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U.S. Deal Redirects 650 Fifth Avenue Proceeds to Terror Victims in $318 Million Payout

The settlement caps a years-long hunt for hidden Iranian assets tied to the tower.

Overview

  • The agreement resolves a case over concealed Iranian government interests in the Manhattan skyscraper at 650 Fifth Avenue.
  • Prosecutors said rent from the building flowed to state-owned Bank Melli Iran through shell companies that evaded U.S. sanctions.
  • The Alavi Foundation will be dissolved and its assets will transfer to a new charity, the Amir Kabir Foundation, under U.S. monitoring.
  • Hundreds of victims with court judgments against Iran will share the funds, including families linked to the 2001 Sbarro bombing and the family of Rabbi Meir Kahane.
  • The litigation drew in holders of more than $5 billion in terrorism judgments, and U.S. Attorney Jay Clayton said the outcome directs building proceeds to victims rather than Iran.