The U.S. has moved to seize assets of the Alavi Foundation, which purports to be "a private not-for-profit organization devoted to the promotion and support of Islamic culture and Persian language, literature and civilization." In doing so, federal authorities said the Foundation is a front for the goverment of Iran.
The assets sought by the U.S. government would amount to about $500 million in value. The assets include mosques in New York City, Maryland, California and Houston, more than 100 acres in Virginia, and a 36-story office tower in New York City.
To be clear, there were no raids involved as part of the forfeiture action. Rather, the government is simply posted notices of the civil complaint on the property. However, if completed, this could prove to be one of the biggest counterterrorism seizures in U.S. history.
According to prosecutors, the Alavi Foundation used a front company known as Assa Corp. to illegally funnel millions in rental income back to Iran's state-owned Bank Melli. It is illegal in the United States to do business with Bank Melli.
As far as to what happens to the mosques and office building (the Piaget building), the answer for now is nothing. They will remain open while the case runs its course. It will likely be a lengthy proceeding, and assuming the U.S. wins, the typical action in such a case would be a government sale of the captured properties.
The Piaget building was built in the 1970s, when Iran was controlled by the Shah. The Shah of Iran, you may recall, was overthrown in 1979. The tenants include law and investment firms and other businesses.
The Piaget building was last valued at $570 million to $650 million in 2007. The most recent tax records show the Alavi Foundation earned $4.5 million from rents in 2007.
U.S. Attorney Preet Bharara said the following in a statement:
"For two decades, the Alavi Foundation's affairs have been directed by various Iranian officials, including Iranian ambassadors to the United Nations, in violation of a series of American laws."
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