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Piaget Building Could Go to Auction

NEW YORK CITY-Several outcomes are possible in federal attempts to seize 650 Fifth Ave., allegedly a front for the Iranian government, including dismissal of the case.

By Cody Lyon | Updated on November 20, 2009

NEW YORK CITY-On Nov. 12, officials from the US Attorney’s Office for the Southern District of New York took legal steps to seize nonprofit Alavi Foundation’s 60% ownership stake in the 36-story 650 Fifth Ave. commercial office tower, known as the Piaget Building. The government says Alavi Foundation, through a partnership with Assa Corp. called 650 Fifth Avenue Co., served as a front or shell-company, funneling revenue from the Midtown building through Bank Melli of Iran, and then on to Iranian government officials.

It was a year ago in December 2008 that the Treasury Department designated 650 Fifth co-owner Assa Corp. as “a front company” that had been created and controlled by Iran’s Bank Melli. Treasury said Assa Corp.’s parent organization was Assa Company Ltd., which called the Channel Islands home to its headquarters. Treasury noted that in 2007, Bank Melli had been designated as proliferators by the United States and the European Union for its role in Iran’s nuclear and ballistic missile programs.

A source familiar with the latest government move tells GlobeSt.com that it’s important to remember, that at this stage, only a forfeiture complaint has been filed for the two ownership entities in the building. The source says that not until the conclusion of forfeiture proceedings, in favor of the government, will any real property be seized. That same source says there are other potential outcomes to the government efforts, including dismissal, summary judgment or settlement.

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