5 Tied to L.A. Case, Germany Alleges

German authorities have charged five people with defrauding the government’s social service programs as part of an alleged terrorist fund-raising network with links to Los Angeles.

The accusations follow a joint investigation by police in Germany and FBI agents in Los Angeles, where authorities earlier this year charged seven people with illicitly raising more than $1 million for a group called the Moujahedeen Khalq, which opposes the Iranian government. Most of the money was solicited from unsuspecting travelers at Los Angeles International Airport, according to the FBI.

An FBI spokesman said the bureau and German police have been investigating the group, also known as the MEK, for several years and that in 1999, German authorities uncovered a money-laundering ring with connections to Los Angeles.

More recently, authorities say, FBI agents in Los Angeles developed information about MEK members in Cologne, Germany; that information led to this week’s charges against five people, all believed to be Iranian citizens.

Arrested and charged in Cologne on Wednesday were Rahim Orangui, Souson Ghajar Azdanloo and Farogh Najmaie. Orangui was held without bond, but his two co-defendants were released after posting bond. Charged as fugitives were Zoreh Osouli and Taybeh Rahmani-Lahut, authorities said.

In all, authorities allege, those defendants and others yet to be charged have illegally taken between $5 million and $10 million in aid from the German government during the last five to seven years and sent the money to the MEK.

Representatives and attorneys representing MEK members have long disputed U.S. government claims of terrorist involvement. As recently as 1998, 220 members of Congress objected to the designation, signing a statement that says the MEK is a legitimate resistance movement. But the State Department has continued to classify the group as a terrorist organization.

In Germany, authorities allege, MEK members emigrated from Iran, seeking asylum and receiving government aid of nearly $1,000 per month per person. Often, according to the FBI, the applicant then left Germany and continued to receive benefits.

In addition, according to authorities, MEK members registered children as refugees and then sought social assistance. Often, officials allege, children were moved from one city to another, registered under different names and received government aid for each time they registered.

As a result of the investigation, according to the FBI, authorities determined that money collected in Los Angeles was sent to Cologne and eventually provided to the MEK’s purported military wing, the National Liberation Army.

An FBI spokesman said authorities believe that much of the evidence collected this week in Cologne will be used in the February trial in Los Angeles of the seven MEK members.

“This case is important because it illuminates additional methods used by terrorists to financially support their operations,” said Ronald L. Iden, assistant director in charge of the FBI’s Los Angeles office.