The former treasurer of Spain's Islamic Commission is accused of funding Al Qaeda militants through a Syrian orphan charity.
Mohamed Hatem Rohaibani Sleik, 61, is one of three men arrested in dawn raids in Madrid and Santa Cruz de Tenerife on Tuesday.
Police are investigating the funding of a school for orphans in Syria that is suspected of being linked to the training of child soldiers for Al Qaeda.
Mr Sleik, who was remanded in custody, is the former treasurer at the Islamic Commission of Spain (CIE). He was arrested with CIE president Mohammad Ayman Adlbi, who has since been released, along with a second man.
"The suspects are believed to have used a non-governmental organisation to finance the activities of Al Qaeda-affiliated militants," Europol said.
"The network diverted funds raised in good faith by religious associations, under the cover of using them as humanitarian aid for Syrian orphans.
"In addition to financing the activities of terrorist fighters, part of the funds were used to cover the costs of a school for orphaned children, which is involved in training future terrorist fighters.
"The school focused on radicalising, providing combat training and encouraging orphans to continue the terrorist activities of their parents killed in combat."
Four raids were carried out as part of the investigation and cash, valuables, documents and technical devices were seized for analysis by investigators.
"They channelled money from Spain – contributed by sympathisers – to an NGO in a conflict zone, whose activities were aimed at instructing future mujahideen," Spain's police force said on Twitter.
On Thursday, Mr Ayman Adlbi, 74, described the investigators' focus on him as unfounded.
He was arrested at his home in Madrid on Tuesday and was later released without charge.
"I must express our confidence in the judicial administration, regardless of the suspicions, which we consider unfounded," Mr Ayman Adlbi said.
He also voiced his "great displeasure" at being arrested when he could have easily been invited for "an interview" at the police station.
Police are investigating global Islamist funding networks that send money to Syria and other conflict zones.
The inquiry is being handled by an investigative unit that deals with terrorism-related issues.
Mr Ayman Adlbi was appointed last year to head the CIE, which represents Muslims in Spain and oversees religious services at the country's mosques.
CIE is due to hold an emergency council meeting on April 11.
"CIE will meet to clarify what happened after the arrest by the police and subsequent release of its president," Islam in Murcia said on Friday,
"Mohamed Hatem Rohaibani Sleik, a 61-year-old Syrian man, has been sent to provisional prison by the reinforcement judge of the Central Court for allegedly belonging to a terrorist organisation and financing of terrorism by diverting humanitarian aid destined for orphaned children in Syria.
"CIE sources have assured Islam in Murcia that the only money they handle comes from the public subsidy they receive from the Pluralism and Coexistence Foundation, and that their budgets are audited annually."
Mr Sleik stepped down as treasurer of CIE last summer.
How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
