Judge Finds Manhattan Skyscraper Owned by Iranian Front

The United States government may be about to take possession of a Manhattan skyscraper worth more than $500 million after a federal judge found its owners knowingly served as fronts for the Iranian government.

The order granting what prosecutors describe as "the largest real property forfeiture" came after five years of litigation, the New York Daily News reports. If the order is upheld in an anticipated appeal, the government could sell the property and give some of the proceeds to victims of terrorist attacks, including the 1983 Beirut Marine barracks bombing and the 9/11 attacks.

The Alavi Foundation owns 60 percent of the 36-story 650 Fifth Ave. building in midtown Manhattan. The rest is held by the U.K.-based Assa Company, Limited. But U.S. District Judge Katherine Forrest ruled that there is "uncontroverted record evidence, [proving] Assa was (and is) a front for Bank Melli, and thus a front for the Government of Iran" to shield its U.S.-based assets.

The U.S Treasury Department designated Bank Melli in 2007 as part of a package of economic sanctions aimed at slowing Iran's nuclear weapons program. Bank Melli, Treasury wrote at the time, "has facilitated the purchase of sensitive materials utilized by Iran's nuclear and missile industry…"

Attorneys for the Alavi Foundation argued that it is not clear that their clients knew about Assa's control by the Iranian government. Forrest dismissed that theory as "implausible" given the established connections among the owners. "No rational juror could believe in such extraordinary amnesia; many of the same Alavi board members who were indisputably involved in the creation of Assa as a front for Bank Melli in 1989 remained with, or returned to positions with, Alavi after the [orders prohibiting business dealings with Iran] were instituted in 1995."

Victims of Iranian-sponsored terrorist attacks have secured billions of dollars in civil judgments against the Islamic Republic for financing and providing other assistance to the killers. Little of those damages have been collected, however, as victims often find themselves fighting the U.S. government in their attempts to seize Iranian assets in the United States. It is unclear whether the government's success in New York could pry open the gates for those victims to complete their quest for justice.

Reader comments on this item

Bricks and Mortar

Submitted by Ahmed, Oct 10, 2013 15:52

Well! Its a 'Feel Good' Factor for the American People isn't it? If stealing few bricks and mortar allegedly belonging to the most current 'bogey man' gives people some comfort and security then fine, grab as much bricks and mortar that you can. Because the rest of the world will sleep well in the knowledge that 'the' Super Power with 46 other Countries could not defeat the 'Rag-Tag' Taliban.

GOOD SHOW

Submitted by Danna Munley, Sep 19, 2013 17:43

In a time when we (US) is fighting for our country it makes me proud to know that America

still has a bite and a BACK BONE.

Not so secret connection of 650 Fifth to Iran

Submitted by RitaSue Siegel, Sep 17, 2013 20:44

This article reminded me that years ago, I was watching the progress of a huge ramp that was being built as maybe a third floor entryway on the northwest side of the building, the West 52 Street side. I live nearby and saw it often. At the time there was a sign on the ramp during construction (which may have become an escalator), that clearly stated that this was a project of Iran. I don't know whether the ramp was demolished or moved inside of what now looks like a traditional office building. Aside from it being unusual architecturally, I remembered it because as far as I knew, Iran didn't take credit for anything in New York..

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