The United States Court of Appeals for the District of Columbia Circuit today unanimously reversed a trial court’s ruling dismissing a fraud case brought against the Council on American-Islamic Relations (CAIR). The result of the appellate court’s ruling is that CAIR National, operating out of the District of Columbia, must stand trial and allow a jury to hear all of the evidence of the massive fraud and attempted cover up carried out by CAIR and perpetrated against hundreds of CAIR fraud victims.
In January of last year, Judge Paul Friedman, the federal judge presiding over a five-year old lawsuit alleging that CAIR defrauded hundreds of Muslim and non-Muslim clients, issued a shocking ruling when he summarily dismissed the lawsuit, which was brought in the U.S. District Court for the District of Columbia.
The legal action started in Nov. 2008, four clients of the Council on American-Islamic Relations (CAIR) filed a federal civil complaint alleging criminal fraud and racketeering against CAIR, which along with claiming to be a “human rights group,” also works as a civil rights law firm. The lawsuit also named CAIR’s national leadership as individual defendants (a second suit making similar claims was added later).
The defendants were served with the complaint and summons to appear while attending the CAIR 14th Annual Dinner Sunday night in Arlington, Virginia. Congressman from CAIR [score]Keith Ellison[/score] (D-Minn) was a guest speaker at this affair. The original lawsuits alleged that CAIR’s fraudulent conduct amounted to racketeering, a federal RICO crime. In that case, the court dismissed the RICO counts concluding that CAIR’s conduct as alleged was fraudulent but not a technical violation of RICO. So the suits had to be refiled.
The two new federal civil complaints were filed in the federal district court for the District of Columbia on January 6, 2010, and served on January 13, 2010. Since both lawsuits arise out of the same facts the court has consolidated the two cases.
While Judge Friedman agreed that Morris Days and CAIR’s Virginia chapter were liable for fraud, he concluded, after improperly weighing the evidence, that CAIR National in D.C., who was the named defendant in the lawsuit, was not responsible for Days’ fraudulent conduct. The appeals court, however, found that Judge Friedman was wrong on each and every fact raised by the plaintiffs, concluding, contrary to Judge Friedman, that each fact supports finding a direct relationship between CAIR National and Days…
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