The Crime and Investigation
Recognizing the potential profits in trafficking contraband cigarettes between North Carolina and Michigan, brothers Mohamad and Chawki Hammoud invested $8 millions and began illegal operations in 1996. A percentage of the profits went to the Lebanese-based terrorist group, Hezbollah.
In 1997, ATF and the Iredell County (North Carolina) Sheriff's Office initiated a joint investigation of the Hammouds. Evidence and intelligence revealed a complicated web of additional defendants and crimes, including money laundering, terrorism support, immigration violations, wire fraud and mail fraud.
The Immigration and Naturalization Service (INS), Charlotte-Mecklenburg (North Carolina) Police Department, Internal Revenue Service, Royal Canadian Mounted Police, Federal Bureau of Investigation (FBI), Diplomatic Security Service, (North Carolina) State Bureau of Investigation and Canadian Security Intelligence Service, along with several other local authorities assisted in this complex, multi-year investigation.
Evidence
The defendants relied on counterfeit credit cards, fraudulent checks and stolen or counterfeit Social Security cards to make purchases and conceal their identities.
Brothers found guilty of plotting to aid terrorists
The Arrest
Between 2000 and 2002, twenty-five defendants were indicted and arrested in North Carolina and Michigan for various crimes, e.g., contraband cigarette trafficking, providing support to a terrorist organization, money laundering, violations of the Racketeer Influenced and Corrupt Organization Act (RICO) and immigration violations.
The Adjudication
Sentencing ranged from deportation to 155 years' imprisonment. This was the first case to include a conviction for providing material support to a designated terrorist organization.
