New York Prosecutor: Reza Zarrab Wrote to Ahmadinejad About His Services to Evade Sanctions

Reza Zarrab and Mehmet Hakan Atilla, the deputy general manager of Turkey's Halkbank, appeared together for the first time in a Manhattan court in New York. Denis Lockard, assistant U.S. attorney, stated on Monday during a pre-trial session that the prosecution will prove that Zarrab was in contact with high-ranking officials of the Iranian and Turkish governments and senior managers of banks in both countries. According to the New York prosecution, Zarrab had shared his services for evading sanctions with Mahmoud Ahmadinejad, the former president of Iran, in a letter. Lockard also mentioned that Iranian entities benefiting from Zarrab's services included the Islamic Revolutionary Guard Corps (IRGC), individuals or institutions linked to the IRGC, Iranian banks sanctioned due to their connection with Iran's nuclear program, and several private airlines in Iran. Lockard stated that Zarrab had paid millions of dollars to senior government and banking officials to advance his plans. U.S. media reported that the prosecution also referenced the activities of Rudy Giuliani, former mayor of New York, and Michael Mukasey, former U.S. attorney general during George W. Bush's presidency, who have recently joined Zarrab's defense team. According to the New York Times, Giuliani and Mukasey met with Turkish President Recep Tayyip Erdoğan months ago to discuss Zarrab's case. Mukasey stated that they have also had discussions with U.S. officials and are trying to advance Zarrab's case within the framework of U.S.-Turkey relations and in the interest of security for both countries. Giuliani mentioned that U.S. officials have expressed interest in resolving this issue. So far, no officials from Donald Trump's administration have commented on Zarrab's case. Giuliani, after separate meetings with Turkish and American officials, stated, 'If we consider that none of Mr. Zarrab's transactions were related to nuclear technology, weapons, or prohibited and smuggled items, and only involved consumer goods, and Turkey is located in a very important strategic area, the readiness of officials from both countries is not surprising.' However, the New York prosecution claims that these two prominent figures are attempting to downplay the charges against Zarrab by making such claims. Zarrab, 33, was arrested in the U.S. in March 2016. He is an Iranian-born businessman who has also acquired Turkish citizenship and reportedly had close ties with several ministers and the children of former ministers in Turkey. He has been accused of illegal currency transfers in the financial networks and banks of the U.S. on behalf of Iran and violating Washington's sanctions against Tehran, charges that Zarrab has denied. Mehmet Hakan Atilla, a senior executive at Halkbank, was also arrested on April 8 this year at New York's John F. Kennedy Airport and was detained after appearing in court and being informed of the charges against him. Atilla has been accused of collaborating with Zarrab to evade Iran's sanctions. The New York prosecution claims that Atilla, from 2010 to 2015, conspired with Zarrab to transfer hundreds of millions of dollars in gold and currency to Iran through Halkbank using forged documents. Atilla and senior managers of Halkbank have denied the charges brought by the U.S. prosecution, stating that all their activities were within the framework of laws and regulations. According to the New York prosecution, Zarrab and Atilla deceived American banks by establishing shell companies and creating fake invoices, pretending that the bank transfers were related to food items that were not subject to U.S. sanctions against Iran. The trial of Reza Zarrab, Hakan Atilla, and their Iranian associates will continue in the coming months in the federal court in Manhattan, presided over by Judge Richard Berman.