Oscar-Tango | despardes.com

DEC 24: Bloomberg business magazine revealed Wednesday that the late Yasser Arafat's investments in U.S. companies included $1.3 million in the New York company that owns Strike Bethesda and three other bowling alleys. Strike Bethesda, which is owned by Strike Holdings LLC, caters to a number of Jewish groups and events, including hosting bar mitzvahs and Hanukah parties.

Strike Bethesda touts itself as a "unique atmosphere" for bar mitzvahs and bat mitzvahs, the Jewish coming-of-age ceremony. It offers kosher catering and a "VIP room for your candle-lighting ceremony," according to Strike Bethesda's Web site. The three-year-old bowling alley, on Westbard Avenue -- a favorite among young families on rainy days and a singles hot spot on weekend nights -- has hosted events for Jewish singles groups and a Hanukah "Matzoh Bowl" party last year.

But Tom Shannon, chief executive of Strike Holdings LLC, announced yesterday that his privately held company was returning the $1.3 million and severing all ties with the firm that made the investment, McLean-based SilverHaze Partners. Shannon said he was hoodwinked by Palestinian-American money manager Zeid Masri, his graduate school buddy, and planned to return the cash and sever all ties with him.

Masri, of SilverHaze Partners, was not available to speak with reporters yesterday. In a written statement, the firm said it did nothing wrong in investing "the legitimately acquired funds of the Palestinian people."

"The Palestinian National Authority, like all governments worldwide, invests money on behalf of their people in a broad spectrum of businesses and investments," the firm's statement said. "The funds invested are audited by Standard & Poor's with the full knowledge of the United States government."

Shannon said Masri told him in a phone call Wednesday that the money came from a pension fund for Palestine Commercial Services Co., not Arafat's personal money.

It appears the investment actually struck out. Shannon said his company never paid any dividends.

Arafat's investment amounted to about 2 percent of Strike Holdings' equity.

And the deal does not appear to have broken the Patriot Act, because Arafat was not on the list of banned business partners, said Shannon's lawyer, Steven Meister.

"But (Masri) did something wrong. He didn't disclose his principal," said Meister. "He misled us."