http://www.frontpagemag.com/Articles/Read.aspx?GUID=BB9ECB95-30EC-453F-BED1-
9F0BFF95BC23
 
Washington Protects the Terror Masters          
By
<file:///C:/Program%20Files/Common%20Files/Microsoft%20Shared/Stationery/aut
hors.aspx?Name=Daniel Pipes> Daniel Pipes
FrontPageMagazine.com | Tuesday, November 13, 2007 

The Bush administration's counterterrorism policies appear tough, but inside
the courtroom, they evaporate, consistently favoring not American terror
victims, but foreign terrorists.

Consider a civil lawsuit arising from a September 1997 suicide bombing in
Jerusalem. Hamas claimed credit for five dead and 192 wounded, including
several Americans. On the grounds that the Islamic Republic of Iran had
financed Hamas, five injured Americans students sued it for damages.

Expert testimony established the regime's culpability during a four-day
trial, leading Judge Ricardo M. Urbina, under the Flatow Amendment of the
Foreign Sovereign Immunities Act, to fine the Iranian government and its
Revolutionary Guard Corps US$251 million in compensatory and punitive
damages.

The plaintiffs looked for Iranian government assets in the United States to
seize, in accord with the little-known section, 201a of the Terrorism Risk
Insurance Act of 2002, which states that "Notwithstanding any other
provision of law . in every case in which a person has obtained a judgment
against a terrorist party on a claim based upon an act of terrorism . the
blocked assets of that terrorist party . shall be subject to execution."

An ancient Iranian fragment similar to the ones in legal dispute in a
terrorism case.

Finding Iranian assets, however, proved no easy task, as most of them had
been withdrawn by the Iranian authorities after the embassy hostage crisis
of 1979-81. Therefore, the victims' lead lawyer, David Strachman of
Providence, R.I., devised some creative approaches, such as intercepting the
imminent return of ancient Iranian clay tablets on loan to the University of
Chicago for up to seventy years.

Strachman found just one significant cache of Iranian government money:
approximately $150,000 at the Bank of New York, in an account belonging to
Bank Melli, Iran's largest bank and a fully-owned subsidiary of the regime.
However, when the plaintiffs sued for these funds, BoNY filed a federal
lawsuit asking for a legal determination what to do with its Bank Melli
assets.

The victims' task in this case may have appeared easy, given that the U.S.
government (1) views Bank Melli as an "wholly-owned instrumentality" of the
Iranian government and it (2) considers that government a "terrorist party."

But no, the U.S. Department of Justice "entered this case as amicus curiae
in support of Bank Melli." It did so, explained a spokeswoman for the
Treasury Department, "to vindicate a correct reading" of the U.S.
regulation. Its amicus brief appears decisively to have influenced the trial
judge, Denise Cote, who adopted the joint Bank Melli-Justice Department
position in toto and ruled in March 2006 against the funds being awarded to
the victims. The latter appealed to the Second Circuit Court, but it too
sided with the Justice Department, dismissing the suit in April 2007.

Its funds then in the clear, Bank Melli immediately removed them all from
BoNY and transferred them beyond U.S. jurisdiction.

The story does not end there. On October 25, the State Department announced
that Bank Melli would henceforth be cut off from the U.S. financial system
because it "provides banking services to entities involved in Iran's nuclear
and ballistic missile programs" by facilitating "numerous purchases of
sensitive materials." Further, it found that Bank Melli "was used to send at
least $100 million" to Iran's terrorist fronts, including those which had
trained the Hamas members who perpetrated the 1997 Jerusalem bombing.

This incompetent outrage - Washington first helping Bank Melli, then
sanctioning it - fits a larger pattern of federal agencies advocating in
court on behalf of terrorists.

* Justice tried to shield Tehran from victims' claims in the University of
Chicago case.

* It opposed the attachment of a mere $10,000 of Iranian funds to one 1997
victim family; and, when the family won in district court, it appealed the
verdict.

* It interceded in Ungar v. Hamas to prevent the orphaned victims'
attachment of $5 million belonging to the Holy Land Foundation, a Texas
organization prosecuted as a Hamas front.

* In Ungar v. PLO and PA, the State Department rescued the Palestine
Liberation Organization when the Ungars tried to enforce their $116 million
judgment against a PLO-owned office building in Manhattan.

Is there not something deeply flawed about the U.S. government consistently
siding with terrorists and, according to Strachman, "never once supporting
terrorism victims to collect their judgments in court"? One hopes it will
not require a new terrorist catastrophe to fix these misguided policies. 
  _____  

Mr. Pipes (www.DanielPipes.org) is director of the Middle East Forum and
author of Miniatures (Transaction Publishers). 

 



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