US. Department of Justice

 

United States Attorney
Southern District of New York

 

The Silvio J. Mollo Building
One Saint Andrew ?s Plaza
New York, New York 10007

October 20, 2017

Benjamin Brafman, Esq.
Marc Agni?lo, Esq.

Josh Esq.
Brafman Associates, PC.
767 Third Avenue

New York, NY 10017

(212) 750?7800

Re: United States v. Reza Zarrab, a/k/a ?Riza Sarraf,?
SS 15 Cr. 867 (RMB)

Dear Counsel:

On the understandings speci?ed below, the Of?ce of the United States Attorney for the
Southern District of New York (?this Of?ce?) will accept a guilty plea from Reza Zarrab, a/k/a
?Riza Sarraf? (the ?defendant?) to a seven?count superseding criminal information (the
?Information?).

Count One of the Information charges the defendant with conspiring to impair, impede,
and obstruct the lawful and legitimate governmental functions and operations of the US.
Department of the Treasury in the enforcement of economic sanctions laws and regulations
administered by that agency between in or about 2010 and in or about March 2016, in Violation of
Title 18, United States Code, Section 371. Count One carries a maximum sentence of ?ve years?
imprisonment; a maximum term of supervised release of three years; a maximum ?ne, pursuant to
Title 18, United States Code, Section 3571, of the greatest of $250,000, twice the gross pecuniary
gain derived from the offense, or twice the gross pecuniary loss to a person other than the defendant
as a result of the offense; and a mandatory $100 special assessment.

Count Two of the Information charges the defendant with conspiring to Violate the
International Emergency Economic Powers Act (the between in or about 2010 and in
or about March 2016, in violation of Title 50, United States Code, Section 1705. Count Two
carries a maximum sentence of 20 years? imprisonment; a maximum term of supervised release of
three years; a maximum ?ne of $1,000,000; and a mandatory $100 special assessment.

Count Three of the Information charges the defendant with committing bank fraud between
in or about 2010 and in or about March 2016, in violation of Title 18, United States Code, Section
1344. Count Three carries a maximum sentence of 30 years? imprisonment; a maximum term of
supervised release of ?ve years; pursuant to Title 18, United States Code, Sections 3571 and 1344,
of the greatest of $1,000,000, twice the gross pecuniary gain derived from the offense, or twice the

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gross pecuniary loss to a person other than the defendant as a result of the offense; and a mandatory
$100 special assessment.

Count Four of the Information charges the defendant with conspiring to commit bank fraud
between in or about 2010 and in or about March 2016, in violation of Title 18, United States Code,
Section 1349. Count Four carries a maximum sentence of 30 years? imprisonment; a maximum
term of supervised release of ?ve years; pursuant to Title 18, United States Code, Sections 3571
and 1344, of the greatest of $1,000,000, twice the gross pecuniary gain derived from the offense,
or twice the gross pecuniary loss to a person other than the defendant as a result of the offense;
and a mandatory $100 special assessment.

Count Five of the Information charges the defendant with committing money laundering
between in or about 2010 and in or about March 2016, in Violation of Title 18, United States Code,
Section 1956. Count Five carries a maximum sentence of 20 years? imprisonment; a maximum
term of supervised release of three years; a maximum ?ne, pursuant to Title 18, United States
Code, Sections 3571 and 1956(a)(1), of the greatest of $500,000, twice the value of the monetary
instrument or funds involved in the transportation, transmission, or transfer, twice the gross
pecuniary gain derived from the offense, or twice the gross pecuniary loss to a person other than
the defendant as a result of the offense; and a mandatory $100 special assessment.

Count Six of the Information charges the defendant with conspiring to commit money
laundering between in or about 2010 and in or about March 2016, in violation of Title 18, United
States Code, Section 1956. Count Six carries a maximum sentence of 20 years? imprisonment; a
maximum term of supervised release of three years; a maximum ?ne, pursuant to Title 18, United
States Code, Sections 3571 and 1956(a)(1), of the greatest of $500,000, twice the value of the
monetary instrument or funds involved in the transportation, transmission, or transfer, twice the
gross pecuniary gain derived from the offense, or twice the gross pecuniary loss to a person other
than the defendant as a result of the offense; and a mandatory $100 special assessment.

Count Seven of the Information charges the defendant with conspiring to bribe a US.
public of?cial and possessing contraband in a federal detention center between in or about 2016
and in or about June 2017, in violation of Title 18, United States Code, Section 371. Count Seven
carries a maximum sentence of ?ve years? imprisonment; a maximum term of supervised release
of three years; a maximum ?ne, pursuant to Title 18, United States Code, Section 3571, of the
greatest of $250,000, twice the gross pecuniary gain derived from the offense, or twice the gross
pecuniary loss to a person other than the defendant as a result of the offense; and a mandatory 100
special assessment.

The total maximum sentence of incarceration on the seven counts in the Information is 130
years? imprisonment.

It is ?thher understood that the defendant shall make restitution in an amount to be
speci?ed by the Court in accordance with 18 U.S.C. 3663, 3663A, and 3664. This amount shall
be paid according to a plan established by the Court.

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The defendant furthermore admits the forfeiture allegations with respect to Counts Two,
Three, Four, Five, Six, and Seven of the Information and agrees to forfeit to the United States,
pursuant to Title 18, United States Code, Sections and 982, Title 21, United States
Code, Section 853, and Title 28, United States Code, Section 2461, a sum of money in US.
currency (the ?Money Judgment?) representing the value of any and all property constituting or
derived from any proceeds the defendant obtained directly or indirectly as a result of the offenses
alleged in Counts Two, Three, Four, and Seven of the Information; and the value of any and all
property, real or personal, involved in the money laundering offenses alleged in Counts Five and
Six of the Information, and all property traceable to such property. The defendant further agrees
to forfeit any speci?c property constituting or derived from any proceeds the defendant obtained
directly or indirectly as a result of the offenses alleged in Counts Two, Three, Four, and Seven of
the Information; and any speci?c property, real or personal, involved in the money laundering
offenses alleged in Counts Five and Six of the Information or traceable to such property. It is
further understood that any forfeiture of the defendant?s assets shall not be treated as satisfaction
of any ?ne, restitution, cost of imprisonment, or any other penalty the Court may impose upon him
in addition to forfeiture.

It is understood that the defendant: shall truthfully and completely disclose all
information with respect to the activities of himself and others concerning all matters about which
this Of?ce inquires of him, which information can be used for any purpose; shall cooperate
fully with this Of?ce, the Federal Bureau of Investigation (the and any other law
enforcement agency designated by this Of?ce; shall attend all meetings at which this Of?ce
requests his presence; shall provide to this Of?ce, upon request, any document, record, or other
tangible evidence relating to matters about which this Of?ce or any designated law enforcement
agency inquires of him; shall truthfully testify before the grand jury and at any trial and other
court proceeding with respect to any matters about which this Of?ce may request his testimony;
shall bring to this Of?ce?s attention all crimes which he has committed, and all administrative,
civil, or criminal proceedings, investigations, or prosecutions in which he has been or is a subject,
target, party, or witness; shall commit no further crimes whatsoever; and shall provide
notice to this Of?ce prior to discussing the conduct covered by Counts One through Seven of the
Information with anyone other than this Of?ce, law enforcement agencies designated by this
Of?ce, and the defendant?s attorney who are licensed to practice law in the United States.
Moreover, any assistance the defendant may provide to federal criminal investigators shall be
pursuant to the speci?c instructions and control of this Of?ce and designated investigators.

It is understood that this Of?ce cannot, and does not, agree not to prosecute the defendant
for criminal tax Violations, if any. However, if the defendant fully complies with the
understandings speci?ed in this Agreement, no testimony or other information given by him (or
any other information directly or indirectly derived therefrom) will be used against him in any
criminal tax prosecution. Moreover, if the defendant fully complies with the understandings
speci?ed in this Agreement, he will not be further prosecuted criminally by this Of?ce for any
crimes, except for criminal tax Violations, related to his participation in: a conspiracy between
in or about 2010 and in or about March 2016 to impair, impede, and obstruct the lawful and
legitimate governmental functions and operations of the US. Department of the Treasury in the
enforcement of economic sanctions laws and regulations administered by that agency by engaging
in commercial transactions designed to evade and avoid U.S. primary and secondary sanctions

Page 4

governing ?nancial transactions conducted for the bene?t of Iranian entities, as charged in Count
One of the Information; (2) a conspiracy between in or about 2010 and in or about March 2016 to
violate the IEEPA by engaging in commercial transactions designed to evade and avoid U.S.
primary and secondary sanctions governing ?nancial transactions conducted for the bene?t of
Iranian entities, as charged in Count Two of the Information; (3) a scheme to defraud US. ?nancial
institutions and to obtain by false pretenses money and/or property in the custody of US. ?nancial
institutions between in or about 2010 and in or about March 2016, as charged in Count Three of
the Information; (4) a conspiracy to defraud US. ?nancial institutions and to obtain by false
pretenses money and/or property in the custody of US. ?nancial institutions between in or about
2010 and in or about March 2016, as charged in Count Four of the Information; (5) engaging in
?nancial transactions from the United States to places outside the United States for purposes of
promoting the IEEPA conspiracy described in Count Two of the Information, the bank fraud
scheme and bank fraud conspiracy described in Counts Three and Four of the Information, and
bribery of foreign public of?cials between in or about 2010 and in or about March 2016, as charged
in Count Five of the Information; (6) conspiring to engage in ?nancial transactions from the United
States to places outside the United States for purposes of promoting the IEEPA conspiracy
described in Count Two of the Information, the bank fraud scheme and bank fraud conspiracy
described in Counts Three and Four of the Information, and bribery of foreign public of?cials
between in or about 2010 and March 2016, as charged in Count Six of the Information; (7)
conspiring to bribe a corrections of?cer at the Metropolitan Correctional Center (the to
smuggle into the MCC contraband, including cellphones and alcohol, between in or about 2016
and in or about June 2017, as charged in Count Seven of the Information; (8) making material
misrepresentations to the FBI during a post?arrest interview on or about March 19, 2016; (9)
making material misrepresentations during an interview with a pre-trial services of?cer with the
United States District Court for the Southern District of Florida?s on March 21, 2016; and (10)
smoking marijuana on one occasion in the MCC in or about 2016, to the extent that he
has disclosed such participation to this Of?ce as of the date of this Agreement. In addition, in
compliance with the defendant?s obligation to disclose to this Of?ce any crimes the defendant has
committed, the defendant has fully disclosed the following conduct that cannot be prosecuted by
this Of?ce because it lacks jurisdiction: paying bribes to foreign of?cials and corporate
representatives between in or about 2002 and in or about March 2016 in return for, among other
things, personal bene?ts, favorable business dealings, and protection by government of?cials; (ii)
procuring prostitutes for others in or about 2013; understating his income on Turkish tax
?lings between in or about 2002 and in or about March 2016; (iv) assaulting another individual in
the Republic of Turkey in or about 2014; (V) lying to Turkish law enforcement of?cers after the
defendant was arrested there in or about December 2013. This Agreement does not provide any
protection against prosecution for any crimes except as set forth above.

It is understood that all of the conduct set forth in subsections (8) through (10) and 
through (V) of the preceding paragraph constitutes either relevant conduct, pursuant to United
States Sentencing Guidelines Section 1B1.3, or other conduct of the defendant,
pursuant to U.S.S.G. 1B1.4, that the Court may consider at the time of sentencing.

It is understood that the defendant?s truthful cooperation with this Of?ce is likely to reveal
activities of individuals who might use violence, force, and intimidation against the defendant, his
family, and loved ones. Should the defendant?s cooperation present a signi?cant risk of physical

Page 5

harm, this Of?ce, upon the written request of the defendant, will take steps that it determines to be
reasonable and necessary to attempt to ensure his safety and that of his family and loved ones.
These steps may include application to the Witness Security Program of the United States Marshals
Service, whereby the defendant, his family, and loved ones, if approved, could be relocated under
a new identity. It is understood, however,.that the Witness Security Program is under the direction
and control of the United States Marshals Service and of the Of?ce of Enforcement Operations of
the Department of Justice, not of this Of?ce.

It is understood that this Agreement does not bind any federal, state, or local prosecuting
authority other than this Of?ce. This Of?ce will, however, bring the cooperation of the defendant
to the attention of other prosecuting of?ces, if requested by him. Nor does this Agreement bind
the Bureau of Immigration and Customs Enforcement although this Of?ce will bring the
cooperation of the defendant, as well as any safety concerns with respect to the defendant and his
family, to the attention of ICE, if requested by him.

It is understood that the sentence to be imposed upon the defendant is within the sole
discretion of the Court. This Of?ce cannot, and does not, make any promise or representation as
to what sentence the defendant will receive, and will not recommend any speci?c sentence to the
Court. However, this Of?ce will inform the Probation Of?ce and the Court of: this Agreement;
the nature and extent of the defendant?s activities with respect to this case and all other activities
of the defendant which this Of?ce deems relevant to sentencing; and the nature and extent of
the defendant?s cooperation with this Of?ce. In so doing, this Of?ce may use any information it
deems relevant, including information provided by the defendant both prior to and subsequent to
the signing of this Agreement. In addition, if this Of?ce determines that the defendant has
provided substantial assistance in an investigation or prosecution, and if he has fully complied with
the understandings speci?ed in this Agreement, this Of?ce will ?le a motion, pursuant to Section
5Kl.l of the Sentencing Guidelines and 18 U.S.C. ?3553(e), requesting the Court to sentence the
defendant in light of the factors set forth in Section It is understood that, even if
such a motion is ?led, the sentence to be imposed on the defendant remains within the sole
discretion of the Court. Moreover, nothing in this Agreement limits this Of?ce?s right to present
any facts and make any arguments relevant to sentencing to the Probation Of?ce and the Court, or
to take any position on post?sentencing motions. The defendant hereby consents to such
adj ournments of his sentence as may be requested by this Of?ce.

It is understood that, should this Of?ce determine either that the defendant has not provided
substantial assistance in an investigation or prosecution, or that the defendant has violated any
provision of this Agreement, such a determination will release this Of?ce from any obligation to
?le a motion pursuant to Section 5K1 .l of the Sentencing Guidelines and/or 18 U.S.C. ?3553(e),
but will not entitle the defendant to withdraw his guilty plea once it has been entered.

It is understood that, should this Of?ce determine, subsequent to the ?ling of a motion
pursuant to Section 5K1 .l of the Sentencing Guidelines and 18 U.S.C. ?3553(e), that the defendant
has violated any provision of this Agreement, this Of?ce shall have the right to withdraw such
motion.

Page 6

It is understood that, should the defendant commit any further crimes or should it be
determined that he has given false, incomplete, or misleading testimony or information, or should
he otherwise violate any provision of this Agreement, the defendant shall thereafter be subject to
prosecution for any federal criminal violation of which this Office has knowledge, including
perjury and obstruction of justice. Any such prosecution that is not time?barred by the applicable
statute of limitations on the date of the signing of this Agreement may be commenced against the
defendant, notwithstanding the expiration of the statute of limitations between the signing of this
Agreement and the commencement of such prosecution. It is the intent of this Agreement to waive
all defenses based on the statute of limitations with respect to any prosecution that is not time?
barred on the date that this Agreement is signed.

It is understood that in the event that it is determined that the defendant has committed any
7 further crimes, given false, incomplete, or misleading testimony or information, or otherwise
violated any provision of this Agreement, all statements made by the defendant to this Office
or other designated law enforcement agents, and any testimony given by the defendant before a
grand jury or other tribunal, whether prior to or subsequent to the signing of this Agreement, and
any leads from such statements or testimony shall be admissible in evidence in any criminal
proceeding brought against the defendant; and the defendant shall assert no claim under the
United States Constitution, any statute, Rule 410 of the Federal Rules of Evidence, or any other
federal rule that such statements or any leads therefrom should be suppressed. It is the intent of
this Agreement to waive all rights in the foregoing respects.

The defendant hereby acknowledges that he has accepted this Agreement and decided to
plead guilty because he is in fact guilty. By entering this plea of guilty, the defendant waives any
and all right to withdraw his plea or to attack his conviction, either on direct appeal or collaterally,
on the ground that the Government has failed to produce any discovery material, Jena/cs Act
material, exculpatory material pursuant to Brady v. Maryland, 373 US. 83 (1963), other than
information establishing the factual innocence of the defendant, or impeachment material pursuant
to Giglio v. United States, 405 US. 150 (1972), that has not already been produced as of the date
of the signing of this Agreement.

The defendant recognizes that, if he is not a citizen of the United States, his guilty plea and
conviction make it very likely that his deportation from the United States is presumptively
mandatory and that, at a minimum, he is at risk of being deported or suffering other adverse
immigration consequences. The defendant acknowledges that he has discussed the possible
immigration consequences (including deportation) of his guilty plea and conviction with defense
counsel. The defendant affirms that he wants to plead guilty regardless of any immigration
consequences that may result from the guilty plea and conviction, even if those consequences
include deportation from the United States. Because the defendant?s cooperation may present a
signi?cant risk of physical harm to him and his family, this of?ce will take steps to bring any
known safety concerns to the attention of the appropriate authorities, including ICE. It is agreed
that the defendant will have no right to withdraw his guilty plea based on any actual or perceived
adverse immigration consequences (including deportation) resulting from the guilty plea and
conviction. It is further agreed that the defendant will not challenge his conviction or sentence on
direct appeal, or through litigation under Title 28, United States Code, Section 2255 and/or Section



Page 7

2241, on the basis of any actual or perceived adverse immigration consequences (including
deportation) resulting from his guilty plea and conviction.

This Agreement supersedes any prior understandings, promises, or conditions between this
Of?ce and the defendant. No additional understandings, promises, or conditions have been entered
into other than those set forth in this Agreement, and none will be entered into unless in writing
and signed by all parties.

Very truly yours,

OON H. KIM
Acting United States Attorney

By; 8%

Michael D. Lockard 

Sidhardha Kamaraju

David W. Denton, Jr.

Assistant United States Attorneys

Dean C. Sovolos

Special Assistant United States Attorney
(212) 637?2193/6523/2744/2213

APPROVED:

LISA R. ZORNBERG 
Chief, Criminal Division

AGREED AND CONSENTED TO:

P1

 

 

Reza Zarrab DATE

APPROVED:

At?rneys for eza Zan?b



 

DATE