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Hassans, Muhammeds, and other men with Arabic-sounding names  are being turned away when they try to buy cars, homes, and even exercise equipment. Responding to post-9/11 requirements to screen customers against terrorist lists, companies are turning down buyers with even partial name matches rather than risk stiff fines and prison time.

A report released today documents at least a dozen cases of such mistaken identity. Tom Kubbany, whose middle name is Hassan, was denied a mortgage when a credit report claimed that "Hassan" was an alias for one of Saddam Hussein's children. Never mind that he's 30 years older than Hussein's offspring. Now, Kubbany says, "There's a dark cloud over us." (Read more OFAC stories.)