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Austria Court Unblocks Assets of Former U.S. Ambassador Austria Court Unblocks Assets of Former U.S. Ambassador
(about 2 hours later)
BERLIN — A Vienna court has unfrozen assets belonging to the wife of Zalmay Khalilzad, the former United States ambassador to Afghanistan, Iraq and the United Nations, according to a statement released by the couple and their lawyer.BERLIN — A Vienna court has unfrozen assets belonging to the wife of Zalmay Khalilzad, the former United States ambassador to Afghanistan, Iraq and the United Nations, according to a statement released by the couple and their lawyer.
On Monday, the Austrian news magazine Profil reported that a blogger who found a trove of documents from Vienna legal authorities in a garbage dump, including a United States Department of Justice order from May 2013 concerning an investigation into Mr. Khalilzad’s financial dealings. Although the American authorities had only sought information, Vienna state prosecutors obtained a court order in February freezing accounts held in the Austrian capital by Mr. Khalilzad’s wife, Cheryl Benard, who holds American and Austrian citizenship. On Monday, the Austrian news magazine Profil reported that a blogger who found a trove of documents from the Vienna legal authorities in a garbage dump, including a United States Department of Justice order from May 2013 concerning an investigation into Mr. Khalilzad’s financial dealings. Although the American authorities had only sought information, Vienna state prosecutors obtained a court order in February freezing accounts held in the Austrian capital by Mr. Khalilzad’s wife, Cheryl Benard, who holds American and Austrian citizenship.
Holger Bielesz, a lawyer for the couple, said he went to court in March to unblock the assets. The statement issued early Thursday from Mr. Bielesz said a higher Vienna court ordered the accounts unfrozen on Sept. 3, but that decision was only conveyed to him on Wednesday.Holger Bielesz, a lawyer for the couple, said he went to court in March to unblock the assets. The statement issued early Thursday from Mr. Bielesz said a higher Vienna court ordered the accounts unfrozen on Sept. 3, but that decision was only conveyed to him on Wednesday.
Mr. Bielesz refused to confirm details in the Profil report, which said the United States authorities were investigating a transfer equivalent to 1.15 million euros, or nearly $1.5 million, into seven accounts held by Ms. Benard. Mr. Bielesz refused to confirm details in the Profil report, which said the American authorities were investigating transfers into seven accounts held by Ms. Benard totalling 1.15 million euros, or nearly $1.5 million.
“The appellate decision by the regional high court is a complete vindication of the position of Ms. Benard and Ambassador Khalilzad,” the statement from the lawyers said. “The seizure of the accounts is lifted and the funds in the accounts are no longer frozen.”“The appellate decision by the regional high court is a complete vindication of the position of Ms. Benard and Ambassador Khalilzad,” the statement from the lawyers said. “The seizure of the accounts is lifted and the funds in the accounts are no longer frozen.”
The statement quoted the couple as noting that the Vienna court “further ruled that there was no authority for Viennese prosecutors to seek the bank information regarding our accounts in the first place, much less be given the ability to unlawfully restrain us from accessing our accounts.”The statement quoted the couple as noting that the Vienna court “further ruled that there was no authority for Viennese prosecutors to seek the bank information regarding our accounts in the first place, much less be given the ability to unlawfully restrain us from accessing our accounts.”
It made no mention of whether there is a continuing investigation into Mr. Khalilzad’s financial dealings. Profil had reported — on the basis of the Justice Department document — that he was being investigated on suspicion of tax evasion and possible money laundering.It made no mention of whether there is a continuing investigation into Mr. Khalilzad’s financial dealings. Profil had reported — on the basis of the Justice Department document — that he was being investigated on suspicion of tax evasion and possible money laundering.
On Monday, a law enforcement official in Washington confirmed that the Justice Department had asked the Austrian government for help, but the official, who spoke on condition of anonymity, did not elaborate on the nature and scope of the investigation.On Monday, a law enforcement official in Washington confirmed that the Justice Department had asked the Austrian government for help, but the official, who spoke on condition of anonymity, did not elaborate on the nature and scope of the investigation.
Asked about the reported investigation, Mr. Bielesz said by telephone on Thursday that “what the DoJ now does is a matter only for the DoJ.” He called it “a scurrilous twist of fate” that the appellate court had already ruled in favor of Mr. Khalilzad and Ms. Benard when the affair became public on Monday. Asked about the reported investigation, Mr. Bielesz said by telephone on Thursday that “what the D.O.J. now does is a matter only for the D.o.J.” He called it “a scurrilous twist of fate” that the appellate court had already ruled in favor of Mr. Khalilzad and Ms. Benard when the affair became public on Monday.
Mr. Khalilzad, speaking only through a statement by his lawyers, stressed on Monday that neither he nor his wife faced any formal accusation or charges.Mr. Khalilzad, speaking only through a statement by his lawyers, stressed on Monday that neither he nor his wife faced any formal accusation or charges.
The former ambassador, who is 63 and was born in Afghanistan, is now a business consultant. He first served in the State Department in the mid-1980s, and worked for the Reagan administration and both Presidents Bush. He was a special adviser to President George W. Bush on Afghanistan at the time of the Sept. 11, 2001, terrorist attacks on the United States. In 2003, he was appointed ambassador to Kabul. He became ambassador to Iraq in 2005, and in 2007 ambassador to the United Nations. The former ambassador, who is 63 and was born in Afghanistan, is now a business consultant. He first served in the State Department in the mid-1980s, and worked for the Reagan administration and both Bush presidents. He was a special adviser to President George W. Bush on Afghanistan at the time of the Sept. 11, 2001, terrorist attacks on the United States. In 2003, he was appointed ambassador to Kabul. He became ambassador to Iraq in 2005, and in 2007 ambassador to the United Nations.
Ms. Benard is a social scientist and author who earned her doctorate at the University of Vienna. The couple met at the American University in Beirut, Lebanon, in 1972.Ms. Benard is a social scientist and author who earned her doctorate at the University of Vienna. The couple met at the American University in Beirut, Lebanon, in 1972.