2nd Indictment for Terror Suspect

Man Accused of Lying to Agents About Ties to Militant Groups

The only person convicted in connection with a broad probe of Islamic charities in Northern Virginia has been indicted again, this time accused of lying to federal agents about his terrorist ties.

Soliman S. Biheiri, 52, is charged with concealing his business and personal connections with Mousa Abu Marzook, a leader of the Islamic Resistance Movement, or Hamas, who has been designated as a terrorist by the U.S. government. He also hid his dealings with Sami al-Arian, a Florida college professor charged with being a leader of the terrorist group Palestine Islamic Jihad, prosecutors said.

Allegations that Biheiri's former investment firm had moved money on behalf of Marzook and Hamas surfaced at Biheiri's trial last year in U.S. District Court in Alexandria. Biheiri, a native of Egypt, was convicted of lying under oath on his application for U.S. citizenship. Prosecutors cited his alleged terrorist ties in trying to persuade a judge to stiffen Biheiri's sentence to 10 years in prison.

U.S. District Judge T.S. Ellis III instead sentenced him to one year in prison, saying the government failed to prove that Biheiri had strong ties to terrorists. Nina Ginsberg, a lawyer who defended Biheiri in the first case, said the government is "trying to get a second bite at the apple."

"It's extremely unusual to prosecute someone in a separate prosecution for offenses that the government knew about at the time of the first prosecution," Ginsberg said.

U.S. Attorney Paul J. McNulty disputed that. "In order to ensure the safety of our community, we are determined to bring to justice those who lie to law enforcement about their association with known terrorists," he said.

Biheiri founded BMI Inc., an investment firm that adhered to Islamic principles, in New Jersey in 1986.

Prosecutors allege that Islamic charities based in Northern Virginia and sponsored by the Saudi Arabian government invested nearly $4 million in the company. At Biheiri's sentencing in January, prosecutors said the government believes that Biheiri was dispatched to the United States to start a financial organization as part of a plan to finance and support terror organizations.

The cluster of Islamic charities is the subject of a sprawling federal probe into allegations of money laundering, tax evasion and other improprieties, according to court papers and testimony. The investigation drew widespread attention in March 2002 when federal agents raided companies operating in the 500 block of Grove Street in Herndon and elsewhere in Northern Virginia. The charities have strongly denied any terrorist links.

No court date has been set for Biheiri, who is still serving his earlier sentence. The new indictment, returned by a federal grand jury Thursday, says that Biheiri lied about his ties to Marzook and al-Arian during interviews with federal agents in June at Dulles International Airport. He was also charged with illegally possessing and using a U.S. passport.

Under federal law, Biheiri faces at least 20 years in prison if convicted of the new charges, though his exact sentence would be determined by sentencing guidelines.