Shariah’s Black Box

The Fund is an open-ended mutual fund marketed publicly mostly to the Muslim American community. Most of the Fund, however, is owned by one shareholder, the North American Islamic Trust (“NAIT”), which owns 69.8% of the Fund. Charles Schwab & Co., Inc., is the next largest investor with 9.65%.[364] The Fund Advisor, Allied Asset Advisors, Inc. (“AAA”), is a subsidiary of NAIT.[365]

On its Internet site, NAIT represents itself as follows:

The North American Islamic Trust (NAIT) is a waqf, the historical Islamic equivalent of an American trust or endowment, serving Muslims in the United Statesand their institutions. NAIT facilitates the realization of American Muslims’ desire for a virtuous and happy life in a Shariahh-compliant way.

NAIT is a not-for-profit entity that qualifies as a tax-exempt organization under Section 501(c) (3) of the Internal Revenue Code. NAIT was established in 1973 in Indianaby the Muslim Students Association of U.S. and Canada (MSA), the predecessor of the Islamic Society of North America (ISNA). NAIT supports and provides services to ISNA, MSA, their affiliates, and other Islamic centers and institutions. The President of ISNA is an ex-officio member of the Board of Trustees of NAIT.[366]

At the outset, the lawyer for the Fund must confront the fact that NAIT, and its founder the Muslim Students Association of U.S. and Canada(“MSA”), and the successor to the MSA, the Islamic Society of North America (“ISNA”), all have close ties to organizations involved in the material support of terrorism. For example, prior to the start of the terror-financing trial of the Holy Land Foundation (“HLF”)[367], the Government submitted a trial brief[368] with a list of unindicted co-conspirators (“the List of Co-Conspirators”)[369] who had allegedly participated in some way in the conspiracy to fund Hamas’ terror-related activities againstIsrael. Hamas was at the time a designated FTO. In its trial brief, the government characterized Hamas as follows:

Hamas’ founding charter makes clear that Hamas is, in fact, the Palestinian branch of the Muslim Brotherhood, and calls for the annihilation ofIsraelthrough “jihad” (holy war), and the creation of an Islamic state in its place. Hamas defines jihad as including violent activities, with such violent activities being carried out by Hamas’ military wing, commonly known as the Izz Al-Din Al-Qassam Brigades (“Al-Qassam Brigades”). The charter also calls for charity as [a] means of securing the population’s loyalty. Through charitable support, the charter explains, “congeniality will deepen, cooperation and compassion will prevail, unity will firm up, and the ranks will be strengthened in the confrontation with the enemy.”

. . .

As evidenced by documents seized in 2004 from the Virginiahome of unindicted co-conspirator and fellow Palestinian Committee member Ismail Elbarrasse, as well as other evidence, the Muslim Brotherhood directed its Palestinian Committees throughout the world, including the United States, to carry out the mandate of assisting Sheik Yassin’s newly-formed Hamas.[370]

NAIT and ISNA were both on the List of Co-Conspirators as “individuals/entities who are and/or were members of the US Muslim Brotherhood.” Evidence at the trial linked these organizations to Hamas.[371] Although the trial ended in a mistrial, the Government is preparing to retry its main case.[372]