Shurat HaDin: Obama Secretly Transferred $1.7 Billion to Iran to Keep It Out of Terror Victims’ Reach

“And he said: ‘Go thy way, Daniel; for the words are shut up and sealed till the time of the end.'” Daniel 12:9 (The Israel Bible™)

Shurat HaDin-Israel Law Center, representing American the families of terror victims who have won US court judgments against the government of Iran for its support of Palestinian terrorist attacks in Israel, on Tuesday released a letter it sent US Congress members alleging that the Obama Administration kept secret the details of the $1.7 billion in cash payments to Tehran in January 2016 in order to evade efforts by their clients to recover those funds to satisfy outstanding court awards.

In the past, American terror victims have been successful in seizing Iranian bank accounts when those had been located.

The letter, sent by attorneys Nitsana Darshan-Leitner of Tel Aviv and Robert Tolchin of New York, recalls that on January 17, 2016, President Obama announced the settlement of a legal dispute between the United States and Iran over $400 million held by the US in a Foreign Military Sales (“FMS”) program account since 1979. The Obama Administration agreed to pay the $400 million it finally conceded it owed Iran, plus payment of an additional $1.3 million in interest on that amount.

Administration witnesses before the Subcommittee on Oversight and Investigations (Committee on Financial Services) hearing on “Fueling Terror: The Dangers of Ransom Payments to Iran,” Sept. 8, 2016. (Screenshot)
Administration witnesses before the Subcommittee on Oversight and Investigations (Committee on Financial Services) hearing on “Fueling Terror: The Dangers of Ransom Payments to Iran,” Sept. 8, 2016. (Screenshot)

Then, “in recent weeks, the $1.7 billion which was secretly paid out in cash has come under severe scrutiny because the timing and circumstances of the payments appear to confirm the Iranian claim that the White House agreed to pay the money as ransom to Tehran for the release of American hostages.”

However, in light of the recent revelations in a Congressional subcommittee hearing held on Thursday, September 8, 2016, Shurat HaDin is asserting that “it is now clear that the Administration has deliberately kept numerous payments to Iran secret in order to shield Iran from having to forfeit those funds to pay terror victims amounts Iran owes under outstanding US judgments.”

The Shurat HaDin letter cites a “suspicious revelation at the Congressional subcommittee hearing that the United States and Iran did not draft a written settlement agreement or any other formal documentation of the cash transfers, and that Iran specifically directed the Iran-US Tribunal at the Hague, where the claim was to be resolved through arbitration, that it should not record the settlement of the claim for the parties.”

Bankrupting Terrorism

Shurat HaDin asserts that under a legislation passed in 2000, the US was legally entitled to apply the $400 million in the FSM account to satisfy terror victims’ judgments, and this way eliminating the $400 million balance and nearly 16 years of interest claimed by Iran.

Shurat HaDin President Nitsana Darshan-Leitner said in a statement: “We believe that the secrecy in which these cash payments were made was part of an effort by the White House to conceal these payments from the terror victims and to hide the fact that it was effectively canceling Iran’s debt for its terror-related activity. This is a horrible fraud against the terror victims. It appears the secret cash transfers were specifically done as an end run around the ability of the families to attach the money and enforce their federal court judgments.”

“Why didn’t the Treasury ever tell the families they were holding these funds?” Darshan-Leitner demanded to know.

Had either the settlement or an award against the United States at the Iran-US Tribunal been entered on the books, and Iran had sought to have the settlement or award confirmed in US court, then terror victims with judgments against Iran could have legally “attached” any judgment affirming the settlement or award, so that the amount could be applied to satisfy their terror compensation judgments, Shurat HaDin contends, explaining that “instead, the Administration went to great lengths to ensure that the $1.7 billion purported settlement was shrouded in secrecy, was never reduced to writing or even recorded with the Tribunal in Hague, and was paid to Iran in cash as quickly and directly as possible in order to head off any chance that Iran would be forced to forfeit any amount to pay legal judgments it owes to American terror victims.”

Shurat HaDin urged Congress to continue to investigate these issues, and to take action to guarantee that further payments to Iran do not take place as long as Iran remains a state sponsor of terrorism and a threat to its neighbors, “and until it has paid every judgment it owes to American victims of terror.”

Nitsana Darshan-Leitner addressed her letter to Senator Marco Rubio and Representatives Mike Pompeo and Ed Royce, who have each introduced legislation in response to the $1.7 billion payment to Iran, and to House Financial Services Committee Chairman Jeb Hensarling and Oversight and Investigations Subcommittee Chairman Sean P. Duffy, whose subcommittee held a special hearing on the $1.7 billion payments last Thursday, September 8, 2016.

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