This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Alaa Ramadan, the accused leader of a fraud and money laundering ring that allegedly involved at least six relatives of a former Utahn suspected of aiding terrorists in Iraq, pleaded guilty Thursday to federal violations involving mortgage, loan, credit card and other money laundering schemes that generated thousands of dollars.
Ramadan, a 29-year-old Jordanian, who lived in Salt Lake City, also pleaded guilty to a misdemeanor charge of failing to file federal income tax returns between 2000 and 2005, U.S. Attorney's Office spokeswoman Melodie Rydalch stated in a press release.
Ramadan's guilty pleas were related to four separate federal indictments returned in October and December of 2005.
Ramadan and Bassam Omar were indicted in October 2005 with mortgage fraud involving homes in Sandy and Bountiful, attempting to defraud at least two Utah banks of more than $120,000, falsifying bank loan applications, participating in financial transactions designed to disguise a crime, as well as wire and mail fraud and money laundering, the press release states.
The case against Omar is pending.
Though the case was investigated by the FBI's Joint Terrorism Task Force, none of the charges relate to terrorism, and prosecutors had downplayed the significance of the counter terrorist agents' involvement.
The FBI's investigation into the alleged fraud appears to have been triggered by the arrest of Shawqi Omar in Baghdad in October 2004. The former Salt Lake City resident is being held without charge in a U.S. prison in southern Iraq. He is accused by military officers of being a close aide of former al-Qaida leader Abu Musab al-Zarqawi.
Ramadan faces up to 41 months in prison. Restitution in the case is pending. Ramadan will remain in custody until sentencing.