arrest of Michael Riconosciuto in March 1991 on drug charges was more than coincidental. Riconosciuto has also made a number of claims about PROMIS. According to Coleman, the agent was assigned to Riconosciuto’s home state to manufacture a case against him. Coleman says this was done to prevent Riconosciuto from becoming a credible witness concerning the US government’s covert sale of PROMIS to foreign governments.
Meeting with Danny Casolaro - Coleman also says he was contacted by the reporter Danny Casolaro on August 3, 1991. Casolaro apparently told him he had leads and hard information about (1) Justice Department groups operating overseas, (2) the sale of the “PROMIS(E)” software by the US government to foreign governments, (3) the Bank of Credit and Commerce International (BCCI), and (4) the Iran-Contra scandal.
Mentioned by House Committee in Report - These charges will be mentioned in the House Judiciary Committee’s final report on the Inslaw affair, but the committee will not endorse them. [US Congress, 9/10/1992]
Later Conviction for Perjury - Coleman will later admit fabricating a claim that a secret drug sting enabled terrorists to evade airport security in the bombing of Pan Am Flight 103, which was blown up over Lockerbie, Scotland, in 1988. Pleading guilty to five counts of perjury, he will say he lied for a variety of reasons: to obtain money, to evade pending federal charges that he filed a false passport application, to enhance his status as a consultant on international security and terrorism, and to get back at the United States Drug Enforcement Administration for firing him. [New York Times, 9/12/1997]

Entity Tags: Lester Coleman, House Judiciary Committee, Daniel Casolaro, Eurame Trading Company, Ltd., Michael Riconosciuto

Timeline Tags: Inslaw and PROMIS

French intelligence secretly monitors a meeting of Saudi billionaires at the Hotel Royale Monceau in Paris this month with the financial representative of al-Qaeda. “The Saudis, including a key Saudi prince joined by Muslim and non-Muslim gun traffickers, [meet] to determine who would pay how much to Osama. This [is] not so much an act of support but of protection—a payoff to keep the mad bomber away from Saudi Arabia.” [Palast, 2002, pp. 100] Participants also agree that Osama bin Laden should be rewarded for promoting Wahhabism (an austere form of Islam that requires literal interpretation of the Koran) in Chechnya, Kashmir, Bosnia, and other places. [Fifth Estate, 10/29/2003 pdf file] This extends an alleged secret deal first made between the Saudi government and bin Laden in 1991. Later, 9/11 victims’ relatives will rely on the “nonpublished French intelligence report” of this meeting in their lawsuit against important Saudis. [Star-Tribune (Minneapolis), 8/16/2002] According to French counterterrorism expert Jean-Charles Brisard and/or reporter Greg Palast, there are about 20 people at the meeting, including Saudi intelligence head Prince Turki al-Faisal, an unnamed brother of bin Laden, and an unnamed representative from the Saudi Defense Ministry. [Fifth Estate, 10/29/2003 pdf file; Canadian Broadcasting Corporation, 10/29/2003] Palast will claim that Saudi businessman Abdullah Taha Bakhsh attends the meeting. Bakhsh saved George W. Bush’s Harken Oil from bankruptcy around 1990. Palast will claim the notorious Saudi billionaire Adnan Khashoggi also attends the meeting. [Democracy Now!, 3/4/2003; Santa Fe New Mexican, 3/20/2003] In a somewhat tongue-in-cheek manner, Slate will claim that Khashoggi is a “shadowy international arms merchant” who is “connected to every scandal of the past 40 years.” Amongst other things, he was a major investor in BCCI and a key player in the Iran-Contra affair. [Slate, 12/4/2000; Slate, 11/14/2001; Slate, 3/12/2003] Palast, noting that the French monitored the meeting, will ask, “Since US intelligence was thus likely informed, the question becomes why didn’t the government immediately move against the Saudis?” [Palast, 2002, pp. 100]

Entity Tags: Al-Qaeda, Greg Palast, Turki al-Faisal, Abdullah Bakhsh, Adnan Khashoggi, France

Timeline Tags: Complete 911 Timeline

William Bergman.William Bergman. [Source: Publicity photo]An unexplained significant increase in the amount of US currency in circulation causes one economist to later consider whether some individuals might have had foreknowledge of the impending September 11 attacks. Between June and August 2001, the currency component of the “M1 aggregate”—which includes currency in circulation and demand deposits—reported by the US Federal Reserve, increases by the greatest amount over the June-August period since 1947, the first year for which this data is reported. [Sanders Research Associates, 9/16/2005; Devine and Miles, 1/20/2006 pdf file] Economist William Bergman, who works at the Federal Reserve Bank of Chicago from 1990 to 2004, will later point out: “The August increase alone was the third largest single monthly increase since 1947, trailing only December 1999 (with pre-Y2K concern as well as terrorism threats) and January 1991 (the onset of US military action in Iraq, and an important enforcement month in the BCCI money laundering scandal).… The above-average growth in currency in July and August 2001 totaled over $5 billion.” Bergman will suggest the spike in currency growth might indicate some people possessing foreknowledge of the 9/11 attacks: “[A]nyone mindful that their financial assets might be seized or otherwise at risk after the attacks converted their bank accounts to a more liquid asset before the attacks.” He will explain: “Under money laundering and other laws, including those applied in a time of war or a declared national emergency, assets in the banking system can be frozen and seized. The implied incentives help explain a related phenomenon called ‘wartime hoarding.’ Historically, in wartime, currency in circulation outside of banks has tended to rise relative to other forms of money like bank deposits.… Was ‘wartime hoarding’ at work right before 9/11? The conversion of bank accounts into currency could have been responsible for the surge in currency in July and August 2001.” A less sinister alternative explanation for the currency surge might possibly be the currently deteriorating banking conditions in Argentina. [Sanders Research Associates, 1/4/2006] There is also a high level of fear within the US government and intelligence community around this time, about the threat in general of an imminent terrorist attack (see Summer 2001, June-July 2001, June 28, 2001, and June 28, 2001). As the Government Accountability Project will in 2006 write: “The [Federal Reserve’s] failure to date to publicly address the growth in currency in mid-2001 is conspicuous. If a benign explanation exists, or if for whatever reasons the currency growth is irrelevant, the Fed should say so publicly, and explain why this is the case. A failure to do so raises… troubling questions.” [Devine and Miles, 1/20/2006 pdf file] Also around this time, on August 2, 2001, the Federal Reserve Board of Governors issues—without explanation—a letter to Federal Reserve banks, which emphasizes the importance of monitoring suspicious activity reports (see August 2, 2001). [Spillenkothen, 8/2/2001]

Entity Tags: US Federal Reserve, William Bergman

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Robert Mueller assumes the job of FBI Director. He had been nominated for the job in July 2001 after Louis Freeh’s unexpected and sudden resignation (see May 1, 2001). Thomas Pickard was interim director for three months. Mueller held a variety of jobs in the Justice Department for over a decade prior to his nomination. Most notably, he led Justice Department investigations into the 1991 collapse of the Bank of Credit and Commerce International (BCCI) (see July 5, 1991) and the 1988 bombing of Pan-Am Flight 103 over Lockerbie, Scotland. [BBC, 7/5/2001; CNN, 9/5/2001] Mueller was heavily criticized for his role in the BCCI investigation (see February 1988-December 1992). For instance, a bipartisan Congressional BCCI investigation led by Senators John Kerry (D-MA) and Hank Brown (R-CO) stated, “Unfortunately, as time has passed it has become increasingly clear that the Justice Department did indeed make critical errors in its handling of BCCI… and moreover masked inactivity in prosecuting and investigating the bank by advising critics that matters pertaining to BCCI were ‘under investigation,’ when in fact they were not” and also “[hindered] other legitimate investigative efforts, and [failed] to admit that it had made any of these mistakes.” [US Congress, 12/1992] Mueller himself noted in 1991 that there was an “appearance of, one, foot-dragging; two, perhaps a cover-up,” but denied the cover-up claims. A Wall Street Journal editorial notes that “Even George W. Bush bumped up against the outer fringes of the BCCI crowd during his tenure with Harken Energy and in his friendship with Texas entrepreneur James Bath,” and opines, “On general principles, our view is that it would be a mistake to appoint as FBI head anyone who had any role in the failed BCCI probe. Too many important questions remain unanswered…” [Wall Street Journal, 6/26/2001]

Entity Tags: Thomas Pickard, Louis J. Freeh, Federal Bureau of Investigation, Robert S. Mueller III

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

A 70-page French intelligence report claims: “The financial network of [Osama] bin Laden, as well as his network of investments, is similar to the network put in place in the 1980s by BCCI for its fraudulent operations, often with the same people (former directors and cadres of the bank and its affiliates, arms merchants, oil merchants, Saudi investors). The dominant trait of bin Laden’s operations is that of a terrorist network backed up by a vast financial structure.” The BCCI was the largest Islamic bank in the world before it collapsed in July 1991 (see July 5, 1991). A senior US investigator will later say US agencies are looking into the ties outlined by the French because “they just make so much sense, and so few people from BCCI ever went to jail. BCCI was the mother and father of terrorist financing operations.” The report identifies dozens of companies and individuals who were involved with BCCI and were found to be dealing with bin Laden after the bank collapsed. Many went on to work in banks and charities identified by the US and others as supporting al-Qaeda. About six ex-BCCI figures are repeatedly named, including Saudi multi-millionaire Ghaith Pharaon (see October 10, 2001). The role of Saudi billionaire Khalid bin Mahfouz in supporting bin Laden is emphasized in the report. In 1995, bin Mahfouz paid a $225 million fine in a settlement with US prosecutors for his role in the BCCI scandal. [Washington Post, 2/17/2002] Bin Laden lost money when BCCI was shut down, but may have benefited in the long term as other militants began relying on his financial network instead of BCCI’s (see July 1991 and After July 1991). Representatives of bin Mahfouz will later argue that this report is false and was in fact prepared by Jean-Charles Brisard and not the French intelligence service. Bin Mahfouz has begun libel proceedings against Mr. Brisard, claiming that he has made unfounded and defamatory allegations, and denies that he has ever supported terrorism. [Kendall Freeman, 5/13/2004 pdf file]

Entity Tags: Jean-Charles Brisard, Ghaith Pharaon, Khalid bin Mahfouz, Al-Qaeda, Bank of Credit and Commerce International, Osama bin Laden

Timeline Tags: Complete 911 Timeline

Talat Othman.Talat Othman. [Source: Hanania]In the wake of the Operation Greenquest raid on the SAAR network (see March 20, 2002), disgruntled Muslim-American leaders meet with Treasury Secretary Paul O’Neill to complain about the raid. At the time, the Treasury Department had control over the Customs Department, which ran Greenquest. The meeting is arranged by prominent Republican activist Grover Norquist. About a dozen leaders are asked to attend the meeting. O’Neill pledges to look into concerns the leaders have about the raid. [Wall Street Journal, 4/18/2002; Harper's, 3/2004] Those who meet with O’Neill include:
bullet Khaled Saffuri. He is head of the Islamic Institute, a group he co-founded with Norquist to organize conservative Muslims (see 1998-September 2001). The institute accepted $20,000 in donations from the Safa Trust, which was targeted in the raid. The Safa Trust in turn has been funded by Youssef Nada, who had his assets frozen shortly after 9/11 on suspicion on funding al-Qaeda (see November 7, 2001). The institute also received donations from Abdurahman Alamoudi, another target of the raid who will later receive a long prison term (see October 15, 2004). [Wall Street Journal, 4/18/2002; Harper's, 3/2004]
bullet Talat Othman. The Wall Street Journal calls him “a longtime associate and supporter of President Bush’s family who gave a benediction at the Republican National Convention in Philadelphia in August 2000.” He serves on the board of Amana Mutual Funds Trust, an investment firm founded by Yaqub Mirza, the director of most of the organizations targeted in the raid. Amana was not a target of the raid, but two other organization that were raided held large blocks of shares in Amana’s mutual funds. Othman claims to know Mirza only slightly. Othman is also on the board of Saffuri’s Islamic Institute. Further, Othman served on the board of Harken Energy in the late 1980s and early 1990s, at the same time that President Bush did. At the time, Othman represented Saudi businessman Abdullah Bakhsh on Harken Energy’s board, and the investments through Bakhsh were considered essential in saving Harken from bankruptcy. Bakhsh has indirect connections to the notorious criminal bank BCCI (see July 5, 1991), and in 1996 reputedly attended a secret meeting with al-Qaeda representatives, where the attendees agreed to pay al-Qaeda many millions of dollars of protection money (see May 1996). [Wall Street Journal, 12/6/1991; Wall Street Journal, 4/18/2002] Bakhsh will head a subsidiary of Halliburton, the oil services company formerly run by Vice President Cheney. Othman reportedly remains a friend of Bush. [Harper's, 3/2004] Harper’s magazine will note that “large sums of money from the suspect groups have moved through Amana, [yet] Greenquest agents chose not to raid the firm,” and will hint that political influence from Othman and others may have saved Amana from being raided. [Harper's, 3/2004]

Entity Tags: Talat Othman, Grover Norquist, Khaled Saffuri, SAAR Foundation, Operation Greenquest, Islamic Institute, Paul O’Neill

Timeline Tags: Complete 911 Timeline

Deena Burnett, wife of Flight 93 passenger Tom Burnett, speaks on behalf of the victims’ relatives suing the Saudis.Deena Burnett, wife of Flight 93 passenger Tom Burnett, speaks on behalf of the victims’ relatives suing the Saudis. [Source: Associated Press]More than 600 relatives of victims of the 9/11 attacks file a 15-count, $1 trillion lawsuit against various parties they accuse of financing al-Qaeda and Afghanistan’s former Taliban regime. The number of plaintiffs will quickly increase to 2,500 after the suit is widely publicized. Up to 10,000 were eligible to join this suit. The lawsuit does not allege that Saudi defendants directly participated in the 9/11 attacks, or approved them. Instead, it is alleged they helped fund and sustain al-Qaeda, which enabled the attacks to occur. [Washington Post, 8/16/2002; Newsweek, 9/13/2002] Defendants named include:
bullet The Saudi Binladin Group, the conglomerate owned by the bin Laden family. [CNN, 8/15/2002]
bullet The National Commercial Bank, one of the largest banks in Saudi Arabia. [Associated Press, 8/15/2002]
bullet The government of Sudan, for letting bin Laden live in that country until 1996. [Washington Post, 8/16/2002]
bullet The World Assembly of Muslim Youth (WAMY). [Washington Post, 8/16/2002]
bullet The SAAR Foundation. [Washington Post, 8/16/2002]
bullet Al-Rajhi Banking & Investment Corp., which the plaintiffs contend is the primary bank for a number of charities that funnel money to terrorists. (This bank will later be dismissed from the suit (see November 14, 2003-September 28, 2005).) [Washington Post, 8/16/2002]
bullet The Benevolence International Foundation. [Washington Post, 8/16/2002]
bullet The International Islamic Relief Organization (IIRO) and its parent organization, the Muslim World League (MWL). The suit claims that the IIRO gave more than $60 million to the Taliban. [Washington Post, 8/16/2002]
bullet Khalid bin Mahfouz, one-time prominent investor in the Bank of Credit and Commerce International (BCCI) who had to pay a $225 million fine following the collapse of that bank. It is claimed he later operated a bank that funneled millions of dollars to charities controlled by al-Qaeda. (Mahfouz denies supporting terrorism and has filed a motion to dismiss the complaint.) [Washington Post, 8/16/2002]
bullet Mohammed al Faisal al Saud, a Saudi prince. (His name will later be dismissed from the suit because of diplomatic immunity (see November 14, 2003-September 28, 2005).) [Washington Post, 8/16/2002]
bullet Saudi Defense Minister Prince Sultan. (His name will later be dismissed from the suit because of diplomatic immunity (see November 14, 2003-September 28, 2005).) [Washington Post, 8/16/2002]
bullet Prince Turki al-Faisal, former chief of Saudi intelligence. (His name will later be dismissed from the suit because of diplomatic immunity (see November 14, 2003-September 28, 2005).) [Washington Post, 8/16/2002] “The attorneys and investigators were able to obtain, through French intelligence, the translation of a secretly recorded meeting between representatives of bin Laden and three Saudi princes in which they sought to pay him hush money to keep him from attacking their enterprises in Saudi Arabia.” [CNN, 8/15/2002] The plaintiffs also accuse the US government of failing to pursue such institutions thoroughly enough because of lucrative oil interests. [BBC, 8/15/2002] Ron Motley, the lead lawyer in the suit, says the case is being aided by intelligence services from France and four other foreign governments, but no help has come from the Justice Department. [Star-Tribune (Minneapolis), 8/16/2002] The plaintiffs acknowledge the chance of ever winning any money is slim, but hope the lawsuit will help bring to light the role of Saudi Arabia in the 9/11 attacks. [BBC, 8/15/2002] A number of rich Saudis respond by threatening to withdraw hundreds of billions of dollars in US investments if the lawsuit goes forward (see August 20, 2002). More defendants will be added to the suit later in the year (see November 22, 2002). [Daily Telegraph, 8/20/2002]

Entity Tags: Saudi Binladin Group, Sudan, Taliban, SAAR Foundation, Sultan bin Abdul Aziz Al Saud, Ron Motley, International Islamic Relief Organization, Khalid bin Mahfouz, Al-Qaeda, National Commercial Bank, Al-Rajhi Banking & Investment Corp., Turki al-Faisal, World Assembly of Muslim Youth, Benevolence International Foundation

Timeline Tags: Complete 911 Timeline, 9/11 Timeline

Ghaith Pharon’s yacht, photographed in 2005.Ghaith Pharon’s yacht, photographed in 2005. [Source: Yachtmati]The FBI and Italian paramilitary police raid a luxury yacht owned by Saudi multimillionaire Ghaith Pharaon, but do not find him. Since 1991, there has been an international arrest warrant for Pharaon due to his prominent role in the criminal BCCI bank. Shortly after 9/11, a French intelligence report linked him to Osama bin Laden (see October 10, 2001). Pharaon’s yacht was raided off the coast of Sicily. The yacht was not seized. Despite being wanted for 15 years, Pharaon has managed to continue to run a large business empire. The FBI describes Pharaon as extremely wealthy with “numerous contacts within governments around the world.” [ndependent, 8/16/2006] On August 10, 2006, the FBI puts out an all points bulletin for Pharaon. [ABC News, 8/10/2006] A Middle Eastern newspaper notes that, “In the past few years, Pharoan’s super yacht—which he named Le Pharaon after himself—has repeatedly been seen moored alongside luxury yachts of the rich and famous.” In June 2005, it was seen moored next to the personal yacht of Saudi King Abdullah in a Greek port. Two years earlier, it was seen parked next to another Saudi royal family super yacht near Beirut. [Khaleej Times, 6/13/2006] But there has been no reported word on him since, and the FBI has taken the webpage about him off their website.

Entity Tags: Ghaith Pharaon, Osama bin Laden, Federal Bureau of Investigation, Bank of Credit and Commerce International

Timeline Tags: Complete 911 Timeline

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