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Zalmay Khalilzad Is Suspected of Tax Evasion and Money Laundering Zalmay Khalilzad Is Suspected of Tax Evasion and Money Laundering
(35 minutes later)
BERLIN — Zalmay Khalilzad, a former United States ambassador to Afghanistan, Iraq and the United Nations, is under investigation by the Justice Department for possible tax evasion and violation of United States laws against money laundering, an Austrian magazine reported on Monday.BERLIN — Zalmay Khalilzad, a former United States ambassador to Afghanistan, Iraq and the United Nations, is under investigation by the Justice Department for possible tax evasion and violation of United States laws against money laundering, an Austrian magazine reported on Monday.
The case apparently came to light after a blogger discovered documents from the Austrian state prosecutors’ office and a Vienna court in a garbage dump in Vienna between March and August this year, and published several of the papers he found.The case apparently came to light after a blogger discovered documents from the Austrian state prosecutors’ office and a Vienna court in a garbage dump in Vienna between March and August this year, and published several of the papers he found.
The Austrian weekly newsmagazine Profil reported that the document cache included an order from the Justice Department, citing its investigation of Mr. Khalilzad, for Austrian prosecutors to freeze accounts containing more than 750,000 euros, or nearly $1 million, belonging to Mr. Khalilzad’s wife, the social scientist and author Cheryl Benard. The Austrian weekly newsmagazine Profil reported that the cache of papers included a document from the Justice Department, citing its investigation of Mr. Khalilzad, concerning accounts containing more than 750,000 euros, or nearly $1 million, belonging to Mr. Khalilzad’s wife, the social scientist and author Cheryl Benard.
Ms. Benard has dual American and Austrian citizenship and earned her doctorate at the University of Vienna. It was unclear whether Ms. Benard herself was being accused of wrongdoing by the Justice Department.Ms. Benard has dual American and Austrian citizenship and earned her doctorate at the University of Vienna. It was unclear whether Ms. Benard herself was being accused of wrongdoing by the Justice Department.
Nina Bussek, a spokeswoman for the Vienna state prosecutors’ office, confirmed only that there was a case underway involving Ms. Benard, but declined to make any further comment. The find is embarrassing for the Austrian authorities, who Profil said had been asked by American officials to preserve the utmost secrecy.Nina Bussek, a spokeswoman for the Vienna state prosecutors’ office, confirmed only that there was a case underway involving Ms. Benard, but declined to make any further comment. The find is embarrassing for the Austrian authorities, who Profil said had been asked by American officials to preserve the utmost secrecy.
A Vienna lawyer for Ms. Benard, Holger Bielesz, said an unspecified number of his client’s accounts had been frozen in February under the order from the Justice Department dated May 2013. He declined to confirm the total money frozen.A Vienna lawyer for Ms. Benard, Holger Bielesz, said an unspecified number of his client’s accounts had been frozen in February under the order from the Justice Department dated May 2013. He declined to confirm the total money frozen.
Mr. Bielesz appealed the block on the accounts in March, and said in a telephone interview that “we are confident” that a Vienna higher court would rescind the order soon. “The position of the state prosecutors’ office is not easy to follow,” Mr. Bielesz said, asserting that the United States did not request that the accounts be closed. Any suspicion seems to be founded only on the basis of Ms. Benard’s marriage to Mr. Khalilzad, the lawyer told Profil.Mr. Bielesz appealed the block on the accounts in March, and said in a telephone interview that “we are confident” that a Vienna higher court would rescind the order soon. “The position of the state prosecutors’ office is not easy to follow,” Mr. Bielesz said, asserting that the United States did not request that the accounts be closed. Any suspicion seems to be founded only on the basis of Ms. Benard’s marriage to Mr. Khalilzad, the lawyer told Profil.
Telephone calls to the Washington office and Mr. Khalilzad’s cellphone went unanswered, as did an email sent to him.Telephone calls to the Washington office and Mr. Khalilzad’s cellphone went unanswered, as did an email sent to him.
Hours later, Mr. Bielesz released a statement and said that was all the comment there would be for now.
The statement stressed that no charges had been brought against the couple, in either the United States or Austria, or anywhere else.
In May 2013, the Justice Deparment had “sent a routine request to the Austrian authorities for records for certain bank accounts in Vienna in the name of Ms. Benard,” the statement said. The request “did not seek the seizure of asets belonging to Ms. Benard or Ambassador Khalilzad,” it added, nor does it “contain evidence of money laundering or other offenses.” It added that it remained unclear why the state prosecutor nonetheless “ignored the plain language of the D.O.J. and froze Ms. Benard’s accounts.”
The couple is now focused on unfreezing the assets and is upset by the "gross invasion of privacy" caused by the careless release of information, the statement said. It was signed by Mr. Bielesz and Robert B. Buehler, a New York-based lawyer with the firm Hogan Lovells.
Mr. Khalilzad currently runs Khalilzad Associates, which operates as part of Gryphon Partners, a Washington-based enterprise that describes itself as a global advisory firm founded by Mr. Khalilzad and focused on frontier markets.Mr. Khalilzad currently runs Khalilzad Associates, which operates as part of Gryphon Partners, a Washington-based enterprise that describes itself as a global advisory firm founded by Mr. Khalilzad and focused on frontier markets.
Born in Afghanistan in 1951, Mr. Khalilzad studied at the American University in Beirut, where he met Ms. Benard, and later earned a doctorate from the University of Chicago. He first worked for the State Department in the 1980s, and served under President Reagan and President George Bush.Born in Afghanistan in 1951, Mr. Khalilzad studied at the American University in Beirut, where he met Ms. Benard, and later earned a doctorate from the University of Chicago. He first worked for the State Department in the 1980s, and served under President Reagan and President George Bush.
After the Sept. 11, 2001, terrorist attacks on the United States, Mr. Khalilzad became a trusted adviser to President George W. Bush on Afghanistan. He was formally appointed ambassador to Kabul in 2003, serving in that post until 2005. He then became ambassador to Iraq, where he stayed until 2007, when he swiftly won Congressional approval to take over from John Bolton, a controversial conservative, as the American envoy to the United Nations. After Barack Obama won the 2008 presidential election, Mr. Khalilzad entered private business life, starting his consultancy.After the Sept. 11, 2001, terrorist attacks on the United States, Mr. Khalilzad became a trusted adviser to President George W. Bush on Afghanistan. He was formally appointed ambassador to Kabul in 2003, serving in that post until 2005. He then became ambassador to Iraq, where he stayed until 2007, when he swiftly won Congressional approval to take over from John Bolton, a controversial conservative, as the American envoy to the United Nations. After Barack Obama won the 2008 presidential election, Mr. Khalilzad entered private business life, starting his consultancy.