A British-based charity with offices in Birmingham that is alleged to be a front for an al Qaida-linked terror group has no links to any such organisation, it was claimed yesterday.
The Sanabel Relief Agency, which says it raises money for Muslims in destitute parts of the world, is said to be linked to the Libyan Islamic Fighting Group.
The US claims that while it presents itself as a charitable organisation, Sanabel's first priority is to support the group's "jihadist activities".
Leaders of the LIFG allegedly control Sanabel, using it as a vehicle to transfer money and documents for terrorists overseas.
The Sparkbrook-based charity, along with five Libyan-born men - including three based in Birmingham - and three companies allegedly involved in the operation have had their assets frozen by the United Nations.
But one of the men, Taher Nasuf, yesterday claimed he had been framed by the Libyan government because of his opposition to the regime.
The 44-year-old father-of-four, who lives in Manchester, said the first he learnt of the allegations was when he was contacted by the media last night.
He said he was surprised when he learnt about them, and then this morning a cash machine swallowed his card. Nasuf admitted knowing the other four men named by the UN but denied the allegation by the US Treasury that he was a member of the LIFG.
Asked why he thought his assets had been frozen, he said: "In my opinion, it's because I'm Libyan, and I'm against the Libyan government.
"The Libyan government, maybe they passed my name to the American Government and they passed my name to the UK Government. I'm nothing to do with al Qaida or any other group."
Nasuf arrived in the UK in 1993. He said he set up the Sanabel shop, which has raised around £45,000 selling second hand clothes and jumble, in 1999.
Another man, Mohammed Benhammedi (39) also said to be linked to the terror group, has been arrested by Merseyside Police over alleged immigration offences.
Benhammedi, alleged to be a "key financier" of the LIFG, was said to have provided funds through three firms.
These were named as Sara Properties Limited and Ozlam Properties Limited, both based in Liverpool, and Meadowbrook Investments Limited, based in Bristol. The offices of Sara Properties and Ozlam Properties were boarded up with metal shutters yesterday.
Another company, Hanover Company Services, which forms limited companies on behalf of businesses, was actually based there. The three other named men, all based in Birmingham, were Abd Al-Rahman Al Faqih (46) Ghuma Abd'rabbah (48) and Abdulbaqi Mohammed Khaled (48).
The US Treasury said Al Faqih had been convicted in absentia in Morocco over the 2003 suicide bombings in Casablanca which left more than 40 dead.
He was also said to be a senior leader of the LIFG and involved in providing false passports and money to its members worldwide.
Abd'rabbah was described by the US as an associate of al-Faqih and one of three trustees of Sanabel while Khaled was said to be a director of the charity. A spokesman for West Midlands Police said it had not made any arrests.
UN member states are now obliged to impose an asset freeze, travel ban and arms embargo on all the individuals and organisations named.
The terror group they are alleged to support, the LIFG, is described by the US Treasury as an "al Qaida affiliate known for engaging in terrorist activity in Libya and cooperating with al Qaida worldwide".
The Foreign Office would not comment on which country had begun the investigation which led to the referral to the United Nations.
A spokesman said: "It is not the practice of the UN Security Council to discuss which UN member state is responsible for proposing the listing. It certainly would not be right for us to do so.