A half dozen New York officials today strongly endorsed Attorney General nominee Eric Schneiderman’s plan to create a “New York Sanctions And Financing the Enemy” (NY-SAFE) task force to investigate and launch enforcement actions against businesses and financial entities that operate in New York that trade with, or invest in, Iran and other countries that sponsor terrorism or that seek nuclear weapons in violation of state or federal law. Recently, the United States imposed heightened sanctions against Iran for maintaining its illegal and dangerous nuclear weapon program.

The officials supporting Schneiderman’s plan include: Congress members Gary Ackerman, Eliot Engel, Nita Lowey, Jerry Nadler, Anthony Weiner, and Assembly member Dov Hikind.

“Law enforcement agencies cannot do enough to enforce sanctions imposed on terrorist sponsoring states or states that are trying to develop nuclear weapons,” said Eric Schneiderman. “In the past decade the New York State Attorney General has partnered with local and federal authorities to enforce securities laws, take down multi-state drug gangs, and expose national health care fraud schemes. The NY-SAFE task force will carry on this tradition with investigations and enforcement actions against businesses that violate U.S. sanctions by illegally doing business with Iran, or other states that sponsor terrorism.”

Schneiderman has pledged to use the Attorney General’s broad powers to investigate and stop businesses from engaging in illegal conduct in order to stop businesses from violating federal sanctions or state laws that prohibit trading with, or investing in, hostile countries such as Iran. U.S. sanctions also prohibit trading or doing business with a wide range of terrorist groups and countries with atrocious human rights violations.

The NY-SAFE task force will be designed to partner with federal and state law enforcement agencies, and add resources to the critical objective of enforcing sanctions against hostile states and terrorist groups. The Attorney General’s additional resources and broad ability to subpoena business and launch special expedited civil actions will especially enhance multi-agency efforts to enforce U.S. sanctions.  Under section 63(12) of the Executive Law, for example, the Attorney General can quickly investigate businesses suspected of violating U.S. sanctions, and obtain a court order to stop the illicit activity.

Schneiderman also pledged to bring criminal prosecutions when possible and appropriate under the Martin Act (state securities fraud laws) and other laws. When the facts warrant he will seek special authority from the Governor to allow the NY-SAFE task force to criminally prosecute such businesses for money laundering and other laws.

Local law enforcement has in the past taken a lead on sanctions enforcement. For example, in 2009, the Manhattan District Attorney successfully prosecuted Credit Swisse for illegally funneling hundreds of millions of dollars to Iran, Libya, Sudan and other nations. The NY-SAFE task force will be headed by a senior prosecutor from the Attorney General’s Division of Criminal Justice and, since many violators are banks and brokerages that illegally finance Iran and other states and terrorist groups, a senior prosecutor from the Investor Protection Bureau.

“The dirty secret of sanctions is that they have been under-enforced for decades. Tapping the unrealized potential of the Attorney General’s office can help reverse this under-enforcement,” said US Rep. Gary Ackerman.”We know that the Attorney General can often investigate business activities of large firms more quickly than federal agencies or District Attorneys. Eric’s decision to create a NY-SAFE task force to apply that ability to illegal international financing and profiteering demonstrates that he will fight crime and corruption wherever it occurs,” said US Rep. Eliot Engel, Chairman of the House Foreign Affairs Subcommittee on the Western Hemisphere.

“Eric Schneiderman’s creative plan to leverage the powers of the Attorney General’s office in the fight against businesses that violate U.S. sanctions is bold and innovative,” said US Rep. Nita Lowey. “The Sheriff of Wall Street has a new target – financiers that illegally profit by willfully, recklessly, or ignorantly ignoring sanctions. And it is important to remember that this not just about Iran but also other hostile states. The US has imposed certain sanctions against countries and officials with horrendous human rights records, including the Democratic Republic of Congo, Burma, Belarus, and Zimbabwe. Eric’s vision of the Attorney General’s office with the NY-SAFE task force will send a clear message that violations of US sanctions will be thoroughly investigated and not tolerated,” said US Rep. Jerrold Nadler. “Iran sponsors terrorism and is no friend of the US and no friend of the peace process in the middle-east.  Eric Schneiderman’s establishment of the New York Sanctions And Financing the Enemy task force will give our economic sanctions the teeth necessary to send a strong message to Iran and other hostile countries. Friends of Israel will have a friend with the future New York Attorney General, Eric Schneiderman,” said US Rep. Anthony D. Weiner. “New York law enforcement needs to stand up to firms that put sales ahead of safety here and in Israel. We applaud Eric Schneiderman’s proposal for the NY SAFE Task force,” said Assembly member Dov Hikind.

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