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O.C. men accused of trying to join Islamic State are charged with financial crimes

Two Orange County men accused of conspiring to aid Islamic State militants fighting in Iraq and Syria are now facing additional charges involving bank fraud and financial aid crime.

A new indictment revealed Wednesday accuses Anaheim residents Nader Elhuzayel, 25, and Muhanad Badawi, 24, of a series of financial crimes. Elhuzayel is accused of 25 counts of bank fraud, and Badawi is charged with federal financial aid fraud.

In April and May, Elhuzayel got cash through a scheme to defraud three different banks, according to the indictment, which says he deposited stolen checks into his personal checking accounts and then withdrew cash at Orange County branch offices and ATMs.

Badawi is charged with using his federal financial aid to buy a plane ticket to Turkey for Elhuzayel.

The indictment also includes preexisting charges of providing material support to a foreign terrorist organization, Islamic State. Both men have pleaded not guilty to the original charges. 

Federal authorities said the men drew the attention of counter-terrorism agents with inflammatory comments on social media, prompting an investigation that led to their arrests last month. They are due back in court July 6 and are scheduled to go to trial July 28. Details of a call between the two men before their capture were contained in an FBI agent’s affidavit.

According to the document, on the last Friday of April, after prayer services at a mosque in Orange County, Elhuzayel and Badawi spoke enthusiastically about Islamic State. It says one proclaimed a wish to join the group and die a martyr on a battlefield.

Although Yemen was attractive for its natural beauty, the men agreed they would prefer to fight in Syria, the document said. It said they talked about drinking wine together in the paradise that awaited them after they were killed. Federal agents said they overheard the conversation.

The government’s case against the pair mirrors the case against six Somali Americans arrested in April in San Diego and Minneapolis. Those men are accused of trying to travel to Syria and join Islamic State. Similar cases have been more common in Britain, France and other western European countries with larger populations of young, disaffected Muslim men.

Elhuzayel and Badawi are accused of setting in motion a plan for Elhuzayel to travel to the Middle East and fight for Islamic State. Agents from a counter-terrorism task force intercepted Elhuzayel at Los Angeles International Airport before he boarded a plane bound for Turkey last month. Badawi was taken into custody at an Anaheim gas station, an FBI spokeswoman said.

Agents began monitoring the men in January 2013, according to David Thorp, acting head of the FBI’s Orange County office.

The court filings show that scrutiny of the men intensified in April and May as agents eavesdropped on their phone calls and surveillance teams tracked their movements.

On May 7, agents watched the men as they sat together in Badawi’s car, according to the FBI agent's affidavit. Later, a review of airline records showed that while they were in the car, Badawi’s debit card was used to purchase a one-way ticket for Elhuzayel to fly from Los Angeles to Istanbul and then on to Tel Aviv, the affidavit alleged.

In a phone call with Badawi, Elhuzayel discussed vague plans to visit Palestinian relatives in the West Bank before finding a way to cross the border into Egypt in hopes of making his way to a battlefield, according to the affidavit. It said that although the men talked about their hope to reunite someday as fighters, they did not discuss any travel plans for Badawi.

However, because he is believed to have paid for Elhuzayel’s ticket, he too is criminally culpable, federal authorities argued in the filings.

Elhuzayel's mother, Falak, has previously called the allegations against her son “impossible.” Speaking on the phone before her son's initial court appearance, Falak Elhuzayel described her son as “a very good kid — not the kind of person who would fit into this kind of category.”

She said she and her husband dropped their son off at LAX the day of his arrest and confirmed he was preparing to board a flight to Istanbul and continue on to Israel. The family, she said, is Palestinian and her son was traveling to visit relatives in the West Bank.

That evening, federal agents raided the room at the Crystal Inn motel in Anaheim where Nader Elhuzayel had lived with his parents since the family declared bankruptcy and lost their house two years ago.

Falak Elhuzayel said a team of agents upended the room in the search for evidence and asked her why her son had purchased a one-way ticket. She said she told them that he had decided to buy a return ticket later because he did not know how long he would stay in the West Bank.

She had described her son as “Muslim, but not very religious, just normal.” Over the last year, he had become more observant, frequently attending Friday prayer services at a mosque in Anaheim, she said. But she insisted it was impossible that he'd slipped into extremism. He was, she said, “a simple, gullible, nice kid.”

If convicted, Nader Elhuzayel faces up to 30 years imprisonment on each bank fraud count and Badawi faces up to five years imprisonment on the financial aid fraud count. Each man also faces up to 15 years in prison if convicted of providing material support to Islamic State.

Follow Southern California crime @lacrimes on Twitter

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