“The Federal Bureau of Investigation is looking into whether hedge funds invested or laundered money — perhaps inadvertently — for Osama bin Laden’s al Qaeda network or other terrorist groups,” writes Gregory Zuckerman in today’s Wall Street Journal.

“The hedge-fund probe is part of the existing investigation by the FBI and the Treasury Department into the money trail of terrorist groups believed to have been behind the Sept. 11 attacks. Authorities familiar with this part of the probe say there is a possibility that some of the people involved in the attacks may have been investing in the financial markets through some of the hedge funds. Because they have a global reach and often accept money through intermediaries — who don’t always divulge their clients’ identities — hedge funds are an obvious target for investigation, experts say.”

“Among the firms that have been questioned so far: EIM, a high-profile, London-based firm that invests money in leading global hedge funds. The firm is led by Arpad Busson, a flashy international investor — he is the father of supermodel Elle McPherson’s son — and one of the best-known players in the hedge-fund world.”

“EIM has been told it isn’t a target of any FBI investigation; rather, the firm’s New York office has been asked for help in the FBI’s effort to trace al Qaeda finances, and is fully cooperating.”

“EIM at one time managed money for the bin Laden family, according to people familiar with the firm. Those family members have disowned Mr. bin Laden and aren’t believed to have any involvement in terrorism. The bin Laden family hasn’t invested money with EIM for some period of time, according to people familiar with the matter. It is unclear why the FBI would contact EIM about a probe into the money trail of al Qaeda.”

” ‘Like many other financial institutions contacted by the authorities, we received a single inquiry and responded appropriately,’ said a spokesman for EIM.”

“The FBI appears eager to talk to companies in the hedge-fund business, including those that serve as intermediaries between hedge funds and their investors, which include wealthy families and big institutions. These intermediaries accept money from investors and decide which hedge funds to place the money with. In many cases, the hedge funds themselves may not know the identity of the investor whose money they are handling.”

“Because hedge funds are lightly regulated investment vehicles that cater to wealthy individuals and institutions, officials say they are a perfect place for terrorists to invest. Many offer the rare combination of top-notch returns and unusual secrecy, and are accustomed to dealing with investors from around the world.”