The Fraud Case against CAIR Advances
The Federal District Court in Washington, DC today ruled in favor of five African American and Pakistani American Muslims seeking damages from the Council American Islamic Relations, (CAIR) for committing fraud. Judge Paul Friedman of the DC District Court ruled against dismissal of an action brought by Muslim plaintiffs against CAIR, a Muslim brotherhood front and one of several unindicted co-conspirators in the Federal Dallas Holy Land Foundation Trial.
An earlier RICO action brought against CAIR by the same plaintiffs was rejected by the federal court in DC on technical grounds although it acknowledged that fraud was committed by CAIR.
A Center for Security Policy news release noted today’s important ruling;
Federal judge Paul Friedman in the U.S. District Court in the District of Columbia has denied a motion to dismiss complaints by five former clients of the Council on American-Islamic Relations (CAIR).
CAIR had adivsked federal court judge Paul L. Friedman to dismiss the fraud cases on several grounds, but the judge refused CAIR’s request in its entirety. (Judge Friedman did dismiss one duplicative claim of consumer fraud based on D.C. law because he allowed an identical claim under Virginia law, ruling that Virginia law applied in the case).
The five former clients had earlier this year filed two separate lawsuits in federal court alleging common law and statutory fraud, breach of fiduciary duty, and intentional infliction of emotional distress against CAIR, a self-described Muslim public interest civil rights law firm. These two lawsuits follow an earlier lawsuit which had also alleged that CAIR’s fraudulent conduct amounted to racketeering, a federal RICO crime. In that case, the court dismissed the RICO counts concluding that CAIR’s conduct as alleged was fraudulent but not a technical violation of RICO.
The two new federal civil complaints were filed in the federal district court for the District of Columbia on January 6, 2010, and served on January 13, 2010. CAIR filed its motion to dismiss on February 26, 2010, and the matter was fully briefed by May 15, 2010.
In November, 2008, we published the factual background for these fraud cases brought against CAIR in an article, “Is CAIR’s 2010 Strategy Plan a Fiasco?” The article concerned the discovery of incriminating CAIR documents by intrepid undercover investigator, David Gaubatz, co-author of Muslim Mafia.
A recent example of this was the disclosure of fraud committed by the CAIR’s Maryland/Virginia chapter.
A press release issued by the Mapping Sharia project on September 3, 2008 headlined “CAIR Threatens Muslims With $25,000 Penalty If They Reveal CAIR Cover-up of Morris Days’ Criminal Fraud.” The release went on to note:
Council on American Islamic Relations (CAIR), a self-described public interest civil rights law firm, may have engaged in criminal fraud. Mapping Sharia calls for a full investigation by the appropriate government agencies. The victims of this fraud may also be due compensation for their losses and suffering.
Reliable sources have produced solid information that Morris Days, the Manager for Civil Rights at the CAIR MD/VA chapter, who was widely publicized by CAIR as one of its civil rights attorneys, was in fact not an attorney, and failed to provide services for Muslim American clients who came to CAIR for assistance and who paid for Days’ services. Not only has CAIR not revealed the facts about Days and his fraudulent, criminal behavior, but as of yesterday, September 2, 2008, the CAIR National office in Washington, D.C. continued to post articles at its website naming Days as an attorney. This amounts to a de facto cover-up of CAIR’s involvement in this criminal affair and a perpetuation of the fraud with CAIR’s assistance.
At the same time that CAIR promoted Days as a lawyer while knowing he was not, it continued to solicit donations for its “legal” representation of Muslims in civil rights cases. Prospective plaintiffs, who may have been victimized by CAIR’s fraud in the Morris Days affair, as well as any donors to CAIR who feel they have donated to CAIR under false pretenses thinking it was a legitimate and law abiding public interest law firm, should recognize that CAIR controls an extensive real estate asset portfolio, either owned directly by CAIR or by CAIR related companies. These assets are attachable and fair game for damages claims. A list of those assets, estimated at a fair market value between $6.6 million and $10 million.
What was unusual about these allegations is that they were brought to Gaubatz and colleagues by disaffected Muslim Americans, the victims of the alleged criminal fraud.
The Mapping Sharia press release went on to reveal the extensive disaffection within CAIR:
Officials who have left their positions at CAIR in the last year include Ahmed Bedier (ex-Director, CAIR Florida chapter), Parvez Ahmed (ex-Board Chairman, CAIR national office), Khalid Iqbal (ex-Director of Operations, CAIR national office and ex-Executive Director, CAIR MD/VA, now deputy director at the ADAMS Center in Herndon, VA), and Asra Rasheed (ex-accountant at both CAIR national and CAIR MD/VA) and Morris Days, ex-Manager of Civil Rights, CAIR MD/VA. According to the Washington Times newspaper (“CAIR membership plummets,” June 11, 2007) CAIR’s membership has fallen from over 29,000 in 2000 to fewer than 1,700 in 2006.
Gaubatz currently estimates that CAIR’s membership has crawled back to approximately 5,100.
David Yerushalmi, General Counsel for CSP was instrumental in bringing these cases. Yersuhalmi, together with the Thomas More Law Center, also brought the landmark anti-Sharia finance case against the Federal government in the Eastern Federal District Court of Michigan. The case concerns the use of TARP funds for the bailout of insurance giant A.I.G. given its worldwide underwriting and marketing ofTakaful Enaya Sharia compliant insurance products.
Yerushalmi noted the importance of today’s DC Federal district court ruling:
“The evidence has long suggested that CAIR is a criminal organization set up by the Muslim Brotherhood and Hamas to further its aims of stealth Jihad in the U.S.,” Mr. Yerushalmi said referring to the fact that CAIR has been named by the federal government as an unindicted co-conspirator in the Holy Land Foundation terror financing trial. In addition, several of CAIR’s top executives have been convicted of terror-related crimes. As a result, the FBI has publicly announced that it has terminated any outreach activities with the national organization, which bills itself as “America’s largest Muslim civil liberties and advocacy organization.”
“As it turns out, CAIR is America’s largest Muslim criminal organization whose criminal activities know no bounds,” Yerushalmi continued.“According to the facts as carefully laid out in both complaints,” Yerushalmi explained, “CAIR has engaged in a massive criminal fraud in which literally hundreds of CAIR clients have been victimized and because of the CAIR cover-up they still don’t realize it. The fact that CAIR has victimized Muslims and non-Muslims alike demonstrates that CAIR is only looking out for CAIR and its ongoing effort to bilk donors out of millions of dollars of charitable donations thinking they are supporting a legitimate organization.”
Congratulations to CSP General Counsel Yerushalmi for his relentless pursuit of the CAIR fraud case. Perhaps, if the case succeeds in obtaining a conviction and compensatory damages for the plaintiffs, CAIR may effectively end, given possible seizure of its assets in payment.