THE MANIPULATOR.(a critical look at the history and investigation of Ahmad Chalabi's role in the decision by the U.S. to invade Iraq)

The New Yorker's complete coverage of the conflict in Iraq

Ahmad Chalabi, the wealthy Iraqi Shiite who spent more than a decade working for the overthrow of Saddam Hussein, prides himself on his understanding of the United States and its history. "I know quite a lot about it," he told me not long ago. It was after midnight in Baghdad, but he was still in his office in the new headquarters of the Iraqi National Congress, the exile opposition group that Chalabi helped found in 1992. As a young man, he said, he spent several years in America, earning an undergraduate and a master's degree in mathematics from M.I.T., and a Ph.D. in mathematics from the University of Chicago. Chalabi began studying the uses of power in American politics, and the subject developed into a lifelong interest. One episode in American history particularly fascinated him, he said. "I followed very closely how Roosevelt, who abhorred the Nazis, at a time when isolationist sentiment was paramount in the United States, managed adroitly to persuade the American people to go to war. I studied it with a great deal of respect; we learned a lot from it. The Lend-Lease program committed Roosevelt to enter on Britain's side--so we had the Iraq Liberation Act, which committed the American people for the liberation against Saddam." The act, which Congress passed in 1998, made "regime change" in Iraq an official priority of the U.S. government; Chalabi had lobbied tirelessly for the legislation.

Three days after our conversation, Chalabi's Baghdad home was raided at gunpoint by Iraqi police, who were supported by American troops. His offices were also searched. Chalabi had sensed that a confrontation with the Bush Administration was imminent. As he put it, "It's customary when great events happen that the U.S. punishes its friends and rewards its enemies." For years, he had been America's staunchest Iraqi ally, and he had helped the Bush Administration make its case against Saddam, in part by disseminating the notion that the Baathist regime had maintained stockpiles of biological and chemical weapons, and was poised to become a nuclear power. Although Chalabi developed enemies at the C.I.A. who disputed his intelligence data and questioned his ethics, he forged a close bond with Vice-President Dick Cheney and many of the top civilians at the Pentagon, such as Deputy Secretary of Defense Paul Wolfowitz, Under-Secretary of Defense Douglas Feith, and Under-Secretary of Defense William J. Luti. Yet now that the occupation of Iraq appeared to be headed toward disaster, he said, many in the Administration had united in making him the scapegoat. As Chalabi saw it, he had understood America too well, and had been too successful in influencing its foreign policy. "There is a smear campaign that says I am responsible for the liberation of Iraq," he said. Then he added with a chuckle, "But how bad is that?"

Between 1992 and the raid on Chalabi's home, the U.S. government funnelled more than a hundred million dollars to the Iraqi National Congress. The current Bush Administration gave Chalabi's group at least thirty-nine million dollars. Exactly what the I.N.C. provided in exchange for these sums has yet to be fully explained. Chalabi defined his role simply. "I clarified the picture," he said. His many critics, however, believe that he distorted it. Diplomatic and intelligence officials accuse him of exaggerating the security threat that Iraq posed to the U.S.; supplying defectors who offered misleading or bogus testimony about Saddam's efforts to acquire nuclear, biological, and chemical weapons; promoting questionable stories connecting Saddam to Al Qaeda; and overestimating the ease with which Saddam could be replaced with a Western-style democracy.

Vincent Cannistraro, a former C.I.A. counter-terrorism specialist who now consults for the government, told me, "With Chalabi, we paid to fool ourselves. It's horrible. In other times, it might be funny. But a lot of people are dead as a result of this. It's reprehensible."

The humiliating raid on Chalabi's home was authorized by the White House, as was a recent decision, by the Defense Department, to eliminate an I.N.C. stipend of three hundred and forty-two thousand dollars per month. Chalabi's allies at the Pentagon were not notified of the raid in advance, although some knew that it was under consideration. The raid took place amid allegations that Chalabi or other members of the I.N.C. had engaged in numerous misdeeds, including embezzlement, theft, and kidnapping. After Baghdad police began investigating these charges, several of Chalabi's top lieutenants fled Iraq.

One of them, Aras Karim Habib, the I.N.C.'s intelligence chief, escaped just before the serving of an arrest warrant. He is under investigation for passing classified U.S. government information to Iran--a member of what President Bush calls "the axis of evil." According to a Chalabi aide, the I.N.C. has heard that it will be accused of telling Iran's intelligence service that the U.S. had cracked one of its internal codes. Chalabi has denied any wrongdoing, and claims that the spying charge is politically motivated. "They are charges put out by George Tenet and his C.I.A. to discredit us," he told Tim Russert, on "Meet the Press, " referring to the C.I.A.'s director. Meanwhile, according to Cannistraro, two Pentagon officials connected to Chalabi are being investigated by the F.B.I., to determine whether an American official gave Chalabi classified intelligence on Iran.