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US moves to seize properties tied to Iran

New York, Nov. 13 (Reuters): US prosecutors filed a civil lawsuit yesterday to seize control of a New York city skyscraper they say is owned by companies illegally funnelling money to the Iranian government.

The suit seeks to revoke the Alavi Foundation and the Assa Corporation’s ownership of a 36-storey building at 650 Fifth Avenue in Manhattan.

The original lawsuit filed in December only sought Assa Corp’s building share.

Prosecutors said both companies were sending money to Bank Melli, owned by the Iranian government. The US treasury has designated the bank as a weapons proliferator and banned US citizens from dealing with it. Prosecutors said they also intended to seize “all other assets” of the two entities, including bank accounts and real estate like the Islamic Education Center in Potomac, Maryland.

The amended civil action is against the owners of the properties and not people who use the buildings, the US attorney’s office for the southern district of New York said.

“No action has been taken against any tenants or occupants of those properties,” said spokeswoman Yusill Scribner.

Prosecutors say Iran’s UN ambassador has controlled the Alavi Foundation since 1991.

“For two decades, the Alavi Foundation’s affairs have been directed by various Iranian officials, including Iranian ambassadors to the UN, in violation of a series of American laws,” US attorney Preet Bharara said in a statement.

“As today’s complaint alleges in great detail, the Alavi Foundation has effectively been a front for the government of Iran,” he said.

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