US seizes $150 million from LCB assets sale

Warrant issued to seize funds connected
to Hezbollah money laundering schemes

The United States has seized $150 million from a local bank’s account in the US in a case prosecutors said relates to a money laundering scheme involving Hezbollah and the defunct Lebanese Canadian Bank (LCB). The money laundering and forfeiture complaint was filed by US prosecutors in December 2011.

The seized money is part of the purchase price of most of LCB assets, assets that were acquired by SGBL. The money is being held in an escrow account at Banque Libano Française (BLF). Funds were seized from BLF’s account at a US correspondent bank to substitute for the money in the escrow account. But US prosecutors have not made any allegations of wrongdoing against BLF, SGBL, or the US bank that maintains the correspondent account for BLF in the US.

US prosecutors have alleged that LCB played a key role in facilitating money laundering for Hezbollah. They allege the scheme involved LCB, the Hassan Ayash Exchange Company and the Ellissa Holding Company. They said that money from various individuals and companies in Beirut was sent to the US to purchase used cars. The cars were then sold in West Africa from where Hezbollah-linked groups helped smuggle the proceeds back into Lebanon.