DISTRICT ATTORNEY VANCE TO END CRIMINAL PROSECUTION OF APPROXIMATELY 20,000 LOW-LEVEL, NON-VIOLENT MISDEMEANORS PER YEAR

The Vast Majority of Theft of Services Offenses for “Turnstile Jumping” on the Subway Will No Longer Be Criminally Prosecuted in Manhattan; Manhattan DA Early Diversion Program Expanded to Adults; Manhattan “Hope” Program for Drug Possession to be Launched

Manhattan DA’s Office on Track to Reduce Low-Level Offenses Prosecuted in Criminal Court by Nearly Half of 2009 Total

 

Manhattan District Attorney Cyrus R. Vance, Jr., today announced new justice reform initiatives that will end the criminal prosecution of approximately 20,000 low-level offenses annually. Beginning in September 2017, the Manhattan District Attorney’s Office will no longer prosecute the overwhelming majority of individuals charged with Theft of Services for subway-related offenses, unless there is a demonstrated public safety reason to do so. 

 

Building on the success of the Manhattan Summons Initiative launched by District Attorney Vance and the NYPD in March 2016 – which was subsequently replicated citywide –  the policies being announced today will:

• Prevent New Yorkers accused of committing these offenses from accumulating a criminal record or ever setting foot in a courtroom
• Reduce the immigration, housing, employment and other collateral consequences associated with criminal prosecution
• Enable the Manhattan District Attorney’s Office to focus its resources on investigating more serious crimes, such as domestic violence, drunk driving, stalking, and assault cases
• Reduce the backlog of cases in Manhattan Criminal Court
• Strengthen bonds between law enforcement and the community members we serve, and
• Reduce the jail population of Rikers Island, in order to achieve the goal of its ultimate closure.   

Manhattan District Attorney Cyrus R. Vance, Jr., said: “The criminal prosecution of these low-level, non-violent offenses should not be a part of a reformed 21st-century justice system. Absent a demonstrated public safety risk, criminally prosecuting New Yorkers accused of these offenses does not make us safer. Today, by committing to divert these misdemeanor cases out of Criminal Court in Manhattan, we will further eliminate unnecessary incarceration, and reduce the risks of deportation, loss of housing, and loss of employment that often accompany a criminal prosecution. 

 

“Since 2010, my Office has worked with the NYPD and the Mayor’s Office of Criminal Justice to end the criminal prosecution of tens of thousands of low-level cases that needlessly bog down our Criminal Court and swell our City’s jail population. In Manhattan, we are embracing the role that District Attorneys must play to achieve the closure of Rikers Island, and proving that New York can safely reduce crime and incarceration at the same time.”

 

Theft of Services – New York Penal Law §165.15(3)

 

Theft of Services, also known as “turnstile jumping,” a class A misdemeanor, is the most common charge in Manhattan Criminal Court: nearly 10,000 individuals were arrested on this charge in Manhattan last year. In the coming months, the Manhattan DA’s Office will work with the NYPD and the Mayor’s Office of Criminal Justice to drastically reduce the number of people prosecuted in Manhattan for committing this offense, by a combination of issuing summonses in lieu of arrest, and offering pre-arraignment diversion to those individuals who are arrested for this crime and issued a desk appearance ticket (DAT). If those individuals successfully complete the terms of a diversion program, the Manhattan District Attorney’s Office will decline to prosecute the case, the individual will need not appear in court, and the record will be sealed. 

 

However, as with all offenses, the District Attorney’s Office will continue to prosecute those individuals who pose a demonstrated threat to public safety.  

Council Member Rory I. Lancman said: "The decision by Manhattan DA Vance to end criminal prosecution of fare evasion in Manhattan is an important step forward to reforming our criminal justice system. For too long, prosecution of fare evasion as a crime has disproportionately impacted people of color, bogged down our courts, and even put immigrants at risk of deportation. Diverting fare evasion cases away from the criminal justice system is a smart and sensible policy that will ensure offenders are held accountable fairly, while not saddling people with a lifetime criminal record or left languishing in custody."

Manhattan DA Early Diversion Program

District Attorney Vance awarded grants to three organizations to create early diversion programs that provide participants with opportunities to avoid prosecution and an arrest record, while being held accountable in a community setting. 

The initiative is modeled after the success of the Office’s signature Project Reset pilot program, a collaboration by the District Attorney’s Office, the Center for Court Innovation (CCI), and NYPD. Under Project Reset, 16- and 17-year-old first-time arrestees who are arrested for low-level offenses are eligible to complete a counseling program, or other age-appropriate interventions, administered by CCI. To date, 432 teens have successfully completed Project Reset and have had their cases dismissed without ever setting foot in a courtroom. 51 additional teens are currently enrolled in the program. 

The groups receiving grants today will serve eligible participants over the age of 18 – first-time arrestees, charged with non-violent misdemeanor crimes – with similar pre-arraignment intervention opportunities throughout Manhattan. Certain programs will target young adults between the ages of 18-to-20-years-old. The District Attorney’s Office will provide total funding, initially estimated at approximately $6.5 million, over three-and-one-half years. The following vendors receiving awards are expected to help serve an estimated 5,000 people each year: 

• Center for Court Innovation 
  • Primary Demographic: Young adults and adults arrested in Midtown Manhattan, and adults arrested in Lower Manhattan
  • Services and Programming:  Individuals may participate in a range of diversion workshops focused on topics such as public health, legal resources, community service, education, and workforce; individual counseling; or a restorative justice program, as well as be linked – if interested - to additional outside services
• Osborne Association 
  • Primary Demographic: Young adults and adults arrested in Northern Manhattan
  • Services and Programming: Individuals will participate in one of four core interventions: a trauma-coping intervention, a restorative justice intervention, a Naloxone treatment training program, and community benefit projects, as well as be linked – if interested - to additional outside services
• Young New Yorkers 
  • Primary Demographic: Young adults arrested in Lower Manhattan 
  • Services and Programming: Individuals will participate in an arts-based restorative justice intervention that engages participants in taking responsibility for their actions through storytelling, utilizing video, photography, and collage, as well as be linked – if interested – to additional outside services

The Manhattan District Attorney’s Office is providing these grants through its Criminal Justice Investment Initiative (“CJII”), which District Attorney Vance created using criminal forfeiture funds obtained through the Office’s settlements with international banks for violating U.S. sanctions. These awards follow an open-solicitation, Request for Proposals and review process led by the Manhattan District Attorney’s Office and facilitated by the CUNY Institute for State and Local Governance (ISLG), CJII’s technical assistance provider.

SIX INDIVIDUALS AND ONE COMPANY INDICTED FOR THEFT OF $270,000 THROUGH SHELL CORPORATION SCHEME

  Manhattan District Attorney Cyrus R. Vance, Jr., today announced the indictment of six individuals and one company, 92K BLVD., for the theft of more than a quarter of a million dollars through a scheme involving credit card fraud and shell corporations. The defendants are charged in a New York State Supreme Court indictment with Grand Larceny in the Second and Third Degrees.[1]

“There’s no question that criminal actors benefit from a lack of transparency in our banking system,” said District Attorney Vance. “As alleged in this case, a single corporation served as the front for a wider network of shell companies, which enabled the defendants to conceal their activities and steal more than a quarter of a million dollars. For precisely this reason, my Office has long supported measures such as mandatory identification of beneficial owners on state incorporations forms, which would deter the use of private companies for illicit purposes and protect the integrity of the financial marketplace.”

According to the indictment and documents filed in court, between November 2013 and January 2014, SAMUEL BERKOVITS, 50, BEZALEL MERMELSTEIN, 40, MOSHE POMERANTSEV, 22, NAFTALI SAFERN, 30, and YEHUDA TYRNAUER, 29, used their personal credit cards to make thousands of dollars’ worth of purchases from 92K BLVD., a shell company, which maintained an American Express merchant account linked to a Bank of America account, both of which were owned by ISRAEL FISCHER, 62. During the same period, numerous checks in amounts ranging from $5,000 to $15,000 were written from 92K BLVD.’s account to other outside companies, through which thousands of dollars in checks were then distributed back to the individual defendants in amounts ranging from $4,000 to $9,000.

As part of the defendants’ scheme, the supposed buyers requested refunds shortly after making the purchases, prompting American Express to credit their accounts and attempt to retrieve the matching funds from 92K BLVD.’s merchant account. However, American Express was unable to so, and when Bank of America was contacted about the missing funds, American Express received information that there were insufficient funds in the account, causing American Express to suffer more than $270,000 in losses.

Assistant District Attorney Alona Katz is handling the prosecution of the case under the supervision of Assistant District Attorneys Daniel Holmes, Elizabeth Roper, and Jeremy Glickman, Deputy Chiefs of the Cybercrime and Identity Theft Bureau, Assistant District Attorney Brenda Fischer, Chief of the Cybercrime and Identity Theft Bureau, and Executive Assistant District Attorney Michael Sachs, Chief of the Investigation Division. Cybercrime Analyst Lilianna Rembar and Detective Ramon Velez, of the Cybercrime and Identity Theft Bureau Squad, and supervising Sergeant Robert Li, also of the Cybercrime and Identity Theft Bureau Squad, provided additional assistance with the investigation. 

District Attorney Vance thanked American Express, and in particular, Investigator Al Cavuto, for their assistance with the investigation. 

[1] The charges contained in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. All factual recitations are derived from documents filed in court and statements made on the record in court.

Defendant Information:

92K BLVD.
Brooklyn, NY

Charged:

• Grand Larceny in the Second Degree, a class C felony, 1 count

ISRAEL FISCHER, D.O.B. 4/18/1955
Brooklyn, NY

Charged:

• Grand Larceny in the Second Degree, a class C felony, 1 count

SAMUEL BERKOVITS, D.O.B. 11/05/1966
Brooklyn, NY

Charged:

• Grand Larceny in the Third Degree, a class D felony, 1 count

BEZALEL MERMELSTEIN, D.O.B. 3/19/1977
Brooklyn, NY

Charged:

• Grand Larceny in the Second Degree, a class C felony, 1 count

MOSHE POMERANTSEV, D.O.B. 11/1/1994
Woodridge, NY

Charged:

• Grand Larceny in the Third Degree, a class D felony, 1 count

NAFTALI SAFERN, D.O.B. 6/19/1987
Brooklyn, NY

Charged:

• Grand Larceny in the Third Degree, a class D felony, 1 count

YEHUDA TYRNAUER, D.O.B. 5/11/1988
Brooklyn, NY

Charged:

• Grand Larceny in the Second Degree, a class C felony, 1 count

Wave Hill Events Jul 13–Jul 21

This week, our summer exhibition opens in Glyndor Gallery, and I am thrilled at the thought of how gorgeous it will be: Flora Fantastica! showcases the work of four artists who create fantastic hybrid forms using pattern derived from cultural and botanical sources. Take a look at the first two attachments to see what I mean. This week we also offer a wellness workshop—Mandalas and Meditation—keyed to the show in Glyndor. The week opens and closes with late Thursdays in the garden and a jazzy Sunset Wednesday. Summer bliss!

Thu, July 13    Evening Garden Walk

Enjoy an evening stroll in the gardens with a Wave Hill Garden Guide. Free with admission to the grounds.

MEET AT THE PERKINS VISITOR CENTER, 6:30PM

Thu, July 13    Evening Yoga

Enjoy yoga on the lawn select Thursday evenings. Participants should bring a mat, dress appropriately and expect to be outside unless precipitation or excessive humidity occurs. Classes are offered in partnership with Yoga Haven. All levels welcome. $25/$15 Wave Hill Member. Pre-registration recommended, online atwavehill.org or onsite at the Perkins Visitor Center.

ON THE GROUNDS, 6:30PM–7:30PM

Sat, July 15    Family Art Project: Handmade River Rafts

Collage a mixture of buoyant materials cut from repurposed foam trays, colorful foam sheets and reeds. Make it into an all-natural raft or handmade boat. Keep it as a small sculpture—or see if it floats. Free, and admission to the grounds is free until noon. 

WAVE HILL HOUSE, 10AM‒1PM

Sat, July 15    Garden Highlights Walk

Join us for an hour-long tour of seasonal garden highlights. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Sat, July 15    Wave Hill History Walk

Discover the fascinating history of Wave Hill’s architecture and landscape on a walk with a Wave Hill Garden Guide. Hear about the people who once called Wave Hill home, among them Mark Twain, Theodore Roosevelt, Bashford Dean and Arturo Toscanini. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 1PM

Sat, July 15    No Gallery Tour

Tours in Glyndor Gallery resume Tuesday, July 18.

Sun, July 16    Family Art Project: Handmade River Rafts

Collage a mixture of buoyant materials cut from repurposed foam trays, colorful foam sheets and reeds. Make it into an all-natural raft or handmade boat. Keep it as a small sculpture—or see if it floats. Free with admission to the grounds. 

WAVE HILL HOUSE, 10AM‒1PM

Sat, July 16    Wellness Workshop: Mandalas and Meditation

Tour Flora Fantastica! in Glyndor Gallery with a Wave Hill curator to see paintings inspired by mandalas—geometric patterns representing the circle of life and the energy of the universe. Then get centered with a few yoga poses, introspective meditation and art-making with artist, yogi and dosha healer Sara Hart. All skill levels welcome. Ages 12 and up welcome with an adult. $55/$45 Wave Hill Member. Registration required, online at wavehill.org or onsite at the Perkins Visitor Center. 

MEET AT GLYNDOR GALLERY, 12:30–2:30PM

Sun, July 16    Garden Highlights Walk

Join us for an hour-long tour of seasonal garden highlights. Free with admission to the grounds.

MEET AT PERKINS VISITOR CENTER, 2PM

Sun, July 16    Summer Exhibitions Reception

Meet the artists and curators for our summer exhibitions. Flora Fantastica! shows the work of four artists who share an interest in using pattern derived from cultural and botanical sources to create fantastic hybrid forms. In the Sunroom Project Space, Jan Mun explores the movement of plant species and the immigrant experience, while a window installation by David Rios Ferreira contains drawings, collages and historical, cultural and contemporary pop references. Free with admission to the grounds.

GLYNDOR GALLERY, 2‒4:30PM

Mon, July 17    

Closed to the public.

Tue, July 18    Garden Highlights Walk

Join us for an hour-long tour of seasonal garden highlights on this special, holidayTuesday. Free, and admission to the grounds is free until noon.

MEET AT PERKINS VISITOR CENTER, 11AM

Tue, July 18    Gallery Tour

Wave Hill’s Curatorial Fellow will lead a tour of the summer exhibitions in Glyndor Gallery. An exuberant counterpoint to Wave Hill’s lush summer gardens, Flora Fantastica! shows the work of four artists who share an interest in using pattern derived from cultural and botanical sources to create fantastic hybrid forms. Nancy Blum, Amy Cheng and Elisabeth Condon each has an entire room for their paintings. Jill Parisi creates an installation for the entry foyer. In the Sunroom Project Space, Jan Mun combines digital and living media to explore the movement of plant species and the immigrant experience, while a window installation by David Rios Ferreira contains drawings and collages with cartoon-inspired characters, along with historical, cultural and contemporary pop references. Free with admission to the grounds.

GLYNDOR GALLERY, 2PM

Wed, July 19    Sunset Wednesdays Outdoor Music: Alan Hampton & Gretchen Parlato

This concert marks the second appearance of Alan Hampton (strings and vocals) at a Sunset Wednesday as he introduces us to jazz singer Gretchen Parlato. Together, they offer original tunes and Stevie Wonder’s flower-themed “Send One Your Love.” With two CDs, "The Moving Sidewalk" and "Origami for the Fire," to his credit, Alan Hampton has been called a musician with “loads of talent” by The New York Times. When not working on his own projects, he may be on tour, playing bass and singing with Andrew Bird, Meshell N’Degeocello, Sara Bareilles or Robert Glasper, or in the studio, laying down tracks for Sufjan Stevens, Derrick Hodge or Esperanza Spalding. In the ten years since her arrival in New York City, Gretchen Parlato has emerged as one of the most inventive and mesmerizing vocalists of her generation. Style Weekly states: "in performance, jazz vocalist Gretchen Parlato is a revelation… her diaphanous voice expands into an instrument of impressive range, rhythmic sophistication and emotional power." Free with admission to the grounds. On Sunset Wednesdays, admission is $10, $6 for students and seniors 65+, and $4 for children ages six to 18. Free to Members and children under six.

ON THE GROUNDS, 7PM

Thu, July 20    Evening Garden Walk

Enjoy an evening stroll in the gardens with a Wave Hill Garden Guide. Free with admission to the grounds.

MEET AT THE PERKINS VISITOR CENTER, 6:30PM

Thu, July 20    Evening Yoga

Enjoy yoga on the lawn select Thursday evenings. Participants should bring a mat, dress appropriately and expect to be outside unless precipitation or excessive humidity occurs. Classes are offered in partnership with Yoga Haven. All levels welcome. $25/$15 Wave Hill Member. Pre-registration recommended, online atwavehill.org or onsite at the Perkins Visitor Center.

ON THE GROUNDS, 6:30PM–7:30PM

A 28-acre public garden and cultural center overlooking the Hudson River  and Palisades, Wave Hill’s mission is to celebrate the artistry and legacy of its gardens and landscape, to preserve its magnificent views, and to explore human connections to the natural world through programs in horticulture, education and the arts.

HOURS  Open all year, Tuesday through Sunday and many major holidays: 9AM–5:30PM, starting March 15.  Closes 4:30PM, November 1–March 14.

ADMISSION  $8 adults, $4 students and seniors 65+, $2 children 6–18. Free Saturday and Tuesday mornings until noon. Free to Wave Hill Members and children under 6.

PROGRAM FEES  Programs are free with admission to the grounds unless otherwise noted.

Visitors to Wave Hill can take advantage of Metro-North’s one-day getaway offer. Purchase a discount round-trip rail far and discount admission to the gardens. More at http://mta.info/mnr/html/getaways/outbound_wavehill.htm

DIRECTIONS – Getting here is easy! Located only 30 minutes from midtown Manhattan, Wave Hill’s free shuttle van transports you to and from our front gate and Metro-North’s Riverdale station, as well as the W. 242nd Street stop on the #1 subway line. Limited onsite parking is available for $8 per vehicle. Free offsite parking is available nearby with continuous, complimentary shuttle service to and from the offsite lot and our front gate. Complete directions and shuttle bus schedule at www.wavehill.org/visit/.

Information at 718.549.3200. On the web at www.wavehill.org.

CM Andy King Hosts Operation: Cleaner Streets

CM Andy King Hosts Olinville Old-Timers Cookout & Concert Day

Bangladeshi American Reception in Support of Assemblyman Luis Sepulveda

Statement Of Acting U.S. Attorney Joon H. Kim On Jury Verdict Finding 650 Fifth Avenue And Other Properties Forfeitable To The United States

   “For over a decade, hiding in plain sight, this 36-story Manhattan office tower secretly served as a front for the Iranian government and as a gateway for millions of dollars to be funneled to Iran in clear violation of U.S. sanctions laws. In this trial, 650 Fifth Avenue’s secret was laid bare for all to see, and today’s jury verdict affirms what we have been alleging since 2008: that through all the efforts to sanction and isolate Iran, a state sponsor of terrorism, the owners of 650 Fifth Avenue gave the Iranian government a critical foothold in the very heart of Manhattan through which Iran successfully circumvented U.S. economic sanctions. The jury’s verdict finding forfeitable a building valued at over $500 million dollars, as well as other real estate and funds, represents the largest civil forfeiture jury verdict and the largest terrorism-related civil forfeiture in U.S. history. This verdict not only vindicates the exemplary work of all the career prosecutors and law enforcement partners who have doggedly pursued this case for almost a decade, but importantly, it also allows for substantial recovery for victims of Iran-sponsored terrorism.”

Acting Manhattan U.S. Attorney Announces Historic Jury Verdict Finding Forfeiture Of Midtown Office Building And Other Properties

  Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that a federal jury today found the 36-story office building at 650 Fifth Avenue (the “Building”), worth at least $500 million, and other real property and bank accounts forfeitable to the United States as proceeds of violations of the Iran sanctions and property involved in laundering the proceeds of those sanctions violations.  The jury’s verdict, which represents the largest civil forfeiture jury verdict and the largest terrorism-related civil forfeiture in United States history, came after a five-week trial before the Honorable Katherine B. Forrest.

Acting U.S. Attorney Joon H. Kim said:  “For over a decade, hiding in plain sight, this 36-story Manhattan office tower secretly served as a front for the Iranian government and as a gateway for millions of dollars to be funneled to Iran in clear violation of U.S. sanctions laws.  In this trial, 650 Fifth Avenue’s secret was laid bare for all to see, and today’s jury verdict affirms what we have been alleging since 2008: that through all the efforts to sanction and isolate Iran, a state sponsor of terrorism, the owners of 650 Fifth Avenue gave the Iranian government a critical foothold in the very heart of Manhattan through which Iran successfully circumvented U.S. economic sanctions.  The jury’s verdict finding forfeitable a building valued at over $500 million dollars, as well as other real estate and funds, represents the largest civil forfeiture jury verdict and the largest terrorism-related civil forfeiture in U.S. history.  This verdict not only vindicates the exemplary work of all the career prosecutors and law enforcement partners who have doggedly pursued this case for almost a decade, but importantly, it also allows for substantial recovery for victims of Iran-sponsored terrorism.”

According to the allegations contained in the Complaint, Amended Complaint, and other filings in this case, and the evidence presented in Court during the trial:

Overview

The International Emergency Economic Powers Act (AIEEPA@) confers upon the President the authority to take certain actions, defined in 50 U.S.C. Section 1702, in response to declared national emergencies.  Since 1995, the President has declared national emergencies with respect to the actions and policies of the Government of Iran through a series of Executive Orders.  The Treasury Department’s Iranian Transactions Regulations (“ITR”), and Weapons of Mass Destruction Proliferators Sanctions Regulations, implement these Executive Orders.  Pursuant to these Orders, and regulations, the provision of services to the Iranian Government has been illegal since 1995.

From before 1995 until the filing of the Government’s civil forfeiture action in 2008, the Alavi Foundation (“Alavi”), Assa Corp. (“Assa”), and the 650 Fifth Avenue Company, a partnership between Alavi and Assa to own the Building (the “Partnership”) were controlled by and provided numerous services to the Government of Iran, including managing the Building for the Iranian Government, running a charitable organization for the Iranian Government, and transferring rental income funds from the Partnership to Bank Melli, an Iranian owned government bank.

Alavi and the Building

Alavi is a New York non‑profit organization originally created by the Shah of Iran in the 1970s, under the name the Pahlavi Foundation, to pursue Iran’s charitable interests in the United States.  The Building was constructed in the 1970s by Alavi, financed by a substantial loan from Bank Melli Iran (“Bank Melli”).

Following the Iranian revolution of 1979, the Islamic Republic of Iran established the Bonyad Mostazafan, also known as the Bonyad Mostazafan va Janbazan (“Bonyad Mostazafan”), to centralize, take possession of, and manage property expropriated by the revolutionary government.  The Bonyad Mostazafan was created in or about March 1979 by order of the Ayatollah Khomeini and approved by the Revolutionary Council of the Islamic Republic of Iran, and is controlled by the government of Iran.  The Bonyad Mostazafan sought to take control of the Shah’s property, including the assets of the Pahlavi Foundation.  The Bonyad Mostazafan reports directly to the Ayatollah.  The Bonyad Mostazafan assumed control of Alavi shortly after the revolution.

The Creation of Assa and the Partnership

In 1989, Alavi and Bank Melli formed the Partnership in order to avoid paying federal taxes on rental income from the Building.  Bank Melli’s ownership interest in the Partnership, however, was disguised through the creation of two shell companies.  Alavi transferred 35 percent of the Partnership to Assa, an entity wholly owned by Assa Co. Ltd. Assa Co. Ltd. is a Jersey, Channel Islands, United Kingdom, entity owned by Iranian citizens who represent the interests of Bank Melli.  In conjunction with the transfer of the 35 percent interest in the Partnership to Assa, Bank Melli cancelled its loan on the Building. Several years later Assa received an additional 5 percent, leaving Alavi owning 60 percent of the Partnership, and Bank Melli owning 40 percent of the Partnership, through Assa and Assa Co. Ltd.

The decision to convert Bank Melli’s mortgage on the Building into a partnership interest in the Partnership was discussed and approved by high-level Iranian government officials.  Among others, the head of the Bonyad Mostazafan (also the Deputy Prime Minister of Iran), the Office of the Prime Minister of Iran, the director of the Central Bank of Iran, and the general director of Bank Melli, as well as other Bonyad Mostazafan and Bank Melli officials, discussed and approved the partnership between Alavi and Bank Melli.  After Alavi and Assa Corp. entered into the partnership agreement, a Bonyad Mostazafan official forwarded the agreement to the head of the Bonyad Mostazafan, noting that “the partnership is based on prior agreements between the Ministry of Finance, Bank Melli Iran, and the Bonyad Mostazafan, with the only change being the building will be valued at two million dollars less than as previously agreed. . . .”

The Partnership continued to distribute rental income from the Building to Bank Melli, concealed by the use of Assa as an intermediary, after it became illegal with the imposition of Iranian sanctions in 1995.

The Government of Iran’s Continued Control over Alavi

The Iranian Government’s control of Alavi continued after the creation of the Partnership and the imposition of the sanctions against Iran.

In 1991, the Supreme Leader of Iran, the Ayatollah Ruhollah Khomeini ordered that control of Alavi be transferred from the Bonyad Mostazafan to the Iranian Ambassador to the United Nations.  According to the minutes of a May 16, 1991, board meeting held in Zurich, Switzerland, the head of the Bonyad Mostazafan explained that, as directed by the Supreme Leader, several board members were to resign.  In a letter, Alavi’s president described how, a few days later, Ambassador Kamal Kharrazi called the president and another board member to his office.  The Ambassador said that “the Foundation from here on out is under the oversight of Haj Agha, not Mr. Rafighdoost [then the head of the Bonyad Mostazafan]. . . . [F]rom now on, the role of the Managing Director and the role of the Board of Directors will be just a formality and he [the Ambassador] will be conducting all of its [the Foundation’s] affairs.”  The president of Alavi then wrote a letter to the Ayatollah cautioning that although the Ambassador’s “appointment to a position of responsibility connected to the Foundation’s affairs presents enormous political, security, and economic dangers, we feel assured that the Supreme Leader has made this decision with discernment, unique insight, and a thorough knowledge of all pertaining aspects.”  In July 1991, the president resigned his position and he was replaced that August by an individual who served as president until the summer of 2007.

In 1992, Alavi’s new president met in New York and in Tehran with Bank Melli officials concerning $1.7 million in real estate taxes owed by the Partnership and $2.2 million in unpaid distributions owed by the partnership to Assa.  The Tehran meeting was attended by a Bank Melli board member, the head of Bank Melli’s Overseas Network Supervisory Department, the head of Bank Melli’s New York branch, and the head of Bank Melli’s Foreign Affairs.  The head of the board of directors and managing director of Bank Melli forwarded the minutes of the Tehran meeting to the head of the Bonyad Mostazafan along with a cover letter stating, among other things, that “It is hoped that your firm instructions and the extra attention of the brothers from that esteemed Foundation, who are responsible for the Alavi Foundation of New York, will resolve the partnership’s mutual problems quickly . . . .”

Iranian Ambassadors to the U.N. continued to direct the affairs of Alavi and to attend meetings of Alavi’s board.  In the late 1990s, two Bank Melli employees sought Ambassador Kharrazi’s permission for Assa to sell its interest in the Partnership. The Ambassador informed Bank Melli that the Building would be sold when the real estate market improved.  In 2004, Ambassador Javad Zarif directed Alavi to settle a lawsuit that threatened to expose Assa’s ownership by Bank Melli and Alavi’s relationship with the Government of Iran for $4 million, and then caused these settlement proceeds to be distributed through other New York real estate companies to officials at Iranian Embassies in Europe.

In October 2007, Alavi Foundation board members met with Ambassador Mohammad Khazaee and a former Iranian government official to address issues relating to the Building’s management and Alavi’s charitable services.  According to notes taken by a board member, the Ambassador stated, among other things, that it was necessary to increase the profit from the Building; the Ambassador was worried about Assa’s 40 percent share; the Foundation should only allocate to Shiites; and that the Ambassador would determine the composition of the board.  The Ambassador ordered a study about the possibility of increasing the Foundation’s revenue and profit, stating that a business plan and comparative analysis had to be done.  The Ambassador instructed: “I have to definitely see the proposed allocations before a final decision is reached. I have to be kept informed and I have to be able to state my opinion in order for you to make a decision.”  The Ambassador told the board members that “[i]f there is an issue that needs to be conveyed to Tehran, let me know, I will convey it.”

On December 19, 2008, Farshid Jahedi, who at the time was the president of Alavi, was arrested for obstruction of justice for allegedly destroying documents required to be produced under a grand jury subpoena concerning Alavi’s relationship with Bank Melli Iran and the ownership of the Building. Jahedi pled guilty to obstruction of justice on December 30, 2009.

The Complaints and the Jury Verdict

On December 17, 2008, this Office filed a civil Complaint seeking forfeiture of the 40 percent interest held by Assa in the Partnership.  In the Amended Complaint, filed on November 12, 2009, the United States sought to forfeit all right, title and interest in the Partnership, including Alavi’s 60 percent interest in the company.  The United States also sought to forfeit the contents of bank accounts held by the Partnership, Alavi, and Assa, as well as other real properties owned by Alavi.

After a five-week trial, the jury found that both IEEPA violations and money laundering had been committed, and that all but one of the defendant properties were fully or partially forfeitable as result.  Specifically, the jury found the Building and Alavi’s share in the 650 Fifth Avenue Partnership, along with the contents of bank accounts containing in excess of a million dollars, forfeitable in their entirety as a result of their involvement in money laundering. The jury also found certain portions of properties owned by Alavi in Queens, New York; Houston, Texas; Carmichael, California; and Rockville, Maryland partially forfeitable to the United States as proceeds of IEEPA violations and properties traceable to properties involved in money laundering, in the following amounts:

Alavi Foundation Property	Percentage  Found  Forfeitable
Queens, NY	44%
Houston, TX	15%
Rockville, MD (two properties)	17%
Carmichael, CA	7%

The jury also found Alavi’s share in the 650 Fifth Avenue Partnership entirely forfeitable, and the Building partially forfeitable, as the proceeds of an IEEPA violation in addition to both being entirely forfeitable as property involved in money laundering.

Judge Forrest had previously ruled, on September 11, 2013, that Assa was a front company for Bank Melli Iran and that Assa’s interests in the Partnership and the Building also subject to forfeiture.

Claims against the defendant properties brought by private parties holding terrorism-related judgments against the Government of Iran were also resolved against Alavi and the 650 Fifth Avenue Partnership in a separate ruling issued by Judge Forrest today.

Mr. Kim praised the investigative work of the Federal Bureau of Investigation (“FBI”), the Internal Revenue Service - Criminal Investigation Division, the New York FBI Joint Terrorism Task Force, and the Police Department of the City of New York.  He also thanked the Counterterrorism Section of the Department of Justice National Security Division and the Manhattan District Attorney’s Office for their assistance in this case.