WASHINGTON – The U.S. Division of Homeland Safety and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Safety Investigations (HSI), alongside companions with the U.S. Departments of Justice, Commerce, Treasury, and State introduced as we speak a number of worldwide actions towards Nazem Ahmad, a person sanctioned by the USA below the International Terrorism Sanctions Laws (GTSR) for his involvement with the terrorist group Hizballah, in addition to towards a number of different people concerned in Ahmad’s world felony group, that utilized an online of companies to learn Ahmad and helped him to proceed to supply Hizballah entry to U.S. and worldwide monetary markets.
A nine-count indictment was unsealed as we speak in United States District Court docket for the Jap District of New York charging Ahmad and eight co-defendants for conspiring to defraud the USA and overseas governments, evade U.S. sanctions and customs legal guidelines, and conduct cash laundering transactions by securing items and companies for the good thing about Ahmad, a Lebanese resident and twin Belgian-Lebanese citizen who was sanctioned by the USA for being a financier for Hizballah, a overseas terrorist group.
Regardless of being sanctioned and prohibited from partaking in transactions with U.S. individuals since December 2019, Ahmad and his coconspirators relied on a fancy internet of enterprise entities to acquire precious paintings from U.S. artists and artwork galleries and to safe U.S.-based diamond-grading companies all whereas hiding Ahmad’s involvement in and profit from these actions. Roughly $160 million value of paintings and diamond-grading companies have been transacted by means of the U.S. monetary system. One defendant was arrested as we speak in the UK, and the eight remaining defendants, together with Ahmad, are believed to reside outdoors the USA and stay at massive. The federal government obtained seizure warrants for hundreds of thousands of {dollars} in belongings that embody a diamond ring, money in an account, and paintings.
“The worldwide actions we’re saying as we speak towards Nazem Ahmad for his involvement with the terrorist group Hizballah ought to function a reminder that the U.S. authorities and our allies will tirelessly prosecute those that are sanctioned for illicitly financing terrorist actions,” mentioned Deputy Secretary of Homeland Safety John Okay. Tien. “I’m very proud to not solely share the outcomes of this investigation into the Ahmad felony group but in addition acknowledge the excellent worldwide and interagency collaboration that led to this second.”
“This HSI investigation speaks to the unwavering dedication of the U.S. and U.Okay. governments to stop artwork and diamond markets from turning into a haven of illicit monetary exercise,” mentioned ICE Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson. “I commend HSI and our investigative companions for his or her dedication in seeing this investigation by means of – over a few years – to substantial actions. We are going to make the most of each device at our disposal to dismantle these illicit networks.”
“The USA carried out terrorism sanctions in order that terrorist organizations like Hizballah can be lower off from the products and companies wanted to fund violent acts of terrorism,” mentioned U.S. Lawyer Breon Peace for the Jap District of New York. “As alleged, Nazem Ahmad and his co-defendants benefitted from the multi-million-dollar commerce in diamonds and paintings even after Ahmad was sanctioned for his involvement with a terrorist group. Our workplace will proceed to prosecute people who evade these sanctions and thereby provide a lifeline to designated overseas terrorist organizations.”
As well as:
- The U.S. Division of Treasury’s Workplace of Overseas Belongings Management (OFAC) introduced extra and expanded sanctions towards Ahmad’s community of people and entities chargeable for facilitating the circulation of cash to Hizballah.
- The U.S. Division of State introduced that it was highlighting Nazem Ahmad below its present Rewards for Justice reward provide for info on Hizballah’s monetary mechanisms.
- Regulation enforcement companions in the UK arrested a person on U.S.-based fees arising out of that particular person’s involvement with Ahmad and his felony community.
- Regulatory companions in the UK introduced sanctions towards Ahmad and co-conspirators for his or her involvement in financing Hizballah.
“The funding of overseas terrorist organizations like Hizballah is against the law, no matter whether or not that funding comes within the type of money or the export of high-priced diamonds and artwork,” mentioned Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “We’re proud to have partnered with DOJ and HSI to convey this important enforcement motion.”
“Hizballah depends on financing and facilitation networks like these of Nazem Ahmad, a outstanding Hizballah cash launderer, financier, diamond seller, and artwork collector, to maintain operations and launch assaults globally. It earns nearly one billion {dollars} yearly by means of direct monetary assist from Iran, worldwide companies and investments, donor networks, corruption, and cash laundering actions. Till Hizballah ceases to make use of terrorism and violence to attain its targets, the USA will aggressively goal the group’s terrorism management, infrastructure, and financial-support networks,” mentioned U.S Division of State’s Deputy Assistant Secretary and Assistant Director of the Diplomatic Safety Service for Menace Investigations and Evaluation, Paul Houston. “That is why the Division of State’s Rewards for Justice Program is highlighting a standing $10 million reward provide for info resulting in the disruption of the monetary mechanisms of Hizballah and particularly searching for info on the monetary community of Nazem Ahmad.”
Forty years in the past, on April 18, 1983, Hizballah coordinated an assault on the U.S. Embassy in Beirut, Lebanon, killing 63 folks, together with 17 Americans. No American diplomatic publish had ever confronted such a lethal assault. Hizballah’s assault that day was the start of a cascade of terror. Six months later, on Oct. 23, 1983, an assault on U.S. and French navy personnel left greater than 300 useless. And, in September 1984, an assault on the U.S. Embassy annex in East Beirut killed dozens extra, together with two U.S. navy members.
Nazem Ahmad, a person concerned in actual property improvement, the worldwide commerce of diamonds and the worldwide sale and acquisition of paintings, can also be a long-time affiliate of high-level members of Hizballah, lots of whom themselves have been sanctioned by the USA. On or about Dec. 13, 2019, OFAC designated AHMAD as a Specifically Designated Nationwide (SDN) for his materials assist of and provision of products and companies to Hizballah. Amongst different issues, OFAC famous that “As of late 2016, Ahmad was thought-about a serious Hizballah monetary donor who laundered cash by means of his corporations for Hizballah and offered funds personally to Hizballah Secretary-Common Hassan Nasrallah (Nasrallah).”
Ahmad leveraged a world community of companies, financial institution accounts, educated accountants, and corrupt patronage methods to illicitly procure high-value items, promote them for revenue, and finally launder proceeds, to learn Ahmad’s lavish life-style and in blatant violation of the sanctions imposed towards Ahmad for his function as a Hizballah financier. He additionally orchestrated customs fraud, tax evasion, and smuggling of products.
After Ahmad was sanctioned, entities managed by or working for the good thing about Ahmad have been chargeable for importing greater than $207 million of products into the USA and exporting greater than $234 million of products from the USA between about December 2019 and December 2022, consisting primarily of diamonds and paintings. Ahmad and his co-conspirators additionally engaged in roughly $160 million value of transactions that concerned the U.S. monetary system. Greater than $6 million of the proceeds of this felony scheme have been transferred to Lebanon to be used by Ahmad and his associates throughout this time-frame.
This investigation was a collaboration between HSI Cedar Rapids, New York, Cultural Property Artwork and Antiquities Program and Commerce Transparency Unit, which was made doable by means of assist from HSI Chicago, Dallas, Houston, Kansas Metropolis, Los Angeles, Raleigh, St. Paul, and Santa Rosa. HSI Attaché places of work in Africa, Asia, Europe, and the Center East performed crucial roles within the investigation. The Division of Commerce, Bureau of Business and Safety and U.S. Customs and Border Safety have been additionally key investigative companions.
HSI is the principal investigative arm of DHS, chargeable for investigating transnational crime and threats, particularly these felony organizations that exploit the worldwide infrastructure by means of which worldwide commerce, journey, and finance transfer. HSI’s workforce of greater than 8,700 staff consists of greater than 6,000 particular brokers assigned to 237 cities all through the USA, and 93 abroad places in 56 nations. HSI’s worldwide presence represents DHS’s largest investigative legislation enforcement presence overseas and one of many largest worldwide footprints in U.S. legislation enforcement.