Pete Seda, 53, was freed from jail but fixed with a GPS bracelet late last month after defense lawyers successfully argued that the government had held back evidence in the case, including information that the FBI had made $14,500 in cash payments between 2004 and 2006 to a witness, who has since passed away, for information on Seda and other Muslims in the Ashland, Oregon, community.
Federal prosecutors also admitted to giving the defense conflicting versions of a report from an August 2007 interview the FBI had with that witness—a Muslim convert who attended prayer services at Seda’s residence, which was also the headquarters of Seda’s charity, Al-Haramain.
The defense argued that by not disclosing the payments before the trial the prosecution violated federal law and harmed its ability to respond to the prosecution witness’s testimony during the trial.
Federal Judge Michael Hogan ruled last month that Seda, also known by his Iranian name, Pirouz Sedaghaty, should be released while his lawyers argue that the conviction should be thrown out or that he get a new trial.
But before releasing him, Hogan said, “I expect someone to know where you are 24 hours a day. Your record isn’t perfect in showing up. I will not abide by any missteps.”
On September 9, Seda was convicted of tax fraud and conspiracy in what the government said was a plot to send about $150,000 to Saudi Arabia through the now defunct Islamic charity he managed. Prosecutors say the money was intended to be funneled to Muslim fighters in Chechnya fighting for independence from Russia.
Seda was out of the country when he was indicted in 2005. He was a fugitive in the Middle East, but finally surrendered himself to the authorities in Portland, Oregon, in August 2007.
Before his release, Seda was set to be sentenced, with defense lawyers arguing for a sentence equal to the months already served since his September 9 conviction. The prosecution, on the other hand, sought an eight-year prison term by having Seda sentenced under terrorism-enhancement rules, although Seda has never been designated a supporter of terrorism.
The defendant is now awaiting a ruling on whether or not he will be granted a new trial.
