Debt-financed terror

May 24, 2010

From the Fox affiliate in Kansas City on May 21:

How Did Khalid Ouazzani Raise Cash for Al-Qaida?

KANSAS CITY, MO – The Kansas City auto parts dealer who admitted funneling cash to the Al-Qaida terrorist organization used many of the same fraud techniques that others used to get cash that caused the nation’s housing crisis, an expert in white-collar crime says.

Khalid Ouazzani, 32, is accused of defaulting on home loans totaling $415,000. Prosecutors say that he bought about a dozen Kansas City properties at auction for as little as a couple of hundred dollars each, and then obtained home equity loans on the properties for much more.

It sounds very much like the typical mortgage fraud scheme that had made the news so often over the last few years, but the difference in Ouazzani’s case is that he has admitted funneling $24,000 of the cash to support the Al-Qaida terror network.

“Banks all too often are really awful at underwriting,” said William Black, an associate professor of Economics and Law at the UMKC School of Law. “When they are, they can be exploited for all kinds of evil purposes. This is one of the evil purposes.”

Black, a former financial regulator and a former director of the Institute for Fraud Prevention, calls Ouazzani one of the dumb ones. He says that the $24,000 could pay for two ” Times Square”-type attacks that terrorists tried in New York City recently.

“It’s extremely difficult to follow small amounts of money,” said Black. “Unfortunately what we’ve seen, for example in the recent attempted attack in New York, car bombing, estimates are that may have cost as little as $13,000.”

Black says that the federal government should hire more FBI agents to follow the terrorist money trail, especially as dollar amounts get smaller. He also says that cracking down on tax havens would also help, as he says that the really big bucks for terror groups like Al-Qaida come through the drug trade.

Black also says Ouazzani’s used auto parts business helped him fraudulently obtain a $175,000 loan because it’s hard to easily verify the market value of the business’ assets.

Notice that the report didn’t address why Ouazzani wanted raise money for Al Qaeda.  Could it be that he heard the words of Muhammad who said, “The warrior gets his reward, and the one who equips him gets his own reward and that of the warrior”?  Swelling the ranks of the federal workforce and cracking down on tax havens don’t address the central problem which is the Islamic-based money jihad against the West.

One comment

  1. […] turns out that busted jihadist Khalid Ouazzani wasn’t just financing Al Qaeda.  He and his associates participated in a previously undisclosed, aborted scheme to bomb […]

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