COURT ASKS FOR INDEPENDENT ETHICS COUNSEL OPINION IN ZARRAB CASE

Reza Zarrab (without beard)

The trial judge, in the Reza Zarrab Iran sanctions violations case, pending in Federal Court in New York, has requested that the US Attorney's Office obtain a written opinion, from independent ethics counsel, regarding the issue of Conflict of Interest by the defense firm Kirkland & Ellis. The short order included the provision that the opinion should "consider and address, among other things, defense counsels' contrary view."Lawyers from another firm, who are part of the defense team, joined the Kirkland firm subsequent to his arrest in the United States.

The order was entered in response to the letter to the Court, from the Government, detailing its response to the issue of whether waivers, from banks [clients] also represented by K & L, who are alleged to be victims of the defendant's sanctions evasion conduct, are sufficient to put to rest the Conflict of Interest issue.

The Government stated the waivers submitted are not sufficient. because:
(1) At least one other affected client [bank] has refused to waive.
(2)  Zarrab reportedly has refused to waive any defenses that rely upon a position adverse to the bank.
(3) There are certain conditions, within the bank waivers, that no reasonable defendant would consent to.

The Government has requested that the upcoming Curcio* hearing be rescheduled.
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* A hearing, in Federal Court, to insure that a criminal defendant if fully aware of the ramifications of retaining a lawyer who may have a potential conflict of interest.