U.S. District Judge Katherine Forrest's 82-page ruling, made public Monday, said the owners of the building, whose tenants include Juicy Couture and Godiva Chocolates, illegally funneled money to a state-run Iranian bank, making it "a front for the government of Iran, the New York Daily News reported Tuesday.
"The assets at issue ... are subject to forfeiture," Forrest wrote.
A relationship with an Iranian bank is a violation of a U.S. trade embargo against Iran, put in place after Iran was designated by the United States as a sponsor of international terrorism, a charge Iran disputes.
Although her ruling is subject to appeal, prosecutors said they believe the judge's action to be "the largest federal property forfeiture" in U.S. history.
The 36-story building at 650 Fifth Avenue in Manhattan is worth an estimated $500 million.
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