By Eileen Buckley
Buffalo, NY – A prominent leader of the Muslim community in Lackawanna was indicted on charges of financing and conspiring to operate an illegal money transferring business. Monday, Mohamed Albanna pleaded not guilty to a new set of charges accusing him of sending more than $3 million to Yemen.
Albanna -- appearing in the lobby of federal court -- said he doesn't deny sending some money to Yemen. In fact he says money was sent "family-to-family." Albanna says in his culture it is customary. But he would not say how much was transferred to relatives.
"It's called 'hawala' which is based on trust," Albanna said. "A person must trust you in order to give you the money to send, knowing it is going to get there or not. It is based on trust and it is nothing new. Many communities have done it in the past. Not just our community, but first generations always have."
But now the government claims Albanna conspired to operate an illegal money transferring business. A superseding indictment was issued last week. Albanna was originally charged last year with illegally sending about a half a million dollars to Yemen. The new charges accuses Albanna, his brother and nephew of sending $3.5 million.
Also pleading not guilty was Ali Albanna, the nephew, and Ali Taher Elbaneh, the brother. Ali Albanna's attorney, Thomas Eoannou, says sending money to families is nothing new. He says he will challenge the criminal charges.
"This activity has gone on for 70 years. My grandfather sent money back to Greece, and all of a sudden post 9/11, these people are being indicted and facing a decade in jail," Eoannou said. "Certainly that brought the scrutiny, no doubt about it."
Mohamend Albanna would not say why they failed to fill out the proper paper work to send the money, but claims it was no secret.
"The list was in my office. That's where they got all the information from," Albanna said. "They could have come in any day and at any hour if they had a concern. Maybe they say ignorance is not a defense, but we were not aware we were required to have those licenses."
The new indictment also accuses Albanna of making false claims on his income tax returns for his business -- Queen City Cigarettes. Albanna says some of the transferred money was declared on his taxes, but he disputes the government's amounts.
The superseding indictment carries a lengthier prison term if convicted.