Government moves to seize NY skyscraper from Iran firms

NEW YORK (Reuters) - Prosecutors filed a civil lawsuit on Thursday to seize control of a New York City skyscraper they say is owned by companies illegally funneling money to the Iranian government.

The suit seeks to revoke the Alavi Foundation and the Assa Corporation's ownership of a 36-storey building at 650 Fifth Avenue in Manhattan. The original lawsuit filed in December only sought Assa Corp.'s building share.

Prosecutors said both companies were sending money to Bank Melli, owned by the Iranian government. The U.S. Treasury has designated the bank as a weapons proliferator and banned U.S. citizens from dealing with it.

Prosecutors said they also intended to seize "all other assets" of the two entities, including bank accounts and real estate in New York, Maryland, Virginia, Texas, and California.

Prosecutors say Iran's United Nations ambassador has controlled the Alavi Foundation since 1991.

(Reporting by Michelle Nichols, editing by Alan Elsner)