Justice Dept. admits destroying subpoenaed Iranian records

WASHINGTON -- The Clinton administration has admitted that up to 900 subpoenaed Treasury Department records were destroyed in the case of a New Jersey family that seeks compensation from Iran for a terrorist attack.

U.S. federal Judge Royce C. Lamberth has scheduled a hearing for Wednesday to discuss the destruction of subpoenaed evidence, Middle East Newsline reported.

Stephen Flatow, who in 1998 won $24 million judgement from Teheran, said the Justice Department has acknowledged that 800-900 records were destroyed as part of a Clinton administration effort to avoid seizing Iranian assets to pay the compensation. Flatow said the documents were requested as part of the family's effort to seize Iranian assets.

Flatow's daughter, Alisa, was killed in a 1995 attack in Gaza by the Islamic Jihad group. Jihad was accused of attacking an Israeli bus on orders of Iran.

Flatow said a Justice Department attorney, Andrea Cohen, wrote in a June 23 letter that the files were destroyed because of a lack of storage space. The files were related to the licensing of transactions with Iran.

"We are beyond shock," Flatow said. "We are disgusted. And, if it turns out that the destruction was purposeful, I am going to see to it that heads roll at Treasury."

In a related development, the Clinton adminstration has renewed sanctions on 90 percent of Afghanistan meant to retaliate against the ruling Taliban faction's refusal to surrender Saudi billionaire fugitive Osama Bin Laden. The sanctions freezes Taliban property in the United States and prohibits trade with the group.