Hussain went by the name “Malik” when he owned a home in Loudonville and was used by the FBI in Albany to infiltrate a Central Avenue mosque. Yassin Aref, an Iraqi refugee, was imam of the mosque and the main target of the sting that began in 2003. Aref and an acquaintance, Mohammed Hussain, a Bangladeshi immigrant who owned a pizza shop, were both arrested in 2004 and accused of laundering money for Mohammed Hussain in connection with a fictitious terror plot.

They were convicted in 2006 and both sentenced to 15 years in federal prison.

Shahed Hussain went to work for the FBI after being convicted of federal fraud charges in 2002 in Albany. He was taking payments from immigrants, some of whom could not read English, in a scheme to cheat on state exams to obtain driver’s licenses.

In May 2009, he again surfaced as an FBI informant when four men from Newburgh were charged with conspiring to plant explosives outside the Riverdale Jewish Center and Riverdale Temple in New York City. As in the Albany case, Shahed Hussain posed as a wealthy businessman and befriended the men before implicating them in a terror plot.

The four Newburgh men, Laguerre Payen, James Cromitie, Onta Williams and David Williams, were convicted but the FBI’s use of Shahed Hussain drew harsh criticism and raised entrapment questions.