The plot thickens!!
By Tom Schoenberg
Dec. 7 (Bloomberg) -- A Virginia man admitted to aiding
what prosecutors said was a decades-long operation by
Pakistans spy agency to influence U.S. policy on Kashmir
through unregistered lobbying and campaign contributions to
members of Congress.
Syed Ghulam Nabi Fai, 62, pleaded guilty today in federal
court in Alexandria, Virginia, to one count of conspiracy to
defraud the U.S. and one count of impeding the administration of
tax laws. He faces as long as eight years in prison when hes
sentenced on March 9. U.S. District Judge Liam OGrady agreed to
let Fai remain free until sentencing.
Fai admitted to helping funnel at least $3.5 million from
Pakistans government through the Washington-based Kashmiri
American Council to sway the attitudes of U.S. lawmakers on the
disputed territory with campaign contributions and other lobbying activities.
The council, which was headed by Fai at the time of his
arrest in July, is actually run by elements of the Pakistani
government, including Pakistans military intelligence service,
the Inter-Services Intelligence Agency, or ISI, prosecutors
said.
Pakistan and India, which have split control of the
territory since 1948, fought wars over Kashmir in 1965 and 1999.
Paid Operative
For the last 20 years, Mr. Fai secretly took millions of
dollars from Pakistani intelligence and lied about it to the
U.S. government, U.S. Attorney Neil MacBride said in a
statement. As a paid operative of ISI, he did the bidding of
his handlers in Pakistan while he met with U.S. elected
officials, funded high-profile conferences, and promoted the
Kashmiri cause to decision-makers in Washington.
Fai, a Pakistani immigrant and U.S. citizen living inFairfax, Virginia, was charged in July with conspiracy to
violate the Foreign Agents Registration Act and lying to federal
agents. He was charged along with Zaheer Ahmad, 63, a U.S.
citizen who remains at large, according to prosecutors. The pair
failed to disclose their affiliation with Pakistans government
as required by law, prosecutors said.
On Nov. 23, the government separated Fais case from
Ahmads and added the charge of impeding the Internal Revenue
Service.
As part of his plea, Fai agreed to pay about $200,000 to
the IRS and forfeit about $143,000 the government seized from
five bank accounts in Virginia and Washington, according to
court papers. Fai also agreed to cooperate with any federal
investigation.
Fais Admission
Fai said little during todays plea hearing. He answered
No sir when OGrady asked if he disagreed with any of the information contained in the statement of facts submitted by the
government outlining the conspiracy and his ties to the ISI.
Fai admitted that during an interview with Federal Bureau
of Investigation agents in July, he falsely denied that he
or the council received money from the ISI or the government of
Pakistan, according to the statement of facts.
A search of Fais home, office and a storage facility
turned up documents detailing the councils Washington
strategies, including budget requirements for contributions to
members of Congress and trips to Kashmir for lawmakers, money
for opinion pieces distributed to the media, as well as money
for seminars and conferences, prosecutors said in a court
filing. One document found in the search called for $100,000 for
contributions to members of Congress in 2009, prosecutors said.
Annual Budget
Fai, who admitted the conspiracy took place from 1990 until
July 18, said he submitted annual budget requests of about $500,000 to $700,000 to officials of the government of Pakistan,
including the ISI.
Since the mid-1990s, Ahmad, an American living in Pakistan,
has moved government funds through a network he ran to Fai and
the council, which also has offices in London and Brussels,
prosecutors said.
The councils goal is to build support for Pakistani
interests in Kashmir and offset lobbying by India over the
disputed territory, the U.S. said in court papers.
Fai has donated more than $10,000 to federal politicians in
the past five years, according to data compiled by the
Washington-based Center for Responsive Politics.
Among his political contributions, Fai, in 2008 and again
in 2010, gave $2,000 to U.S. Representative Dan Burton, an
Indiana Republican, according to the center. He also gave $5,000
to the National Republican Senatorial Committee in 2006,
followed by a $1,000 contribution in 2008. He gave $250 to
President Barack Obama s campaign in 2008 and $250 to the
Democratic Senatorial Campaign Committee in 2009.
By Tom Schoenberg
Dec. 7 (Bloomberg) -- A Virginia man admitted to aiding
what prosecutors said was a decades-long operation by
Pakistans spy agency to influence U.S. policy on Kashmir
through unregistered lobbying and campaign contributions to
members of Congress.
Syed Ghulam Nabi Fai, 62, pleaded guilty today in federal
court in Alexandria, Virginia, to one count of conspiracy to
defraud the U.S. and one count of impeding the administration of
tax laws. He faces as long as eight years in prison when hes
sentenced on March 9. U.S. District Judge Liam OGrady agreed to
let Fai remain free until sentencing.
Fai admitted to helping funnel at least $3.5 million from
Pakistans government through the Washington-based Kashmiri
American Council to sway the attitudes of U.S. lawmakers on the
disputed territory with campaign contributions and other lobbying activities.
The council, which was headed by Fai at the time of his
arrest in July, is actually run by elements of the Pakistani
government, including Pakistans military intelligence service,
the Inter-Services Intelligence Agency, or ISI, prosecutors
said.
Pakistan and India, which have split control of the
territory since 1948, fought wars over Kashmir in 1965 and 1999.
Paid Operative
For the last 20 years, Mr. Fai secretly took millions of
dollars from Pakistani intelligence and lied about it to the
U.S. government, U.S. Attorney Neil MacBride said in a
statement. As a paid operative of ISI, he did the bidding of
his handlers in Pakistan while he met with U.S. elected
officials, funded high-profile conferences, and promoted the
Kashmiri cause to decision-makers in Washington.
Fai, a Pakistani immigrant and U.S. citizen living inFairfax, Virginia, was charged in July with conspiracy to
violate the Foreign Agents Registration Act and lying to federal
agents. He was charged along with Zaheer Ahmad, 63, a U.S.
citizen who remains at large, according to prosecutors. The pair
failed to disclose their affiliation with Pakistans government
as required by law, prosecutors said.
On Nov. 23, the government separated Fais case from
Ahmads and added the charge of impeding the Internal Revenue
Service.
As part of his plea, Fai agreed to pay about $200,000 to
the IRS and forfeit about $143,000 the government seized from
five bank accounts in Virginia and Washington, according to
court papers. Fai also agreed to cooperate with any federal
investigation.
Fais Admission
Fai said little during todays plea hearing. He answered
No sir when OGrady asked if he disagreed with any of the information contained in the statement of facts submitted by the
government outlining the conspiracy and his ties to the ISI.
Fai admitted that during an interview with Federal Bureau
of Investigation agents in July, he falsely denied that he
or the council received money from the ISI or the government of
Pakistan, according to the statement of facts.
A search of Fais home, office and a storage facility
turned up documents detailing the councils Washington
strategies, including budget requirements for contributions to
members of Congress and trips to Kashmir for lawmakers, money
for opinion pieces distributed to the media, as well as money
for seminars and conferences, prosecutors said in a court
filing. One document found in the search called for $100,000 for
contributions to members of Congress in 2009, prosecutors said.
Annual Budget
Fai, who admitted the conspiracy took place from 1990 until
July 18, said he submitted annual budget requests of about $500,000 to $700,000 to officials of the government of Pakistan,
including the ISI.
Since the mid-1990s, Ahmad, an American living in Pakistan,
has moved government funds through a network he ran to Fai and
the council, which also has offices in London and Brussels,
prosecutors said.
The councils goal is to build support for Pakistani
interests in Kashmir and offset lobbying by India over the
disputed territory, the U.S. said in court papers.
Fai has donated more than $10,000 to federal politicians in
the past five years, according to data compiled by the
Washington-based Center for Responsive Politics.
Among his political contributions, Fai, in 2008 and again
in 2010, gave $2,000 to U.S. Representative Dan Burton, an
Indiana Republican, according to the center. He also gave $5,000
to the National Republican Senatorial Committee in 2006,
followed by a $1,000 contribution in 2008. He gave $250 to
President Barack Obama s campaign in 2008 and $250 to the
Democratic Senatorial Campaign Committee in 2009.
