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Originally published November 13, 2009 at 12:17 AM | Page modified November 13, 2009 at 4:46 PM

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Feds move to seize 4 mosques, skyscraper

Federal prosecutors took steps Thursday to seize four U.S. mosques and a Fifth Avenue skyscraper owned by a nonprofit Muslim organization long suspected of being secretly controlled by the Iranian government.

The Associated Press

NEW YORK — Federal prosecutors took steps Thursday to seize four U.S. mosques and a Fifth Avenue skyscraper owned by a nonprofit Muslim organization long suspected of being secretly controlled by the Iranian government.

In what could prove to be one of the biggest counterterrorism seizures in U.S. history, prosecutors filed a civil complaint in federal court 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 City, Maryland, California and Houston; more than 100 acres in Virginia; and a 36-story glass office tower in New York.

Confiscating the properties would be a sharp blow against Iran, which has been accused by the U.S. government of bankrolling terrorism and trying to build a nuclear bomb.

A telephone call and e-mail to Iran's U.N. Mission were not answered.

John Winter, the Alavi Foundation's lawyer, said it intends to fight the case and prevail. He said the foundation has been cooperating 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," he said.

It is rare for U.S. law-enforcement authorities to seize a house of worship, a step fraught with questions about the First Amendment right to freedom of religion.

The action against the Shiite Muslim mosques is sure to inflame relations between the U.S. government and American Muslims, many of whom are fearful of a backlash after last week's Fort Hood shooting rampage, in which a Muslim-American Army officer has been charged.

"Whatever the details of the government's case against the owners of the mosques, as a civil-rights organization, 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.

The mosques and the skyscraper will remain open while the forfeiture case works its way through court in what could be a long process. What will happen to them if the government prevails is unclear. But the government typically sells properties it has seized through forfeiture, and the proceeds are sometimes distributed to crime victims.

"No action has been taken against any tenants or occupants of those properties," U.S. Attorney's Office spokeswoman Yusill Scribner said. "The tenants and occupants remain free to use the properties as they have before today's filing. There are no allegations of any wrongdoing on the part of any of these tenants or occupants."

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Prosecutors said the Alavi Foundation managed the office tower on behalf of the Iranian government and, working with a front company known as Assa, illegally funneled millions in rental income to Iran's state-owned Bank Melli. Bank Melli has been accused by a U.S. Treasury official of providing support for Iran's nuclear program, and it is illegal in the United States to do business with the bank.

The United States has 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," U.S. Attorney Preet Bharara said in a statement.

There were no raids Thursday as part of the forfeiture action. The government is simply required to post notices of the civil complaint on the property.

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.

At the Islamic Institute of New York, a mosque and school in Queens, two U.S. marshals came to the door and rang the bell repeatedly. The marshals taped a forfeiture notice to the window and left a large document sitting on the ground. After they left, a group of men came out of the building and took the document.

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. The tenants include law and investment firms and other businesses, including the flagship store of Juicy Couture.

The sleek, modern building, last valued at $570 million to $650 million in 2007, has served as an important source of income for the foundation over the past 36 years. The most recent tax records show the foundation earned $4.5 million from rents in 2007.

Rents collected from the building help fund the centers and other ventures, such as sending educational literature to imprisoned Muslims in the United States. The foundation also has invested in dozens of mosques around the country and supported Iranian academics at prominent universities.

The forfeiture action comes at a tense moment in U.S.-Iranian relations, with the two sides at odds over Iran's nuclear program and its arrest of three U.S. hikers.

Material from The Washington Post is included in this report.

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