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Rich Defendants’ Request to Judges: Lock Me Up in a Gilded Cage Rich Defendants’ Request to Judges: Lock Me Up in a Gilded Cage
(about 1 hour later)
When Reza Zarrab, a gold trader based in Turkey, was arrested on a recent trip to the United States and sent to New York to face federal charges, his lawyer tried to keep him out of prison by tapping into Mr. Zarrab’s considerable wealth.When Reza Zarrab, a gold trader based in Turkey, was arrested on a recent trip to the United States and sent to New York to face federal charges, his lawyer tried to keep him out of prison by tapping into Mr. Zarrab’s considerable wealth.
His client would post a $50 million bond, secured by $10 million in cash. He would stay in a rental apartment in Manhattan and wear a GPS monitoring device. And one more thing: Mr. Zarrab would pay for 24-hour guards to ensure that he did not flee and to escort him to and from the courthouse.His client would post a $50 million bond, secured by $10 million in cash. He would stay in a rental apartment in Manhattan and wear a GPS monitoring device. And one more thing: Mr. Zarrab would pay for 24-hour guards to ensure that he did not flee and to escort him to and from the courthouse.
The request, which a judge is expected to take up on Thursday, is not as unusual as it may seem. The rich are different from everyone else, even those accused of crimes. But a handful of extremely wealthy defendants, particularly those from overseas, are testing courts by proposing to live in self-financed gilded cages while they await their fate.The request, which a judge is expected to take up on Thursday, is not as unusual as it may seem. The rich are different from everyone else, even those accused of crimes. But a handful of extremely wealthy defendants, particularly those from overseas, are testing courts by proposing to live in self-financed gilded cages while they await their fate.
Prosecutors vigorously objected to Mr. Zarrab’s being allowed to face trial under such conditions, telling a federal judge in Manhattan that the proposed plan would allow a rich defendant to build “a personal jail for himself” in a Manhattan apartment, “staffed by a firm on his payroll.”Prosecutors vigorously objected to Mr. Zarrab’s being allowed to face trial under such conditions, telling a federal judge in Manhattan that the proposed plan would allow a rich defendant to build “a personal jail for himself” in a Manhattan apartment, “staffed by a firm on his payroll.”
“Zarrab’s proposed bail conditions,” the government said, “are an attempt to use his tremendous wealth to obscure the flight risk through a facade of security that is beyond the reach of all but a small subset of fabulously wealthy defendants.”“Zarrab’s proposed bail conditions,” the government said, “are an attempt to use his tremendous wealth to obscure the flight risk through a facade of security that is beyond the reach of all but a small subset of fabulously wealthy defendants.”
Mr. Zarrab’s lawyer, Benjamin Brafman, has sharply disputed the government’s position, saying that at the time of his arrest, Mr. Zarrab was arriving in Miami to visit Disney World with his wife and 5-year-old daughter, is devoted to his family and charitable causes and is not a threat to flee.Mr. Zarrab’s lawyer, Benjamin Brafman, has sharply disputed the government’s position, saying that at the time of his arrest, Mr. Zarrab was arriving in Miami to visit Disney World with his wife and 5-year-old daughter, is devoted to his family and charitable causes and is not a threat to flee.
Whether Mr. Zarrab succeeds remains to be seen, but other defendants have already been granted release on such terms.Whether Mr. Zarrab succeeds remains to be seen, but other defendants have already been granted release on such terms.
Last October, Ng Lap Seng, a Chinese billionaire indicted on charges that he bribed the former president of the United Nations General Assembly, was granted bond of $50 million, secured by $20 million cash and a Midtown apartment where he would be confined and subjected to GPS monitoring and round-the-clock guards at his own expense.Last October, Ng Lap Seng, a Chinese billionaire indicted on charges that he bribed the former president of the United Nations General Assembly, was granted bond of $50 million, secured by $20 million cash and a Midtown apartment where he would be confined and subjected to GPS monitoring and round-the-clock guards at his own expense.
Many thousands of people arrested in New York languish in the city’s jails because they are unable to make even modest bail. So prison advocates and lawyers for indigent defendants say the idea that some defendants are able to stay out of jail because they have the means to finance a novel confinement plan is blatantly unfair. Many thousands of people arrested in New York languish in the city’s jails because they are unable to make even modest bail. So advocates for prisoners and lawyers for indigent defendants say the idea that some defendants are able to stay out of jail because they have the means to finance a novel confinement plan is blatantly unfair.
“It just reinforces for me the point that our entire system of pretrial detention is predominantly based on wealth,” said Inimai M. Chettiar, a lawyer at the Brennan Center for Justice who runs an initiative to end mass incarceration.“It just reinforces for me the point that our entire system of pretrial detention is predominantly based on wealth,” said Inimai M. Chettiar, a lawyer at the Brennan Center for Justice who runs an initiative to end mass incarceration.
Joshua Norkin, a lawyer at the Legal Aid Society of New York, said the elaborate bail package that was being proposed for Mr. Zarrab and that was granted to Mr. Ng should remind judges in the state court system that they have the tools to release low-income people “on alternative and more creative forms of bail, and they’re failing to do it.”Joshua Norkin, a lawyer at the Legal Aid Society of New York, said the elaborate bail package that was being proposed for Mr. Zarrab and that was granted to Mr. Ng should remind judges in the state court system that they have the tools to release low-income people “on alternative and more creative forms of bail, and they’re failing to do it.”
The cases of wealthy defendants’ receiving special bail conditions are not limited to international defendants.The cases of wealthy defendants’ receiving special bail conditions are not limited to international defendants.
In 2009, Marc S. Dreier, a Manhattan lawyer who pleaded guilty to running an elaborate scheme that defrauded hedge funds and other investors of $700 million, was granted a $10 million bond pending trial and remained in his East Side apartment, secured by electronic monitoring and armed security guards, which his family paid for.In 2009, Marc S. Dreier, a Manhattan lawyer who pleaded guilty to running an elaborate scheme that defrauded hedge funds and other investors of $700 million, was granted a $10 million bond pending trial and remained in his East Side apartment, secured by electronic monitoring and armed security guards, which his family paid for.
Mr. Dreier, prosecutors said, used his criminal proceeds to support a lavish lifestyle, including ownership of the apartment, property in the Hamptons, a valuable art collection and an $18 million yacht.Mr. Dreier, prosecutors said, used his criminal proceeds to support a lavish lifestyle, including ownership of the apartment, property in the Hamptons, a valuable art collection and an $18 million yacht.
In a written opinion, the judge in the case, Jed S. Rakoff, acknowledged concerns that such an arrangement for Mr. Dreier gave people of means “an opportunity for release that poorer people could never obtain.”In a written opinion, the judge in the case, Jed S. Rakoff, acknowledged concerns that such an arrangement for Mr. Dreier gave people of means “an opportunity for release that poorer people could never obtain.”
Many kinds of bail conditions favored the rich, Judge Rakoff said, and, conversely, there were many defendants who were too poor to afford even the most modest of bail bonds or financial conditions of release. “This is a serious flaw in our system,” he wrote.Many kinds of bail conditions favored the rich, Judge Rakoff said, and, conversely, there were many defendants who were too poor to afford even the most modest of bail bonds or financial conditions of release. “This is a serious flaw in our system,” he wrote.
Still, he added, “it is not a reason to deny a constitutional right to someone who, for whatever reason, can provide reasonable assurance against flight.”Still, he added, “it is not a reason to deny a constitutional right to someone who, for whatever reason, can provide reasonable assurance against flight.”
One unusual condition set by Judge Rakoff was that Mr. Dreier had to consent in writing to the use of “reasonable force” by the armed guards in case he tried to flee. Mr. Dreier later was sentenced to 20 years in prison.One unusual condition set by Judge Rakoff was that Mr. Dreier had to consent in writing to the use of “reasonable force” by the armed guards in case he tried to flee. Mr. Dreier later was sentenced to 20 years in prison.
The debate last fall over Mr. Ng’s bail touched on similar issues. Mr. Ng, a Chinese real estate magnate with a net worth of about $1.8 billion, owned private airplanes and had passports from at least three countries, the government said.The debate last fall over Mr. Ng’s bail touched on similar issues. Mr. Ng, a Chinese real estate magnate with a net worth of about $1.8 billion, owned private airplanes and had passports from at least three countries, the government said.
In a bail hearing, a prosecutor, Daniel C. Richenthal, argued that Mr. Ng, who has pleaded not guilty, had no family or other ties in the United States. “There is no reason for him to remain,” Mr. Richenthal said. “Literally zero. Fifty-million-dollar bond is meaningless to him; $20 million is meaningless to him.”In a bail hearing, a prosecutor, Daniel C. Richenthal, argued that Mr. Ng, who has pleaded not guilty, had no family or other ties in the United States. “There is no reason for him to remain,” Mr. Richenthal said. “Literally zero. Fifty-million-dollar bond is meaningless to him; $20 million is meaningless to him.”
The judge, Vernon S. Broderick, ultimately ruled that there were conditions that could assure Mr. Ng’s appearance in court, and, over the government’s objection, granted the $50 million bail package, including home confinement with round-the-clock security, the monitoring of his phone calls and other strict conditions that he detailed in an order.The judge, Vernon S. Broderick, ultimately ruled that there were conditions that could assure Mr. Ng’s appearance in court, and, over the government’s objection, granted the $50 million bail package, including home confinement with round-the-clock security, the monitoring of his phone calls and other strict conditions that he detailed in an order.
The latest case involves Mr. Zarrab, who has pleaded not guilty to charges that include conspiring to violate the United States sanctions on Iran. The case has been widely watched in Turkey: In 2013, Mr. Zarrab was detained by the Turkish authorities in a broad corruption investigation of businessmen with ties to Recep Tayyip Erdogan, then prime minister and now Turkey’s president.The latest case involves Mr. Zarrab, who has pleaded not guilty to charges that include conspiring to violate the United States sanctions on Iran. The case has been widely watched in Turkey: In 2013, Mr. Zarrab was detained by the Turkish authorities in a broad corruption investigation of businessmen with ties to Recep Tayyip Erdogan, then prime minister and now Turkey’s president.
The office of Preet Bharara, the United States attorney for the Southern District of New York, has asked that the judge, Richard M. Berman, deny bail to Mr. Zarrab, saying evidence of his participation in the charged offenses was “overwhelming,” and claiming Mr. Zarrab mislead a court officer regarding his international travel and his assets. The office of Preet Bharara, the United States attorney for the Southern District of New York, has asked that the judge, Richard M. Berman, deny bail to Mr. Zarrab, saying evidence of his participation in the charged offenses was “overwhelming,” and claiming Mr. Zarrab misled a court officer regarding his international travel and his assets.
Mr. Bharara’s office noted Mr. Zarrab had amassed “a considerable fortune,” citing evidence of his ownership in about 20 properties, seven sea vessels, 17 luxury automobiles, a private airplane and over $10 million in artwork.Mr. Bharara’s office noted Mr. Zarrab had amassed “a considerable fortune,” citing evidence of his ownership in about 20 properties, seven sea vessels, 17 luxury automobiles, a private airplane and over $10 million in artwork.
Mr. Zarrab’s lawyer, Mr. Brafman, has argued in court papers that his client, who was born in Iran and moved to Turkey as an infant, is not a risk to flee. Mr. Brafman asked the judge not to detain his client “simply because he is wealthy and lacks ties to the United States,” and he argued that the bail proposal “removes any possible concern of flight.”Mr. Zarrab’s lawyer, Mr. Brafman, has argued in court papers that his client, who was born in Iran and moved to Turkey as an infant, is not a risk to flee. Mr. Brafman asked the judge not to detain his client “simply because he is wealthy and lacks ties to the United States,” and he argued that the bail proposal “removes any possible concern of flight.”
“Mr. Zarrab is a husband and a father who is committed to his family,” Mr. Brafman wrote, “and would not countenance life as a fugitive.”“Mr. Zarrab is a husband and a father who is committed to his family,” Mr. Brafman wrote, “and would not countenance life as a fugitive.”