Family members of victims of the 9/11 terrorist attacks urged a New York federal judge Monday to force an alleged associate of Osama bin Laden to turn over documents related to his bank accounts and his relationship with Saudi Arabia, saying he should be sanctioned for stalling the multidistrict litigation.

The families claim that Wa’el Hamza Jelaidan, an alleged al-Qaeda financier, has been lying about his ability to access documents related to bank accounts he held jointly with other individuals accused of financing terrorism, and that new evidence in the litigation over the attacks shows that he has produced the information they want in other investigations.

“Jelaidan’s conscious and willful refusal to produce responsive banking and corporate documents that are clearly within his possession, custody and control is incredibly alarming,” the plaintiffs said in a letter to U.S. District Judge Frank Maas.

According to the plaintiffs, Jelaidan, who was previously sanctioned by Judge Maas in 2013 for failing to comply with discovery orders, repeatedly claimed he couldn’t access his bank records because he had been designated a terrorist financier by both the United States and the United Nations.

However, the plaintiffs say, new evidence shows that he was able to produce the documents in question to help another man accused of financing terrorism, Yassin al Kadi, in an investigation by the Swiss government.

The plaintiffs are asking Judge Maas to impose “severe monetary sanctions” on Jelaidan, saying his conduct could warrant a default judgment but that they’re only asking for sanctions “commensurate with his egregious behavior in these proceedings.

”Jelaidan’s assets were frozen in September 2002 after the United States and Saudi Arabia branded him as a “person who supports terror.” According to the U.S. government, he had a close relationship with bin Laden and directed organizations that provided financial and logistical support to al-Qaeda.

In addition to Jelaidan’s financial records, the plaintiffs are also seeking to force him to turn over documents related to his relationship with the Kingdom of Saudi Arabia and his activities on behalf of Saudi charities. The plaintiffs claim Jelaidan was appointed by the Saudi government to positions in several charities affiliated with al-Qaeda, and say they are concerned that the interests of the Saudi government has influenced how Jelaidan has responded to discovery requests.

An attorney for Jelaidan, Martin F. McMahon of Martin F. McMahon & Associates, told Law360 on Tuesday that Jelaidan was unable to produce the documents only because he didn't have them, and disputed that his client was connected to terrorism.

"It's a very difficult battle to produce documents when you don't have them," McMahon said. "Boy, I'd eat my desk if he's a terrorist," he added about Jelaidan.

The families also sent letters Monday urging Judge Maas to compel two other alleged al-Qaeda financiers, Perouz Sedaghaty and Soliman H.S. al-Buthe, to turn over financial documents. Sedaghaty and al-Buthe were formerly the U.S. head and treasurer, respectively, of the Al-Haramain Islamic Foundation Inc., a charitable organization accused of providing financial support to al-Qaeda.

The plaintiffs previously filed a motion to compel the Dubai Islamic Bank to produce similar documents in mid-July, saying the bank is withholding information about the accounts of at least eight al-Qaeda figures and others related to the Taliban.

The families scored a symbolic victory in the litigation in late July when they won default judgment against Iran after the Islamic republic failed to respond to allegations that it sponsored al-Qaeda.

Earlier in July, insurance companies and family members of victims requested that the New York federal court extend U.S. District Judge George B. Daniels’ December 2011 liability finding — that the Islamic republic, Hezbollah, the Taliban and al-Qaeda owe more than $6 billion in damages to family members of nearly 60 of the victims — to every case in the MDL.

Attorneys for the plaintiffs did not respond to requests for comment on Tuesday. An attorney for Sedaghaty and al-Buthe declined to comment.

The plaintiffs’ executive committee for personal injury and death claims is represented by Jodi Westbrook Flowers of Motley Rice LLC, James P. Kreindler and Andrew J. Maloney III of Kreindler & Kreindler LLP, Paul J. Hanly Jr. of Hanly Conroy Bierstein Sheridan Fisher & Hayes LLP, and Jerry S. Goldman of Anderson Kill of Anderson Kill PC. The executive committee for commercial claims is represented by Elliot R. Feldman, Sean Carter and J. Scott Tarbutton of Cozen O’Connor. Jelaidan is represented by Martin F. McMahon of Martin F. McMahon & Associates. Sedaghaty and al-Buthe are represented by Alan Robert Kabat of Bernabie and Katz PLLC. The case is In re: Terrorist Attacks on September 11, 2001, case number 1:03-md-01570, in the U.S. District Court for the Southern District of New York.--Editing by Rebecca Flanagan.

NewsID_837_9-11 Families Demand Docs From Bin Laden Associate1.pdf