US judge denies $50m bail for Iranian-Turkish gold mogul

A US judge denied bail on Thursday to a Iranian-Turkish gold mogul who applied to live in a lavish Manhattan apartment on a $50 million bond with private armed guards before going on trial for allegedly defying sanctions on Tehran.

Reza Zarrab, 33, was arrested in Miami in March en route to Disney World with his superstar singer wife and five-year-old daughter on charges that could see him sentenced to up to 30 years in prison if convicted.

Zarrab hired one of New York's top defense attorneys to petition a federal judge to let him swap a federal lock-up for a swanky Manhattan apartment with round-the-clock security.

But Judge Richard Berman rejected his request after a two-week review, ruling that his significant wealth, lack of ties in the United States and extensive links to countries without extradition treaties could help him skip bail.

"Mr Zarrab poses a risk of flight," Berman wrote in his decision. "No condition or combination of conditions, including privately funded armed guards, will reasonably assure his appearance at trial."

The evidence against him "appears strong," the charges are "serious" and he could face "a substantial term of imprisonment" if convicted, he noted.

"Undermining US sanctions against Iran may well pose a threat to the United States," continued Berman. 

Zarrab's release "may exacerbate that threat" by enabling him to communicate with associates, he added.

The judge threw out the armed guards proposal as "unreasonable" and said they would help to "foster inequity and unequal treatment in favour of a very small cohort of criminal defendants who are extremely wealthy".

Zarrab holds passports from Iran, Macedonia and Turkey - countries that either have no extradition treaty with America or do not extradite citizens.

US prosecutors say his foreign businesses generate more than $11 billion annually and accuse him of deceiving court officials by pretending to be worth "less than a million".

The judge said Zarrab operated a Turkish gold brokerage and currency exchange, a shipbuilding company and furniture manufacturing operation, a real estate construction company and a brokerage trading Sri Lankan tea.

US prosecutors say he owns a private jet, 20 properties and a more than $10 million art collection.

Zarrab has a tumor on his kidney and suffers from irritable bowel syndrome, which his lawyers say requires a special diet.

They told court on 2 June that a Manhattan apartment had already been rented, furnished, equipped with sensors and kitted out with surveillance cameras in readiness for house arrest.

Zarrab could even have signed a waiver permitting his private armed guards to shoot him should he try to escape, said defense lawyer Ben Brafman.