Petition 167

8/14/2019 Petition 167

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April 24, 2006

VIA FACSIMTLE & OR DIN AR Y U.S. MAIL (2021 622-1657

M s. Barbara Hamraerle, Acting DirectorOffice of Foreign Ass ets C ontrolDepartment of TreasuryWashington, DC 2 0220

R e: RmHearts for Charitable Humanitarian Development, .Inc.FAC N o .g H fl H H H j(b)(2) 1Delisting Petition& Third Request for Specific License To AccessBlocked Funds for LegaJ Services

Dear Ms. Hainmerle:

Gree tings. Please accept this letter as Kin dH earts' reque st that it b e dclisted from theSDGT L ist (Pending Investigation) and from any other list referencing it as being in any wayinvolved with, or is a supporter of, terrorism, pursuant to 31 CFR 501.807.

It has been mo re than tw o months since your Office shut down K indH earts1 businessoperations and froze all ofits assets . To date, not one single offioial factual allegation bias beenlevied against KindHea rts by any governmental entity (FBI, USA 's Office, or the TreasuryDep artment). In addition, you r office has been unable and un will ing to respo nd in an effectual ortimely manner with regards to the m any request1) that have been m ade on behalf of K indHearts.In my numerous corresp ondence to your Office, I have requested that Kind Hear ts be allowed toaccess its own funds so that it can defenditself. You denied this request witho ut any legalsupport whatsoever. You r relianc e ondictum, as I explained previously,is misplace d. I wrote toyou overa month ago pleading w ith your Office to reconsider your decisio n to deny the requestfor access to foods for Kind He arts ' defense and you have failed to date to ack now ledge, let alonerespond to, the request.

The above notwithstanding, and in an effort to exhaust KindHearts' potential remedies

with your office, I hereby submit the following in support of KindHearts1

request that yourOffice's actions against KjjjdH earts b e roevaluated and reversed. I ask that you take the time tofairly and adequately consider thjs equitable request.

The only averm ents mad e against KindHearts are those that are found in the BlockingLetter, the Treasury D epa rtm ent's Website and the media. Althoug h it smacks o f inherent

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unfairness and laok of respect for our Country's long history in its belief in the mechanisms of

due process and fair trial, KindHearts will addressthese

unsupported and spurious allegations.After the tragic events of September11,2001,our Government closed three ofthe largest

charities which calered to the Muslim Communities in our Country. A large void developedregarding Muslim charitable giving. By the end of2001,American M uslims were at bestconfused about their legal duties on the one hand and the religious mandate for charitable givingon the other hand. Some of the surviving Muslim charities that were in existence at the timelacked certain elements of legitimacy and were viewed with suspicion. The Muslim Communityremained ambivalent, and was greatly concerned about whether our Government would punishdonors for the conduct ofthe executive members ofthe closed charities.

Fear and uncertainty plagued Muslim charitable giving.

At the end of 2 0 0 1 , m H H H H Ha

Toledo, Ohio native, and an active member ofthe Muslim Community, began considering ways in which to help alleviate the ambivalence thathad enveloped the Muslim Community. • H H H H h a d worked for one of the shutteredchanties and had much cxperieiiceiruhc field. Having identified the void that had developed inMuslim charitable g i v i n g . • H U B began meeting with local community leaders andsought advice of legal counsel. Although it was clear from the beginning thaMhenoJiticalclimate in our Country made the creation ofa new charity an arduous task , ^ ^ I ^ ^ ^ ^ ^ Bbelieved in the idea and dedicated his time to its formation.

After consulting with friends, community leaders and professionalrecognized that a new charity would have to set itselfapart from other existing charities, and thatfull transparency would b e key to its continued success.

On January 22, 2002, KindHearts received approval for its filing with the Ohio Secretaryof State 's Office of its articles of incorporation as a nonprofit corporation. Initially, the charitybad no funding and began its operation from the home ofits |

Soon after filing for incorporation, KindHearts compiled and submitted its application fortax exempt s tatus to the regional IRS Office in Cincinnati, Ohio. As expected, the IRS 's reviewof KindH earts' application for tax exemption took longer than usual and the application receivedclose scrutiny at the W ashington, DC level. Numerous requests for additional information anddocum entary support were received and answered. In October of2002,KindHearts received itstax exempt status,

KindHearts subsequently moved into its spacious offices in To ledo, Ohio and hiredemployees. Since its first year of inception, KindHearts was very successful in its ftindrais ingefforts, which included furidrai=dng dinners and lectures.

Since 2002, K indhearts has been at the forefront of charitable action in one oftheneediest and most controversial areas in the world. Kindhearts' mission has always been tosupport the most despera te in Lebanon, the Palestinian territories, South Asia and sinceHurricane Katrina, the GulfCoast. Kindhearts workers are across the world, using the money

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that is raised here in Ohio andal) over theU.S. to put food directly into a child 's m outh, or a roof

over the head of a displaced family. KindHearts was never a political entity; its only vision ischaritable.

Donations to KindHearts and its programming overseas consistently increased over time.KindHearts earned a good reputation in the community and its future w as bright.

KindHearts entered into an independent contractual ag re cr ae ju ^it b^ Jo rtl ^m cr ic an ^^ ^Profcss ionalServices, Inc ., a for-profit fundraising entity headed by • H H H H I H ^ H ^ H I

H H H m was once employed by one of the three shuttered charities and was very wellrespected in the'comm unity and had much fundraising experience. Throughout: the time thatNAPS w as con-ducting fundraising activities for KindHearts, neither N APS nor jwere accused of any crim e or associated w ith any terrorist entity.

In July of 2004, H H I ^ H I along with other members of a shuttered charity, wereindicated by a Texas grand jury for alleged conduct during the existence of th ec ha rit ^n d/7m >rto its closure in December of2001. KiodHearts had no association with H f l H H Ha t ^ ytime during his association with the shuttered charity since KindHearts was not in existence untila few months later. Upon the announcement of the indictment o f f l M B H I H i n 2004,KindHearts terminated the independeru^ontractoT- agreement between it and NAPS and had nofurther business relationshipw i t h | M H v r NAPS.

Since its inception, K indHearts retained the services of independent auditors andaccountants in order to achieve its original goal of transparency. All accounting records arecurrently in the hands ofthe Government. They are complete and accurate and they rcflectKindHearts* unrivaled efforts at keeping records ofall of its transactions. M r - M N H H MKindHearts m m | h a s gone on the record to state the following:

I have been t h e ^ ^ m ^ f o r KindHearts since i ts inception.Tf there is anything I cando to help you, any type of sworn statement, or in any otherway, I would love to helpKindHearts. 1 believe in your organization 100%, there was absolutely no wrong doing.I have seen every transaction and wire transfer. Feel free to contact meat I

As a charitable entity performing fundraising events in the United States, KindHearts wasrequired to register with the States within which it conducted activities. At one time, KindHeartswas registered in almost 40 of the United S tates. Complete and accurate registration andfundraising reporting documents were filed with these States. These records are on file at thevarious Secretary of State Offices and/or Attorney General Offices Country-wide and theydocument the am ounts of funds raised, the location of the events and other pertinent information.

Initially, the U nited States Treasury released certain guidelines or rules aimed atproviding a w orking mechanism for charities in order to ensure that no monies end up in thehands of designated terrorists. These guidelines were widely criticized as unworkable.However, KindHearts carefully studied these guidelines and mandated that its em ployees andofficials review m emorandum explaining the guidelines that were created by the undersigned.

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Even the treasury department admitted that these guidelines were not adequate when it warned

charities that following all ofthe recommendations in the guidelines would not guaranty thatacharity would not be criminally or civilly liable.

A few months prior to the closure of KindHcarts, the Treasury Department amended itsGuidelines. The undersigned reviewed same and submitted a mem orandum to all KindHeartsemployees and officials explaining the new guidelines. KindHearts was committed toundertaking its duties under any set of rules that our Government provided.

In late 2002 and early2003, KindHearts did not have the meansin which to transfermoney from the United Statesto its new offices in Lebanon.. As such, KindHearts receivedpermission to utilize the accountof the Sanabil Foundationin Lebanon. At the timeof theutilization, the Sanabil Foundation was not associated with any terrorist entity nor was it listed asa designated entity by-lhc Untied States or any other government. The totaj amount transferred

to Sanabil was approximately$)50,000. All funds were received by KindH earts in Lebanon andall funds were spent by KindHeartsto perform Kindhearts' projectsin Lebanon before theofficial registration and establishment of the Lebanon office. KindH earts can account for everypenny that went through Sanabil and on to its Lebanon office. These docum ents arc currentlywithin the possession of your office Please take the time to review them

On August 22,2003, the United States Treasury designated Sanabiias an entity thatfunds terrorism. At no timeafter this designation did KindHearts have any dealings, direct orotherwise, with Sanabil.

In February of 2004, the Senate Committee On Finance made inquiries into numerouscharities, foundations, other tax-exempt organizations, and other groups, and specificallyKindHearts, by submitting information requests tothe IRS. KindHearts took this opportunityvery serious ly. KindH earts submitted an official response to the Com mittee. In its response,KindHearts informed the Committee that it understood the reasons behind the inquiry and that itwas committed to its obligations under the laws ofOhio and the United States and wished tofully cooperate with the Committee On Finance in any way that tbe Committee deemsappropriate. In addition, KindH earts submitted that it had no objection to directly dealing withany issues or requests that the Committee may have from time to time, including documents,information, testimony, o r the like, that the Comm ittee may wish to have in order to complete itsinquiry.

Specifically, KindHearts submitted the following to the Committee:

KindH earts has nothing to hide. Its mission is clear. Its goals are charitable Its books

are^open to any inquiry. Many needy and helpless individuals rely upon KindH earts'support, be it in the form of food, medicine or clothing.

In the interests of justice, fairness, and our national security, KindHearts hereby declaresto fully comply with any and all roqucsts made ofit, in any shape, form, or manner. Thisprom ise of com plete and unfettered cooperation is aimed at ensuring that those in needcontinue to be clothed, fed and receive medical treatment

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Unfortunately, the Committee did nat respond to KindHearts1 requests. A few moathsago, this Committee quietly ended its investigation without any accusations o f wrongdoingagainst KindHearts.

In the morning hours of Sunday, February 19, 2006, Federal A gents f rom the Departmentof the Treasury andibe Federal Bureau of Investigations, seized the Headquarters Offices ofICmdHcarts located in Toledo, Ohio.

Simultaneously with the seizure of the Offioe, Federal Agents went to the homes ofoertain board m embers and a few employees and questioned them w ith regards to KindHearts'operations in this Country and its overseas offices.

Federal Agents also went to the home of KjndjHieartsPresideat ^ H H H H H where theyserved a search warrant and seized numerous items. | H H H H IC 0 0 P e r a t : e ^ w ' t n ^°- c ag^tsand answered all of their questions after repeated requests forthe presence of his counsel weredenied

Over One M illion Dollars was seized from KindHearts' bank accounts. The majority ofthis amount was earmarked for earthquake victims in Pakistan and for KindHearts new SouthAsia Division.

KindHearts had no pnor notice to the Government action and was surprised since only afew months prior the Senate Finance Com mittee, chaired by Chuck G rassley, Republican fromIowa, had closed its investigation of KindHearts, and21 other Muslim organizations, withoutany finding or wrongdoing From the outset of the Senate Finance Comm ittee's commencementof investigation, KindHearts made formal appeals forthe opportunity to presen t its side throughtestimony before the Committee. KindHearts further informed the Comm ittee that its books wereopen for review by the Comm ittee at any time, However, no invitation was extended.

After numerous requests from the Department of Treasury regard ing the specifics of itsallegations against K indHearts, no information was provided. The only accusation thatKindHearts has been given notice of is the following'

You are hereby notified that all property and interests in property ofKiadhearts for Charitable Humanitarian Development, Inc, including itsrepresentative office and all other offices worldwide, are blockedpending investigation into whether Kindhearts is subject to designationpursuant to Executive Order 13224, issued by President Bush on September

23, 2001, for being controlled by, acting for or on behalf of, assistingin or providing financia l or material support to, and/or otherwise beingassociated with Hamas.

Department of Treasury Letter authored by DjrectorRobert W. Werner, Director, Office ofForeign Assets Control, dated and served onf ^ H H o n Sunday, February 19, 2006.

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Ui response to this general and vague accusation, KindHearts unequivocally andcompletely denies that it was ever controlled, acted for or on behal f of, assisted financially,provided any material support to, oris associated in any way w ith Hamas. KindH earts goesfurther on the record to state that it unequivocally and completely denies that it was evercontrolled, acted for or on behalf of, assisted financially, provided any material supportto, or isassociated in any way with any political entity, government, or any terrorist organization.

KindHearts reaffirms the goals and ideals ofits Mission Statement and states that itconducted itself throughout its existence with one guiding mission in mind: to help alleviate thepain and suffering of any and all needy individuals around the w orld through, the generosity ofitsdonors, the kindness of its employees and volunteers, and through other non governmentalorganizations.

Other than being associated with Hamas pursuant to the above language, the governmenthas failed to officially allege anything else. The Government, has, however, made numerousstatements to the media with regards to iaformation that the Government claims "links"KindHearts to Ham as. KindHearts believes that these actions by the Governm ent are nakedattempts to taint die general public's,, and potential jurors', opinion of K indHearts outside oftheparameters of adm issible evidence. Although it is very difficult to address these allegations fromthe media, KindHearts does state that it catcgoncally denies that it has ever violated any law,rule, regulation or standard of conduct set forth by our Government.

KLmdHearts only requests that to which it is entitled to under our often envied principlesof freedom and dem ocracy . KindHearts notes that although it understands the political climateof our Country, and our current Government's new stated policies on the Middle East PeaceProcess, it finds it unfair that our Government made an extrajudicial decision to effectively wipe-

out more than5 years of humanitarian assistance to the world's needy by the stroke ofa pen.The immediate effects of KindHearts' closure have already been felt in orphanages, schools,shelters and medical centers around the world.

In the early days ofits existence, KindHearts reached out to the Government andrequested guidance with regards to entities and individuals it can deal with without running afoulof the law. The Government's response was to direct KindHearts to the Web listing of the Officeof Foreign Assets Control listing names of individuals/entities tliat KindHearts could not dealwith.

According to our Government's instruction, KindHearts was to check; this listing beforedealing with any organization, entity, individual or group. KindHearts put forth internalprocedures for the implementation ofthese oversight measures. KindHearts submits that it hagnever dealt with any organization, entity, individual or group during anytime that suchorganization , entity, individual or group was listed on the OFAC W ebsite. Currently, not evenKindHearts has access to these records. The only entity that has any records which would showthat KindHearts did not violate anyrule, statute, law, regulation or procedure is the United StatesGovernment (i.e. your Office) since it has taken over physical custody and control ofKindHearts' Offices.

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KindHearts is a product of what is great about this couatry. KindHearts was able to takethe ki.ndn.ess and generosity of our supporters and help thousands of people who have no one elseto turnto. Its missionis, and remains, olear. Many people relied on KindHearts for theirsurvival. KindHearts aad your O ffice owe it to them to be more vigjjant and comm itted tocontinue the fight against terrorism utilizing legitimate, democratic and fair procedures.

In the event you do not find our request to be well-taken, we again move that yourdecision to deny our specific license for access to blocked funds for legal services bereconsidered.

On Marcb 23 , 2006, the Treasury Department decided that it will not allow KindHearts1

attorneys to receive compensation for their services (and services to oome) from KindHearts1

frozen accounts. The Treasury Department has ordered KindHearts to only accept funding forlegal services from a source tha t "does not originate from a source within the United States orwithin the possession or control ofa U.S.person, including its overseas branches, and must notbe made from a blocked account or blocked property."

Fn essence, KindHtiarts will not be allowed to utilize us own resources to present adefense. The decision of the Treasury Department has further disillusioned KindHearts'advocates, and has muddied our Country's principles of democracy, freedom and due process.

It is important to acknowledge that fCindHeartshas no source offimding whatsoever afterits accounts were frozen and there areno prospects for raising any funds for legal representation.

(b)(2) L i c e n s e i m m f t which you did approve, does not allow my firm to access frozen funds forthe payment of legal services and costs, which is the sole source of funding for legal services.Since being designated as Blocked Pending Investigation, KindHearts has no prospectswhatsoever of raising funds to support its legal efforts. KindHearts1 creditors and employees arcseeking compensation from KindHearts for services performed. In effect, KindHearts'reputation in the community has been forever tarnished and it would be inconceivable andunreasonable to expect that individuals or entities would dona te money to a KindH earts legalfund. In essence, the License that you issued for legal couasel to receive payments notoriginating from a source within the United S tates or from the possession or control of a U.S.person, and pot from its own blooked account, is useless. We hope that you w ill reconsider.

KindHearts is a "pe rson" under our constitutional framew ork and is entitled to the fullarray of applicable rights and protections under our laws. It is beyond sensible debate thatcorporations do indeed enjoy the right to retain counsel. Corporations are entitled to due processand the equal protection of the laws

Our dem ocratic and legal system relies-entirely on the principles of fairness and dueprocess Inherent in these principles is the right of access to the courts and the opportunity todefend one 's interests. Your decision to deny KindHearts' request that it be allowed to access itsown money in order to protect its interest and access the courts to challenge the governm ent'scapricious conduct in effectively destroying its business by the stroke of a pen renders theseprinciples superfluous.

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Petition 167

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