Editor’s note: WorldNetDaily brings readers exclusive, up-to-the-minute global intelligence news and analysis from Geostrategy-Direct, a new online newsletter edited by veteran journalist Robert Morton and featuring the “Backgrounder” column compiled by Bill Gertz. Geostrategy-Direct is a subscription-based service produced by the publishers of WorldTribune.com, a free news service frequently linked by the editors of WorldNetDaily.

The U.S. government has been covering up FBI evidence of a massive Saudi network to finance terrorist fronts and anti-Semitic groups in the United States, according to a lawsuit filed in a Florida court by former U.S. prosecutor John Loftus.

The suit targets Kuwaiti national Sami Al Arian, a professor who has been suspended from a Florida university amid charges that he has been a liaison of the Iranian-sponsored Islamic Jihad of Palestine.

In his suit, Loftus charges that the Justice Department has refused to prosecute Al Arian despite acquiring substantial evidence to show that Al Arian had committed numerous crimes, including mail and tax fraud.

The reason for the hands-off approach, Loftus said, is that prosecution of Al Arian would disclose that he was a “small, but significant part of a global money laundering network operated under the guise of purported American charities run by the government of Saudi Arabia.”

The Saudi terror network – which supports Islamic Jihad, Hamas, Hezbollah and al-Qaida – is said to operate out of a charity in Herndon, Va.

Loftus, who cites “confidential client sources,” said the State Department asked Justice to terminate a 1995 criminal investigation of Al Arian after the discovery of Saudi involvement. The pressure by State on the FBI grew so great that a key agent, John O’Neill, quit the bureau in protest.

“In truth and in fact, the government of Saudi Arabia has used their charitable fronts in America to fund hate groups, racist organizations and terrorist operations like defendants within the United States for the last thirty years,” the suit reads.

Loftus made his reputation as a tenacious hunter of Nazi war criminals in America and for the last 20 years has been a gadly of the U.S. intelligence community. He has investigated and published books and articles based on information from whistleblowers in the CIA who alleged that the intelligence community, out of political expediency and sometimes pure spite, purposely ignored intelligence vital to U.S. national security.

Subscribe to Geostrategy-Direct.

Note: Read our discussion guidelines before commenting.