THE STEALTH IRAQI

At a May 4 hearing, Jawad Hashim's latest attorney, Michael Carmel, attempted to persuade Judge Charles G. Case II to freeze all depositions and discovery until the judge rules on a motion to remove the Arab Monetary Fund from the case.

Carmel argued that the AMF shouldn't be allowed to intervene in U.S. Bankruptcy Court. At the same time, Carmel contended the bankruptcy court could discharge--that is, nullify--the $160 million debt a British court has ordered Jawad Hashim to repay the monetary fund.

Case was stunned by Carmel's logic.
"That's a pretty sweet deal for the debtors [the Hashims]," Case said, rejecting Carmel's motion and allowing Gaffney to continue his search for $50 million that disappeared more than a decade ago, when America was still tilting toward Iraq and Saddam Hussein was a name not yet linked to infamy.