Fai was charged along with a
Pakistani American associate named
Zaheer Ahmad for obtaining illegal funding from Pakistan for the KAC. According to
Neil MacBride, the United States Attorney at
United States District Court for the Eastern District of Virginia "Mr. Fai is accused of a decades-long scheme with one purpose – to hide Pakistan's involvement behind his efforts to influence the U.S. government's position on Kashmir, his handlers in Pakistan allegedly funneled millions through the Kashmir Center to contribute to U.S. elected officials, fund high-profile conferences, and pay for other efforts that promoted the Kashmiri cause in favor of Pakistan to decision makers in Washington." The prosecutors also alleged that Kashmiri American Council was run by elements of Pakistani government including ISI and had Fai had received at least $4 million from the Government of Pakistan. If convicted Fai faces up to 5 years in prison. Zaheer Ahmad was not arrested and was thought to be living in Pakistan.
Bail At his initial court appearance, the prosecution claimed that, after his arrest, Fai had admitted to receiving money from ISI but said that he maintained an independent viewpoint on issues pertaining to Kashmir. FBI agent Sarah Linden stated that previously Fai had denied knowing anyone from ISI. Fai himself said nothing at the trial. He was granted
bail and placed under
house arrest. His and his wife's passports were confiscated, and Fai was forbidden from making any contact with any foreign government or witness.
Guilty plea On 7 December 2011, Fai pleaded guilty in the court of conspiracy and tax evasion. As part of his guilty plea, Fai signed an 81-paragraph "Statement of Fact" cataloguing his crimes, with specific details as to the instructions and payments he received from his ISI handlers. Court documents revealed his primary ISI handlers to have been Javeed Aziz Khan (alias "Brigadier Abdullah ('Khan')"; Major-General Mumtaz Ahmad Bajwa, who later became head of the ISI's Security Directorate that oversees
Kashmiri militant groups, Lieutenant-Colonel Touqeer Mehmood Butt, and Sohail Mahmood (alias "Mir"). An attorney submitted in a foot-note to a US district court in Alexandria, Virginia, that Fai misled people about possessing a doctorate degree.
Sentence reduction and release On 15 November 2013, the Assistant US Attorney who had prosecuted Fai asked the court to reduce Fai's sentence to 16 months time served. The motion was granted by the original sentencing judge on 22 November 2013, and Fai was released from the
Federal Correctional Institution in Cumberland, Maryland. ==Reactions==