Iranian-Turkish tycoon asks US judge to dismiss case

Defense lawyers asked a U.S. federal judge on Oct. 5 to throw out a case against an Iranian-Turkish tycoon accused of defying sanctions on Tehran.

Reza Zarrab, 33, was arrested in Miami in March en route to Disney World with his family and charged with conspiring to violate U.S. sanctions against Iran, defraud U.S. banks and launder money by helping Iranian entities transfer funds through U.S. institutions.

His lawyers -- including Benjamin Brafman who defended former IMF chief Dominique Strauss-Kahn -- argued Zarrab had not broken U.S. laws because he was a foreigner living abroad.

"As a foreign national sitting in Turkey he hasn't violated U.S. criminal law," said one of Zarrab's attorneys, Paul Clement, before Judge Richard Berman. "He's not subject to the jurisdiction of the U.S.

"This is an unprecedented expanded prosecution."
   
However, Assistant U.S. Attorney Michael Lockard said "foreign nationals are not permitted to use U.S. financial institutions to benefit Iran."
   
Wearing a blue prison uniform, Zarrab listened to the proceedings with the assistance of an interpreter.

Brafman also challenged the legality of Zarrab's Miami arrest because customs officers had requested the businessman's cell phone passcode and a list of his businesses and bank accounts before he was allowed to call a lawyer.

"They have orchestrated this and allowed him to incriminate himself," Brafman said.

In response to that argument Lockard said it was not out of line for airport customs agents to request access codes from suspicious passengers, and that Zarrab had given his consent.

Zarrab, who operates a gold brokerage, currency exchange, shipbuilding company, furniture manufacturing business...