By Nikola Krastev, RFE/RL
NEW YORK -- The U.S. Justice Department has
announced that it intends to seize a 40-percent share in a posh New York City
skyscraper.
Prosecutors allege the share is owned by Bank Melli, an Iranian bank that is
fully owned by the Iranian government. They have also frozen some $3.1 million
in assets they say are held by a shell company representing the bank.
The Fifth Avenue skyscraper in question
U.S. law prohibits the Iranian government and
related bodies from doing business in the United States without a special
license. Washington dropped all diplomatic ties with Iran following its 1979
Islamic Revolution.
Bank Melli has gained additional notoriety among U.S. prosecutors because of its
designation by the U.S. Treasury Department as a key funder of Iran's nuclear
and ballistic missile programs.
U.S. officials have also alleged the bank finances Iran's Revolutionary Guard
and its Quds Force, which has been linked to terrorist groups.
Shell Company
Prosecutors allege that a chain of e-mail messages dating back to 2003 establish
a clear a link between Bank Melli and Assa Corporation, the company that
officially holds the share of the Manhattan property.
The U.S. officials are claiming Assa is a shell company that for almost two
decades has funneled the rental proceeds from the property to Iran via a parent
company in the Channel Islands off the northern coast of France.
Total proceeds earned from the property have not been publicized. But it is
alleged that Assa deposited more than $17 million in U.S. bank accounts between
January 2000 and December 2007.
The case is part of efforts by the outgoing administration of George W. Bush to
tighten its grip on financial networks it believes are used to support
international terrorism and nuclear proliferation.
In a statement, the Treasury Department said: "This scheme to use a front
company set up by Bank Melli -- a known proliferator -- to funnel money from the
United States to Iran is yet another example of Iran's duplicity."
The owner of the remaining 60-percent share is the Alavi Foundation, a nonprofit
charitable organization associated with the late shah of Iran.
High-Profile Tenants
The Alavi Foundation has faced frequent accusations that it, too, has links with
the government in Tehran, although U.S. officials have never initiated legal
action against it.
The 36-story Fifth Avenue building was constructed in 1978, in part with help
from a $42-million loan from Bank Melli, then in its pre-revolutionary
incarnation.
It is situated in one of the most expensive sections of Manhattan. Neighboring
buildings include Rockefeller Center, the Museum of Modern Art, and St.
Patrick's Cathedral.
The building is host to a number of high-profile tenants, including Citibank and
the Charles Schwab brokerage.
Requests by RFE/RL to speak with the building manager were refused. Staff at the
Iranian mission at the United Nations likewise refused to comment on the case.
The U.S. government case is a civil, rather than criminal, complaint. No
suspects have been detained or accused of criminal wrongdoing.
According to U.S. law, Assa Corporation now has 55 days to respond to the
charges. The case may take several years to settle.
Copyright (c) 2008 RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036. www.rferl.org
... Payvand News - 12/27/08 ... --