Washington (CNN) -- Pakistani intelligence secretly funneled at least $4 million to a Washington front group whose leaders improperly lobbied U.S. officials over the disputed territory of Kashmir, federal agents alleged Tuesday. A Pakistani-American man who served as director of the Kashmiri American Council is in federal custody, while a second man accused of steering money to the organization is believed to be in Pakistan, the Justice Department said. The KAC director, Syed Ghulam Nabi Fai, "acted at the direction and with the financial support of the government of Pakistan for more than 20 years," an FBI arrest affidavit states.
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NEW: The group's director makes his first appearance in court
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NEW: The director and his co-defendant contributed to U.S. candidates
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They are accused of lobbying for Pakistan without registering as foreign agents
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Pakistan's intelligence service funneled at least $4 million to their operation, prosecutors say
Fai was operating as a @placeholder agent as early as 1995, the FBI affidavit states.