An Islamic charity incorporated in Toledo, Ohio, still fighting a case a U.S. Treasury Department asset freeze, published a notice Thursday saying it has been dissolved.
It is not clear why the move was made.
Treasury froze the assets of KindHearts for Charitable Humanitarian Development in 2006. KindHearts made contributions to Hamas-affiliated organizations and was supporting Hamas in Lebanon and the West Bank. The NGO was called "the progeny of Holy Land Foundation and Global Relief Foundation, which attempted to mask their support for terrorism behind the façade of charitable," by then-Under Secretary for Terrorism and Financial Intelligence, Stuart Levy.
The Holy Land Foundation (HLF) was shut down by the U.S. government in 2001. HLF and five officials were convicted in 2008 of illegally funneling more than $12 million to Hamas.
In October 2008, the American Civil Liberties Union (ACLU) filed suit against the Office of Foreign Assets Control (OFAC) on behalf of KindHearts, seeking to lift the freeze. KindHearts won an injunction in 2008 preventing Treasury from labeling the organization a Specially Designated Global Terrorist (SDGT) without providing it with "constitutionally adequate due process." In 2009 a federal judge temporarily restrained the Treasury Department from designating KindHearts as an SDGT, and ruled that the government violated the organization's constitutional rights by failing to obtain a warrant based on probable cause and failing to provide KindHearts with adequate notice before the freeze. In May 2010, the same judge ruled that the government needs to show probable cause for the freeze.
KindHearts was created in January 2002, just a month after Treasury shut down HLF and the Global Relief Foundation, which had connections to Osama Bin Laden and allegedly funneled money to al-Qaida. Former HLF Chairman Mohamed El-Mezain served as "the sole professional fundraiser that has been utilized by KindHearts," tax records filed by KindHearts in 2002 show. "Mr. El Mezain is contracted by KindHearts and is asked to appear at events and conduct fundraising activities…" El-Mezain was convicted of conspiracy to provide material support to Hamas in the HLF trial and sentenced to 15 years in prison.
KindHearts is still negotiating a settlement with Treasury over its frozen assets.