Raids Meant to Stop Flow of Cash to Iraq

Money-transfer agents in 14 states were raided in an effort to stop the illegal wiring of millions of dollars to Iraq, the government said Wednesday.

U.S. Customs Service Commissioner Robert C. Bonner said 29 search warrants on businesses and individuals were executed, allowing law enforcement agents to seize documents and records. The identities of the businesses and individuals were not disclosed and no arrests were made.

The government believes the targeted businesses and individuals served as money-transfer agents for Al-Shafei Family Connect Inc.

Customs has accused Al-Shafei Family Connect of sending millions of dollars to Iraq in violation of a decade-old embargo. A raid on the company’s Seattle-area office last month turned up files containing the names of individual company agents in the U.S., the Customs Service said.

A 1990 executive order signed by former President Bush forbids U.S. citizens from transferring money--directly or indirectly--to the Iraqi government or its people.

Customs said the individuals and businesses targeted Wednesday also are under investigation for possible violations of money-laundering laws and possible violations of regulations requiring money-service businesses to register with the government.

The searches took place in Buffalo, N.Y.; Chicago; Louisville, Ky.; Dallas; Detroit; Memphis, Tenn.; Minneapolis; Norfolk, Va.; Erie, Pa.; Portland, Ore.; Lincoln, Neb.; St. Louis; Tucson; and Seattle.

Customs has said that Al-Shafei wired money intended for recipients in Iraq to a bank in Jordan.

Adel Al-Absawi, owner of Sara’s Market in Erie, said officials took receipts and bank statements in Wednesday’s search.