BAGHDAD, Iraq — A suspected al-Qaida-linked insurgent leader accused of financing attacks and recruiting fighters was captured in southern Iraq, Iraqi police said today. The U.S. military also said it was investigating reports of civilian casualties in fierce fighting in the volatile city of Ramadi.

Issa Abdul-Razzaq Ahmed, who was detained during a raid Thursday on a house in central Basra, has been traveling to neighboring countries to collect funds for militant operations in Iraq, provincial police commander Gen. Mohammed al-Moussawi said.

He also said the suspect, a 22-year-old Sunni, was on the Interior Ministry's most-wanted list and was accused of being a major figure in recruiting fighters. Police also found lists with the names of other wanted militants, maps and propaganda CDs.

"Working under the guise of a businessman, he has been shuttling between Syria and the United Arab Emirates to collect funds for the terrorists in Iraq," Moussawi said.

Spokesman Lt. Col. Christopher Garver, meanwhile, said the military was investigating reports of civilian casualties during intense fighting between American troops and Sunni insurgents in Ramadi, 70 miles west of Baghdad.

A six-hour battle broke out Wednesday evening after insurgents armed with rocket-propelled grenades attacked U.S. troops from nearby buildings. Marine spokesman 1st Lt. Shawn Mercer said Thursday that 12 insurgents were killed and no civilian casualties were reported, but Iraqi authorities said the dead included women and children.