Washington Protects the Terror Masters

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."

Finding Iranian assets, however, proved no easy task, as most of them had been withdrawn by the Iranian authorities after the embassy hostage crisis of 1979-81.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.

Daniel Pipes

By

Daniel Pipes is director of the Middle East Forum and the author of several books, including Militant Islam Reaches America and In the Path of God: Islam and Political Power (Transaction Publishers), from which this column derives.

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  • Guest

    As with most things, follow the money trail and you'll see why the US Gov double speaks on its pledge to fight terrorists.

  • Guest

    Our government, and by that, I mean the people running it, regardless of political stripe, believe they need terrorism, and this is why they really won't do anything to stop it.

    A cynical viewpoint? Perhaps it is, but it is a realistic one. Global terror, global warming, global overpopulation, global hunger, global AIDS, and any number of other globalisms over the years prove that the people in charge desperately need something or someone to frighten us into failing to realize just how ineffective they are at doing their jobs.

    Lest anyone think I'm simply parroting notions suggested by Michael Chrichton novels, I'm not and any similarities of opinion are purely coincidental. The simple sad reality is that the reason terrorism continues to be the problem that it is, is that the people in charge of stopping it don't really want to.

    They want the political capital gained from fighting it, not from stopping it. It is a dreadful mistake to assume they are both the same thing. This article simply underscores one more reason showing my assertion to be true.

  • Guest

    Bruce, there is nothing new under the sun. 

    "The whole aim of practical politics is to keep the populace alarmed — and thus clamorous to be led to safety — by menacing it with an endless series of hobgoblins, all of them imaginary." — H.L. Mencken 

  • Guest

    Same goes for both the war on poverty, and war on drugs.  You can't fund programs that don't have a need.  And if you solve the problem, there is no longer a need, nor a program!

     

    I often thought how similar this is to the dental industry.  If people really were able to prevent cavities the way the ADA advises, dentists would be out of the drill and fill game.  I'm not picking on dentists, but simply pointing out that it isn't limited to the government, though they are pretty good at gaining our hard earned money to continue all these "wars."

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