DETROIT — Two men whose convictions in the first terrorism trial after Sept. 11 were thrown out because of misconduct by prosecutors were charged Wednesday with insurance and mail fraud.
The new charges are part of a long-running legal saga involving the defendants, Karim Koubriti and Ahmed Hannan, who were once accused of being part of a terrorist cell.
The terrorism prosecution was dropped. It was an embarrassment for the Justice Department in a case the Bush administration once called a major victory in the war on terrorism. The lead prosecutor is under investigation over his handling of the case.
The new indictment alleges that Koubriti, 26, and Hannan, 36, devised a scheme to defraud Titan Insurance Co. of Troy, Mich., by filing false claims. It says the pair claimed they were injured in a 2001 car accident and submitted fraudulent claims for lost wages, physical therapy and household services.