Operation Smokescreen

The Crime and Investigation

Recognizing the potential profits in trafficking contraband cigarettes between North Carolina and Michigan, brothers Mohamad and Chawki Hammoud invested $8 millions and began illegal operations in 1996. A percentage of the profits went to the Lebanese-based terrorist group, Hezbollah.

In 1997, ATF and the Iredell County (North Carolina) Sheriff's Office initiated a joint investigation of the Hammouds. Evidence and intelligence revealed a complicated web of additional defendants and crimes, including money laundering, terrorism support, immigration violations, wire fraud and mail fraud.

The Immigration and Naturalization Service (INS), Charlotte-Mecklenburg (North Carolina) Police Department, Internal Revenue Service, Royal Canadian Mounted Police, Federal Bureau of Investigation (FBI), Diplomatic Security Service, (North Carolina) State Bureau of Investigation and Canadian Security Intelligence Service, along with several other local authorities assisted in this complex, multi-year investigation.

Image of the seals and badges of the ATF, INS, Charlotte-Mecklenburg Police, Canadian Security Intelligence Service, Royal Canadian Mounted Police, DOJ, FBI, Diplomatic Security, and Iredell County Sheriff, who were all involved in the investigation.
Image of of Multi Federal Offices and Organizations

Evidence

The defendants relied on counterfeit credit cards, fraudulent checks and stolen or counterfeit Social Security cards to make purchases and conceal their identities.

Image of credit cards and counterfeit social secuirty cards used by the defendants to make purchases and conceal their identities.
Image of SSN Cards and Credit Cards

 

Brothers found guilty of plotting to aid terrorists

The Arrest

Between 2000 and 2002, twenty-five defendants were indicted and arrested in North Carolina and Michigan for various crimes, e.g., contraband cigarette trafficking, providing support to a terrorist organization, money laundering, violations of the Racketeer Influenced and Corrupt Organization Act (RICO) and immigration violations.

Image of 22 defendants who were indicted and arrested.
Image of 25 Arrested Perpetrators

The Adjudication

Sentencing ranged from deportation to 155 years imprisonment. This was the first case to include a conviction for providing material support to a designated terrorist organization.

Two images.  The left image is of law enforcement searching a car with the trunk open full of cigarette cartons.  The right image is a government trial exhibit of two men sitting in front of a table with a pile of cash on top of it.
Image of Two brothers arrested in the Investigation
Last Reviewed September 22, 2016