Michigan Man Sues, Says AIG Bailout Is Illegal Because Of Ties To Islamic Finance

And, he's got a very good case. 

From the Associated Press:

DETROIT (AP) -- A Michigan man is challenging the government's bailout of American International Group Inc., claiming the move is illegal because the insurer has financial products that promote Islam and are anti-Christian.

The lawsuit was filed Monday in federal court in Detroit by the Thomas More Law Center of Ann Arbor, which pursues cases on behalf of Christian causes.

It says the government is violating the First Amendment with billions of dollars of aid for AIG. The clause prevents the U.S. government from endorsing a religion.

The lawsuit says AIG offers financial services that comply with Sharia principles, specifically Takaful insurance. Islamic or Sharia-compliant finance bans investments that pay interest or sponsor alcohol, tobacco, pork, gambling or weapons.

"The Takaful insurance business of AIG is pervasively sectarian," the lawsuit alleges. "Its secular purposes and its Sharia-based Islamic religious mission are inextricably intertwined."

The lawsuit was filed on behalf of Kevin Murray of Washtenaw County, a Roman Catholic and Iraq War veteran.

Treasury Department spokeswoman Jennifer Zuccarelli had no comment.

A University of Louisville law professor predicts the lawsuit will be quickly dismissed.

"The notion that this bailout of AIG will advance religion is preposterous," said Sam Marcosson, who has written about the Constitution's Establishment Clause.

"The bailout was trying to prevent disastrous events for the economy. Any religious effects that might be alleged in this lawsuit were not on anyone's mind," he said.

You will notice that the argument put forth by Mr. Marcosson does not make logical sense. The question of what the lawmakers were thinking about when they approved the bailout has nothing to do with whether the bailout is legal according to the Constitution.

One can have all the altruistic motives in the world, but if one's behavior violates the Constitution, then that's the end of the matter.

One way to measure whether this bailout ought to fly is to ask oneself, were the bailout intended to save a bank like, say, the Evangelical Christian Credit Union, would the bailout be accepted? 

Here's the Mission Statement of the Evangelical Christian Credit Union:

Statement of Faith

People who are unfamiliar with ECCU sometimes ask why we have a statement of faith. It’s because agreement with these evangelical beliefs is a primary requirement for a ministry to qualify for ECCU membership. Here is our statement of faith.

We believe the Bible, consisting of all the books of the Old and New Testaments, to be the inspired, only infallible, authoritative Word of God. The Scriptures of the Old and New Testaments are without error or misstatement in their moral and spiritual teaching and record of historical facts. They are without error or defect of any kind.

We believe that there is one God, eternally existent in three persons: Father, Son, and Holy Spirit.

We believe in the deity of our Lord Jesus Christ, in his virgin birth, in his eternal, personal pre-existence, in his sinless life, in his miracles, in his vicarious and atoning death through his shed blood, in his bodily resurrection, in his ascension to the right hand of the Father, and in his personal return in power and glory.

We believe that, for the salvation of lost and sinful men, regeneration by the Holy Spirit is absolutely essential.

We believe in the present ministry of the Holy Spirit by whose indwelling the Christian is enabled to live a godly life.

We believe in the resurrection of both the saved and the lost; they that are saved unto the resurrection of life and they that are lost unto the resurrection of damnation.

We believe in the spiritual unity of believers in our Lord Jesus Christ.

Would the United States Congress put money into such an institution? Would they bailout the ECCU if the ECCU only invested in "Christian-approved" businesses?

UPDATE - More from Thomas Moore Law Center:

ANN ARBOR, MI – A federal lawsuit was filed this morning against U.S. Treasury Secretary Henry M. Paulson, Jr. and the Federal Reserve Board to stop all bailout funds from going to American International Group, Inc. (“AIG”).  According to the lawsuit, the U.S. government, through its ownership of AIG, is not only violating the Constitution, but also promoting and financing the destruction of America using American tax dollars.

The basis of the lawsuit is that AIG intentionally promotes Shariah-compliant businesses and insurance products, which by necessity must comply with the 1200 year old body of Islamic cannon law based on the Quran, which demands the conversion, subjugation, or destruction of the infidel West, including the United States.  

To help achieve these objectives and with the aid of federal tax dollars, AIG employs a three-person Shariah Advisory Board, with members from Saudi Arabia, Bahrain, and Pakistan.  According to AIG, the role of its Shariah authority “is to review operations, supervise its development of Islamic products, and determine Shariah compliance of these products and investments.” 

Of particular significance is the Pakistani Board member, Dr. Muhammed Imran Ashraf Usmani.  Dr. Usmani is the son and devoted disciple of Sheik Mufti Taqi Usmani, the leading authority on Shariah financing who, in 1999, authored a book dedicating an entire chapter on why a Western Muslim must engage in violent jihad against his own country – even if Muslims are given equality and freedom to practice their religion and to proselytize.    

The lawsuit was filed in the Federal District Court for the Eastern District of Michigan on behalf of Kevin J. Murray, a former Marine infantryman who served two tours of duty in Iraq.  Murray is represented by the Thomas More Law Center, a national public interest law firm based in Ann Arbor, Michigan, and David Yerushalmi, an associated attorney who specializes in litigation and is an expert on Shariah law and Shariah compliant financing.  Mr. Yerushalmi also serves as general counsel to the Center for Security Policy in Washington, D.C.

According to the lawsuit, use of taxpayer funds to acquire ownership of a business that intentionally promotes, endorses, supports, and funds Shariah-based Islamic religious practices violates the Establishment Clause of the First Amendment to the U.S. Constitution.  

Richard Thompson, President and Chief Counsel of the Thomas More Law Center, commented, “This lawsuit not only raises significant constitutional issues, it also shines a light on serious national security issues that our own government has created by direct financial support and ownership of a business that supports anti-American, radical Islamic activities.  Make no mistake, there is an internal cultural jihad underway against our great nation, and I fear that many of our political leaders are unwittingly complicit in it.”