Reza Zarrab

Reza Zarrab
Born Reza Zarrab
(1983-09-12) 12 September 1983
Tabriz, Iran
Residence Istanbul, Turkey
Citizenship Iran[1]
Azerbaijan[2]
Turkey[3]
Macedonia
Years active 2004–present
Spouse(s)
Ebru Gündeş (m. 2010)
Children 1

Reza Zarrab (Persian: رضا ضراب‎, Turkish: Rıza Sarraf;[4] born 12 September 1983 in Tabriz, Iran) is a Turkey-based businessman. He has quadruple Iranian,[1] Azerbaijani,[2] Turkish[1] and Macedonian citizenship.[5][6]

On 19 March 2016 he was arrested in the United States,[7] and is accused of being a member of international criminal organization. He was charged with evading the US economic sanctions on Iran and money laundering[1] in an alleged racket (crime) scheme to help Iran bypass the sanctions, involving ministers of the Turkish government of then prime minister and now president of Turkey, Recep Tayyip Erdoğan.[8][9]

His father, Hossein Zarrab, had a close relationship with Mahmoud Ahmadinejad,[10] who served as the President of Iran between 2005 and 2013. The U.S. Department of Treasury accused Hossein Zarrab of violating U.S. sanctions on Iran and slapped a $9.1 million fine against him. His fine reduced to $2.3 million following his colloboration with the U.S. officials.[11]

Zarrab was arrested by the FBI in Miami in the US on March 19, 2016 and was accused of bank fraud, money laundering and helping the Iranian government in evading the US economic sanctions on Iran to hinder its nuclear-weapons program. His charges; conspiracy to defraud, violating the International Emergency Economic Powers Act, money laundering, and bank fraud; could bring up to 70 years in prison if found guilty in the U.S. Federal Court.[12]

Early life

Zarrab was born in Tabriz to Iranian Azerbaijani parents[13] and grew up in Azerbaijan and Turkey.[3] Reza Zarrab became a dual citizen of Turkey and the Republic of Azerbaijan after settling in Istanbul.[2] Zarrab's parents remained in Baku through 2010–11; in 2013 they were granted Turkish citizenship reportedly through facilitation of then Interior Minister Muammer Güler. [14]

In 2008, Reza Zarrab married to a Turkish pop star, Ebru Gündeş and had a child in 2011.[15] He started his business life in Turkey in 2008 with the company named Royal Maritime A.S. He founded Royal Holding with his brother Mohammed Zarrab (Can Sarraf) in 2010.[16]

Zarrab’s chauffeur, Turgut Harpani, was arrested by the Turkish Customs Protection agency during his trip to Russia from Turkey in 2011 for carrying $150 millions in cash and was accused of conducting illegal money couriering, but he was then released by Turkish authorities.[17][18] Happani shared his own pictures on Facebook with suitcases full of money. [19]

The Turkish National Intelligence Agency (MIT) urged then Prime Minister Erdoğan in April 2013 about Zarrab’s corrupted relations with the Turkish cabinet members.[20] Zarrab received an “exceptional citizenship” and became a Turkish citizen with the decision given by the Turkish Council of Ministers on June 1, 2007.[11] He was accused of bribing $1.5 million to receive Turkish Citizenship in the indictment.[21]

2013 corruption scandal in Turkey

Zarrab, who has a business affiliation with the Iranian billionaire and business magnate Babak Zanjani, was detained in Istanbul on 17 December 2013 due to his involvement with the sons of three ministers (Erdoğan Bayraktar, Muammer Güler and Zafer Çağlayan) in the Turkish government and Egemen Bağış, the former minister for EU Affairs and Turkey's chief negotiator in accession talks with the European Union,[22][23][24] in an alleged bribery, corruption and smuggling racket.[25] The court ordered his arrest on 21 December along with Barış Güler, son of Muammer Güler, and Kaan Çağlayan, son of Zafer Çağlayan.[26] He was released on 28 February 2014.[27]

The investigation in Turkey revealed a system to help Iran bypass US sanctions against the country concerning the SWIFT payment system, in a scheme based on Turkish public bank Halkbank, whereby money was transferred to front companies in China and Turkey, and gold bought with that money transferred to Iran via Dubai.[8]

Then Interior Minister Muammer Güler’s son, Barış Güler, then Economy Minister Zafer Çaglayan’s son, Kaan Çaglayan, and General Director of Halk Bank, Suleyman Arslan, were among the suspects including Reza Zarrab. They were arrested due to accusations of “bribery, professional misconduct, bid rigging, and smuggling”.[28][29]

Erdogan backlashed and announced the investigation as a “judicial coup” against his government, and dismissed the prosecutors and police officials investigating the corruption scheme. After a 70-day detainment, Zarrab and the sons of cabinet members were released from jail.[30] Erdogan received harsh criticism for obstructing and undermining justice and putting the judiciary under his executive authority. However, Erdogan announced that “justice has been served”.[31]

Egemen Bağış, then Minister of European Union Affairs, was dismissed after the corruption investigation. The Ministers of Interior Affairs, Economic Relations, and Environment and Urbanization – Muammer Güler, Zafer Çaglayan, and Erdoğan Bayraktar, respectively – had to resign from their positions.[32] The indictment charged high-ranked officials with significant accusations for receiving bribes: Zafer Caglayan received $52 million worth of bribes; Muammer Guler received $10 million worth of bribes; and Egemen Bağış received $1.5 million worth of bribes.[33] The summary of proceedings were sent to the Turkish parliament for the vote on whether to lift ministers’ immunity and send them to court. However, given the strong majority of Erdoğan's ruling party (AKP), in January 2015 the parliament did not lift their immunity and swept away the significant investigation.[34]

In May 2014, Erdoğan announced that he initiated a “witch-hunt” against the Gulen movement for, as he alleged, being behind the corruption investigation.[35] Two months after this announcement, the government arrested and detained police officials who conducted the corruption investigation. The prosecutors of the corruption investigation were also dismissed from their positions.[36][37]

While Erdoğan has alleged that Zarrab conducted trade and business in aligned with Turkish interests, there have been several reports that suggest Zarrab’s illegal activities extensively harmed the Turkish economy.[38]

Arrest in the United States

On 19 March 2016, Zarrab was arrested in Miami, Florida, for conspiring to evade U.S. sanctions against Iran (by using his gold business to help Iran’s government evade the sanctions),[9] money laundering and bank fraud. He was later indicted by a grand jury with charges that could bring up to 75 years in prison.[39][40] The case is being prosecuted by the U.S. Attorney for the Southern District of New York, led by Preet Bharara,[9] with assistance from a trial attorney of the National Security Division’s Counterintelligence and Export Control Section.[1]

During the case, prosecutors have noted that Zarrab donated $4.5 million to a charity founded by Emine Erdoğan, the wife of former prime minister and now president of Turkey Recep Tayyip Erdoğan.[9] Prosecutors stated that Zarrab has "close ties" to Erdoğan.[41]

After Zarrab's arrest, shares in Halkbank, whose CEO was among those charged with taking bribes from Zarrab, had fallen by 20%.[9] He has offered to pay $50 million to be granted a bail.[9] Bail has been denied.[6] In their brief against granting bail, prosecutors had argued that "if the defendant were able to reach Turkish soil, he could cause the highest levels of Turkish government to block his return to the United States."[9]

In April 2017, media reported that negotiations involving the U.S. and Turkish governments were undergoing, to the effect that Zarrab would be extradited to Turkey while in return "Turkey would be much less resistant to the US’s missions in Syria, and primarily its support to the PYD."[42]

One of the most striking arguments in the indictment about Zarrab was that the Zarrab family sent a letter addressed to the president of Iran’s Central Bank and stated that he was ready for "Economic Jihad" against sanctions on Iran.[43]

Erdoğan's first comment on Zarrab’s arrest by the United States government was: “it was not a case that interests Turkey".[44] However, it is claimed that Erdoğan, on September 21, 2016 during a special meeting with then Vice President Joe Biden, requested Zarrab's release from jail and prosecutor Bharara to be dismissed from his position. Also, it is claimed that Erdogan’s wife, Emine Erdogan, did a similar request to Biden’s wife, Jill Biden. Furthermore, Bekir Bozdag, the Turkish Minister of Justice, visited the United States Attorney General Loretta E. Lynch in October 2016 and stated how the Zarrab case was unfounded and that Zarrab should be released[45][46]

By the time, it came out that Zarrab's attorneys, Rudolph W. Giuliani, a former New York City mayor, and Michael B. Mukasey, who served as attorney general in President George W. Bush’s administration, held a secret meeting with Erdoğan.[47]

Halkbank Deputy Chief Executive Mehmet Hakan Atilla, who was in connection with Zarrab, was arrested in the United States in March 2017 with the charges of "conspiring to evade US sanctions against Iran and other offenses”.[48] Afterwards, it was announced in September 2017 that the US charged then Turkish Minister of Economic Affairs Zafer Caglayan and former General Manager of Halk Bank Suleyman Aslan with offenses similar to Zarrab's.[49][50]

Erdoğan appeared to be involved in the allegations about the US investigation. It was claimed that Erdogan's effort to save Zarrab was the fear that the inquiry had reached him.[51] It is also alleged that Erdoğan wanted the US to release Zarrab in return for the detained US citizen pastor Andrew Brunson being held in a prison in Turkey.[52]

Metin Topuz, a Turkish employee of the US Consulate General in Istanbul, was arrested on October 4, 2017 for espionage, being a member of crime network, and taking the evidences of the 2013 corruption investigation to the US. In the arrest warrant, it is emphasized that the main suspects of the December 17th corruption investigation were “foreign intelligence agencies and countries[53]”

As a response to the arrest, the US Embassy in Turkey announced on October 8, 2017, that "visa applications from Turkey were suspended."[54]

On November 16, 2017, NBC News, reported that Zarrab is now cooperating with federal prosecutors in a money-laundering case and that he was then out of jail, a move President Erdoğan had been desperately hoping to avoid[55]. It is thought that Zarrab is Robert Mueller's key to taking down Michael T. Flynn in the 2017 Special Counsel Investigation.[56][57]

In response to Zarrab's release from detention to another facility inside the United States, the Turkish government expressed concern as to the status of Zarrab.[58] Two weeks later, Zarrab reappeared in Manhattan court as a witness in the case against Atilla, having accepted a plea deal with federal prosecutors.[59]

A day after Zarrab testified in US Federal District Court, the Turkish government seized the assets of his and his family, including his wife Ebru Gündeş.[60]

Personal life

Zarrab is married to the Turkish singer Ebru Gündeş. They have one child together. Ebru Gündeş reportedly filed for divorce in September 2016,[61] but the couple reconciled shortly afterwards.[62]

Export award

In June 2015, Zarrab received the Turkish Export Award jointly from the hands of Deputy Prime Minister Numan Kurtulmuş, Minister of Economy Nihat Zeybekçi, and President of the Turkish Exporters Council Mehmet Büyükekşi, in a ceremony attended by President Recep Tayyip Erdoğan.[63][64]

See also

References

  1. 1 2 3 4 5 "Turkish National Arrested for Conspiring to Evade U.S. Sanctions Against Iran, Money Laundering and Bank Fraud". US Department of Justice. 21 March 2016. Retrieved 22 March 2016.
  2. 1 2 3 "ایرانی بازداشت شده در ترکیه 'در مورد دور زدن تحریم‌ها بازجویی شده بود'". BBC Persian. 2013-12-18. Retrieved 2013-12-18.
  3. 1 2 Pamuk, Humeyra (29 April 2014). "Special Report – Golden Loophole: How an alleged Turkish crime ring helped Iran". Reuters. Retrieved 29 April 2014.
  4. ↑ "Yolsuzluk operasyonu, Reza Zarrab kimdir". Haberturk.com. 19 December 2013. Retrieved 23 March 2014.
  5. ↑ "Turkey corruption allegations included in Reza Zarrab case in US". Hürriyet Daily News. 26 May 2016. Retrieved 28 May 2016.
  6. 1 2 TM. "NY court denies bail for Iranian mogul Zarrab, announces US Attorney Bharara – Turkish Minute". www.TurkisMminute.com. Retrieved 3 November 2017.
  7. ↑ "Turkish National Arrested for Conspiring to Evade U.S. Sanctions Against Iran, Money Laundering and Bank Fraud". www.justice.gov. Retrieved 2017-11-30.
  8. 1 2 "Is corruption suspect's US arrest bad news for Erdogan?". Al-Monitor. 23 March 2016. Retrieved 2016-11-06.
  9. 1 2 3 4 5 6 7 "Iran's Turkish connection: Golden squeal: Did officials help evade sanctions?". The Economist. 11 June 2016. Retrieved 2016-11-06.
  10. ↑ mshabani (9 May 2016). "The downfall of two Iranian tycoons". al-monitor.com. Retrieved 3 November 2017.
  11. 1 2 "Zarrab'ı kim TC vatandaşı yaptı". hurriyet.com.tr. Retrieved 3 November 2017.
  12. ↑ "Turkish National Arrested for Conspiring to Evade U.S. Sanctions Against Iran, Money Laundering and Bank Fraud". www.justice.gov. Retrieved 3 November 2017.
  13. ↑ "حاشیه‌های بازداشت تاجر ایرانی در ترکیه؛ از بابک زنجانی تا مشایی". Iran Wire. 2013-12-18. Retrieved 2013-12-18.
  14. ↑ "Zarrab's father given citizenship via 'exceptional status'". Zaman Daily News. 2015-01-14. Archived from the original on 2016-03-05. Retrieved 2016-03-22.
  15. ↑ "Reza Zarrab kimdir? Reza Zarrab'ın hayatı. Ebru Gündeş'in eşi Reza Zarrab". iha.com.tr. Retrieved 3 November 2017.
  16. ↑ http://royalholding.com.tr/index.php?royalholding=hakkimizda%5Bpermanent+dead+link%5D
  17. ↑ "Gündeş'in eşinin şoförü kaçakçılıktan gözaltında – Magazin Haberleri". milliyet.com.tr. Retrieved 3 November 2017.
  18. ↑ "Şoföründe 150 milyon dolar!". haberturk.com. Retrieved 3 November 2017.
  19. ↑ Radikal. "Operasyonu başlatan fotoğraf: Facebook'ta balya balya dolar! – Türkiye Haberleri – Radikal". radikal.com.tr. Retrieved 3 November 2017.
  20. ↑ "MİT'ten Erdoğan'a Sarraf raporu – BirGün.net – Halkın Gazetesi BirGün". archive.org. 19 March 2014. Archived from the original on 19 March 2014. Retrieved 3 November 2017.
  21. ↑ "5 milyon dolara Türk vatandaşı oldular – Son Dakika Haberler". milliyet.com.tr. Retrieved 3 November 2017.
  22. ↑ "Üç bakana rüşvet suçlaması". Radikal. 2013-12-18. Retrieved 2013-12-18.
  23. ↑ "Yolsuzluk ve rüşvet soruşturmasında Egemen Bağış görüntüleri de çıktı!". T24. 2013-12-19. Retrieved 2013-12-19.
  24. ↑ "To This Tycoon, Iran Sanctions Were Like Gold". New York Times. 2013-10-05. Retrieved 2013-10-05.
  25. ↑ "İstanbul'da yolsuzluk ve rüşvet operasyonu". Hurriyet.com.tr. Retrieved 2014-03-23.
  26. ↑ "2 Bakan oğlu ile Reza Zarrab tutuklandı". Hurriyet.com.tr. Retrieved 2014-03-23.
  27. ↑ "Turkey frees cabinet ministers' sons". bbc.com. Retrieved 2014-08-17.
  28. ↑ "2 Bakan oğlu ile Reza Zarrab tutuklandı – Son Dakika Haberler". www.hurriyet.com.tr. Retrieved 3 November 2017.
  29. ↑ "Üç bakanın oğlu gözaltında". hurriyet.com.tr. Retrieved 3 November 2017.
  30. ↑ "Reza Zarrab ve Bakan çocukları tahliye edildi – Son Dakika Haberler". www.hurriyet.com.tr. Retrieved 3 November 2017.
  31. ↑ "Erdoğan: Adalet yerini buldu". cumhuriyet.com.tr. Retrieved 3 November 2017.
  32. ↑ Türkçe, Mahmut Hamsici BBC. "10 soruda: 17–25 Aralık operasyonları". BBC Türkçe. Retrieved 3 November 2017.
  33. ↑ "Bağış, Çağlayan ve Güler kaç TL rüşvet almakla suçlanıyor?". cumhuriyet.com.tr. Retrieved 3 November 2017.
  34. ↑ "AKP'li vekiller 4 eski bakan için vicdanlarını sıfırladılar". cumhuriyet.com.tr. Retrieved 3 November 2017.
  35. ↑ "Erdoğan: Cadı avıysa, biz bu cadı avını yapacağız, bunu da bilin! – Gündem – T24". m.t24.com.tr. Retrieved 3 November 2017.
  36. ↑ "17–25 Aralık'ın FETÖ'cü polislerine operasyon – Gündem Haberleri". m.haberturk.com. Retrieved 3 November 2017.
  37. ↑ Aljazeera. "1725 Aralık savcılarına ihraç". mynet.com. Retrieved 3 November 2017.
  38. ↑ https://washingtonhatti.com/2017/09/13/zarrab-caglayan-gercekten-ulke-cikarina-mi-calisti-ust-d +uzey-yo neticid en-perde-arkasi/
  39. ↑ "Turkish National Arrested for Conspiring to Evade U.S. Sanctions Against Iran, Money Laundering and Bank Fraud – OPA – Department of Justice". archive.org. 3 April 2016. Archived from the original on 3 April 2016. Retrieved 3 November 2017.
  40. ↑ "U.S. arrests Turkish businessman accused of evading Iran sanctions". 21 March 2016. Retrieved 3 November 2017 – via Reuters.
  41. ↑ "US prosecutors say businessman with 'close ties' to Turkey's Erdogan poses flight risk". Deutsche Welle. 26 May 2016. Retrieved 2016-11-06.
  42. ↑ "Rudy Giuliani, the jailed Turkish gold trader and the secret meeting with Erdogan". The Irish Times. 21 April 2017.
  43. ↑ Ismayilova, Paul Radu and Khadija. "Notorious Laundromats Used in Iran's Anti-Sanction 'Economic Jihad' – OCCRP". occrp.org. Retrieved 3 November 2017.
  44. ↑ "Cumhurbaşkanı Erdoğan'dan Rıza Sarraf açıklaması – NTV". www.ntv.com.tr. Retrieved 3 November 2017.
  45. ↑ "Bharara on whether Turkey pushed for his ouster – CNN Video". cnn.com. Retrieved 3 November 2017.
  46. ↑ https://www.washingtonpost.com/amphtml/opinions/global-opinions/the-man-at-the-crux-the-of-us-turkey-dispute-is-about-to-go-on-trial/2017/10/12/92c4c7a2-af96-11e7-be94-fabb0f1e9ffb_story.htm
  47. ↑ "Why Giuliani Held a Secret Meeting With Turkey's Leader". mobile.nytimes.com. Retrieved 3 November 2017.
  48. ↑ "Turkish Banker Arrested For Conspiring To Evade U.S. Sanctions Against Iran And Other Offenses". www.justice.gov. Retrieved 3 November 2017.
  49. ↑ "M.Hakan Atilla Yakalama Kararında Halkbank'a Çok Ağır Suçlamalar Çıktı -". washingtonhatti.com. Retrieved 3 November 2017.
  50. ↑ "Former Turkish Minister Of The Economy, Former General Manager Of Turkish Government-Owned Bank, And Two Other Individuals Charged With Conspiring To Evade U.S. Sanctions Against Iran And Other Offenses". www.justice.gov. Retrieved 3 November 2017.
  51. ↑ Kingsley, Patrick; Weiser, Benjamin (14 October 2017). "Why a New York Court Case Has Rattled Turkey's President". Retrieved 3 November 2017 – via www.nytimes.com.
  52. ↑ "Opinion – Why Trump should not swap prisoners with Erdogan". Washington Post. Retrieved 3 November 2017.
  53. ↑ "Takvim Gazetesi". gazete.netgazete.com. Retrieved 3 November 2017.
  54. ↑ "ABD Türkiye'den vize başvurularını askıya aldı – Bloomberg HT". bloomberght.com. Retrieved 3 November 2017.
  55. ↑ "Does cooperating witness have info on Flynn tie to Turkey?". NBC News. Retrieved 2017-11-17.
  56. ↑ Zavadski, Katie (2017-11-16). "Did the Feds Flip Turkish Businessman Reza Zarrab—and Could He Bring Down Michael Flynn?". The Daily Beast. Retrieved 2017-11-17.
  57. ↑ "Man Accused In U.S. Iran Sanctions Case Reported Working With Prosecutors". RadioFreeEurope/RadioLiberty. Retrieved 2017-11-17.
  58. ↑ kjenson (2017-11-16). "Turkey demands news as Zarrab drops off radar". Al-Monitor. Archived from the original on 2017-12-01. Retrieved 2017-11-17.
  59. ↑ "Gold trader Zarrab will be star witness in Iran sanction-busting trial". NBC News. 28 November 2017.
  60. ↑ Benjamin Weiser (1 December 2017). "Turkey Seizes Assets of Reza Zarrab, Witness in Sanctions-Evasion Case". NYTimes.com. Retrieved 4 December 2017.
  61. ↑ "Ebru Gündeş'ten 'boşanma' için ilk açıklama" (in Turkish). Hürriyet. 25 September 2016. Retrieved 8 September 2017.
  62. ↑ "Reza Zarrab ile Ebru Gündeş'in boşanma davasında sürpriz gelişme" (in Turkish). Hürriyet. 4 August 2017. Retrieved 8 September 2017.
  63. ↑ "دولت ترکیه به رضا ضراب جایزه داد +عکس". Mashregh. Retrieved 2015-06-23.
  64. ↑ "Reza Zarrab'a ihracat ödülü" [Export award for Reza Zarrab]. Hürriyet. 22 June 2015. Retrieved 23 March 2016.
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