Local charity reaches deal to be removed from terrorist list

The Muslim charity KindHearts, seen here in 2006, was shut down by the Treasury Department because of allegations it was a front organization for Hamas and al Quaida.

A West Toledo charity that recently shut its doors following a years-long legal battle with the U.S. Department of Treasury announced today that the parties have reached a settlement agreement that includes removing KindHearts for Charitable Humanitarian Development Inc. from a list of federally designated terrorist organizations.

The Muslim charity filed suit in U.S. District Court in Toledo against the government in October, 2008, challenging the designation and requesting that the freeze order on the organization’s assets be vacated.

According to a three-page settlement released today, the parties “mutually desire to resolves all the claims” without further legal action or admission of liability or wrongdoing by either party.

Listed as one of the conditions is that “all funds and assets owned by KindHearts will be expended, pursuant to licenses by the Office of Foreign Assets Control to cover KindHearts’ outstanding financial obligations and as grants for charitable purposes to charitable organizations.”

Earlier this year, KindHearts published a notice saying that it had officially dissolved. The nonprofit organization was incorporated in January, 2002, to provide humanitarian aid without regard to religion or political affiliation.

According to the agreement, KindHearts agrees to remain closed once its assets are fully allocated.

The settlement involves 13 points.