You may or may not know, but the United States Department of the Treasury Office of Foreign Assets Control (OFAC) administers a sanctions program against those persons undermining democratic processes in Zimbabwe. While this sanctions program has been in effect since the handing down of an Executive Order calling for sanctions against such individuals in 2003, you don’t often hear about it. That’s why when I saw this story here, it peaked my interest.

Apparently, the owners of a struggling golf club in Marion, Illinois have been blocked from selling the property due to involvement with businessman John Bredenkamp.

The Zimbabwe-based Mr. Bredenkamp has been designated under the Zimbabwe Sanctions and is currently listed on the Specially Designated Nationals (SDN) List administered by OFAC.

Mr. Bredenkamp, who denies ties to Mugabe’s, was part of a group of business people that owned Kokopelli Golf Club and Restaurant between 2001 and 2006. Despite his lack of involvement since 2006, present owners attempts to sell the property, have been blocked by OFAC over the last 15 months. OFAC has placed a blocking order on the sale of the property because Mr. Bredenkamp he retains a right to future profits if the course is sold again.

The owners, however, argue that the agreed disposal price of $1 million will just cover the club’s debts. In other words, Mr. Bredenkamp would not be able to claim any financial benefit from the transaction.

While this is obviously a problem for the owners of the golf course, I think with some creative thinking and a lawyer who knows how OFAC operates, it’s an obstacle that can be overcome. For example, one way of addressing this issue, is proposing to OFAC that any proceeds due to Mr. Bredenkamp be placed in an a blocked interest bearing account. This account would remain blocked until a time when Mr. Bredenkamp was removed from the SDN list.

That’s just one option. There could be a number of ways to overcome OFAC’s position here, Kokopelli Golf Course and Restaurant just needs to find a way to work with OFAC to address their concerns.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC litigation. If you have any questions please contact him at 202-280-6370 at 202-351-6161 or ferrari@ferrari-legal.com.