Petition 144 - Aaran Money Wire Service v US Complaint

8/14/2019 Petition 144 - Aaran Money Wire Service v US Complaint

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UNITED STATES DISTRICT COURTDISTRICT O F MINNESOTA

AARAN M ONE Y WIRE SERVICE, INC., andGARAD NOR , a/kfe GARAJD JAMA, Civil Action _Plaintiffs,v.THE UNITE D STATES of AMERICA;JOHN A SHC RO FT, in his official capacity as AttorneyGeneral of the United States; PAUL H. O'NEILL, in hisofficial capacity as Secretary o f the Treasury of theUnited Srates of A merica; COLJN L. POWELL, in hisofficial capac ity a s Secretary of State of the UnitedStates of America; R. RICHARD NEWCOMB,m his official capacity as Director, United Stares Departmentof the T reasury, Office of Foreign Asset Control; andROBERT S.. MUELLER, III, in his official capacity asDirector, Federa l Bureau of Investigations.

Defendants.

COMPLAINT

Aaran Money Wiring Service, Inc. ('"Aaran") and Garad Nor, for their Complaint againstthe Defendants, hereby state and allege as follows;

THE PARTIES3. Defendant John Ashcrofi ("Ashcroft") is the Attorney General of the United

Slates. He is named as a defendant herein solely in his official capacity.2. Defendant Paul H. O'Neill ("O'Neill") is the Secretary of the Treasury of ths

United State s, He is named as a defendant herein solely in his official capacity.3 . Defendant Colin L. Powell ("Powell") is the Secretary of State of the United

Siaies. He is named as a defendant herein solely in his official capacity.

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4. Defendant R. Richard Newcomb ("Nswcomb") is the Director of the UnitedStates Departm ent of the Treasury, Office of Foreign Assets Con trol ("O FA C" ). He is named asa defendant herein solely in his official capacity.

5. Defendant Robert S. Mueller, III ("Mueller") is the Director of the Federal Bureauof Inves tigatio ns of th e United States ("FBI"), He is named as a defendant herein solely in hisofficial capacity.

/ 6. I Plaintiff Aaran is a Minnesota corporation with its principal place of business inM inneapolis, M innesota. ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ H

( 7'. y Prior to ceasing its operations on Nov emb er 7, 20 01 , Aaran was engaged in iheImon ey transfer bu sine ss. Its business activities included accepting mon ey from its customers,most of whom were Somali, Ethiopian, or Kenyan immigrants to the United States, and then.ransferring the funds by wire to another company, Amal Express ("Amal"), through the Bank oftubai in the United Arab Em irates. Amal in turn would deliver the m on ey to the intended

recipients. Th e majority of the intended recipients were imp overish ed family members ofAaron's customers who resided in Somalia, Ethiopia, and Kenyaoften in refugee camps.

^ 8 i _ ^ - / f Upon information and belief, Aaran's customers include naturalized United Statescitizens as well as non-cilizen immigrants to the United States.

f l J Aara n is a small business owned and operated by Plaintiff Gara d Nor. Mr. Nor *immigrated to the United States from Somalia in 1992 and became a naturalized United Statescitizen in 1997. His religion is Islam.

10. ! In exchange for its services, Aaran charged its customers a commission of up tofive percen t. Of the total comm ission charged, Aaran retained thirty-three percent a nd forwardedthe remain der to Am al. Am al used its share of the comm ission to pay for its operating expenses,

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and has design ated Mr . No r to be a "Specially Designated Global Terr oris t" ("SDG T"). A copyof the Blocking Notice is attached hereto as Exhibit B.

16. In connection w ith the Blocking Notice, OF AC published Plaintiffs' names andaddresses on its website (http://www.treas.gov/ofac) on its master list of "Specially DesignatedNationals and Blocked Persons,1' and in its brochure on "Terrorism." Upon information andbelief, OF AC also has either published or intends to publish Plaintiffs' nam es in its list ofblocked persons contained in Appendix A to 31 C.F.R. chapter V.

17. Pursuant to Blocking Notice FAC Ho. SDT-19671 ], all real and personal propertybelonging to Aa ran has been "blocked," and it has been forced to cease all oper ations. Blockedproperty includes Aaran's office, furnishings and equipment, business records, and bankaccounts. .

^ J j ^ j On November 7, 2001, agents operaring under the control and direc?ion ofDefendants raided Aaran's place of business, seized all of its property, including cash andchecks, and barr ed reentry to the business premises. No receipt or inve ntory was p rovided by the

imeni.19 . ) Funds in the following bank account have been blocked pursuant to the Blocking

Notice against Aaran:(a) Asso ciated Ban k, Account No . 22830006991801 Riverside AvenueMinneapolis Minnesota 55458Balance: ApproximatelyS166,1II.86.20 . Pursuant to Blocking Notice FAC No. SDT-196720, all real and personal property

belonging to Mr. No r individually has also been "blocked." Block ed property inclu des not onlyMr. Nor's bank accounts and records, but also any real property in which he holds an interesi, hisfurniture, his h ouseh old good s, and his personal effects.

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21. Funds in the following bank account have been blocked pursuant to the BlockingNotice against M r. N or:

(a) WcIJs Fargo Bank Minnesota, NA, Acco unt No. 397 -2664 550Nico Het& L ake OfficeP.O. Box B 514Minneapolis Minnesota 55479Balanc e: A pproximately $41,225.35 .22. Plaintiffs are presently unable to ascertain the exact amounts held in the blocked

accounts, because the government has seized all of their business and financial records.Aaran h as used Mr. No r's personal accoum to hold funds deposited for transfer by

customers, including smaller money transfer agencies in the United States who lacked thecapacity to mak e direct w ire transfers to Dubai, Aar an utilized Mr. No r's p ersonal account forthis purpose because Wells Fargo, the bank holding that account, has a larger national presencethan Associated Bank and a greater number of branches in which such customers could moreeasily deposit funds.

24 , Both blocked accounts contain funds entrusted to Plaintiffs by customers asbailees for transfer to intended recipients, as well as funds in which Plaintiffs have directproprietary interes ts. Plaintiffs are presently unable to identify the custo me rs whose funds areheld in the blocked accounts, because the government has seized all of their business andfinancial records.

25. Under the terms of the Blocking Notice, transferring, withdrawing* exporting,paying or otherwise dealing in blocked property is prohibited without prior OFAC authorization.Transactions involving property in which Plaintiffs have any interest, including property ownedby third parties in Plaintiffs1 possession or control, are similarly prohibited in the absence of

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funds.26 . The Blocking Notices allege that OFAC's determinations are authorized pursuant

to Executive Order No. 13224 (3FR49079), i ^ d by President Bush on September 23, 2001m "Executive Order"), d * . IEEPA. A copy of Executive Order No. 15224 is attachedhereto as Exhibit C.

27 . According to the Executive Order, Section 1, the determination whether to blocka n individual on the .round ** he commits, threatens to commit, or supports terrorism, or tob ] o c k an entity on the ground that it provides f a c i a l support or other service, to personse n o a g 6 d in such conduct, must be mad. by Defendant O'Neill in consultation **b DefendantsPoweU and Ashcroft, in their respective capacities *s Secretary of the Treasury, Secretary ofState, and Auorney General: Upon information and belief, OFAC's actions were undertakenMath the knowledge and approval of Defendants C Weill. Powell and Ashcroft.

/ ^ ) Aaran has no connection to terrorism or anyone involved in terrorism. It hasnever committed, threatened to comn.it, or supported any act of terrorism, and it has neverprovided finan cial support or other services to any person engaged in such activities. On thecontrary, Aara, provides a valuable humanitarian service to honest, hard-worHng United Statesimmigrants by providing them with a means to send support to their impoverished families.

/ - 5 5 T Mr. Nor similarly lacks any connection to terrorism or anyone involved int J & S T He has never committed, threatened to commit, or supported any act of terrorism, andhas never provided financial support or other services to any person engaged in such activities.Instead, he is an innovative and hard-workinS American citizen who, through Aaraa, hasendeavored to meet the critical needs of immigrants from war-torn East African nations.

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violen ce against Mr. N or and his family. For these reasons, even if the Blocking Notice is liftedit will be extremely difficult, if not impossible, for Aaran to resume operations as a goingconcern.

3 4. The Blocking Notices have caused extreme hardship to Mr. Nor and his familymem bers individu ally. As a result of the aforementioned threats, Mr. No r is concerned for hisfamily's safety. Mo reover, he no longer has any income with wh ich to support Ms wife and twosmall childrenone of whom was bom five months premature with lung damage and otherhealth problem s. Furthermo re, because OFAC has issued a Blockin g No tice against Mr. Norindividually, lie is entirely incapacitated from functioning legally in society , U nd en he BlockingNotice, he is prohibited from satisfying even the most basic human needs including, inter alia,earning s n, incom e, paying utility bills, paying for housing, p aving his family's m edicalexpen ses, or even pur cha sing groceries. Convicted, incarcerated priso ners have greater rights.The government has done nothing to compensate Mr. Nor, a United States citizen, for thisunconscionable hardship.

3 5 . ) The Blo cking No tices have caused extreme hard ship to Aa ran 's customers. It isunconscionable to withhold money belonging to these individuals, many of whom are the solesupport for indigent family members in Africa who have no other means to obtain food, cleanwater, cloihing and shelter. Upon information and belief, the government has never even allegedthat any of Aaran's customers h connected with terrorism or persons engaged in terroristactivities.

3 6. On December 14, 2001, Plaintiffs filed separate Applications with OFA.C,-pursuant to 31 CJF.R. 806 -807 , for the Release of Bl ock ed 'Fu nd s. The Applications areattached hereto as Exhib its D and E. In its application, Aaran offered, pursuant to 31 C.F.R.

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501.807 (a), to reorganize its business in such a way as to negate a ny basis for the g overn men t'sdesign ation of it as an SD GT . Aaran further stated that, if nec ess ary , it wou ld sever its businessrelationship with Axnal.

3 7 . As an alternative basis for relief, Plaintiffs applied for a license, pursuant to 31C.F.R. 801, authorizing the release of such funds necessary to pay their salaries, rent, utilitybills, and other expenses, and to restore the funds belonging 10 Aaran 's customers .

3 8 . On D ecem ber 14, 2001, the undersigned counsel specifically requested a limitedlicense from OF AC to receive funds from the blocked acc ounts nec essa ry to satisfy Plaintiffs'legal ftes and expe nses. Desp ite the immediate need for such a license , OFA C has utterlyignored this request.

3 9 . On January 7, 2002, a representative of OFAC told counsel that OFAC wasproc essin g the license reque st, however, no license was ever issued. On Feb ruary 7, 2002, theOFAC representative stated that he did noi understand why OFAC had not issued the requestedlicense and indicated that he would investigate ihe issue. On Fe bru ary 26 , 200 2, counsel againspoke with the representative, who stated that he had no information regarding the status of ihclicense request, but that he would put a "red star" next to it. Notw ithstand ing this representation,OFAC has never issued a license to counsel to receive funds from the blocked accounts forpayment of Plaintiffs' legal fees and expenses.

40. O FA C also has failed to respond to Plaintiffs'1 request for a license to use thefunds neede d to pay for their other immediate expenses, or to restore Aar an' s customers 1 funds.

4 1 . Notw ithstanding the immediate and extreme hardship suffered by Aaran, Mr. Nor,and Aa ran 's custom ers as a result of the Blocking Notice, O FA C has -ignored Plaintiffs'

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Applications for the Release of Blocked Funds and failed to reach any determination inconnection therewith.

42 . On December 28, 2001, the undersigned counsel wrote to OF AC noting thaiPlaintiffs had received no , acknowledgem ent of receipt of" their Ap plications. The letter furthernoted that because one of the Blocking Notices covers Mr. Nor individually, "it is virtuallyimpossible for him to pay any bills or receive any funds wh atsoev er. This is an extremeemergency for him tha i requires immediate attention." Despite the urgency of this plea, OFA Chas continued to ignore Plaintiffs' Applications and communications from counsel regarding thesame. Cou nsel wro te to OFA C on January 10, 2002, January 15 , 200 2, and February 14, 2002 ,urging it to HA the Blo cking Notice against Mr. Nor. OFA C has not responded to any of theseletters, andhas not returned telephone calls requesting information about the status of Plaintiffs'applications on January 2 3 , 2002, and February 20, 2002. Counsel contacted O FAC again onMarch 11, 20 02 , but OF AC also failed to respond to this ca ll

43 . The regulations governing Applications for the ReJease of Blocked Fundsestablish no time limit during which OFAC must issue a decision. Se e 31 C.F.R. 501.806-S07. Thus, OFACs regulat ions purport to authorize it to bjock property indefinitely,notwithstanding the severe, immediate and irreparable harm caused to affected persons.B. Search and Seizure

/ 4 4 . J On Nov embe r 7 ,20 01 , agents of the FBI, Internal Rev enue Service, United StatesCustoms Service, and others, under the direction of Defendants, conducted a search of Aaran'soffice at 1806 Riverside Avenue, Second Floor, in Minneapolis, Minnesota.

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YVK-V3-wftieli H ; > ^ ' ' county or a national thereof has any interest. . -by any person . . , subject tothe jurisdiction of the United States." (emphasis added.)

5 1 . The IEEPA does not authorize the President or any agency of the United Statesgovernment to block, freeze, prohibit the use of, or prohibit transactions involving propertyowned by United States citizens.

52 . Aaran is a United States corporation owned and controlled by Mr. Nor, a UnitedStates citizen. Upon information an d belief, many of Aaran's customers also are United Starescitizens.

53 . For these reasons, to the extent that Defendants have blocked Aaran's property,Mr. Nor 's property, and ihe property of Aaran customers who are United States citizens, theyhave engaged in illegal, ultra vires acts which axe not authorized un der the IE EPA .

54 . Plaintiffs have no adequate remedy at law and will suffer irreparable injury ifDefendants are no: enjoined from engaging in the activities described herein.

COUNT IIP R O C E D U R A L D U E P R O C E S S{Against all D efendants)55 . Plaintiffs restate and incorporate by reference the prece ding p aragra phs.56 . Defendants seized Plaintiffs' property and blocked their assets witho ut notice, and

withou t prov idin g them with an administrative or judicial hearing or other review of any kind.57. Defe ndan ts' actions, as described herein, have deprived Plaintiffs of their property

interests (inclu ding , but no t limited to, the right to access, use, sell, transfer, or otherwise disposeof the property) withou t due process of law. Such conduct violates the Fifth Amendment to theUnited States Consiiturion.

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C OUNT I I IS UB S TANTIVE DUE P R OC ES S(Against All Defendants)

58. Plaintiffs restate and incorporate by reference the preceding paragraphs.59. Defendants,, through the actions described herein, have imposed severe

punishment on Plaintiffs and deprived them of their fundamental rights without conviction ofany crime by the United Stages or any State thereof.

60 . Defendants' conduct is arbitrary and overbroad, and is not reasonably tailored tomeet legitimate government needs.

61. Defendants* conduct thus violated Plaintiffs' right to substantive'due processunder the Fifth Amendment to the United States Constitution.

C OUNT IVT A K I N G W I T H O U T J U S T C O M P E N S A T I O N(Against All Defendants)

62. Plaintiffs restate and incorporate by reference the preceding paragraphs.63 . Defendants have never compensated Plaintiffs for the total loss of use of any of

their funds, business records, office space, furniture, equipment, or other property.64 . Defendants* conduct has effected a taking of private property for public use

without just compensat ion, in violation of the Takings Clause of the Fifth Amendment to theUnited States Constitution.

C O U N T VE Q U A L P R O T E C T I O N(Against All Defendants)65. Plaintiffs restate and incorporate by reference the preceding paragraphs.

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66 . Prior to the cessation of its business on November 7, Aaran operated its businessin a fashion similar to other wiring services such as Western Union Financial Services, Inc.("Western Union").

67 . Published news reports indicate that in the three days prior to the terrorist attacksagainst the United States on September 11,2001, the hijackers involved in those attacks sent fourpayments to the United Arab Emirates using the services of Western Union.'

68. Unlike Western Union, there is no direct or indirect connection between Aaranand terrorism or person s engaged in terrorist activities.

69 . Upon information and belief. Defendants have never subjected Western Union toa blocking notice of any kind.

70. Defendants' disparate treatment of Aaran, as compared to Western Union, ismotivated in whole or in pan by the national origin and religious beliefs of Mr. Nor, its owner.

71. Defendants' conduct is not narrowly tailored to meet compelling governmentinterests, and thus viplaies ihe Equal Protection Clause of the Fourteenth Amendment asincorporated into to the Fiftli A mendment to the United States Co nstitution.

C OUNT VIR IGHT TO AS S IS TANC E OF C OUNS EL(Against AH Defendants)

72 . Plaintiffs restate and incorporate by reference the preceding paragraphs.73 . OFAC's failure to grant the undersigned counsel even a limited license for the

payment of Plaintiffs' legal fees and expenses threatens to deprive them of the assistancenecessary to pros ecute their claims. Counsel cannot, as a practical matte r, contin ue to representPlaintiffs indefinitely without payment of legal fees.

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74 . Without the requested license, Plaintiffs are incapable even of paying their owncourt costs and filing fees.

75. Defendants' refusal to permit Plaintiffs to pay court costs and legal fees directlyand immediately violates their right to assistance of counsel under the Sixth Amendment to theUnited States Con stitution.

COUNT vnO T H E R S I X T H A M E N D M E N T T R T A L R I G H T S(Against AH Defendants)76 . Plaintiffs restate and incorporate by reference the preceding paragraphs.77 . Defendants' conduct, as described herein, imposed severe punishment against

Plaintiffs without affording them their rights under the Sixth Amendment to the United StatesConstitution to notice of the charges against them, to confront any witnesses against them, tocompulsory process for obtaining witnesses in their favor, to a trial by jury, and to assistance ofcounsel.

C OUNT VI I IF O U R T H A M E N D M E N T(Against All Defendants)

78. Plaintiffs restate and incorporate by reference the pre ced ing parag raphs.79 . Upon information and belief, Defendants' search and seizure of Aaran's property

was not sup ported b y probable cause nor conducted pursuant to a wa rrant.80 . Defendants have thus effected an unreasonable search and seizure in violation of

the Fourth Amendment to the United States Constitution.C OUNT IX

F E D . R. CRIM . P . RU LE 41(Against All Defendants)S I . Plaintiffs restate and incorporate by reference the preceding paragraphs.

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6. In the alternative, a preliminary and perm anent injunction directing Defendants toissue a license to the undersigned counsel which would permit the receipt of funds from theblocked accounts for the payment of Plaintiffs' legal fees and expenses;

7. In the alternative, a preliminary and perm anent injunction directing Defendants toissue a license to Mr. Nor for the receipt of a salary and payment of basic expenses for food,clothing, she lter, transportation, utilities, and medica l c are; and

S. Su ch othe r and further relief as the Court deems just and equitable.

Respectfully Submitted,

Dated: April 12,2002 -John W, Lundqu i s t^65286)Dutce J.Foster (#285419)FREDRIKSON & BYRON, P .A.1100 International Centre900 Second Avenue SouthMinneapolis, Minnesota 5540 2Telephone: (612)347-7000Facsimile: (612)347-7077ATTORNEYS FOR PLAINTIFFSAARAN MONEY WIRE SERV ICE. INC.and GARAD NO R

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MinneapolisLondonWashington. DC 1M 0 livcerriJtioftjl Cen iK

. ... 900Second Avenue SouthMexico CH V { t u j . j ; . 7 0 0 OWjrww KAX(M2)JJ7-rO77Monrrwl x^nv- . /rcrf lawcmTofontoVancouver

FREDRIKSON & BYRON, R A.Attorneys and Advisors'

April 16,2002

VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTEDTo the parties on the attached Service List

R e: Global Services International, Inc. and Abdvllahi Farah v. United States ofAmerica, el al.Dear Interested Party:Enclosed 2nd served upon you please find a Summons and Complaint in connection with theabove-entitled matter.

cc : Mr. Abdullafai Farah

. . ? :_:::ODMA\PCDOCS\FeDOCS 1 \2&41577\]

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Global Services Internationa!, Inc. and Abdullahi Farah v.United States ofAmerica, etaLSERVICE LIS T

Office of the United States AttorneyAT TN : Civil Process Clerk orU.S. Attorney Thomas B. HeffelfingerUnited States Courthouse3 00 Souih 401 Street, S uite 600Minneapolis, MN 55415

Joh n A shcroft, U nited S tates Attorney GeneralU.S. Department o f Justice950 Pennsylvania Avenue, NWWashington, DC 20530-0001

Director R_ Richard NewcombUnited States Department of TreasuryOffice of Foreign Assets ControlSenate Banking, Hou sing andUrban Affairs Com mittee1500 Pennsylvania A venue, NWWashington. D.C . 20220

Paul 0' Neill, Secretary of the TreasuryUnited States Departmen t of the Treasury1500 Pennsylvania Avenue, NWWashington, DC 20220Robert S. M ueller III, DirectorFederal Bureau of InvestigationJ. Edgar Hoover Building935 Pennsylvania Avenue, NWWashington, D.C. 20535-0001

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Petition 144 - Aaran Money Wire Service v US Complaint

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