The US case against the Iranian-Turkish businessman Reza Zarrab turned against Mehmet Hakan Atilla, the former deputy CEO of Turkey's Halkbank, after Zarrab pleaded guilty and made an agreement with the New York prosecutor’s office. A US prosecutor ordered the arrest of an Iranian-Turkish businessman in March 2016 for breaching US sanctions on Iran. After two months, those sanctions were lifted. Preet Bharara announced in a social media post, “Reza Zarrab to soon face American justice in a Manhattan courtroom.” Zarrab has been under arrest for more than 22 months, and has been accused of money laundering, and fraud against the US and its banking system. However, before the first day of his trial, his role was changed from a defendant to a witness.  

Reza Zarrab's has proclaimed his willingness to lie in exchange for leniency, according to a letter submitted in court by the lawyers for Halkbank executive Mehmet Hakan Atilla, who is charged with scheming to violate US sanctions against Iran. In a September 2016 recording, Zarrab is quoted as saying that there was a perceived need when incarcerated in the US to lie "in order to get out or to get a reduced sentence" and that "you need to admit to crimes you haven't committed" to get out of prison, the lawyers said.

Turkish gold trader Reza Zarrab on Wednesday accepted all charges that he was accused of and agreed to cooperate with US prosecutors against Mehmet Hakan Atilla, the deputy general manager of Turkey's Halkbank. The businessman was detained last year on charges of violating sanctions against Iran while Atilla was arrested in the US earlier this year on similar charges of sanctions violations. US prosecutors have charged nine people in the case, although only Zarrab and Atilla have been arrested by US authorities. The hearing began on Tuesday after US District Judge Richard Berman rejected a request by Atilla’s lawyers for a two-week delay.

Reza Zarrab said on Tuesday that he paid a $45,000 bribe to a US prison guard to obtain alcohol and use the guard's phone to speak with his wife, daughter and lawyer. During a hearing at a Manhattan court in the trial of Mehmet Hakan Atilla, Zarrab who is cooperating with US prosecutors, testified that he got the money through a Turkish attorney whom he did not identify. The US Bureau of Prisons could not immediately be reached for comment. Zarrab is the key US government witness in its case against Atilla, an executive at Turkey's Halkbank who is charged with scheming to violate US sanctions against Iran. He has pleaded not guilty. Zarrab testified on Tuesday under cross-examination by Atilla's attorney, Cathy Fleming, that he and Atilla did not like each other.