Federal Judge Says Treasury Needs a Warrant to Freeze Funds

On Tuesday a federal judge in Ohio ruled that the Treasury Department violated the Fourth Amendment when it froze the assets of the Toledo-based organization KindHearts for Charitable Humanitarian Development in 2006. The government suspects the group, ostensibly devoted to philanthropic activity in the Middle East, of supporting terrorism by funneling money to Hamas. But U.S. District Judge James Carr ruled that freezing KindHearts' money amounted to a "seizure" under the Fourth Amendment and was "unreasonable" because the government did not first obtain a warrant based on probable cause. He rejected the Justice Department's argument that national security concerns made the Fourth Amendment inapplicable. If Carr's ruling is upheld, the Treasury Department will no longer be able to unilaterally close down American charities or businesses based on alleged ties to terrorism. It will have to show a judge some evidence in support of its allegations and give the organization a chance to respond.

Carr's ruling is here (PDF). The ACLU, which is representing KindHearts, has more here.