Loading ...Bank closures of Arab Americans at issue in Detroit trial
Niraj Warikoo
Detroit Free Press
Growing number of bank closures of Arab-Americans has concerned civil rights advocates as a Southfield charity battles Bank of America in court
Founded in 1992 by Iraqi-American Muslims, the Southfield-based charity Life for Relief and Development says it has donated more than $300 million in relief aid around the world, especially in Arab- and Muslim-majority countries.
But in 2012, Talmer Bancorp of Michigan and Bank of America suddenly closed its accounts, not giving any reason. Attorneys for the charity then sued the banks, saying they were discriminated against because of their Arab ancestry and Islamic faith.
The case with Talmer Bancorp was resolved and now, the case with Bank of America is on trial, with closing arguments expected Monday in U.S. District Court in Detroit. On Friday, officials with Bank of America testified that their decision to shut down the account of Life for Relief and Development was not based on the ancestry of its leaders.
“Race or ethnicity had nothing to do with the recommendation to close” the account, testified Fred Stone, a former director with Bank of America in Charlotte, N.C.,who helped lead the bank’s anti-money laundering unit when it closed the charity’s account in 2012.
Rather, the investigation into Life, Stone said, “grew out of an existing investigation of a different” charity — identified as Syria Relief. Bank of America officials said Life for Relief was in communication with Syria Relief.
The trial before U.S. District Court Chief Judge Denise Page Hood is being closely watched by Arab Americans and civil rights advocates who say there is a growing problem of banks shutting down the accounts of Arab Americans.
Similar lawsuits have been filed in Detroit over the years by Arab-Americans alleging that banks are targeting people because of their Arab ancestry.
In 2006, Life for Relief and Development had filed a lawsuit against Comerica Bank for closing its accounts after the FBI raided the offices of Life. The case was dismissed in 2007. In February, Carl Levin, the former U.S. senator for Michigan, filed a lawsuit in Detroit against JPMorgan Chase on behalf of an Iraqi-American family who said their accounts were suddenly closed. Last week, Arab Americans raised the issue of bank closures during a meeting in Dearborn with Attorney General Loretta Lynch.
In court Friday, the attorney for Life for Relief and Development, Shereef Akeel, said that “arbitrary bank closures … without any explanation” are a “common concern in Arab-American communities.”
During testimony, a memo from Bank of America concerning Life for Relief and Development was displayed on a screen that said Life for Relief and Development had “unknown sources of cash deposits and unusual activity for a business account.”
Bank of America officials said the fact that Life for Relief and Development was not wiring money looked suspicious, but Life officials say the bank denied the charity the ability to wire money for humanitarian purposes.
Life for Relief and Development said in a statement Friday that a deposition in December 2014 of an expert witness by Bank of America indicates that Arab Americans were being targeted for bank closures.
The bank closures spiked after the Patriot Act was enacted in the aftermath of the Sept. 11, 2001, terrorist attacks. The U.S. Treasury Department and other federal agencies increased their scrutiny of banks to make sure they are not tied to terrorism. That resulted in banks closing accounts they suspected might have suspicious ties.
But Arab-American advocates say the moves have gone too far, targeting innocent people. The CEO for Life for Relief and Development, Khalid Turaani, said Friday in a statement that Bank of America should be “found guilty of discrimination against Arab Americans.” He noted that the charity has done positive relief work in many places, including 17 trips to Flint delivering 350,000 bottles of water.
Attorneys for Bank of America declined comment after court proceedings on Friday. A spokesperson for Bank of America did not comment.
Source: www.freep.com