A Midtown skyscraper must be forfeited by companies that control it as a front for the terror-supporting Iranian government, a Manhattan judge ruled.
Proceeds from any potential sale of 650 Fifth Ave. could end up in the hands of terror-attack victims — including the 9/11 terror attacks — and their survivors thanks to the ruling by federal Judge Katherine Forrest.
The judge said those victims should be in line for assets seized from defendants Assa Corp., Assa Co. Ltd. and the Alavi Foundation.
They all knew their businesses had direct ties to the Iranian government — all while floating funds through Iran’s Bank of Melli, according to Forrest.
“For these reasons, forfeiture of the entire building at 650 Fifth Ave. is not grossly excessive,” Forrest wrote.
The judge acknowledged charitable work done by the Alavi Foundation, but said that wasn’t enough to outweigh the companies’ ties to Iran.
“The court is mindful that Alavi has also conducted certain charitable activities, including making grants to universities, donations to schools, and grants to art and literature programs,” Forrest wrote.
“Notwithstanding those charitable services, Alavi’s actions on behalf of Assa, Bank Melli and Iran establish its culpability.”
The Alavi Foundation vowed to appeal.
“We are extremely disappointed with Judge Forrest’s decision,” according to a statement by the charity. “The court made serious errors in its determination of the purported facts and in its analysis of the law.”
Survivors of terror attacks have said they believe they should get a chunk of 650 Fifth Ave.
In her opinion, issued late Friday, Forrest also ruled that six properties — in Queens, Texas, California, Virginia and Maryland — should be forfeited.
Forrest’s ruling, however, did not explicitly say how terror survivors could eventually get their hands on the Iranian-owned building.
“What’s important about this ruling is about who doesn’t have an interest in this building,” said Steve Kessler, an attorney for the family of Charles Hegna, an American killed by Hezbollah gunmen at Tehran.
“It’s an important ruling because it took Iran out of the picture.”
Kessler added: “It’s a negative ruling saying the Iranian organs must forfeit any and all their interest in this building.”
Ultimately, the US Department of Justice could take the lead in this matter, sell the building and dole out proceeds.
“That is probably the most likely scenario, that the government will oversee the sale of the property,” Kessler said.
The Hegna family want to be at the front of the line for proceeds from 650 Fifth Ave.
They have a two-decade-old judgement against Iran, good for $42 million in compensatory damages and $300 million in punitive damages, plus interest, according to the family’s lawyer.
“We’re not looking for the punitive damages,” Kessler said. “If we were to get the compensatory damages, there’d be more than enough left for all other victims.”
The building has ties to Iran that link all the way back to the Shah.
In 1973, the Central Bank of Iran loaned the ruler’s foundation $42 million to buy the valuable Midtown office building.
Following the Iranian Revolution, the new rulers of Iran took control of the building and created new companies to front for ownership, according to Forrest.