Story highlights Defense says 3 suspects are Occupy protesters, but police say they're "Black Bloc" anarchists

Three suspects allegedly stockpiled Molotov cocktails and planned attacks on police

Defense team calls the allegations "propaganda" and says police infiltrated a peaceful group

Judge sets bails for each of the three suspects at $1.5 million

Three men charged with conspiring to commit domestic terrorism during the NATO summit were plotting to attack President Obama's Chicago campaign headquarters, the Chicago mayor's home and police stations, authorities said Saturday.

A police investigation that began early this month revealed that the three suspects are "self-proclaimed anarchists" and members of the "Black Bloc" group who traveled together from Florida to Chicago to commit violence as a protest against the NATO summit, authorities said in a statement.

"Black Bloc" was the group blamed for violence that occurred in recent "Occupy" protests, such as in Rome last year when anarchists in ski masks torched cars and clashed with police and even other Occupy protesters.

The three men were planning to destroy police cars and attack four Chicago police district stations with destructive devices as a way to undermine police response to other planned actions at the NATO summit, according to a statement by Cook County State's Attorney Anita Alvarez and Chicago Police Superintendent Garry McCarthy. Downtown Chicago financial institutions were also among the proposed targets, authorities said.

An Illinois judge set bail at $1.5 million for each of the three suspects: Brian Church, 22, of Fort Lauderdale, Florida; Jared Chase, 27, of Keene, New Hampshire; and Brent Betterly, 24, who told police he resides in Massachusetts, authorities said.

The three men were charged with material support for terrorism, conspiracy to commit terrorism, and possession of explosives or incendiary devices, authorities said. The three men were arrested Wednesday, and charges were announced Saturday, according to authorities.

Photos: Photos: NATO summit draws protests Photos: Photos: NATO summit draws protests NATO summit draws protests – Protesters rally in Chicago on Sunday, May 20, the first day of the NATO summit. A week of demonstrations led up to the two-day meeting, which brought together the leaders of more than 50 nations. Hide Caption 1 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – A demonstrator displays an anti-NATO button on his bandana Sunday. Largely peaceful crowds chanted, waved signs and banged drums in Chicago. Hide Caption 2 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – Members of the anti-war group Code Pink demonstrate in Chicago on Sunday. Hide Caption 3 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – Two men rest against a tree before the start of protests on the first day of the NATO summit. Hide Caption 4 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – A police officer and a protester face off with cameras in Chicago during a demonstration organized by National Nurses United on Friday, May 18. Friday was the fifth day of protests leading up to the NATO summit. Hide Caption 5 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – Officers form a line to prevent protesters from crossing the Michigan Avenue Bridge during protests on Friday. Hide Caption 6 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – Protesters make their way through downtown Chicago in an impromptu demonstration. Hide Caption 7 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – Police clash with protesters attempting to cross the Michigan Avenue Bridge in Chicago. Hide Caption 8 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – Chicago police watch over protesters during demonstrations organized by National Nurses United in Daley Plaza in Chicago. Hide Caption 9 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – An Occupy Wall Street protester in Chicago covers himself with an American flag after a march through downtown Chicago on Friday. Hide Caption 10 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – A souvenir shop window reflects protesters in Chicago on Thursday as they demand an end to NATO violence ahead of the summit. Hide Caption 11 of 12 Photos: Photos: NATO summit draws protests NATO summit draws protests – Police guard President Barack Obama's national campaign headquarters in the Prudential Building in Chicago during protests on Monday, May 14. Hide Caption 12 of 12

"The individuals that we have charged in this investigation are not peaceful protesters. They are domestic terrorists who came to Chicago with an anarchist agenda to harm our police officers, intimidate our citizens and to attack their politically motivated targets," said Alvarez.

According to authorities, Church said he wanted to recruit four groups of four co-conspirators -- or 16 people -- and that reconnaissance had already been done on the Chicago Police Department headquarters.

The three men also possessed or built improvised exposive or incendiary devices, a mortar gun, swords, a hunting bow, throwing stars, and knives with brass-knuckle handles, authorities said.

In court, prosecutors accused the three men of preparing for "violence and destruction," such as stockpiling Molotov cocktails.

But a defense attorney called those accusations "propaganda" and contended authorities "infiltrated" a peaceful group and set up the three men.

The three defendants stood expressionless in court, each handcuffed behind the back.

A couple dozen of their supporters in the courtroom could be heard faintly scoffing at prosecutor Matthew Thrun as he called the defendants "self-proclaimed anarchists ... making preparations for violence and destruction."

Thrun said one of the defendants could be heard planning an attack and quoted him as saying, "this city does not know what it is in for, and it will never be the same."

According to Thrun, the defendants bought gasoline at a BP station, cut bandanas for fuses, and had four empty beer bottles to be used as Molotov cocktails.

Thrun told the court that Church made a remark while assembling the Molotov cocktails: "Ever seen a cop on fire?"

Defense attorney Michael Deutsch accused authorities of "police misconduct," saying undercover agents infiltrated a "peaceful" group.

"They even bought the makings of Molotov cocktails and gave it to them," Deutsch said in court.

Outside of court, he called the case a set-up and an example of "entrapment to the highest degree."

"It is sensationalism by the police and the state to discredit the protesters that have come here to nonviolently protest," the attorney said.

The National Lawyers Guild, which says it's representing the three defendants, said Chicago police arrested a total of nine activists Wednesday at a house in Chicago's Bridgeport neighborhood and then released six of them.

The guild described the three defendants as "Occupy activists" and said police provided no evidence of criminal intent or wrongdoing.

"It's outrageous for the city to apply terrorism charges when it's the police who have been terrorizing activists and threatening their right to protest," attorney Sarah Gelsomino with the lawyers guild and the People's Law Office, said in a statement.

Judge Edward Harmening set the three defendants' next court date for Tuesday.

On Sunday, NATO kicks off its two-day summit in Chicago, and the war in Afghanistan is expected to dominate discussions . Afghan President Hamid Karzai and Pakistani President Asif Zardari are both expected to attend the meeting.

NATO leaders are currently on a timetable to withdraw all of the alliance's combat troops from Afghanistan in 2014.