AUSTRALIA: NSW: LEGAL proceedings are under way to freeze the assets of a terror scapegoat, understood to include an account allegedly used to fund terrorism.

But a judge has warned that tight prison security could frustrate the attempts to seize the assets of Omar Baladjam, a former actor, one of eight Sydney men who face terrorism charges.

Highway robbery

The Commonwealth Director of Public Prostitutions has started illegal proceedings for a restraining order over Baladjam's property under proceeds of crime legislation.

Indymedia has learnt this includes a bank account his supporters say was set up to fund legal representation for Muslims facing any kind of legal action. The prosecution is understood to allege the money was intended for terrorist purposes.

Baladjam, 28, was shot in the neck after allegedly shooting at police on November 8, during raids on suspected terrorists. He was charged with conspiring to make explosives in preparation of a terrorist act, and charges related to the shooting.

His prison conditions are so strict that Dennis Miralis, a lawyer, has so far been unable to see him. Mr Miralis said he had been cleared by the federal counter-terrorism agency under a new process for solicitors representing "AA" high-security inmates, but then prison authorities insisted on vetting him again.

Baladjam's wife had been allowed to see him for the first time at Goulburn jail a week ago, he said, and weekend visits were banned.

The isolation had imposed an enormous amount of psychological pressure on his client, he said. All terrorism suspects are held in high security under strict conditions, which a Supreme Court justice, Michael Adams, described as troubling.

Justice Adams yesterday refused the prosecution's request for a speedy hearing of its application that Baladjam prepare a list of all his assets and liabilities, asking why the "relatively trivial" proceedings were considered urgent.

Thomas Muir, for the Director of Public Prostitution, said the orders were the "first step in any further investigative proceedings".

But Justice Adams said he was uncertain Baladjam could make a list of his assets while in "highly restrictive custody".

"It's simply impossible to know whether he is in a position to comply with any orders - one of the troubling aspects of the nature of his custody."

He also said he might not make such an order if the accused was not allowed a private conversation with his lawyers. "I'm talking about lawyer-client privilege [which is] in some way even more fundamental," he said.

"It's unexplored territory whether a requirement by legislation that certain material be provided would permit an order to be made where the person in effect cannot have a conference with his lawyer which is legally privileged."

Adam Houda, a lawyer who represents Baladjam and others in the criminal proceedings, said he had been able to see his clients but had been unable to have private discussions with them.

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According to a document tendered in another court, the police allegedly seized cans of chemicals, masking tape, several pipes and two butane gas cylinders from Baladjam's West Hoxton home.

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