Judge Tosses Iran Sanctions Conviction Over Evidence Violations

A US judge dismissed the case against a businessman found guilty earlier this year of violating US sanctions on Iran after federal prosecutors acknowledged failing to turn over exculpatory evidence.
The order by US District Judge Alison Nathan capped a stunning about-face for the Manhattan US Attorney’s Office, which last month asked to withdraw the case against Ali Sadr Hashemi Nejad despite winning a jury conviction in March. Sadr was accused of helping funnel US$115 million through the US financial system to Iranian-linked entities from a construction project in Venezuela.
After the verdict, prosecutors acknowledged they were late in turning over to the defense evidence that undermined the government’s case. Some documents disclosed by prosecutors showed US authorities were aware of Sadr’s transactions early on but never took action to block them. They also acknowledged at least one misstatement to Nathan and revealed internal chats in which one prosecutor contemplated a plan to “bury” exculpatory evidence.

“This is a complete and total exoneration of Ali Sadr, who never should have been charged in the first place. Sadr’s legitimate business activities were light years away from an Iran sanctions violation,” Sadr’s lawyers said in a prepared statement issued Friday. He “did not deserve the mistreatment he received from the US government in this case,” they added. Nathan’s order vacated the jury’s verdict and dismissed the indictment with prejudice, which means authorities cannot seek to re-file the charges. - Bloomberg