By Alex van Wel BBC correspondent in Washington

The leader of a Muslim charity in the United States has been charged with diverting funds to al-Qaeda and other terrorist groups.

Enaam Arnaout, from the Benevolence International Foundation based in Chicago, was already in custody, having been detained in April on obstruction charges.

Mr Arnaout, the Syrian-born head of the Benevolence International Foundation, has been indicted on seven counts of racketeering and fraud in gaining charitable donations from the public.

It is sinister to prey on good hearts to fund the works of evil

John Ashcroft US Attorney General

He is accused of using the money to support Islamic militants around the world, including the al-Qaeda terrorist network, Chechens fighting the Russian army and Muslims in Bosnia.

Documents

The charges were outlined on Wednesday by the US Attorney-General, John Ashcroft.

"It is sinister to prey on good hearts to fund the works of evil," Mr Ashcroft said.

"The Department of Justice, under the leadership of the President, will use every means and leave no stone unturned in finding those who will knowingly fund violence and terrorist groups."

John Ashcroft has to produce results

Mr Ashcroft would not specify how much money the Justice Department believes to have been used by the charity leader to fund terrorists.

But he did say documents found in the organization's office in Bosnia tied Mr Arnaout directly to Osama Bin Laden, the al-Qaeda leader blamed by the US for the 11 September 2001 attacks on New York and Washington.

Mr Ashcroft also said the papers gave details of a 1988 meeting at which the terrorist network was founded and included a text of its oath of allegiance.