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$2B in alleged Iranian assets iced in NYC

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Published: Dec. 11, 2009 at 10:45 PM

NEW YORK, Dec. 11 (UPI) -- A federal judge in New York reportedly issued a sealed order 18 months ago freezing $2 billion in alleged Iranian assets in Citibank.

The money has become the focus of a legal dispute between the families of U.S. Marines killed or injured in the 1983 bombing in Beirut, Lebanon, and Clearstream Banking S.A., the Luxembourg clearing house that holds the U.S. account, The Wall Street Journal reports. A federal court in Washington ordered Iran to pay $2.7 billion in damages after finding in 2007 that the Tehran government was behind the bombing of the Marine barracks.

"I was stunned when this money popped up in New York," Steven Perles, a lawyer for the Marines' families, told the Journal. "I had no idea there was Iranian money of this size flowing through the United States."

Clearstream says the money in New York does not belong to the Iranian government and has asked for money to be freed.

If the money does belong to Iran, the freeze is the largest involving Iranian assets in the United States since the 1979 revolution.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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