Settlement for Victims of Iranian-Sponsored Terrorism from NYC Skyscraper Sale

For nearly two decades, families of victims of Iranian-sponsored terrorism have sought justice against the Islamic Republic of Iran, which has consistently failed to satisfy court judgments against it. The legal struggle intensified as victims pursued hidden Iranian assets in the United States, particularly focusing on 650 Fifth Avenue, a 36-story skyscraper in Manhattan. This building, linked to the Iranian government through the Alavi Foundation and Bank Melli Iran, generated millions in rental income that ultimately benefited Tehran, violating U.S. sanctions.

Times of Israel

On Monday, a significant breakthrough occurred with a $318 million settlement that will direct proceeds from the sale of the skyscraper to hundreds of victims, including Jewish and Israeli families affected by Iran-backed terror attacks. Notable among these attacks is the 2001 bombing of a Sbarro restaurant in Jerusalem, which resulted in 15 fatalities and over 100 injuries. The settlement marks a pivotal moment in a long-standing legal battle, as it compensates those who have obtained default judgments against Iran, totaling over $5 billion in terrorism-related claims.

Times of Israel

U.S. Attorney Jay Clayton emphasized the importance of this resolution, stating, “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 settlement will lead to the dissolution of the Alavi Foundation, with its assets transferred to a newly formed charity, the Amir Kabir Foundation, which will be monitored by U.S. officials to ensure independence from Iranian influence.

Times of Israel

While the settlement is seen as a victory for victims, some critics argue that the long duration of the legal process has left many families without timely compensation. The complexities of pursuing Iranian assets in the U.S. have raised concerns about the effectiveness of existing legal frameworks in addressing the needs of terrorism victims.

Times of Israel

The establishment of the Amir Kabir Foundation represents a new chapter in the ongoing efforts to ensure that victims of Iranian-sponsored terrorism receive the compensation they are owed. Moving forward, U.S. officials will oversee the foundation to ensure compliance with its mandate and to prevent any potential misuse of the funds.

Times of Israel

• “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,” — Jay Clayton, U.S. Attorney.

Times of Israel