The U.S. military have raided and ransacked the headquarters and home of Ahmed Chalabi morning in Baghdad. Chalabi, the head of the Iraqi National Congress and a member of the Iraqi Governing Council, had once been the Bush administration’s closest Iraqi ally. His Iraqi National Congress fed much of the fabricated and misleading intelligence to the US government and press in the lead-up to the invasion of Iraq. The INC has received over $40 million in US funding over the past four years. U.S. officials said Chalabi is under investigation for sharing top secret U.S. intelligence documents with foreign governments including Iran that could put American lives in jeopardy. In addition 15 employees of Chalabi are reportedly under investigation for taking part in kidnappings, torture, embezzlement and the theft of government property. The Washington Post reports the U.S. has been investigating the INC for possible ties to a scheme to defraud the Iraqi government during the transition to a new currency that took place last year. Chalabi had also distanced himself from Washington and had become highly critical of the occupation. The raid occurred at dawn Thursday morning. U.S. forces with help from the FBI, CIA and Iraqi police surrounded his house and headquarters. Files, rifles and computers were seized. The U.S. attempted to downplay their involvement and claim the Iraqi police led the raid. At one point Paul Bremer’s chief spokesman Dan Senor said “We really don’t have anything to do with the investigation or the arrests.” But all reports from Iraq indicate the U.S. was entirely behind it. Adnan Pachachi who serves on the U.S.-appointed Iraqi Governing Council disputed the U.S. claim. “Of course they knew,” he said. After the raid Chalabi cut off his ties with the Iraqi Governing Council. The council plans to hold an emergency meeting today in response to the raid.