Znetix founder Lawrence arrested by yaohongm


									                                                     AN INTIMAN WORLD PREMIERE AND UNSETTLING ‘SIGNS’                                                                         WHAT’S HAPPENING

                                               Another comeback win                                                                    Doc says ‘Cuddle Cure’
                                              as M’s beat Indians 10-6                                                                 can calm a colicky baby
                                                                                SPORTS C1                                                                       LIFE AND ARTS E1

                                                                                                          FRIDAY, AUGUST 2, 2002

                                                                                                                                                                      KING, SNOHOMISH, PIERCE CO. & BAINBRIDGE
                                                                                                                                                                          ISLAND, KITSAP, THURSTON CO. 50¢ | ELSEWHERE 75¢                25¢
 Inquiry targets Muslim charities
 WSU and U. of Idaho groups investigated
         BY SAM SKOLNIK, DAIKHA DRIDI                who spoke on condition of anonymity.
                                                                                                               INSIDE                Osman deal points to a bigger quarry
                                                                                                              Help The
                                                         The overwhelming majority of Muslims in                                                                                possessing a firearm with an obliter-      a much bigger player in the global
                   P-I reporters                     the Moscow and Pullman area and around the
                                                                                                            Needy a reply           Plea agreement may                          ated serial number.                        terror network.
                                                     nation make good-faith contributions as re-               to Iraq                                                              In exchange, the U.S. Attorney’s           Reportedly at the center of the
    MOSCOW, Idaho – The FBI is investigating         quired by their religion to feed and clothe the          sanctions             signal attempt to go                        Office has dropped charges that Se-        FBI investigation is Abu Hamza al-
charitable donations by Muslim students and          needy, the sources said. However, authorities                                                                              mi Osman tried to fraudulently ob-         Masri, the radical London cleric sus-
organizations at the University of Idaho and at      believe a tiny but dangerous minority has se-              SEE A10              after radical cleric                       tain citizenship documents.                pected of recruiting American Mus-
Washington State University for possible links       creted itself within the network of Muslim                                                                                     The sealed plea agreement is the       lims for al-Qaida. The two men asso-
to international terrorism, according to crimi-      charities to fund terrorism.                          Money goes to                      BY CHRIS McGANN                   strongest indication yet that the fed-     ciated with the defunct Dar us Sa-
nal justice sources.                                     Leaders of Muslim student associations at           neediest,                           P-I reporter                   eral investigation of the members of       laam mosque in Seattle, James
    The inquiry is an integral part of efforts to    WSU and Idaho, campuses that are only eight            Muslims say                                                         a now-defunct Seattle mosque and           Ujaama and Semi Osman, appear to
understand a labyrinthine financial network          miles apart in the Palouse region of Eastern                                       A Tacoma man who authorities            their activities at a suspected al-Qai-    be peripheral to the much broader
that the Justice Department believes funded                                                                     SEE A11             suspect is an al-Qaida operative            da camp in Bly, Ore., was primarily
the Sept. 11terrorist attacks, said these sources,                     SEE INQUIRY, A10                                             pleaded guilty this week to illegally       intended to gather evidence against                  SEE OSMAN, A12

                                                                                                        ARC ANGELS

                                                                                                                                                                                                                                          PAUL KITAGAKI JR. / P-I

      The Blue Angels fly over Lake Washington yesterday in preparation for Seafair activities this weekend. The team will be flying from noon to 12:45 p.m. today through Sunday in conjunction with the hydroplane races. SEE C1.

 Iraq invites                                          INSIDE
                                                 Bush gets                                  Znetix founder Lawrence arrested
 U.N. arms                                     trade powers                                Company swindled                           scribed as the largest stock swindle in the
                                                                                                                                      state’s history.
                                                                                                                                                                                               The criminal indictment accuses Law-
                                                                                                                                                                                          rence of squandering much of the money                     INSIDE
  inspector                                   Breaking an eight-year logjam,
                                              Congress has restored the
                                                                                          investors of millions,                          Lawrence, who was arrested at a Bain-
                                                                                                                                      bridge Island residence at 8:30 a.m., plead-
                                                                                                                                      ed innocent in a preliminary court appear-
                                                                                                                                                                                          on jewelry, homes, swords, boats and exot-
                                                                                                                                                                                          ic cars, including a Ferrari 360 Modena Spi-
                                                                                                                                                                                          der F-1, a Porsche 911 Carrera Cabriolet
                                                                                                                                                                                                                                                  Two former
                                                                                             prosecutors say
 back to talk                                 president’s authority to negotiate
                                              trade agreements – a power
                                              denied to President Clinton for                       BY JOHN COOK
                                                                                                                                      ance yesterday afternoon in Seattle. The
                                                                                                                                      37-year-old remains in custody awaiting a
                                                                                                                                      detention hearing next Tuesday.
                                                                                                                                                                                          and several Hummers. Court documents
                                                                                                                                                                                          also reveal that investor money was trans-
                                                                                                                                                                                          ferred to offshore accounts in the Bahamas
                                                                                                                                                                                                                                                  arrested on
                                                                                                                                          Lawrence, who was voted “Most Ro-               and the Caribbean island of Nevis.
  Senators told that                          much of his tenure. Seattle trade
                                              advocates say the authority would
                                                                                                       P-I reporter
                                                                                                                                      mantic” and “Biggest Spender” by his Bain-               “Whether (Znetix) started out as a le-
                                                                                                                                                                                                                                                 fraud charges
                                                                                         Znetix founder Kevin Lawrence was led        bridge High School Class of 1984, faces a           gitimate business concept and snowballed
  any war would be                            give the United States a stronger      away in handcuffs yesterday morning as           maximum sentence of 560 years in prison             into a fraud or was a fraud from the get-go,
                                                                                                                                                                                                                                                       SEE D2

                                                                                     eight FBI agents arrested the Bainbridge Is-     for allegedly bilking more than 5,000 in-           I really don’t know,” said Assistant U.S. At-
 long and very costly                         hand in international trade talks.
                                                                                     land man on 64 counts of fraud and money         vestors, including thousands in Washing-
                                                           SEE A2                    laundering in what regulators have de-           ton state, out of as much as $91 million.                           SEE ZNETIX, A7
            The Boston Globe

     WASHINGTON – In a surprise
move, Iraq yesterday invited the
chief U.N. weapons inspector to
Baghdad for talks with an eye toward
                                                      INDEX                                                                                                                    Police rescue 2 girls,
resuming inspections that Iraq

                                                                                                                                                                               killing their abductor
blocked in 1998.                               Business                        D1
     Iraq’s foreign minister, Najir Sa-        Comics                        E3-4
bri, sent U.N. Secretary-General Kofi          Joel Connelly                   A2
Annan a letter inviting arms-inspec-           Crosswords                  E4, G5
tion teams to Baghdad to discuss out-          Editorial                     B6-7                                                                                                                BY CHRISTINA ALMEIDA
standing disarmament issues “to es-            Life and Arts                   E1                                                                                                                  The Associated Press
tablish a solid basis for the next stage       Susan Paynter                   E1
of monitoring and inspection activi-                                                                                                                                              LANCASTER, Calif. – Two teenage girls abducted at
                                               Seattle/NW                      B1
ties and to move forward toward that                                                                                                                                          gunpoint early yesterday from a lovers’ lane were res-
                                               Television                      D8                                                                                             cued 100 miles away after their kidnapper crashed his
     The United States has warned              Laura Vecsey                    C1                                                                                             getaway car and was shot to death by sheriff’s deputies,
President Saddam Hussein that he                                                                                                                                              authorities said.
faces unspecified consequences if he            Today’s weather:                                                                                                                  Kern County Sheriff Carl Sparks said he was certain
does not allow the return of the in-            Mostly cloudy. Highs,                                                                                                         the kidnapper was minutes away from killing the girls
spectors, who left ahead of 1998 al-                                                                                                                                          and had chosen a remote location in the high desert. He          Police killed Roy
lied air strikes meant to punish Iraq           60s to near 70. C10                                                                                                           said the girls had been raped.                                   Ratliff, 37, just
for halting the inspections.                                                                                                                                                      “He was hunting for a place to kill ’em and bury ’em,”       before they said
     The Iraqi letter was sent as the                   © 2002 SEATTLE                                                                                                        Sparks said on CNN’s “Larry King Live” program.                  he would have
Senate Foreign Relations Committee                    POST-INTELLIGENCER                                                                                                          When two deputies arrived, the suspect showed a              killed and buried
heard testimony that a U.S. invasion                        55                                                                                                                gun and said, “No way, no way,” according to the sheriff.        two teenagers.
of Iraq would be only the beginning                                                                                                                                           The deputies shot him seven times in all.
of a long, expensive American pre-                                                                                                                                                The girls, Tamara Brooks, 16, and Jacqueline Marris,
sence in the country.                                                                                                                                                         17, were in the back of the vehicle, but the deputies
     Iraq invited chief U.N. inspector                                                                                                                                        couldn’t see them before they started shooting, Sparks
Hans Blix and his team to discuss in-                                                                                                                                         said.
spection issues “at the earliest time.”                                                                                                             ASSOCIATED PRESS PHOTOS       Television footage showed the sobbing girls being
                                                                                     Marcus Brooks, 18, brother of Tamara Brooks, 16, celebrates with friends
             SEE IRAQ, A9                                                            moments after learning Tamara and Jacqueline Marris, 17, were found alive.                                   SEE ABDUCTION, A9

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