Turkey fixated by US arrest of scandalous tycoon

Turkey stunned by arrest of Turkish-Iranian gold mogul Reza Zarrab, who was linked to 2013 corruption scandal that ensnared Erdogan government.

Middle East Online

Reza Zarrab pictured in 2013. ANKARA - It has all the ingredients of one of the soap operas that keep Turks hooked for weeks. A flamboyant young businessman who rose fast, a superstar singer wife, and intrigue that goes to the dark heart of Turkish politics. The surprise arrest in the United States of Turkish-Iranian gold mogul Reza Zarrab stunned Turkey, where Zarrab had been linked to a 2013 corruption scandal that ensnared the government of then premier, now president, Recep Tayyip Erdogan. Zarrab spent 70 days in custody in Turkey over the scandal that Erdogan denounced as a plot by his arch-foe, the US-based Muslim preacher Fethullah Gulen, to bring down his government. His arrest -- shortly after arriving in Florida on a family holiday -- was seized on with glee by foes of Erdogan who hoped it would revive memories of the 2013 scandal and bring further embarrassing revelations for the government. Adding to the interest in the affair, Zarrab is married to superstar Turkish pop singer Ebru Gundes, who appears as a judge on one of the country's top talent shows. The investigation into Zarrab -- who was arrested on charges of busting an embargo on trade with Iran and money laundering -- is led by the high-profile New York attorney, Preet Bharara. "Reza Zarrab to soon face American justice in a Manhattan courtroom," Bharara tweeted. Famously lauded by Time magazine in a cover as the man who is "busting Wall Street", Bharara suddenly found himself the object of adoration from Turkish bloggers opposed to Erdogan. - 'Shish kebab offer' - His relatively modest Twitter following of just some 8,000 soared to 235,000 people after the news of Zarrab's arrest, buoyed by a sudden glut of Turkish admirers. One follower tweeted an offer of gifts: "Turkish raki, Shish Kebab, Lokuum, Turkish carpet. Just ask." "Well, I do love shish kebab but I don't think I can accept gifts just for doing my job..." the surprised attorney replied. Bharara also amused Turkish Internet users by himself following the account of Erdogan and then unfollowing it. Zarrab, in his early thirties, was born in the northern Iranian city of Tabriz and later settled in Istanbul, gaining Turkish citizenship. He was detained in Istanbul in December 2013 over his alleged links to ministers implicated in the corruption scandal, which centred on the illicit trading of gold with Iran. But by February 2014 he was free again, as the cases against the accused were all dropped, amid heavy political pressure. In a sign of his rehabilitation in Turkey he was awarded an export prize for the performance of his company Volgam Gida in June 2015. A widely-shared picture from the time shows the businessman receiving the award from Deputy Prime Minister Numan Kurtulmus and Economy Minister Nihat Zeybekci. Adding to the intrigue, Zarrab has also been linked to billionaire Iranian tycoon Babak Zanjani, who was sentenced to death in Iran earlier this month after being convicted of corruption. - 'White House visit' - His arrest comes days before Erdogan embarks on a long-awaited visit to the United States next week for talks with US President Barack Obama, at which he is expected to repeat Turkey's demands for the extradition of his nemesis, Gulen. Turkish opposition leaders and newspapers speculated that Erdogan was terrified at the prospect that Zarrab could give information to the US authorities as part of a plea bargain. Some even suggested that Zarrab had deliberately got himself arrested in order to impart sensitive information to US investigators, although this was denied by his legal team. "Zarrab was arrested. I am certain that some people are not going to sleep tonight," said the chief of the opposition Republican People's Party (CHP), Kemal Kilicdaroglu. The businessman, along with two others, is accused of conspiring to thwart US sanctions against Iran by hiding financial transactions on behalf of Iranian entities and conducting millions of dollars worth of transactions on their behalf. Ozgur Mumcu, a commentator with the opposition Cumhuriyet newspaper, predicted the case would have ramifications for the Turkish government. "You don't exactly have to be a soothsayer to predict that there are going to be political consequences," he said.