Allegations come as international community is working to remove group from secret Iraqi hideout
Former chairman, joint chiefs of staff General Hugh Shelton attends the Symposium to mark the
33rd Anniversary of the Iranian Revolution at The Waldorf-Astoria on February 11, 2012.
Among those caught in the investigation of about 40 people and subpoenaed by the Treasury Department are former FBI Director Louis Freeh and the former Chairman of the Joints Chiefs of Staff, Gen. Hugh Shelton, the sources said.
The investigation is looking into whether the former officials received hundreds of thousands of dollars in speaking fees from the People’s Mujahedin of Iran, or MEK, which would violate federal law which bars financial transactions with groups on the State Department’s list.
When asked about the allegations, Shelton told NBC that he and the other officials were "pretty miffed."
"None of us involved in this would say a good word about anyone suspected of being a terrorist," he said
He added that he supports MEK though, which he told NBC is a legitimate resistance group fighting to overthrow the government in Iran, a country he referred to as "America’s number one enemy".
But the group, which found itself on the State Department’s list after allegedly killing six Americans in the 1970s, carried out a series of bombings and assassinations against the Iranian regime in the 1980s and was also a big supporter of Iraqi dictator Saddam Hussein. After Hussein’s death, they were accused of being a thorn in the side of Iraq’s Shiite-dominated government as they tried to mend ties with Iran.
Sources told NBC that former government officials received fees of more than $30,000 a talk and were flown first class to Europe. The officials claimed that they were told the fees came from wealthy Americans or foreign supporters of the group — but not the group itself.
Many of the speaking arrangements were made through speaking booking firms, according to the report.
"This is about finding out where the money is coming from," an Obama administration official familiar with the probe said. "This has been a source of enormous concern for a long time now. You have to ask the question, whether this is a prima facie case of material support for terrorism."
Though the MEK has lobbied for years to get off of the State Department’s list, experts say they were too dependent on the whims of their Paris-based leadership and are known to change strategies, motives and endgames without warning.
There’s no guarantee, experts warned NBC, that they won’t return to terrorism without warning.
"It’s extraordinary that so many distinguished public servants would shill for a group that has American blood on its hands," one senior official told the network.
The subpoenas come only days after Foreign Policy magazine reported that the multimillion-dollar lobbying campaign on behalf of (and paid for by) the MEK has hurt an international effort to move the group from a secretive hideout on the Iraqi-Iranian border to a new home — to avoid a bloody clash with the Iraqi military.
The Iraqi military has entered the hideout two times before, resulting in bloody clashes.
The U.N. and State Department’s efforts have been made increasingly difficult as a result of the advocates, FP reported.
“This is hard enough without paid advocates making it worse,” one official told the magazine
Nina Mandell, NEW YORK DAILY NEWS
outstation. The US Treasury Department appears to have begun an inquiry to see whether the speaking fees paid by Mojahedin Khalq Organization MKO to its American advocates who have spoken on its behalf are illegal. In an earlier report by The Washington Times, Edward G. Rendell, the former Democratic governor of Pennsylvania and an outspoken supporter of MKO, has been subpoenaed by the Treasury Department. He is asked to turn over information on his relationship with the designated terrorist group. Of course, Mr. Rendell is only one among the long list of former officials, including former directors of the Central Intelligence Agency and the Federal Bureau of Investigation, and many more, who have accepted fees to speak on behalf of MKO in Paris and Geneva as well as appearing in online videos and participating in arranged rallies. Mr. Rendell asserts that he has been paid between $150,000 to $160,000 for seven or eight speeches in support of MKO and calling for its removal from the terrorist list.

doubt that the money paid to the politicos comes from the Iranian Diaspora because most expatriate Iranians do no support the MEK. 
believe they — and they alone — are entitled. That a large bipartisan cast of Washington officials got caught being paid substantial sums of money by an Iranian dissident group that is legally designated by the U.S. Government as a Terrorist organization, and then meeting with and advocating on behalf of that Terrorist group, is very significant for several reasons. New developments over the last week make it all the more telling. Just behold the truly amazing set of facts that have arisen:
being on advertising for their original purpose of killing and martyrdom. Instead they have turned up the volume on what France 24 dubbed their ‘battle by press release’.
Treasury Department is investigating payments he accepted to speak in support of an Iranian exile group on the U.S. government’s list of foreign terrorist organizations.