Nader Elhuzayel

LOS ANGELES –  Two Southern
California men accused of conspiring to travel to the Middle East to join the
Islamic State pleaded not guilty on Monday to financial fraud charges connected
with their alleged attempts to support the militant group, federal officials
said.

Muhanad Badawi and Nader Elhuzayel, residents of Anaheim,
appeared in federal court in Santa Ana to face additional charges of bank and
financial aid fraud that had been added to charges of conspiring to provide
material support to the Islamic State, designated a terrorist group by the U.S.
government.

Federal prosecutors have accused Elhuzayel, 25, of depositing
stolen checks, drawn on three U.S. bank accounts, into his personal account and
then withdrawing the money. Badawi, 24, is accused of using federal financial
aid intended for his studies to buy Elhuzayel a plane ticket to Turkey, where
he could move on to Syria and link up with Islamic State.

During Monday’s court hearing, Elhuzayel said: “Ridiculous,
not guilty,” when asked to enter his plea to the financial fraud charges,
the Orange County Register reported.

The allegations against the two men represent one of the most
recent cases of U.S. authorities cracking down on individuals they believe are
seeking to join Islamic State, which is fighting in Syria and Iraq.

Badawi’s attorney, Kate Corrigan, told the Orange County
Register the allegations of financial fraud “are a clear indication that
the government believes it has a problem with the original charges.”

The FBI said in a statement earlier this month the new
indictment “reiterates the previous charges against Elhuzayel and
Badawi.”

According to the U.S. Attorney’s Office, on May 3, Elhuzayel
tweeted his support for two men who that day attacked an exhibit of caricatures
of the Prophet Mohammad in Garland, Texas, and were shot to death by police.

Badawi and Elhuzayel were also recorded talking to each other
when they expressed support for the Islamic State, an affidavit said.

Elhuzayel, who is a naturalized U.S. citizen, was arrested at
Los Angeles International Airport and admitted he had planned to travel to
Istanbul in order to move towards Turkey’s border with Syria, where he would
join Islamic State, authorities said.

Badawi had indicated he planned to eventually travel to the
Middle East, prosecutors said.

The
two men face up to 15 years in prison if convicted of aiding the Islamic State.
In addition, Elhuzayel faces up to 30 years for bank fraud and Badawi up to
five years on the financial aid fraud count, the FBI said.