U.S. suit seeks $480 million in assets

NEW YORK, Dec. 15 (UPI) -- The U.S. Justice Department filed a civil suit in New York Thursday to recover $480 million from three Lebanese financial institutions linked to Hezbollah.

The U.S. State Department designated Hezbollah a foreign terrorist organization in 1997.

The suit alleges a scheme in which the bank and two exchange houses used the U.S. financial system to launder narcotics and other criminal proceeds through West Africa and back into Lebanon, the department said.

Officials said under the scheme funds were wired from Lebanon to the United States to buy used cars, which were then transported to West Africa. Cash from the car sales and proceeds of narcotics trafficking were then funneled to Lebanon through Hezbollah-controlled money laundering channels, Justice said.

Substantial portions of the cash allegedly were paid to Hezbollah.

The Hezbollah-linked financial institutions allegedly involved in the scheme include the Lebanese Canadian Bank and two Lebanese exchange houses, the Hassan Ayash Exchange Co. and Ellissa Holding, and their related subsidiaries and affiliates.

The complaint alleges the assets of the three financial institutions, the assets of approximately 30 U.S. car buyers and a U.S. shipping company -- and related entities --- that facilitated the scheme are forfeit, the department said.