"[1] KindHearts reached a settlement agreement with the U.S. Treasury in November 2011, ending a protracted legal dispute over the charity's fundraising activities and for allegedly providing material support for terrorist groups.
However, Chief Judge Carr of the Northern District of Ohio issued a 100-page opinion wherein he found that the government violated the constitutional protections of the 4th and 5th Amendments to the United States Constitution in failing to secure a warrant based on probable cause prior to the seizure and for failing to provide KindHearts with any semblance of due process.
With this decision, the Court found for the first time that the government cannot freeze an organization's assets without obtaining a warrant based on probable cause.
KindHearts, according to its former members, was a non-profit, tax-exempt charitable entity that was registered with over 40 states to raise funds for the needy worldwide, without regard to race, color, national origin, political opinion or religious affiliation.
[citation needed] Proponents of KindHearts' innocence asserts that the charity was shut down by the Bush administration as a political step in order to put further pressure on the Palestinian regime to accede to the Israeli version of the Middle East peace process.
Smaili founded KindHearts with the intent to succeed fundraising efforts of both HLF and GRF, aiming for the new NGO to fill a void caused by the closures.
[citation needed] KindHearts officials and fundraisers are alleged to have ties to Hamas leaders and made contributions to Hamas-affiliated organizations.
The KindHearts fundraiser reportedly also provided advice to Hamdan, telling him not to trust the United Nations Relief and Works Agency.
KindHearts reportedly attempted to maintain a distance from Hamas to avoid drawing attention to its support for the terrorist organization.
However, KindHearts asserts that none of its funds were given to any political or terrorist organization, but simply utilized this account to get money to its Lebanon offices for humanitarian projects.
KindHearts founder and president Smaili allegedly told a Texas-based associate that his organization was raising funds to support the Palestinian Intifada.
Though El-Mezain's speech reportedly focused almost entirely on raising funds for a new mosque in Baton Rouge, only a small amount was to be retained locally and the vast majority was to be sent to Hamas overseas.
The settlement ends the litigation by allowing KindHearts to pay its debts and distribute the remaining funds among a list of approved charities before it dissolves.