Terrorist links to commercial fraud in the United States.(CREDIT COLUMN)

With the ongoing investigation of the terrorist attacks worldwide, it is gradually becoming known how these barbaric operations are being financed. What seems to be clear is that terrorists and their sympathizers have long used commercial fraud in the United States to raise funds for their activities. Although no one is sure as to the extent of these schemes, a few examples illustrate their modus operandi.

The 1993 World Trade Center bombing was financed, in large part, by an elaborate coupon fraud and counterfeiting conspiracy. Mahmud Abouhalima, Ibrahim Abu-Musa and Radwan Ayoub established a network of stores in New York, New Jersey and Pennsylvania, which were later identified as having associations with persons identified as the WTC bombers.

Adnand Bahour, the nephew of George Habash (leader of the Palestinian Liberation Front), set up a fraudulent coupon distribution network through his grocery stores in the Hollywood, Florida area. Bahour was a kingpin in the national terror network creating money laundering and financing for the PLO. During the investigation and raid on the meeting hall of this network, more than 72 individuals from throughout the United States gathered in Hollywood to further their fraudulent coupon distribution network.

The Secret Service has reported that a massive credit card scam was being perpetrated by a group of Middle Easterners with affiliations to known terrorist groups. This scheme is a "Regulation Z" fraud or "Booster Check/Bust-out" scheme. The investigation revealed that a group of Middle Easterners, organized into cells located throughout the U.S., had applied for and received numerous credit cards. These cardholders systematically "boosted" the credit limits to the maximum amount available. Once they had established their portfolio of unsecured credit card debt, they submitted worthless checks as payment for these accounts in advance of purchases being made. In most cases, the checks were in amounts exceeding the cardholder's credit limits. Before the checks were returned as worthless, the cardholders purchased merchandise and obtained cash advances up to and sometimes in excess of the limits on the accounts. Losses to banks and merchants from these frauds were more than $4.5 million. Many of the fraudsters subsequently fled the country.

Several Islamic charities, which solicited funds and products from U.S. companies, are little more than fronts for terrorist organizations. Two examples of that would be the Wafa Humanitarian Organization and the Al Rashid Trust.

Numerous companies in the Middle East and elsewhere have been identified as agents for terrorists and/or states, which harbor terrorists such as Iraq and Libya. Several U.S. firms are known to have had transactions with them. For example:

* Iraqi Sanctions Regulations