A gold trader who is close to Turkish President Recep Erdogan is now cooperating with federal prosecutors in a money-laundering case, according to two sources with knowledge of the matter, and legal experts say prosecutors may be seeking information about any ties between the Turkish government and former National Security Advisor Mike Flynn.
Reza Zarrab, a dual Turkish-Iranian national, faces charges in federal court in Manhattan for skirting sanctions on Iran by allegedly moving hundreds of millions of dollars for the Iranian government and Iranian firms via offshore entities and bank accounts.
But Zarrab is now out of jail and speaking to prosecutors — a move President Erdogan had been desperately hoping to avoid.
Erdogan asked former Vice President Joe Biden in 2016 to drop the case and fire U.S. Attorney Preet Bharara, whose district was overseeing the case. Biden refused, according to a third source with knowledge of the case.
President Donald Trump fired Bharara in March. Multiple law enforcement officials say there is no indication at this time that the firing is tied to this case.
Erdogan has continued to ask the Trump administration to drop the case, multiple officials say.