Operation Smokescreen
Encyclopedia
Operation Smokescreen was an American interagency counterterrorist operation to disrupt fundraising by Hezbollah, that took place in early 1995, ending in 2002. The operation involved the Sheriff's Office in Iredell County, North Carolina
, Federal Bureau of Investigation
(FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives
(BATF), Immigration and Naturalization Service
(INS), and the U.S. Department of State's Diplomatic Security Service
(DSS).
Detective Sergeant Robert Fromme made repeated observations of a group of men purchasing large quantities of cigarettes, often with $20,000 - $30,000 in cash. The joint counterterrorism operation ended the fundraising operation, resulting in the arrest, trial, and conviction of the cell members. The operation led to the creation of the North Carolina Joint Terrorism Task Force
(JTTF).
, after which he traveled to Venezuela
. After purchasing a forged travel visa, arrived in New York City
in 1992. By 1995, Hammoud set up operations in Charlotte, North Carolina
, working at a local pizza restaurant. At least two additional members of the Hezbollah Charlotte cell entered the United States
with false travel visas from Venezuela
purchased for $200, and three had travel visas issued in Cyprus
. Half the cell members were born in Lebanon
, and the other half were US-born, of Lebanese descent. Early in the spring of 1995, Detective Robert Fromme, working a second job at the tobacco wholesaler JR Discount (in Statesville, North Carolina
) observed the cell purchasing massive quantities of cigarettes, paying for them in cash. The cash was usually carried in large grocery bags, containing as much as $20,000 to $30,000 at a time.
to Tennessee
and Virginia
. Fromme notified John Lorick, of the Charlotte ATF. ATF officials informed Fromme that cigarette trafficking was likely an attempt to sell the merchandise for as much as twice the price in states such as Michigan
, New York
, and Pennsylvania
- which had considerably higher taxes on tobacco. North Carolina's tax on cigarettes was five cents, whereas it was seventy-five cents in Michigan
at the time. The Hezbollah cell was selling the cigarettes through "front store" operations, and to local convenience stores in Dearborn, Michigan, with a price difference between North Carolina and Michigan ranging from $8.00 - $10.00 per carton. Each 680-mile cigarette smuggling trip to Michigan carried between 800 and 1,500 cartons of cigarettes, worth between $3,000 and $10,000. Some cell members fraudulently secured a $1.6 million loan from the federal government's Small Business Administration
, which funded the opening of a gas station.
The Iredell County Sheriff's Office signed a memorandum of understanding with the Charlotte ATF, permitting the formal collaboration between the two agencies. As a result, Detective Fromme was officially reassigned to the ATF. Additional federal agencies were assigned to the case, including the Defense Security Service
, and Immigration and Naturalization Service
. The FBI, which had already been wiretapping communications of two of the cell members, apparently without the knowledge of local law enforcement, also participated in the joint operations. In all, sixteen law enforcement and intelligence services from state, local, and federal agencies contributed to the operation, including the Canadian Security Intelligence Service
(CSIS). Surveillance was run from an empty storefront across from the JR Discount wholesaler building. The cell was secretly followed by a team of five vehicles, which took turns driving behind the cigarette smugglers. "As an extra precaution, the agents sometimes changed clothes and switched license plates during pit stops."
, for use by Hezbollah, mostly purchased by Harb. Mohamad Youssef Hammoud, the cell's leader, was sentenced to 155 years in federal prison. Hammoud's older brother, Shawqi Youssef, (a.k.a. "Bassem"), and "right-hand man" received a prison sentence of 70 years. Overall, 26 people were indicted in the operation. The Operation Smokescreen case is the first conviction for the violation of federal code 2339B, "Providing material support or resources to designated foreign terrorist organizations". Similar cases were later uncovered in Asheville, North Carolina
, and Louisville, Kentucky
.
A 2011 NPR
report claimed some of the people associated with this case were imprisoned in a highly restrictive Communication Management Unit
.
North Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
, Federal Bureau of Investigation
Federal Bureau of Investigation
The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...
(FBI), Bureau of Alcohol, Tobacco, Firearms and Explosives
Bureau of Alcohol, Tobacco, Firearms and Explosives
The Bureau of Alcohol, Tobacco, Firearms and Explosives is a federal law enforcement organization within the United States Department of Justice...
(BATF), Immigration and Naturalization Service
Immigration and Naturalization Service
The United States Immigration and Naturalization Service , now referred to as Legacy INS, ceased to exist under that name on March 1, 2003, when most of its functions were transferred from the Department of Justice to three new components within the newly created Department of Homeland Security, as...
(INS), and the U.S. Department of State's Diplomatic Security Service
Diplomatic Security Service
The U.S. Diplomatic Security Service is the federal law enforcement arm of the United States Department of State. The majority of its Special Agents are members of the Foreign Service and federal law enforcement agents at the same time, making them unique...
(DSS).
Detective Sergeant Robert Fromme made repeated observations of a group of men purchasing large quantities of cigarettes, often with $20,000 - $30,000 in cash. The joint counterterrorism operation ended the fundraising operation, resulting in the arrest, trial, and conviction of the cell members. The operation led to the creation of the North Carolina Joint Terrorism Task Force
Joint Terrorism Task Force
A Joint Terrorism Task Force is a partnership between various U.S. law enforcement agencies that is charged with taking action against terrorism, which includes the investigation of crimes such as wire fraud and identity theft...
(JTTF).
Hezbollah cell begins operations in United States
Hezbollah cell leader Mohamad Youssef Hammoud was denied a travel visa by the US embassy in SyriaSyria
Syria , officially the Syrian Arab Republic , is a country in Western Asia, bordering Lebanon and the Mediterranean Sea to the West, Turkey to the north, Iraq to the east, Jordan to the south, and Israel to the southwest....
, after which he traveled to Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
. After purchasing a forged travel visa, arrived in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
in 1992. By 1995, Hammoud set up operations in Charlotte, North Carolina
Charlotte, North Carolina
Charlotte is the largest city in the U.S. state of North Carolina and the seat of Mecklenburg County. In 2010, Charlotte's population according to the US Census Bureau was 731,424, making it the 17th largest city in the United States based on population. The Charlotte metropolitan area had a 2009...
, working at a local pizza restaurant. At least two additional members of the Hezbollah Charlotte cell entered the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
with false travel visas from Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
purchased for $200, and three had travel visas issued in Cyprus
Cyprus
Cyprus , officially the Republic of Cyprus , is a Eurasian island country, member of the European Union, in the Eastern Mediterranean, east of Greece, south of Turkey, west of Syria and north of Egypt. It is the third largest island in the Mediterranean Sea.The earliest known human activity on the...
. Half the cell members were born in Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
, and the other half were US-born, of Lebanese descent. Early in the spring of 1995, Detective Robert Fromme, working a second job at the tobacco wholesaler JR Discount (in Statesville, North Carolina
Statesville, North Carolina
Statesville is a city located in Iredell County, North Carolina, United States and was named an All-America City in 1997 and 2009. The population was 24,633 at the 2010 census...
) observed the cell purchasing massive quantities of cigarettes, paying for them in cash. The cash was usually carried in large grocery bags, containing as much as $20,000 to $30,000 at a time.
Surveillance operations
Detective Fromme continued to monitor the purchases for several months, and determined cell members were transporting the cigarette cartons across state lines, in violation of federal laws. Each of the four men Fromme was watching purchased 299 cartons of cigarettes, the legal limit permitted without filing legal paperwork. Cigarettes were moved from North CarolinaNorth Carolina
North Carolina is a state located in the southeastern United States. The state borders South Carolina and Georgia to the south, Tennessee to the west and Virginia to the north. North Carolina contains 100 counties. Its capital is Raleigh, and its largest city is Charlotte...
to Tennessee
Tennessee
Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area...
and Virginia
Virginia
The Commonwealth of Virginia , is a U.S. state on the Atlantic Coast of the Southern United States. Virginia is nicknamed the "Old Dominion" and sometimes the "Mother of Presidents" after the eight U.S. presidents born there...
. Fromme notified John Lorick, of the Charlotte ATF. ATF officials informed Fromme that cigarette trafficking was likely an attempt to sell the merchandise for as much as twice the price in states such as Michigan
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, and Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
- which had considerably higher taxes on tobacco. North Carolina's tax on cigarettes was five cents, whereas it was seventy-five cents in Michigan
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
at the time. The Hezbollah cell was selling the cigarettes through "front store" operations, and to local convenience stores in Dearborn, Michigan, with a price difference between North Carolina and Michigan ranging from $8.00 - $10.00 per carton. Each 680-mile cigarette smuggling trip to Michigan carried between 800 and 1,500 cartons of cigarettes, worth between $3,000 and $10,000. Some cell members fraudulently secured a $1.6 million loan from the federal government's Small Business Administration
Small Business Administration
The Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. The mission of the Small Business Administration is "to maintain and strengthen the nation's economy by enabling the establishment and viability of small businesses...
, which funded the opening of a gas station.
The Iredell County Sheriff's Office signed a memorandum of understanding with the Charlotte ATF, permitting the formal collaboration between the two agencies. As a result, Detective Fromme was officially reassigned to the ATF. Additional federal agencies were assigned to the case, including the Defense Security Service
Defense Security Service
The Defense Security Service is an agency of the United States Department of Defense . Within areas of DoD responsibility, DSS is tasked with facilitating personnel security investigations, supervising industrial security, and performing security education and awareness training. It is not a...
, and Immigration and Naturalization Service
Immigration and Naturalization Service
The United States Immigration and Naturalization Service , now referred to as Legacy INS, ceased to exist under that name on March 1, 2003, when most of its functions were transferred from the Department of Justice to three new components within the newly created Department of Homeland Security, as...
. The FBI, which had already been wiretapping communications of two of the cell members, apparently without the knowledge of local law enforcement, also participated in the joint operations. In all, sixteen law enforcement and intelligence services from state, local, and federal agencies contributed to the operation, including the Canadian Security Intelligence Service
Canadian Security Intelligence Service
The Canadian Security Intelligence Service is Canada's national intelligence service. It is responsible for collecting, analyzing, reporting and disseminating intelligence on threats to Canada's national security, and conducting operations, covert and overt, within Canada and abroad.Its...
(CSIS). Surveillance was run from an empty storefront across from the JR Discount wholesaler building. The cell was secretly followed by a team of five vehicles, which took turns driving behind the cigarette smugglers. "As an extra precaution, the agents sometimes changed clothes and switched license plates during pit stops."
The raid
The assembled joint task force penetrated the Hezbollah cell, developing more than ten informants from within the group, as well as from a pool of witnesses. Informants were gleaned from cell staff members, including drivers, smugglers, and even spouses. Simultaneous raids in North Carolina and Michigan at 6:00 a.m. on July 20, 2000 captured many cell members and accomplices. A total of 18 arrest warrants were executed. The arrest of Said Muhammad Harb provided invaluable insights into the structure of the Hezbollah cell, its members, and operations. In exchange for his cooperation, Harb received a lighter sentence, and his family was relocated from Lebanon to the United States. At least 230 local, state, and federal agents participated in the raids.Results
Hezbollah members from the Charlotte cell were arrested, tried, and convicted in a federal court in Charlotte, North Carolina. The case brought against the cell included "copyright violations, cigarette tax violations, counterfeit violations... bank scams, bribery, credit card fraud, immigration fraud, identity theft, tax evasion, and money laundering," and "material support to a terrorist organization." Federal courts estimate the cell collected a total of $8 million dollars, funneled through some 500 different bank accounts. The Hezbollah cell also purchased and shipped "Night vision goggles and scopes, Surveying equipment, Global Positioning Systems, Metal detection equipment, Video equipment, Aircraft analysis & design software design software, Military compasses, Binoculars, Naval equipment, Naval equipment, Ultrasonic dog repellers, Laser range finders, Digital cameras, zoom lenses, Computer equipment (laptops, high-speed modems; processors, joysticks, plotters, scanners, and printers), Stun guns, Handheld radios & receivers, Cellular telephones, Nitrogen cutters, Mining, drilling & blasting equipment" to the Middle EastMiddle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
, for use by Hezbollah, mostly purchased by Harb. Mohamad Youssef Hammoud, the cell's leader, was sentenced to 155 years in federal prison. Hammoud's older brother, Shawqi Youssef, (a.k.a. "Bassem"), and "right-hand man" received a prison sentence of 70 years. Overall, 26 people were indicted in the operation. The Operation Smokescreen case is the first conviction for the violation of federal code 2339B, "Providing material support or resources to designated foreign terrorist organizations". Similar cases were later uncovered in Asheville, North Carolina
Asheville, North Carolina
Asheville is a city in and the county seat of Buncombe County, North Carolina, United States. It is the largest city in Western North Carolina, and the 11th largest city in North Carolina. The City is home to the United States National Climatic Data Center , which is the world's largest active...
, and Louisville, Kentucky
Louisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...
.
A 2011 NPR
NPR
NPR, formerly National Public Radio, is a privately and publicly funded non-profit membership media organization that serves as a national syndicator to a network of 900 public radio stations in the United States. NPR was created in 1970, following congressional passage of the Public Broadcasting...
report claimed some of the people associated with this case were imprisoned in a highly restrictive Communication Management Unit
Communication Management Unit
Communication Management Unit is a recent designation for a self-contained group within a facility in the United States Federal Bureau of Prisons that severely restricts, manages and monitors all outside communication of inmates in the unit.-Origins:As part of the Bush Administration's War on...
.