Businessman Admits Collusion in U.S.-Turkey Sanctions Case
NEW YORK — Reza Zarrab, a businessman, has confessed to working with a Turkish bank to assist Iran in evading U.S. sanctions. He has completed his sentence for cooperating with authorities, a case that has significantly impacted U.S.-Turkey relations.
Zarrab stated that he paid millions in bribes to influence Turkish officials to accelerate plans for reversing sanctions. Turkish President Recep Tayyip Erdogan has dismissed the corruption allegations, calling them part of a U.S. conspiracy aimed at Türkiye.
During Donald Trump’s presidency, the case continued despite Trump’s relatively warm relationship with Erdogan. This year, however, the Justice Department withdrew its long-standing effort to prosecute Halkbank, a state-run entity indicted for facilitating Iran’s access to $20 billion in oil revenues that were under sanctions.
After a 2017 trial where he was threatened by another inmate, Zarrab was grateful to U.S. District Judge Richard M. Berman and the government for their protection of him and his family during his sentencing on Tuesday.
New York prosecutors acknowledged his “truthful, complete and reliable” assistance to investigations, which helped him avoid a lengthy prison term. Zarrab pleaded guilty in 2017 to conspiracy, bank fraud, and money laundering.
His ruling marks the conclusion of a complex legal and diplomatic saga that has captivated Turkish citizens.
Born in Iran, Zarrab moved with his family to Türkiye as a child. He was first arrested in 2013 during a major corruption investigation led by Turkish authorities but was released shortly thereafter. Many involved in the investigation were dismissed after Erdogan assumed office, leading Zarrab to assert it was a foreign conspiracy from the U.S.
Three years later, he was arrested in Miami while traveling to Disney World with his then-wife, a Turkish pop singer, and their young daughter.
Zarrab enlisted former New York City Mayor Rudolph Giuliani and ex-U.S. Attorney General Michael Mukasey in attempts to settle the case diplomatically, with Erdogan publicly advocating for his release.
In 2017, he unexpectedly pleaded guilty and testified as a witness in the trial of Halkbank executive Mehmet Hakan Atila, claiming to have paid substantial bribes to assist Iranian officials in dodging U.S. sanctions. Erdogan admitted that as Prime Minister, he had authorized Turkish banks to engage in phony gold transactions to benefit Iran.
Atila has maintained his innocence but was convicted and sentenced to 32 months in prison, a ruling that Erdogan labeled a “scandal.”
In a document filed prior to Zarrab’s sentencing, his lawyers noted that his life had dramatically changed post-trial. He divorced his wife in 2021 and later remarried a former swimmer.
Due to his legal troubles, Zarrab now claims to be in debt by around $50 million, with his family’s assets seized by the Turkish government. He forfeited $288,000 from his boat and $88,000 in cash to the U.S. government. Berman decided that the forfeiture was adequate, forgoing additional restitution or fines.
His attorneys expressed hope that Zarrab could finally rebuild his life. However, they noted that the stigma of being labeled a traitor in Turkey continues to haunt him, complicating his aspirations for a fresh start and public anonymity.
