CHICAGO (AP) — A federal appeals court says the $6 million an alleged al-Qaida supporter invested with a Chicago brokerage belongs to the U.S. government and can’t go to insurance companies who paid victims of the September 2001 terror attacks.
Thursday’s decision by the 7th U.S. Circuit Court of Appeals in Chicago reverses a lower court ruling that the money should go to insurers seeking to recoup $2.5 billion paid to 9/11 victims.
The opinion focused on the Terrorism Risk Insurance Act and technical questions about when authorities blocked the funds. It sympathizes with insurers, but says the law allows for no wiggle room.
U.S. authorities say Abu al Tayyeb, identified by federal authorities as an associate of Osama Bin Laden, deposited $27 million with a brokerage in 2005. Poor investments caused the money to dwindle.