Islamic charity sues U.S. leaders

Abu Baker, Holy Land's CEO, has said the action "is not based on any legal grounds. This is a political decision."

WASHINGTON (CNN) -- An Islamic charitable organization that had its assets seized and was labeled a terrorist organization by the Bush administration has filed a lawsuit against three top U.S. officials.

The Holy Land Foundation for Relief and Development, based in Richardson, Texas, claims the U.S. government conducted the seizure illegally.

The group's lawsuit names Attorney General John Aschroft, Secretary of State Colin Powell and Treasury Secretary Paul O'Neill.

Last December, authorities seized millions of dollars in charitable donations and property from Holy Land after the U.S. government determined it was a "specially designated terrorist organization." Powell, in consultation with Ashcroft and O'Neill, officially designates such groups on behalf of the government.

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The Justice Department says Holy Land is a primary fund-raising organization to Hamas, a Palestinian Islamic fundamentalist organization that U.S. authorities have also labeled a terrorist group.

The military wing of Hamas, Izzedine al Qassam, has admitted responsibility for terrorist attacks against Israeli civilians as well as attacks against the Israeli military.

Holy Land rejects the charge, saying it "has never donated funds or provided services to Hamas or any other foreign terrorist organization." The group also claims that U.S. authorities seized their assets illegally -- without probable cause, statutory authority or hearings.

Justice Department officials refused comment on the lawsuit.

U.S. authorities have frozen the assets of more than 150 "known terrorists, their organizations and their bankers" since last September, the White House said last December. At least 142 countries have issued their own orders blocking the assets of individuals, groups and banks associated with terrorism.