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Austria Court Unblocks Assets of Former U.S. Ambassador Austria Court Unblocks Assets of Former U.S. Ambassador
(about 5 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, a former United States ambassador reportedly under investigation by the Justice Department for tax evasion and money laundering, according to a statement from the couple and their lawyer on Thursday.
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 in a telephone interview that a higher Vienna court ordered the accounts unfrozen on Sept. 3, but that the decision was conveyed to him only 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. The case surfaced on Monday after Profil, an Austrian newsmagazine, reported that the American authorities were investigating transfers into seven accounts held by Mr. Khalilzad’s wife, Cheryl Benard, totaling 1.15 million euros, or nearly $1.5 million. Profil said that documents from the Vienna legal authorities, including a Department of Justice order from May 2013 concerning an investigation into Mr. Khalilzad’s financial dealings, had been found in a garbage dump by a blogger between March and August. The newsmagazine said the investigation concerned possible tax evasion and money laundering.
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. Although the American authorities had sought only information, Mr. Bielesz has said, Austrian prosecutors obtained a court order in February freezing accounts held in Vienna, the Austrian capital, by Ms. Benard, who holds American and Austrian citizenship. Mr. Khalilzad is a former ambassador to Afghanistan, Iraq and the United Nations.
“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.” Mr. Bielesz refused to confirm details in the Profil report, but the statement said: “The appellate decision by the regional high court is a complete vindication of the position of Ms. Benard and Ambassador Khalilzad. 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.” Quoting the couple, the statement said 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 any continuing investigation into Mr. Khalilzad’s financial dealings.
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, speaking on the condition of anonymity, confirmed that the Justice Department had asked the Austrian government for help in the case but did not elaborate on its nature and scope.
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. Asked about the investigation, Mr. Bielesz said in the interview, “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 matter 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. In a statement issued by his lawyers on Monday, Mr. Khalilzad, 63, emphasized 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 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. The former ambassador, who was born in Afghanistan, is now a business consultant in Washington. 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. In 2003, he was appointed ambassador to Kabul, the Afghan capital. He became ambassador to Iraq in 2005, and to the United Nations in 2007.
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.