Iraq Before and After ISIS, Satellite Images and Data

Mosul in March 2016, under Islamic State control, when nighttime lighting had fallen by 55 percent compared to its pre-ISIS levels in January 2014

January 9, 2018

What Life Under ISIS Looked Like from Space

Rand Corporation: Mosul in March 2016, under Islamic State control, when nighttime lighting had fallen by 55 percent compared to its pre-ISIS levels in January 2014

Image by NOAA Visible Infrared Imaging Radiometer Suite (VIIRS)

A sandstorm swept through the besieged Iraqi city of Ramadi on the day it fell to the Islamic State. In the murk and confusion, suicide car bombs raced into the city center and leveled entire blocks. By the afternoon, the black flag of ISIS flew from the government headquarters.

Hundreds of miles above, an array of satellites captured what came next. Markets emptied. Factories went cold. Fields of wheat and barley withered. And the lights went out all over the city.

Data from those satellites provided RAND researchers an unprecedented look at life inside the Islamic State. They found a path of economic destruction, with few exceptions. In city after city, as in Ramadi, the arrival of the Islamic State meant a plunge into darkness.

Local Economies Under ISIS

By the time Ramadi fell in mid-2015, the Islamic State controlled an area of Iraq and Syria approaching the size of Great Britain. Its advance had been ruthless, its brutality staggering. RAND researchers wanted to know: What happened to cities and local economies when the Islamic State tried to govern?

Satellites were their way in.

Satellite observations have opened windows on everything from nuclear weapon programs to rush-hour traffic in the decades since RAND first proposed a “world-circling spaceship” in 1946. The United States alone now has more than 800 active satellites in orbit; more than half of them are commercial. Analysts have used satellite data to measure poverty in Kenya, black markets in North Korea, even the number of customer cars in Home Depot parking lots.

Those same kinds of data, RAND researchers realized, could provide a remarkably detailed look inside one of the most dangerous places in the world.

Satellite data measuring surface reflections from the Earth, for example, would show how much land was planted for agriculture. Urban heat readings would help pinpoint working factories. And infrared ground scans would show where city lights were glowing in the night, bright spider webs against a dark background.

In Syria, more than 60 percent of the lights went dark as ISIS struggled to restore electricity or fuel generators. In Iraq, it was more like 80 percent.

The researchers collected data on more than 150 cities in Iraq and Syria, month by month. They estimated that as much as a third of the population had fled areas under ISIS control. Factories closed; fields dried up. In Syria, more than 60 percent of the lights went dark as ISIS struggled to restore electricity or fuel generators. In Iraq, it was more like 80 percent.

“What’s unique about this is that we were able to bring all these different measurements together and provide a much more holistic understanding of the local economies,” said Eric Robinson, a research programmer and analyst at RAND who led the project. “We were able to use nighttime lighting to understand electricity consumption, but control for population levels. We knew that if an entire city had depopulated, then there was no one there to turn the lights on.”

Some Economic Decay, Some Effective Governance

The researchers then zoomed in on five major cities using high-resolution photographs from commercial satellites. Those photographs, similar to the satellite-view images on Google Maps, were so detailed the researchers could count cars on the road or measure foot traffic at a market. A small army of volunteers helped them go through the images, one by one, and perform those counts by hand—a crowd-sourced solution to a big-data problem.

The images told two very different stories.

In cities like Ramadi, Tikrit, and Deir ez-Zor, where ISIS was under fire and struggling to maintain control, its rule brought economic decay. Satellite images of the main market in Ramadi, for example, showed a ghost town. Commercial trucks all but disappeared from the roads in Tikrit. And in Deir ez-Zor, the lights went dark in ISIS-controlled neighborhoods even though the group held massive oil fields outside the city that could have kept generators running.

But in the core of the caliphate, where ISIS control was more secure, the satellite images showed some evidence of effective governance. In its capital city of Raqqa, for example, the group managed to keep the lights on at hospitals even when the rest of the city went dark, a sign that it was managing electricity. In the big city of Mosul, the group transformed an open-air market into a covered shopping district that was soon bustling with shoppers and car traffic—all of which it could tax.

Mosul City Center and Market

Following liberation of the city, recent satellite photo shows extensive damage and destruction to Mosul.

Satellite image by Digitalglobe

“There were obviously just terrible stories of brutality coming out of the city, but people still need to buy food, and shop owners still own shops, and goods are still moving in and out of this market,” Robinson said.

“One of the key takeaways of our report,” he added, “is that without the military campaign to retake this territory, the Islamic State could have tried to replicate some of the modest success it experienced in Mosul and Raqqa. We would be facing a much different enemy.”

Preparing for a Post-ISIS Recovery

In fact, the researchers concluded it wasn’t necessarily the harsh rule and high taxes of ISIS that ground out local economies. The group was constantly trying to fend off counterattacks and air strikes, and could not turn its attention to governing or building back local economies.

Its caliphate has since splintered. It lost Tikrit in 2015, Ramadi in early 2016. Iraqi forces declared Mosul liberated last year, after dislodging ISIS forces neighborhood by neighborhood. A RAND analysis calculated that the Islamic State had lost more than half its territory by early 2017, a rout that has continued since then.

The extensive destruction of West Mosul, Iraq, June 2017

The extensive destruction of West Mosul, Iraq, June 2017

Photo by Sipa via AP Images

The disintegration of the Islamic State as a state has given RAND’s satellite analysis new importance. No longer a window into how the group governs, though, it is now providing a window into the economic damage it left behind, and what it will take to rebuild. Researchers have been working with U.S. government agencies to prioritize work in Syria to help stabilize cities captured from ISIS—restoring the electric grid, for example, or investing in markets.

“I think the big concern in this region is that if we don’t help truly rebuild and reconstitute the local governance in those areas, that there will be a resurgence of an ISIS 2.0 or an ISIS-like group,” Robinson said. He’s hoping to continue tracking the satellite data, “to measure our progress so far, to make sure we don’t take our foot off the gas too soon.”

The scale of that need is apparent in Ramadi. It’s been almost three years since ISIS fighters swept into the city in the blur of a sandstorm, and two years since Iraqi forces swept them back out. RAND’s satellite data showed destruction in almost every neighborhood in the city; every bridge was demolished. The city was once home to nearly 300,000 people; RAND’s data suggest no more than 36,000 still lived there after ISIS.

— Doug Irving

Abu Hamza was Notified of the 9/11 Attacks 4 Days Earlier

Abu Hamza was once deeply affiliated with the Finsbury Park mosque including raising funds for jihad there. Born Mustafa Kamel Mustafa in Alexandria, Egypt, on 15 April 1958, Abu Hamza was the son of a naval officer and a primary school headmistress. He initially studied civil engineering before leaving for England in 1979. More here.

A trustee at one of London‘s best-known mosques is a senior member of ‘terrorist organisation’ Hamas’s political wing, it was reported.

Mohammed Sawalha holds the role of trustee at Finsbury Park Mosque in north London, which was formerly linked to extremism but which insists it has since undergone an ‘complete overhaul’.

It emerged today that Mr Sawalha represented the militant Palestinian organisation Hamas at recent talks in Moscow.

Sawalha, who lives in London, was appointed a trustee of the mosque in 2010 and is legally responsible for overseeing the mosque’s management, The Times reported. More here.

He was one of five senior figures from the Islamist organisation who were sent to Moscow in September, where they met Russia’s deputy foreign minister Mikhail Bogdanov and other Kremlin officials.

*** Image result for abu hamza photo/
ABU Hamza’s son, Sufyan Mustafa, has said he will fight to return to his life in Britain after the Government stripped him of his passport, leaving him in war-torn Syria. In 2012, Imran Mostafa, another of Hamza’s sons was jailed for his role in a jewellery heist in Norfolk.

Abu Hamza, Britain’s most notorious hate preacher, says militant contacts in Afghanistan called him four days before the 9/11 attacks to warn: “Something very big will happen very soon.”

The hook-handed cleric says he interpreted the message as being about an impending terrorist strike on America and believes the phone at his west London home was being “tapped” by police at the time.

Related reading: The Mustafa Indictment document

His claim raises questions about whether British authorities were aware of the warning and failed to pass it on to their American counterparts before al-Qaeda operatives flew hijacked jets into the World Trade Center in New York and the Pentagon in September 2001.

Details of the phone call are revealed in American court papers, seen by The Sunday Times, which also reveal that Abu Hamza acted as an agent for MI5 and Special Branch under the code name “Damson Berry”. The former imam of Finsbury Park mosque in north London is appealing against his conviction for terrorist offences and his “inhuman” incarceration at an American“supermax” prison.

Related reading: Finsbury Park Truck Attack

In a 124-page handwritten submission, Abu Hamza says he has been singled out and “punished” since 9/11. He writes in broken English: “What made pro-war governments and intelligence [agencies on] both sides of the Atlantic more furious about the defendant [Abu Hamza is] that defendant received a call from Afghanistan on Friday, Sept 7, 2001, from 2 of his old neighbours in his Pakistan time (1991-93) saying ‘Something very big will happen very soon’ (meaning USA).”

Abu Hamza denies the call came from al-Qaeda figures, but says he thought “this news is widely spread and everyone is phoning friends . . . the intelligence [agencies] of many countries must have had an earful about it”.

The preacher’s claim could not be independently corroborated this weekend, but his standing in extremist circles makes it plausible.

UN Declaration, Regular, Constant Global Migration = Insurgency

Berlin A new series launched by the Global Migration Data Analysis Centre (GMDAC) of IOM, the UN Migration Agency, aims to summarize the existing evidence on migration in an accurate and accessible fashion, to support discussions and any follow-up activities of the Global Compact for Safe, Orderly and Regular Migration.

Note the words orderly and regular….if the United Nations and peacekeeping operations as well as the aid, education, construction and protection campaigns were successful, migration would not be required especially in non-war torn countries. Right? Or how about all these other global human interest organizations….they failing too? Those like the Clinton Foundation or hey how about the Gates Foundation, which is a private foundation founded by Bill and Melinda Gates. It was launched in 2000 and is said to be the largest private foundation in the US, holding $38 billion in assets, improving lives from Seattle to South Africa….ahem.

Image result for global migration

Check here for the largest 10 organizations…. if all this work and money and resources were effective, then why the migration at all?

More here.

The New York Declaration

For the first time on 19 September 2016 Heads of State and Government came together to discuss, at the global level within the UN General Assembly, issues related to migration and refugees. This sent an important political message that migration and refugee matters have become major issues in the international agenda. In adopting the New York Declaration for Refugees and Migrants, the 193 UN Member States recognized the need for a comprehensive approach to human mobility and enhanced cooperation at the global level.

What are the aims of the global compact for migration?

The global compact is framed consistent with target 10.7 of the 2030 Agenda for Sustainable Development in which member States committed to cooperate internationally to facilitate safe, orderly and regular migration and its scope is defined in Annex II of the New York Declaration. It is intended to:

  • address all aspects of international migration, including the humanitarian, developmental, human rights-related and other aspects;
  • make an important contribution to global governance and enhance coordination on international migration;
  • present a framework for comprehensive international cooperation on migrants and human mobility;
  • set out a range of actionable commitments, means of implementation and a framework for follow-up and review among Member States regarding international migration in all its dimensions;
  • be guided by the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda; and
  • be informed by the Declaration of the 2013 High-Level Dialogue on International Migration and Development.

The development of the global compact for migration – an open, transparent and inclusive process

The Modalities Resolution for the intergovernmental negotiations of the global compact for safe, orderly and regular migration outline the key elements and timeline of the process. The global compact will be developed through an open, transparent and inclusive process of consultations and negotiations and the effective participation of all relevant stakeholders, including civil society, the private sector, academic institutions, parliaments, diaspora communities, and migrant organizations in both the intergovernmental conference and its preparatory process.

 

Iran’s Supreme Leader, the Nuclear Deal, Protests and Boeing

It is the conglomerate that the Supreme Leader, the Ayatollah Khamenei owns exclusively. “Setad Ejraiye Farmane Hazrate Emam,” or Setad.

Image result for Setad Ejraiye Farmane Hazrate Emam

Setad was originally sanctioned by the U.S. Treasury in June 2013. The conglomerate “produces billions of dollars in profits for the Iranian regime each year,” said David Cohen, then the Treasury’s under secretary for terrorism and financial intelligence, at a Senate banking committee hearing that year.

Setad, Cohen said at the time, controls “massive off-the-books investments” hidden from the Iranian people and regulators.

All entities sanctioned for being part of the Iranian government are being taken off the SDN list as part of the nuclear deal, also called the Joint Comprehensive Plan of Action (JCPOA), though U.S. persons and entities will still be banned from dealing with them.

In January of 2017, a review by Reuters noted: But a Reuters review of business accords reached since then shows that the Iranian winners so far are mostly companies owned or controlled by the state, including Iran’s Supreme Leader, Ayatollah Ali Khamenei.

Of nearly 110 agreements worth at least $80 billion that have been struck since the deal was reached in July 2015, 90 have been with companies owned or controlled by Iranian state entities, the Reuters analysis shows.

In December of 2017: Treasury Department officials must publish a report chronicling the financial assets of Iran’s top leaders, under a bill that passed the House on Wednesday.

The legislation, which passed 289-135, must still clear the Senate before President Trump can sign it into law. It’s a potential boon to Iranian dissidents against the regime, who stand to gain insight into corruption by top officials.

Related:

Podcast – Upheaval in Iran: Causes and Consequences

Meanwhile, as the protests continue in Iran against the regime and rightly so, questions arise due to not only Senate votes on sanctions but staying with the Joint Comprehensive Plan of Action, meaning the Iran nuclear deal.

Image result for Setad Ejraiye Farmane Hazrate Emam photo

Why is there even a question based on additional facts surfacing in the last year? Well, the left and those that remain with John Kerry and Barack Obama are adding new pressures to stay in the JCPOA. Further, complications arise from those countries that are also part of the deal. They too want the deal sustained.

In a story titled “U.S. security experts back Iran nuclear deal, as Trump faces deadlines,” Reuters reports that a coalition of national security experts want the president to continue the Iran deal. The report claims, without any context, that all of the people who signed a letter in favor of the deal are “national security experts.” Additionally, these “experts” are from an organization called the “National Coalition to Prevent an Iranian Nuclear Weapon.”

It turns out, however, that some of those listed on the document have severe conflicts of interests, none of which were disclosed in the letter.

It also turns out that the National Coalition to Prevent an Iranian Nuclear Weapon is not an actual organization. A Google search of the group turned up nothing before Monday. The group was created this week with the apparent purpose of garnering support for the nuclear deal. None of this is reported in the Reuters article. It is only revealed through the group’s statement provided on The National Interest website.

The outfit’s title also presumes its members are national security hawks, when this is far from the case.

Members of the “National Coalition” include a who’s who of the prominent organizers of the campaign to rally support for the Obama administration’s nuclear deal with Tehran.

Included on the list is Joseph Cirincione, who served as the money man for President Obama’s Iran “echo chamber.” Cirincione has admitted to paying off a “network of 85 organizations and 200 individuals” who were “decisive in the battle for public opinion” over the Iran deal.

Gary Sick, another signee, was one of the chief organizers of the Iran echo chamber. According to the Washington Free Beacon, Sick created an invite-only listserv to distribute pro-Tehran talking points to Obama-friendly journalists and influential figures.

The coalition also includes Ambassador Thomas Pickering, who is a paid lobbyist for Boeing. The aviation company is attempting to secure a multi-billion-dollar jetliner deal with the Iranian regime. If the Iran deal falls through, so does Boeing’s deal.

Paul Pillar, a disgraced former CIA officer who was also on the letter, once drafted talking points arguing that it’s not a big deal if Iran is able to develop a nuclear weapon. “If Iran develops a nuclear weapon, the United States and the West could live with it, without important compromise to U.S. interests,” he wrote, according to Eli Lake of Bloomberg News.

It remains a mystery what President Trump will decide this time around. He has been troubled by Iran’s violent response to countrywide protests. The president has leveraged social media and several executive departments to raise awareness about the plight of Iranian protesters. He has also mulled enacting further sanctions against the regime.

As an aside, there too is pressure from Boeing, they want to protect the sale agreements of planes to Iran such that they have offered to ‘finance’ the payments, essentially layaway. Iran is looking for a method to make payments of $44B to both Air Bus and Boeing. Humm….but that Supreme leader has a major conglomerate remember?

 

 

Iran/Turkey Evade Sanctions Work, Guilty and DC

If you think you can describe relationships and motivations globally and the connective tissue into Washington DC….you may need to think again.

This particular legal case decided yesterday has the makings of an HBO television documentary that includes past and present political power-brokers. We have Trump, Giuliani, Flynn, Obama, FBI, Justice, Iran, Turkey, lobbyists and even some violence.

What did the Obama administration know and why did they know it, then what?

Primer:

May 2017: MIAMI — President Donald Trump’s longtime Florida lobbyist, Brian Ballard, has expanded his practice globally and just signed a $1.5 million contract with the government of Turkey, which will be represented by the firm’s new big hire, former Florida Congressman Robert Wexler.

Ballard Partners’ Turkey contract, inked Friday, comes on the heels of two other international clients signed by the firm: A March 6 $900,000 contract with the Dominican Republic and an April 1 $240,000 contract with the Socialist Party of Albania, the ruling party in the Balkan nation. More here.

For a current list of clients for Ballard Partners, go here.

***

Just the facts and the case of GOLD below, while several are still at large.

Enter the good guys, outside of government who perform remarkable and respected investigative work.

The Biggest Sanctions-Evasion Scheme in Recent History

And the swashbuckling gold trader at its center

SchanzerYesterday, Turkish banker Mehmet Hakan Atilla was found guilty in a Manhattan courtroom for a range of financial crimes. His dramatic trial revealed that tens of billions in dollars and gold moved from Turkey to Iran through a complex network of businesses, banks, and front companies.

Image result for Mehmet Hakan Atillaphoto

The trial was a long time coming. In late October of 2016, Justice Department officials paid a visit to the Foundation for Defense of Democracies, the Washington-based think tank where I serve as senior vice president. They wanted to talk about Reza Zarrab. A dual Iranian-Turkish national, Zarrab was the swashbuckling gold trader who had helped Iran evade sanctions with the help of Turkish banks in 2013 and 2014, yielding Iran an estimated $13 billion at the height of the efforts to thwart Tehran’s nuclear ambitions. A leaked report by prosecutors in Istanbul in March 2014 suggested that Zarrab spearheaded a second sanctions-busting scheme involving fake invoices for billions more in fictitious humanitarian shipments to Iran that were processed through Turkish banks.

At FDD, we’d spent considerable time digging into Zarrab’s activities. Our think tank already had an established track record of identifying and exposing Iran’s malign activities. We had also just launched a new program to explore Turkey’s recent drift into Islamist authoritarianism. The more we investigated, the more we realized that Zarrab’s schemes, which could have helped Iran pocket more than $100 billion, rank among the largest sanctions evasion episode in modern history.Despite the headlines generated by the gold trade and leaked report, the Turkish government insisted that everything was above board. The Obama administration seemed to echo this sentiment, saying that the gold trade had slipped through a legal loophole (a loophole the White House inexplicably left open for an additional six months, even after the problem was flagged). We soon learned Ankara’s political motivations: The gold trade helped boost Turkey’s flagging export numbers at a moment when those numbers might have hurt President Recep Tayyip Erdogan’s chances for reelection. Zarrab, who became fabulously wealthy by taking a percentage from every transaction (he later estimated his take at $150 million), even received a reward for his efforts from a Turkish trade association in 2015, with Erdogan applauding from the audience.

But it all came to an abrupt halt last March, when Zarrab inexplicably brought his family to America for a vacation at Disney World. With the 2015 nuclear deal in effect, he may have believed that the sanctions laws he violated before the deal were no longer in force. Some suggest that Zarrab was trying to flee Iranian justice, particularly as the regime came to grasp just how much he skimmed off the top. Either way, when he arrived in Florida, U.S. authorities arrested him for engaging in conspiracies to violate sanctions, commit bank fraud, and launder money.

It was about time. For three years, my colleagues and I had been briefing the Treasury Department, the State Department, and Congressional offices. We had tracked the export data (which, remarkably, Turkey did not hide), showing an astronomical spike in Turkish gold exports. We identified the companies and players, with the help of the 2014 prosecutor’s report. It was painstaking work, but it was all out there in open sources for a think tank like ours to document.Yet, it was an inconvenient moment to reveal unsavory truths about Iran, amid the push for the nuclear agreement. Nor did anyone, Democrat or Republican, want to touch the third rail of relations with Turkey, a NATO ally that had recently begun backing terrorist groups like Hamas (which still maintains a disturbing presence in Turkey) and a range of Sunni jihadi groups fighting the Assad regime in Syria (including al-Qaeda’s affiliate, according to senior U.S. government officials we interviewed). Stable allies in the Muslim world were scarce, and decision-makers seemed reluctant to take any chances with Ankara.

It may also have been difficult for officials to hear that the sanctions tools we have in place to prevent bad actors from moving money are just that—tools. Without intense vigilance and enforcement, there is ample opportunity for Iran and other sanctioned countries to find workarounds. But if we’re going to follow the money, we’d better be prepared to follow it to the most inconvenient places.

That’s why it was a pleasant surprise when the Justice Department came knocking on FDD’s door. It had never dawned on us that they might be interested in our work. But they were. They wanted to see what we already knew of the complex web of companies, networks, and schemes, that Zarrab employed to move money out of Turkey and into Iran. After all, even with the vast evidence they had collected, our research predated their investigation.In the weeks and months that followed, one visit begat another. Both I and Mark Dubowitz, FDD’s CEO, were asked by the assistant U.S. attorney to serve as an expert witness for the prosecution. We pored over invoices tracking the transactions that turned gold into Iranian cash. We analyzed spreadsheets detailing the dizzying trail of sales and purchases designed to obfuscate the illicit nature of the transactions. There were also photos, including one of Zarrab himself standing next to a six-foot high tower of plastic-wrapped bricks of $100 bills. The documents were privileged at the time, but will soon be made public now that the trial is over. The documents are damning, with textbook examples of  money-laundering techniques like over-invoicing (charging significantly more for a given product to yield more margin) and circular invoicing (making multiple transactions involving the same funds or goods to hide a money trail or even benefit from arbitrage). The figures themselves were astounding: hundreds of millions of dollars in transactions in every stack of papers we viewed.

The case took a wild turn on March 28, when, Justice Department officials from the Southern District of New York arrested Atilla, the deputy CEO and general manager at Turkey’s state-owned Halkbank. They accused him of conspiring with Zarrab to launder hundreds of millions of dollars through the U.S. financial system on behalf of Iran. It was Halkbank that held one of the oil escrow accounts for Iran. The escrow accounts constituted a creative method of withholding petrodollars from Iran, as mandated by the Iran Threat Reduction and Syria Human Rights Act (ITRA) of 2012. In brazen defiance of U.S. sanctions, Halkbank released those funds to buy gold, which was then shipped off to Iran. Halkbank was also accused of helping to process Zarrab’s aforementioned fictitious invoices, the ones first exposed in the 2014 prosecutor’s report.
Image result for HalkbankUranium or gold

Halkbank was clearly in trouble. In September, it hired Ballard Partners, a U.S. lobbying firm that already represented the Turkish government, for a whopping $1.5 million. Separately, Zarrab hired former New York Mayor Rudy Giuliani and former Attorney General Michael Mukasey in an attempt to derail the proceedings. But the real drama came in late November when Zarrab pled out, making him a witness for the prosecution. Atilla would stand trial alone.

Related reading: Iran’s Turkish gold rush

That’s when the Turkish government got angry. They took their anger out on me and Mark Dubowitz, who testified on the first day of Atilla trial about the Iran sanctions architecture. The state media called us terrorists, alleging we were affiliated with Turkish cleric Fethullah Gulen’s network, the group Erdogan blamed for the attempted coup in July of last year. Ankara also issued an arrest warrant for my colleague Aykan Erdemir, a former Turkish parliamentarian. Turkish authorities froze his assets and even seized the apartment that his grandfather had bequeathed to the family. They said he “destroyed paperwork relating to state security” and “stole documents with the intention of using them abroad.” They also falsely identified him as being on the witness list.

But Ankara could not stop Zarrab from delivering seven days of sensational testimony. On day one, he appeared in court wearing a beige prison jumpsuit; for the remainder, he was allowed to wear a blazer. He was a natural in front of the jury, using diagrams to coolly explain how he orchestrated the scheme. He looked like a business school professor teaching a class on corruption.Here’s what Zarrab testified: The scheme began in 2010, when Iran began to feel the squeeze from U.S. sanctions for its nuclear drive. Zarrab said that around 2012 the Iranian government gave him explicit directions to conduct these illegal transactions. Turkish officials were also on the take, Zarrab said, with its economy minister allegedly taking $50 million in bribes to help facilitate the scheme. He said other Turkish officials were on the take, too—many of whom were in Erdogan’s inner circle. According to Zarrab, other Turkish banks may have been involved at the government’s behest. All this might explain why the Turkish government, even after the prosecutor’s report was leaked in 2014, killed all inquiry into the Zarrab scheme.

Testimony from David Cohen and Adam Szubin, two former Treasury Department undersecretaries would also reveal that Halkbank officials repeatedly reassured them their gold-trader clients, including Zarrab, were in compliance with U.S. sanctions against Iran. (Zarrab testified that he continued his operations up until his arrest in March 2016, which meant that Halkbank would have been lying to U.S. officials.)

In the end, the trial ran long. With the judge calling for the prosecution to wrap things up quickly, I managed to avoid taking the stand. Atilla testified in a last-ditch self-defense, and the jury began its deliberations on December 20.Yesterday, after spending 11 days away for Christmas and New Years, the jury returned to deliberate again, and after only a few hours delivered their verdict: guilty on five out of six counts. Atilla’s rap sheep now includes four conspiracy counts, including conspiracy to defraud the United States, plus one count of bank fraud. (He was acquitted for money laundering.)

All eyes are now on the United States government and whether it issues a fine against Halkbank, particularly now that it has proven in a court of law that the bank engaged in a massive, illegal financial scheme. French Bank BNP Paribas was fined $8.9 billion for far lesser transgressions in 2015, for its violations of sanctions against Sudan, Cuba, and Iran.

Fine or no fine, it’s hard to envision tranquil U.S.-Turkish relations going forward. Erdogan, who now rivals Russia’s Vladimir Putin in autocratic style, has already instructed his spokesman to decry the trial as a “plot” against Turkey, while slamming “the scandalous verdict of a scandalous case.”

Then there is the question of Iran. In all likelihood, Tehran probably gave little thought to the Atilla verdict, given its ongoing domestic turmoil. The people are calling for better economic conditions, and a foreign policy that doesn’t squander Iran’s wealth on adventurism outside the country’s borders. One can only guess that would include complex sanctions busting schemes to enable an illicit nuclear program.

And now that Zarrab has finally clarified a few things about the Iranian role in his scheme, one troubling question lingers: Why did the U.S. government continue to negotiate the nuclear deal with Iran in 2013 and 2014 while Treasury was warning Halkbank about enormous sanctions violations? We may never know. Then again, from the documents I viewed, I wouldn’t be surprised to see other sanctions busters come in the DOJ crosshairs—creating new and uncomfortable challenges for our existing alliances and diplomatic agreements. Perhaps other future indictments will tell us more.