The Washington Post reported the details of the case when it first broke back in May 2009.
Sharia, or Islamic law, encourages trade and investment, but bans interest and prohibits investments in certain areas such as gambling, alcohol, pornography, abortion, human cloning, conventional banks or insurers, and most forms of entertainment. Under Sharia, making money from money, such as charging interest, is usury and therefore not permitted. Western banks and investment companies have established Sharia-compliant accounts overseen by imams and Islamic scholars.
According to the lawsuit, filed by the conservative Christian Thomas More Law Center, at least a portion of AIG’s $40 billion federal bailout has been used to support Sharia-compliant financial products. The suit claims that violates the First Amendment’s establishment clause. "It is outrageous that AIG has been using taxpayer money to promote Islam and Shariah law, which potentially provides support for terrorist activities aimed at killing Americans," Richard Thompson, President and Chief Counsel of the Thomas More Law Center, said in a statement.
I understand that it is important for some cultures that their money is invested in a certain way. I wouldn’t be opposed to the private sector try to appeal to them to increase their bottom line but they would have to use their own private capital to do it… no taxpayer money!
A marine tried to challenge the fact that $153M of your taxpayer dollars went to AIG to set up these Shariah-compliant accounts and the judge said the taxpayers lacked ‘standing’. The ruling was in federal appeals court: 6th US Circuit Court of Appeals. Details is sparse at best. Here is the full story from WND.