Exclusive | Muslim group linked to Hamas accused of ‘financial irregularities’ with $7 million taxpayer cash now unaccounted for

Introduction: Concerns Over Misuse of Taxpayer Funds by CAIR

A recent investigation by the Intelligent Advocacy Network (IAN), a California-based watchdog group, has raised serious concerns about the alleged misuse of taxpayer funds by the Council on American-Islamic Relations (CAIR), a prominent Muslim advocacy organization. According to the complaint filed with the Department of Justice, CAIR’s California chapter received over $7.2 million in federal grants meant to assist impoverished immigrants in California between 2022 and 2024. However, the funds appear to have been mismanaged, with the money being redirected to chapters that are not registered as nonprofits and have no legal obligation to disclose how the funds are spent. This has led to calls for an immediate investigation into CAIR’s financial practices and its eligibility to receive taxpayer money.

Misuse of Federal Grant Funds

The watchdog group discovered that the $7,217,968.44 in federal grants was awarded to CAIR-CA, the California chapter of the organization, which was the only entity eligible to receive the funds. However, instead of using the money directly for the intended purpose of resettling impoverished immigrants, CAIR-CA allegedly redirected the funds to CAIR’s Greater Los Angeles chapter, which is not a registered nonprofit and therefore not qualified to handle charitable donations. This apparent “ sleight of hand” has raised serious questions about whether CAIR-CA violated the terms of the grant and whether the funds were used appropriately. The complaint also highlights that CAIR-Los Angeles further sub-granted portions of the money to other chapters, including those in San Diego and San Francisco, which similarly lack transparency in their financial dealings.

Lack of Transparency and Ethical Concerns

The lack of transparency in how these funds were distributed and used has sparked ethical concerns. According to Julie Marzouk, a founding board member of IAN, CAIR has a history of “muddying the waters” to prevent the public from tracking the money. The complaint alleges that CAIR-CA and its chapters are not required to publicly disclose how they spend the funds, making it impossible to ensure that the money was used for its intended purpose. This lack of accountability is particularly concerning given that CAIR-CA’s accreditation to receive grants under the Department of Justice’s refugee program recently expired, and the group is now seeking renewal. Marzouk has called for the federal government to revoke CAIR-CA’s accreditation, arguing that the group has not adhered to the necessary rules and ethical standards required to handle taxpayer funds.

Links to Terrorism and Anti-Semitic Rhetoric

The watchdog group has also raised concerns about CAIR’s ties to Hamas, a U.S.-designated foreign terrorist organization. Evidence from past court proceedings has shown links between CAIR and both Hamas and the Muslim Brotherhood, raising questions about whether taxpayer funds may have indirectly supported terrorist activities. Additionally, some CAIR leaders have been accused of promoting anti-Semitic rhetoric and supporting measures that undermine Israel. For example, Zahra Billoo, the executive director of CAIR’s San Francisco chapter, has minimized Hamas’s atrocities against Israelis, while Hussam Ayloush, the executive director of CAIR-CA, has suggested that Palestinians have the right to “pick up arms” against Israel. These statements have added to the growing scrutiny of CAIR’s activities and its suitability to receive taxpayer funding.

Calls for Accountability and Further Investigations

In light of these findings, IAN is calling for a formal forensic audit and a thorough investigation by the Department of Justice to determine the full extent of CAIR-CA’s financial misconduct and its compliance with federal regulations. The complaint also highlights the need for greater oversight of taxpayer-funded grants