A lawsuit brought on behalf of veterans wounded or killed in Iraq, including two from Long Island, was filed Monday in federal court in Brooklyn against five western banks that allegedly processed financial transactions for Iran that facilitated terrorism in Iraq.

The suit, filed by the lawyers who won a landmark verdict against Jordan's Arab Bank for aiding Hamas attacks, claims the banks helped Iran evade sanctions on billions of dollars and were indifferent to $100 million in Iranian aid to groups attacking the United States in Iraq.

"If you launder money for a state sponsor of terrorism, it's more than foreseeable that terrorist organizations will get access to some of the money and use it to commit terrorist acts," said Gary Osen, a New Jersey lawyer who brought the case.

The 200 plaintiffs included relatives of Cpl. Scott Bandhold, 37, of North Merrick, killed by a roadside bomb in Iraq in 2006, and relatives of Pfc. Daniel Fuentes, 19, of Levittown, who was killed by a bomb in 2007.

The lawsuit accuses HSBC, Barclays, Credit Suisse, Standard Chartered and Royal Bank of Scotland of conspiring with Iranian banks to move money for Iranian entities through the U.S. financial system without tipping off regulators.

From 2009 to 2012, all five banks in U.S. proceedings admitted to violations of sanctions, and agreed to a combined $3.1 billion in forfeitures under deferred prosecution agreements, the suit says.

The lawsuit does not allege any direct connection with groups such as Hezbollah and Shia militias that attacked U.S. forces, but it claims the banks helped indirectly.

Representatives of each of the five banks declined to comment or did not respond to requests for comment. The suit is the latest to be brought under the federal Anti-Terrorism Act, which allows U.S. victims of international terrorism to sue, and has been used to pursue banks that allegedly facilitate terrorism. The Arab Bank case took 10 years to get to trial.

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