Charity Sues Government for Freezing Its Assets

Kindhearts for Charitable Humanitarian Development sued the federal government in response to the Treasury Department freezing the group's assets in 2006, requesting that the block is lifted while the group challenges the process used in designating organizations as terrorist groups. According to court papers; "[t]this lawsuit arises out of an order by the Office of Foreign Assets Control ('OFAC') that has resulted in the freezing of all assets of a Toledo-based charity for more than two and a half years—without any notice of the basis for the freeze, any hearing, any finding of wrongdoing, or any meaningful opportunity to respond to the freeze." The Toledo Blade reports; "The lawsuit challenges the freeze on its assets and the pending investigation as well as the whole process used by the government when dealing with organizations such as the charity. The complaint added that the government's actions have violated KindHeart's constitutional rights by undermining its ability to defend itself by controlling its financial assets." The group was granted a temporary restraining order barring the government from designating KindHearts as a terrorist group without further judicial review. According to an ACLU press release, "James G. Carr of the U.S. District Court for the Northern District of Ohio Western Division blocked the government from designating the organization as a specially designated global terrorist 'without first affording KindHearts with constitutionally adequate process,' including notice and a meaningful opportunity to contest the basis for such a designation."
back to Blog