Ex-Nicaraguan president's $700K seized

Federal officials seized $700,000 in certificates of deposit bought for former Nicaraguan President Arnoldo Aleman with money stolen from the Central American country's government, authorities said Wednesday.

The seizure by U.S. Immigration and Customs Enforcement officials follows a federal judge's ruling last week that the money belongs to the Nicaraguan government and should be returned.

Aleman, who was convicted in 2003 for money laundering and embezzlement, has denied the money was stolen during his administration from 1997 to 2001. He has since been released on parole.

Aleman said Tuesday that he would appeal the decision by U.S. District Judge Federico Moreno.

For now, the money will be transferred to the U.S. Treasury Forfeiture Fund, according to Immigration and Customs Enforcement officials.

Certificates of deposit, or CDs, are issued by banks with the requirement that the purchaser hold them for a specific amount of time. They have interest rates generally higher than those of savings accounts.

The CDs were listed jointly in the names of Aleman, his wife and their children. Then in September 2002, his wife, Maria Fernanda Flores de Aleman, flew to Miami and transferred the CDs to various members of her family, according to Immigration and Customs Enforcement.

The next month, U.S. officials froze the CDs following an investigation.

Aleman has said a deceased sister, Amelia Aleman, bought the CDs with proceeds from the sale of cattle and coffee to provide a fund for the education of three of Aleman's children.