Friday, December 6, 2019
In further developments, the DOJ unsealed an indictment against the company on Dec. 2, 2019, alleging that Allied Wallet used its proprietary gateway, digital wallet and merchant services in ways that violate AML guidelines. According to the indictment, Khawaja reportedly concealed more than $3.5 million in campaign contributions between March 2016 and January 2017 by covertly directing funds to political committees involved with the 2016 presidential election.
“By design, these contributions appeared to be in the names of Khawaja, his wife, and his company,” the DOJ stated. “In reality, they allegedly were funded by [George] Nader. Khawaja and Nader allegedly made these contributions in an effort to gain influence with high-level political figures, including the candidate. As Khawaja and Nader arranged these payments, Nader allegedly reported to an official from a foreign government about his efforts to gain influence.”
Co-defendant George Nader, who is in federal custody on other charges, was implicated along with several other parties for concealing Khawaja’s “excessive contributions, which totaled more than $1.8 million, to various political committees,” the DOJ stated. “Among other things, these contributions allegedly allowed Khawaja to host a private fundraiser for a presidential candidate in 2016 and a private fundraising dinner for an elected official in 2018. The indictment further alleges that, from June 2019 through July 2019, Khawaja obstructed a grand jury investigation of this matter in the District of Columbia.”
When Khawaja learned that a witness had been called to testify before a grand jury, he attempted to conceal Nader’s relationship to Allied Wallet by providing false information, according to assistant attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and FBI assistant director Timothy R. Slater.
The Federal Grand Jury will hear arguments related to the 53 count indictment against Khawaja and his alleged co-conspirators, the justices stated. Charges include two counts of conspiracy, three counts of making conduit contributions, three counts of causing excessive contributions, 13 counts of making false statements, 13 counts of causing false records to be filed, and one count of obstruction of a federal grand jury investigation. While noting defendants are presumed innocent until proven guilty, the DOJ disclosed that deputy chief John D. Keller and trial attorneys James C. Mann and Michael J. Romano, of the Criminal Division’s Public Integrity Section, will be prosecuting the case. 
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