ANKARA, Nov 5 (Reuters) - Turkish authorities have orderedthe arrest of gold trader Reza Zarrab, a prosecution witness inthe New York trial of a Turkish banker, over unlawful buildingwork, Anadolu news agency said on Monday.
Zarrab, 34, a dual national of Iran and Turkey, was agovernment witness in the trial of Mehmet Hakan Atilla, a formerdeputy general manager at Turkey's state-owned Halkbank who was convicted of helping Iran evade U.S.sanctions.
On Monday, Anadolu said an Istanbul court had ordered thearrest of Zarrab for carrying out unlawful restorations at hisvilla in Istanbul's Beykoz district, as part of the case inwhich he faces up to three years in prison.
Zarrab was detained in the United States in 2016 and lastyear pleaded guilty to charges that he schemed to help Iranevade U.S. sanctions. He then testified for the prosecution inAttila's trial.
It was not clear whether Turkish authorities could act onthe new warrant until Zarrab is freed from U.S. detention.Anadolu said the Istanbul judge had asked the foreignministry, justice ministry and Turkey's consulate in New Yorklook in to Zarrab's legal status.
The case of Halkbank has been one of the main points ofdisagreement between Ankara and Washington, whose relations have plunged into crisis this year over a host of issues, includingpolicy in Syria and Turkey's defence purchases.
Halkbank denies any wrongdoing and President Tayyip Erdoganhas condemned the court case as a political attack on hisgovernment. On Saturday, Erdogan, without giving details, saidhe had discussed the issue of Halkbank with U.S. PresidentDonald Trump, helping the bank's shares surge on Monday.
(Reporting by Tuvan GumrukcuEditing by Dominic Evans and Angus MacSwan)
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