Judge frees Islamic charity co-founder

A federal judge said Monday that he would release the Iranian-American co-founder of a defunct Islamic charity while he awaits trial on conspiracy and tax fraud charges.

Federal prosecutors quickly appealed U.S. Magistrate Judge Thomas M. Coffin's decision to release Pirouz Sedaghaty, also known as Pete Seda. Another hearing is scheduled for Tuesday before U.S. District Judge Michael Hogan.

Prosecutors declined to discuss the reason for the appeal.

Sedaghaty, 49, has been in custody since he returned to the United States last month to face conspiracy and tax fraud charges related to the operations of the U.S. chapter of the Al-Haramain Islamic Foundation, which he co-founded in the Southern Oregon town of Ashland in 1997.

He left the country in 2003 during an investigation that resulted in a federal grand jury indictment in February 2005, accusing him of helping to smuggle $150,000 out of the country to aid Muslim fighters in Chechnya. He has pleaded not guilty and is scheduled to go on trial April 16.

"It's a relief," said his wife, Summer Rife, who was in court with Sedaghaty's sons.

At a bail hearing, Coffin told prosecutors that he was not inclined to consider Sedaghaty a flight risk because he had returned to the United States voluntarily, despite having passports from Iran and the United States with different dates of birth and spellings of his name, which could make it easier to travel without an arrest.

"He is not charged with acts of violence," Coffin said. "I don't know why he would come back here to be arrested and face these charges only to leave again. It just doesn't make sense to me."

Defense attorney Larry Matasar said all passports for Sedaghaty, who holds dual citizenship, had been surrendered to the court.

The prosecution fears Sedaghaty could incite radical Muslims in the United States to acts of violence, even though he does not pose a risk himself, said Assistant U.S. Attorney Chris Cardani. Sedaghaty had been "less than forthcoming" about specifics of where he lived and how he supported himself in Iran, Saudi Arabia and Syria, Cardani said.

Coffin said he would not consider Sedaghaty a danger to the community without specific evidence from the government.

Coffin also said it was not the function of court personnel to help the prosecution gather evidence that Sedaghaty had accepted money that could lead to further charges. Matasar said the government was trying to use the bail process to interrogate Sedaghaty about his financial activities so they could link him to Osama bin Laden and specific terrorist groups.