Gold trader Reza Zarrab's cooperation cited in US leniency request

U.S. prosecutors are seeking leniency for Turkish-Iranian gold trader Reza Zarrab at his upcoming sentencing, citing his substantial cooperation in an Iran sanctions evasion case. Zarrab admitted to helping Iranians evade sanctions and provided key testimony in a 2017 trial that led to the conviction of Turkish banker Mehmet Hakan Atilla. Source: AP News

The Cooperation

Zarrab pleaded guilty in October 2017 to conspiracy, bank fraud, and money laundering. Prosecutors described his cooperation as "truthful, complete and reliable" and noted that he suffered "danger or risk" as a result of his help. While on the witness stand, Zarrab revealed he had paid millions of dollars in bribes to Turkish government and banking officials. Source: AP News He also faced an attack in prison by a knife-wielding inmate who claimed he was told to kill him for cooperating. The threat led to Zarrab being moved to FBI custody. Source: AP News Additionally, the Turkish government imposed broad freezes and seizures of Zarrab's assets after he began cooperating. Source: AP News

The Aftermath

The case strained U.S.-Turkey relations. Turkey's President Recep Tayyip Erdogan called the 2017 conviction of Atilla "scandalous." Source: AP News The sentencing of Zarrab was delayed for years, which prosecutors said is not uncommon in complex cases. Last month, a U.S. judge dismissed charges against Halkbank, a state-owned Turkish bank, after the U.S. government dropped the case amid warming ties between Erdogan and President Donald Trump. Source: AP News After meeting with Trump, Erdogan said they were "opening the door to a new era" in relations.