In what could be one of the biggest counterterrorism seizures in US history, federal prosecutors sought to take over four US mosques and a New York City skyscraper owned by an organisation suspected of being controlled by the Iranian government.
Prosecutors filed a civil complaint in federal court yesterday against the Alavi Foundation, seeking the forfeiture of more than $500 million in assets.
The assets include bank accounts; Islamic centers consisting of schools and mosques in New York, Maryland, California and Houston; more than 100 acres in Virginia; and a 36-story Manhattan office tower. Confiscating the properties would be a sharp blow against Iran, which the US government has accused of bankrolling terrorism and trying to build a nuclear bomb.
John D. Winter, the Alavi Foundation's lawyer, said it intends to litigate the case and prevail. He said the foundation has been co-operating with the government's investigation for the better part of a year.
"Obviously the foundation is disappointed that the government has decided to bring this action," Winter told The Associated Press.
It is extremely rare for US law enforcement authorities to seize a house of worship, a step fraught with questions about the First Amendment right to freedom of religion.
"Whatever the details of the government's case against the owners of the mosques, as a civil rights organisation we are concerned that the seizure of American houses of worship could have a chilling effect on the religious freedom of citizens of all faiths and may send a negative message to Muslims worldwide," said Ibrahim Hooper, spokesman for the Council on American-Islamic Relations.
It is unclear what will happen to the properties if the government ultimately prevails. But the government typically sells properties it seizes through forfeiture and sometimes distributes the money to crime victims.
US attorney's office spokeswoman Yusill Scribner said there are no allegations of any wrongdoing on the part of the tenants or occupants of the properties, which will remain open.
Prosecutors said the Alavi Foundation managed the office tower on behalf of the Iranian government and, working with a front company known as Assa Corp., illegally funneled millions in rental income to Iran's state-owned Bank Melli. A US Treasury official has accused Bank Melli of providing support for Iran's nuclear program, and it is illegal in the United States to do business with the bank.
US officials have long suspected the foundation was an arm of the Iranian government. A 97-page complaint details involvement in foundation business by several top Iranian officials, including the deputy prime minister and ambassadors to the United Nations.
"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," US Attorney Preet Bharara said in a statement.
There were no raids as part of the forfeiture action Thursday. The government is simply required to post notices of the civil complaint on the properties.
As prosecutors outlined their allegations against Alavi, the Islamic centers and the schools they run carried on with normal activity. The mosques' leaders had no immediate comment.
Parents lined up in their cars to pick up their children at the schools within the Islamic Education Center of Greater Houston and the Islamic Education Center in Rockville, Md. No notices of the forfeiture action were posted at either place as of late Thursday.
The fourth Islamic center marked for seizure is in Carmichael, Calif.
The skyscraper, known as the Piaget building, was erected in the 1970s under the shah of Iran, who was overthrown in 1979. Tenants include law and investment firms and other businesses.
The building, last valued in 2007 at $570 million to $650 million, has been an important source of income for the foundation over the past 36 years. Tax records show the foundation earned $4.5 million from rents in 2007.