Dual citizen indicted for using Lebanese business to support Hizballah

ALEXANDRIA, Va. – A federal grand jury returned an indictment today charging a dual U.S.-Lebanese citizen with conspiracy to provide material support to a designated foreign terrorist organization and conspiracy to launder money.

According to the indictment, Ali Farhat, 59, owned and operated a Lebanese company, identified in court records as Company 1, that acquired electronics equipment in the United States and resold it to other entities located primarily in the Middle East and Africa. As alleged in the indictment, one of Farhat’s customers was Al Manar TV, a television station based in Lebanon that is owned and operated by Hizballah, which was designated as a Foreign Terrorist Organization on Oct. 8, 1997, by the U.S. Secretary of State. Al Manar TV was designed to cultivate support for Hizballah by, among other things, raising money for its activities and recruiting volunteers for future attacks.

Farhat and Company 1 allegedly used a relative in the United States, identified as Co-Conspirator 1, and other U.S.-based co-conspirators, to purchase audio, video, and other equipment. The merchandise was then consolidated, often at the residence of Co-Conspirator 1, and shipped overseas, at which point some of it was sold to Al Manar TV or to front companies affiliated with Al Manar TV. Farhat allegedly arranged for the purchase of these items in a convoluted manner designed to obscure the source of the funds and the intended destination of the items.

Farhat allegedly periodically reimbursed Co-Conspirator 1 for expenses and paid a commission on purchases Co-Conspirator 1 made for Company 1. Farhat transferred money to Co-Conspirator 1 and other co-conspirators primarily through international wire transfers to Co-Conspirator 1, including into a bank account in a third party’s name that was controlled by Co-Conspirator 1. In total, Farhat allegedly sent approximately $1,192,000 in international wire transfers to Co-Conspirator 1. Farhat also allegedly caused other co-conspirators and businesses to send wire transfers and transfers over digital payment networks to Co-Conspirator 1. In total, Farhat allegedly caused approximately $130,000 to be transferred in this manner to Co-Conspirator 1.

Farhat allegedly made a payment in Lebanon that triggered a Florida-based co-conspirator to send structured money orders to Co-Conspirator 1 and/or other U.S.-based co-conspirators. The money orders were purchased in amounts that evaded anti-money laundering regulations. In total, Farhat allegedly caused approximately $396,160 in structured money orders to be paid to U.S.-based co-conspirators.

Co-Conspirator 1 filed U.S. tax returns on Farhat’s behalf containing false information. Co-Conspirator 1 used the tax refund generated to offset expenses incurred on Farhat’s or Company 1’s behalf.

If convicted, Farhat faces up to 20 years in prison for each count. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Courtland Rae, Acting Special Agent in Charge of the FBI Washington Field Office's Counterterrorism Division, made the announcement.

Assistant U.S. Attorney Anthony T. Aminoff is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cr-162.