Reza Zarrab, a gold trader who pleaded guilty to taking part in a scheme to help steer Iranian cash around U.S. sanctions, took his turn as star witness on Wednesday in the trial for his co-defendant, a Turkish banking executive, in a case that has heightened tensions between the U.S. and Turkish governments.

Speaking through Turkish-language interpreters, Zarrab, 34, who said on the stand that he has citizenships for Turkey, Iran and Macedonia, explained the terms of his guilty plea to prosecutors as well as a complex scheme to convert Iranian oil and gas revenues through various bank transfers and gold sales.

“Cooperation was the fastest way to accept responsibility and to get out of jail at once,” Zarrab said, responding to questions from Assistant U.S. Attorney Sidhardha Kamaraju.

As part of an agreement with the government, Zarrab pleaded guilty to seven counts, including conspiracy to defraud the United States, conspiracy to violate the International Emergency Economic Powers Act, bank fraud, conspiracy to commit bank fraud, money laundering and a related conspiracy charge.

He also pleaded guilty to conspiracy to commit bribery and to possessing contraband at a federal detention center in July for allegedly, while he was in federal lockup, bribing a corrections officer to smuggle in alcohol and to use a cellphone.

Standing trial is Mehmet Atilla, 47, accused of conspiracy to violate the IEEPA and conspiracy to commit bank fraud. He is the former deputy CEO for Halkbank, a Turkish state-owned bank.
During his testimony, Zarrab, who appeared in court in khaki-colored jail scrubs, pointed at Atilla in court and said that the defendant helped develop the methods used to filter Iranian oil and gas revenues through Halkbank.

Zarrab also said he paid bribes to former Turkish Economic Minister Mehmet Zafer Çağlayan of at least 40 million euro and $7 million, as well as in Turkish lira.

In September, Manhattan prosecutors charged Çağlayan with bribery.

Using a marker and placard, Zarrab demonstrated how Iranian money was transferred between different accounts at Halkbank then to another Turkish bank that would convert the money to gold, which would then be transferred to Zarrab's company in suitcases and later sold to pay off Iran's debts around the world.

Zarrab told U.S. District Judge Richard Berman of the Southern District of New York that the byzantine system used in the scheme to free up the funds required a minimum of 10 transactions.

In addition to Kamaraju, the prosecution team on the case includes Assistant U.S. Attorneys David Denton and Michael Lockard; and Special Assistant U.S. Attorney Dean Sovolos.

The prosecution will continue to question Zarrab on Thursday and his testimony is expected to last a few days.

Atilla's defense team includes Herrick Feinstein partner Victor Rocco and Cathy Fleming and Robert Fettweis of Fleming.Ruvoldt. Fleming declined to comment on Zarrab's testimony.

The case has made headlines in the U.S. and Turkey as officials on both sides have taken verbal jabs at each other since Zarrab's 2016 arrest at the Disney World theme park, where he was vacationing with his wife, Turkish pop star Ebru Gündeş, and daughter.

At one point in the case, Zarrab brought in former New York City Mayor Rudolph Giuliani, a shareholder with Greenberg Traurig; and former U.S. Attorney General Michael Mukasey, who is of counsel to Greenberg Traurig, to his defense team.

According to court documents, they met with President Recep Tayyip Erdogan, who has ties with Zarrab, about a possible diplomatic resolution to the case. During his testimony on Wednesday, Zarrab said members of his defense team discussed a possible prisoner transfer with Turkey, but did not name which attorneys took part in the talks.