May 02, 2017
By Brendan Pierson
NEW YORK (Reuters) – A U.S. judge on Monday said he wanted to know whether Iran employs any lawyers for a wealthy Turkish gold trader accused of helping that country evade U.S. sanctions, a team that includes former New York City Mayor Rudolph Giuliani.
In a brief order, U.S. District Judge Richard Berman in Manhattan said he planned to ask at a hearing on Tuesday whether Giuliani or any other lawyer for trader Reza Zarrab had been hired by Iran, the United States or Turkey.
Tuesday’s hearing will focus on whether conflicts of interest bar Giuliani and former U.S. Attorney General Michael Mukasey from representing Zarrab. The trader has pleaded not guilty to U.S. charges that he conspired to conduct illegal transactions through U.S. banks on behalf of Iran’s government, violating U.S. sanctions.
He hired Giuliani and Mukasey, to try to negotiate a diplomatic resolution of his case between the United States and Turkey.
Both attorneys have discussed Zarrab’s case with U.S. authorities and Turkish President Recep Tayyip Erdogan, who has accused U.S. authorities of having “ulterior motives” in bringing the charges. In an affidavit filed last month, Giuliani, an adviser to President Donald Trump, said authorities in both countries were “receptive” to a diplomatic deal.
Prosecutors have said they are concerned about conflicts because eight of the U.S. banks involved in the case have been clients of Giuliani or Mukasey’s law firms, and because Giuliani’s firm, Greenberg Traurig, is a registered agent of Turkey.
Giuliani and Mukasey said in affidavits filed on April 20 that they did not believe they had any conflicts in representing Zarrab.
Greenberg Traurig was hired in 2014 as a subcontractor for the Gephardt Group, which provides lobbying services to Turkey, according to foreign agent registration records submitted to the court. Members of the firm have discussed U.S.-Turkish relations with U.S. lawmakers and their staff, the records show.
(Reporting By Brendan Pierson in New York; Editing by Noeleen Walder and David Gregorio)