A federal racketeering lawsuit was filed on May 6 by about 100 Iraqi Americans alleging that they have been victimized in two Ponzi schemes involving millions of dollars.The plaintiffs have not identified themselves in the case and are seeking a protective order from the judge in order to keep their identities secret for fear of reprisal against family members in their home country of Iraq. Currently, it is unknown as to whether or not a protective order will be granted by U.S. District Judge David M. Lawson, however.The Arab American News Publisher Osama Siblani said that he had been contacted by the plaintiffs about writing a story regarding the allegations before the lawsuit was filed.The plaintiffs claim that the alleged Ponzi schemes, allegedly perpetrated by other Iraqi expatriates, “took advantage of cultural and religious concepts of honor and fairness to cloak their promises and their agents’ promises with credibility.”The defendants allegedly “posed as altruistic, religious, and civic-minded do-gooders, who were employed, trusted individuals to solicit investments from their community.”It goes on to allege that they “exploited cultural and religious taboos forbidding dishonesty and financial self-dealing when dealing with tribal brothers and sisters as well as the Arab custom of doing business with cash and a handshake to dupe thousands of Iraqi-Americans into investing in Iraqi and Middle Eastern projects.”The plaintiffs said they were promised both in writing and orally to be refunded in principal within 8 to 12 months after original investments at interest rates of 80 to 100% but that thousands have not been repaid and efforts to contact the defendants have not been successful. Because others had originally received large payments, much as was the case during the original Ponzi scheme perpetrated by Italian American swindler Charles Ponzi, they are to said have believed they would also receive payments that never came. Dave Honigman is one of four lawyers representing the plaintiffs in the case. Honigman said that the damage done by the schemes is staggering.”In my study of economic crime and fraud centered in the state of Michigan, I know of none broader in scope or more devastating in consequence than the instant case, where thousands of Arab American families were tricked into investing their life savings with two criminal masterminds, he said.Honigman said that people from many different walks of life were affected.”Investors run the gamut from high school students to housewives to blue-collar tradesmen to multimillionaire businessmen. The geographic scope of the Ponzi scheme spans the globe,” he said.”It has shattered the social and economic fabric of the Arab American community, especially in Dearborn, Michigan — the center of the Arab diaspora in the United States. It has harmed Arab Americans across the United States as well as in Iraq, the Middle East and other foreign countries.”The principal defendants in the case represent a group called Fatima International, Inc. out of Illinois, which allegedly used contacts within local mosques, churches, and other organizations to solicit investments.Other defendant groups named in the suit include Adam Trade Group and Fedek Group, Inc., both Michigan corporations.Adam Trade Group closed down several months ago and was identified in calls to Siblani. Honigman said that other citizens who believe they’ve been swindled can contact him at 248.447.9200 or davehonigman@gmail.com to tell their stories.