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Rubio, Wyden Urge Biden Administration to Press Turkey on Its Troubling Human Rights Record

Bipartisan Letter Cites Portland Trail Blazer Enes Kanter Among the Critics Erdogan has Tried to Silence

WASHINGTON, DC — U.S. Senators Marco Rubio (R-FL) and Ron Wyden (D-OR) urged the Biden Administration to press the Turkish government to improve its human rights record, which includes an increasingly authoritarian crackdown on dissent both domestically and abroad.

The bipartisan letter signed by more than 50 other senators cited Turkish President Recep Tayyip Erdogan for marginalizing domestic opposition, silencing or coopting critical media outlets, purging independent judges and replacing them with party loyalists, and jailing scores of journalists.

“President Erdogan’s foreign policy has also grown more belligerent and combative over time. In recent years, he brazenly attacked U.S.-backed Kurds fighting ISIS in Syria, he purchased Russian air defense systems despite warnings that they were incompatible with U.S. technology, and he encouraged Azerbaijan to use violence to settle a territorial dispute with Armenia,” the senators wrote.

“President Erdogan has also attempted to pressure the U.S. and other countries into extraditing Turkish nationals, whom he blames for the failed coup in 2016. The Erdogan government has sought to silence critics in the United States like Enes Kanter, an NBA player and human rights advocate, by going after his family in Turkey and placing an INTERPOL red notice on him.”

The senators note that the United States has a significant opportunity to influence Turkey’s troubling human rights record because it’s an important ally in a key region of the world.

“We believe that the United States must hold allies and partners to a higher standard and speak frankly with them about issues of human rights and democratic backsliding,” the senators continued. “We urge you to emphasize to President Erdogan and his administration that they should immediately end their crackdown on dissent at home and abroad, release political prisoners and prisoners of conscience, and reverse their authoritarian course.”

In addition to Rubio and Wyden, the letter was also signed by Senators Chuck Schumer (D-NY), John Thune (R-SD), Richard Durbin (D-IL), Roger Wicker (R-MS), Patrick Leahy (D-VT), Thom Tillis (R-NC), Benjamin Cardin (D-MD), Ben Sasse (R-NE), Chris Van Hollen (D-MD), John Boozman (R-AR), Tom Carper (D-DE), Chuck Grassley (R-IA), Sherrod Brown (D-OH), John Cornyn (R-TX), Tammy Baldwin (D-WI), Joni Ernst (R-IA), Patty Murray (D-WA), James Lankford (R-OK), Brian Schatz (D-HI), Kevin Cramer (R-ND), Richard Blumenthal (D-CT), Cindy Hyde-Smith (R-MS), Maggie Hassan (D-NH), Mike Rounds (R-SD), Cory Booker (D-NJ), Susan Collins (R-ME), Ed Markey (D-MA), Mike Braun (R-IN), Amy Klobuchar (D-MN), Bill Cassidy (R-LA), Jeanne Shaheen (D-NH), Todd Young (R-IN), Mark Warner (D-VA), Mitt Romney (R-UT), Jeff Merkley (D-OR), John Kennedy (R-LA), Robert Casey (D-PA), Jerry Moran (R-KS), Martin Heinrich (D-NM), Kyrsten Sinema (D-AZ), Jon Tester (D-MT), Chris Coons (D-DE), Michael Bennet (D-CO), Elizabeth Warren (D-MA), Kirsten Gillibrand (D-NY), Tammy Duckworth (D-IL), Mazie Hirono (D-HI), Jacky Rosen (D-NV), Tim Kaine (D-VA), Sheldon Whitehouse (D-RI), Tina Smith (D-MN) and Joe Manchin (D-WV).

The full text of the letter is available here.

U.S. Indicts Turkey’s Halkbank for Illegal Transfer of Billions of Dollars to Iran

By Harut Sassounian

Halkbank, whose majority shareholder is the Turkish government, pleaded not guilty in New York on March 31, 2020, to criminal charges that it helped Iran illicitly transfer tens of billions in dollars and gold, wrote Aykan Erdemir and Philip Kowalski in an essay published on April 3 by the Foundation for Defense of Democracies, a policy institute based in Washington, D.C.

On October 15, 2019, the Federal Southern District Court of New York accused Halkbank of “fraud, money-laundering and sanctions offenses,” alleging that Halkbank and its executives aided Iranian-Turkish gold trader Reza Zarrab in a “multi-billion dollar scheme to circumvent U.S. sanctions on Iran.”

Initially, Halkbank refused to appear in court “claiming that the criminal charges are beyond the U.S. court’s jurisdiction,” Erdemir and Kowalski wrote. However, when “prosecutors proposed escalating contempt fines which could have totaled $1.8 billion after eight weeks,” the bank agreed to respond to the court charges.

Originally, the Turkish and Iranian officials had concocted a scheme to exchange gas for gold to circumvent the U.S. sanctions, by claiming that the gold was headed not to Iranian government entities but to Iran’s “private sector.” Erdemir and Kowalski stated that “the scheme ultimately yielded the Iranian regime some $13 billion in Turkish gold between 2012 and 2013. Once the U.S. Congress introduced legislation to close the ‘golden loophole’ in 2013, Iran used Turkish front companies to issue invoices for fake transactions of food and medicine that fall under the humanitarian exception to U.S. sanctions. In one infamous case of over-invoicing, a Turkey-based luxury yacht company used Halkbank to sell nearly 5.2 tons of brown sugar to Iran’s Bank Pasargad at the price of approximately $240 per pound.”

This scheme was first exposed in December 2013 by Turkish investigators who implicated then Prime Minister Recep Tayyip Erdogan, several of his ministers and other senior officials, including Halkbank’s managers. Erdogan shut down the probe by firing the police officials, prosecutors and judges!

The scandal resurfaced in March 2016 when Iranian-Turkish ring-leader Reza Zarrab was arrested in Miami after he flew to Florida to visit Disney World with his family.

In March 2017, U.S. authorities arrested Halkbank Deputy CEO Mehmet Hakan Atilla upon his arrival in New York. Zarrab pleaded guilty and agreed to testify in court against Atilla. Zarrab confessed that he had bribed senior Turkish ministers and top Halkbank executives. He even implicated Erdogan in the corruption scheme, stating that Erdogan had personally approved the illegal actions.

“Halkbank’s Atilla received a 32-month prison sentence in May 2018, a significantly shorter one than prosecutors had originally sought,” according to Erdemir and Kowalsky. “After Atilla’s return to Turkey, Erdogan rewarded the convicted sanctions buster by appointing him CEO of the Istanbul stock exchange, following the president’s established pattern of rewarding other senior accomplices of Zarrab with cushy appointments.”

Erdogan personally appealed to Pres. Trump and other senior officials to block the court case of Halkbank, claiming that US courts have no right to try Turkish citizens. The Courthouse News Service reported that “One of Zarrab’s shell companies, Royal Holding A.S., listed its address as a 35th floor unit in Trump Towers Istanbul. Before pleading guilty to money laundering, sanctions evasions and bribery, Zarrab retained Trump’s personal attorney Rudy Giuliani to lead a campaign of shadow diplomacy that echoed the one in Ukraine. Shuttling between Turkey’s capital of Ankara and the White House, Giuliani met with Erdogan, Trump, former Secretary of State Rex Tillerson, and other senior U.S. and Turkish officials in an attempt to negotiate a prisoner swap. The New York Times reported that Tillerson resisted the White House pressure for a deal that would have effectively killed the Zarrab case.”

Erdogan’s and Giuliani’s efforts succeeded in stalling the prosecution for almost two years, but ultimately failed when the U.S. Attorney’s Office for the Southern District of New York went forward with the charges last October.”

Senator Ron Wyden, the Senate Finance Committee’s top Democrat, told Courthouse News Service: “It sure looked like Donald Trump was doing the bidding of Erdogan and Giuliani, and there were real questions about whether this was about getting Halkbank off the hook, even though there were allegations that they were orchestrating the largest sanctions evasion scheme in history.”

During President Trump’s Senate impeachment inquiry earlier in 2020, Senators Wyden, Robert Menendez and Sherrod Brown asked a joint question which was read aloud in the Senate by Chief Justice John Roberts: “Has the president engaged in a pattern of conduct in which he places his personal and political interests on top of the national security interests of the United States?”

Wyden told Courthouse News Service: “Donald Trump has significant financial interest in Turkey,” referring to Trump Towers Istanbul. “We read regularly that his family has forged personal relationships with important Turkish officials. And so, you have to ask — which is what is part of our inquiry — whether the Trump policy toward Turkey is in a significant way colored by his personal and political interests and not the national security of the country.” If Halkbank is found guilty of violating U.S. sanctions, the court could impose a hefty penalty, regardless of Tump’s wishes.