Iranian foundation president Jahedi arrested for obstruction

New York: The president of a foundation that owns a 60 per cent stake in a 36-storey New York office tower that US prosecutors say is the Iranian government's property was arrested for destroying documents.

Farhsid Jahedi is president of the Alavi Foundation, the successor to a foundation created in the 1970s.

Alavi has majority control of the building at 650 Fifth Ave. in Manhattan.

The US on December 17 sought to seize part of the building, claiming the Iranian government's Bank Melli co-owns the building through ASSA Co., a Channel Islands-based corporation.

Jahedi was arrested in New York on Saturday for obstructing justice after agents with the Federal Bureau of Investigation said they saw him near his home destroying documents that had been subpoenaed by a US grand jury.

"Upon reaching the trash can, Jahedi discarded papers," FBI agent George Ennis said in a criminal complaint in Manhattan federal court.

"Based on preliminary efforts to reconstruct the documents, it appears that they are responsive to the grand jury subpoena," Ennis said.

A lawyer for Jahedi couldn't immediately be reached for comment. Jahedi is scheduled to appear in federal court in Manhattan on Sunday.

According to the US Justice Department, Bank Melli's interest in the building and money flowing from it to the Iranian government violate US laws barring the transfer of funds to Iran from the US without authorization by the US Treasury Department.

The US is seeking the 40 per cent of the building owned by ASSA and its New York-based ASSA Corp. unit.