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Federal Prosecutors Look to Seize Fifth Avenue Building with Iranian Connections

By DNAinfo Staff on November 13, 2009 9:49am  | Updated on November 13, 2009 9:50am

Federal prosecutors moved to seize Alavi Foundation's properties, including this office building on Fifth Ave., after they charged the foundation with illegally providing money and services to the government of Iran.
Federal prosecutors moved to seize Alavi Foundation's properties, including this office building on Fifth Ave., after they charged the foundation with illegally providing money and services to the government of Iran.
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Gabriela Resto-Montero

By Gabriela Resto-Montero

DNAinfo Reporter/Producer

MANHATTAN — Federal prosecutors moved to seize a Midtown office building Thursday from a property owner accused of working for the Iranian government.

The legal action against the Alavi Foundation seeks to take its 60 percent stake in 650 Fifth Ave. and seven other properties in New York, California, Texas, Virginia and Maryland.

The impact on tenants at the building, which include Juicy Couture and several financial and media businesses, was unknown. Workers at the building refused to comment to DNAinfo on Friday. Former tenants include disgraced financiers Mark Rich, busted for doing business with the Iranians during the hostage crisis, and Ivan Boesky, according to the New York Observer.

Prosecutors charge the foundation illegally transferred money and services to Iran.

"As today's complaint alleges in great detail, the Alavi Foundation has effectively been a front for the government of Iran," U.S. Attorney Preet Bharara said in a statement.

"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," Bharara said.

Bharara's office announced Thursday that tenants of the buildings, several which are used as mosques, will be allowed to remain on the seized properties.

Daniel Ruzumna, a lawyer for the foundation, said it was cooperating with the federal investigation.

"The foundation intends to litigate the government’s claims and expects to prevail when the litigation is over," Ruzumna told the New York Times.

The Alavi Foundation dates to the 1970s when it was set up by Iran's former Shah.

Its Web site says the foundation contributes to organizations that "support interfaith harmony and promote Islamic culture and Persian language, literature and civilization."

Muslim advocates feared backlash.