In re: 650 Fifth Avenue and Related Properties

Background

The United States filed a verified amended complaint seeking civil forfeiture under 18 U.S.C. § 981. The property identified in the complaint included interests of Assa Corporation, Assa Company Limited, Bank Melli Iran, and the Alavi Foundation in 650 Fifth Avenue Company; the real property and improvements at 650 Fifth Avenue; and funds formerly held in four specified bank accounts. The complaint referred to these assets collectively as the “Defendants-in-rem,” meaning property that is the subject of a forfeiture proceeding.

The United States published notice of the forfeiture action and notified certain interested parties. Assa Corp. and Assa Co. Ltd. filed claims and an answer. Numerous judgment creditors holding judgments against, among others, the Government of Iran also filed claims concerning the property. Several groups entered into a settlement agreement with the United States providing for distribution of net forfeiture proceeds on a pro rata basis and later withdrawal of their claims after distribution. Other claims were withdrawn, dismissed, or resolved through separate orders.

Earlier rulings

On September 16, 2013, the court granted the Government’s motion for summary judgment concerning the forfeitability of Assa Corp. and Assa Co. Ltd.’s interests. The court ruled that the interests constituted or were derived from proceeds traceable to violations of the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, and that they were involved in or traceable to money laundering under 18 U.S.C. § 1956. The court also ruled that Assa Corp. and Assa Co. Ltd. were not innocent owners under 18 U.S.C. § 983(d).

The court later granted judgment creditors’ motions for partial summary judgment and summary judgment concerning turnover of Assa’s interests under the Foreign Sovereign Immunities Act and the Terrorism Risk Insurance Act. A turnover judgment entered in 2017 stated that Assa Corporation and Assa Company Limited’s interests in the Assa property were extinguished. In 2019, the Second Circuit affirmed the turnover judgment and affirmed summary judgment on forfeitability in part, reversed summary judgment concerning an affirmative defense, and remanded for further proceedings. On March 31, 2021, the court struck Assa Corp. and Assa Co. Ltd.’s claims to the property and accounts.

Judgment

Judge Loretta A. Preska ordered and adjudged that the United States was entitled to a judgment of forfeiture against Assa Corp. and Assa Co. Ltd.’s interests in the Defendants-in-rem. The judgment forfeited to the United States all of Assa’s interests in 650 Fifth Avenue Company, including interests in funds allocated for partnership distributions and held by the U.S. Marshals Service under protective orders. It also forfeited to the United States all funds formerly held in the four specified accounts and all funds traceable to them. Assa Corp. and Assa Co. Ltd.’s interests in those assets were extinguished.

The judgment authorized the U.S. Marshals Service to take possession of and dispose of Assa’s interests according to law and the settlement agreement.