Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
United States Attorney for the Southern District of New York, Jay Clayton, announced on Mar. 23 that a settlement has been reached in a long-running forfeiture litigation, resulting in approximately $318 million being paid to hundreds of victims of Iranian state-sponsored terrorism.
The case concerns funds connected to the Iranian government and will provide compensation to individuals and families affected by various terror attacks, including the 1984 bombings in Beirut and the September 11, 2001 attacks. The resolution comes after nearly two decades of legal proceedings involving assets linked to an Iranian government-owned bank's secret interest in a Manhattan office tower at 650 Fifth Avenue.
According to the announcement, "Iran has sponsored terrorism for decades," said U.S. Attorney Jay Clayton. "Since the inception of this litigation, the overriding goal of the Department of Justice has been to vindicate the rights of victims of the Government of Iran’s long-standing policy of supporting and promoting terror attacks across the world, including 9/11. This Office’s many years of determined litigation show our unrelenting commitment to victims’ rights, and has led to this significant recovery. For nearly two decades, we pursued hidden Iranian government assets tied to a Manhattan skyscraper to ensure those funds would ultimately compensate victims of Iran-sponsored terrorism rather than terrorists and their enablers."
The building at issue was originally constructed by a charitable foundation controlled by Iran's former Shah before coming under control by entities linked with Bank Melli Iran following regime change in 1979. Over time, income from building operations was funneled through front companies associated with Bank Melli despite U.S.-imposed sanctions against Iran beginning in 1995.
Following multiple settlements over several years with groups holding judgments against Iran for state-sponsored terrorism injuries, all parties have now agreed on a global settlement: an initial payment completed on March 20 totaling $129 million followed by deferred payments over three years.
As part of this agreement, ownership structures are being dissolved and transferred as approved by relevant regulatory authorities including New York's Charities Bureau and federal agencies overseeing foreign assets control. The case involved investigative work from several law enforcement agencies such as the FBI’s New York Field Office Counterintelligence/Cyber Division and others.
