UNITED NATIONS — A close relative of a former secretary-general, Boutros Boutros-Ghali, the Geneva-based businessman Ephraim Nadler, was indicted yesterday by New York and federal authorities on charges related to the oil-for-food scandal, along with the program's director, Benon Sevan.
The indictments represent a new stage in an ongoing criminal probe in which 14 Turtle Bay officials and business associates have already been charged, convicted, or pleaded guilty, as prosecutors work to bring to justice those involved in the largest corruption scandal in Turtle Bay's history.
However, it was not clear yesterday whether the two alleged coconspirators, who have stayed away from America since the Paul Volcker committee detailed their alleged wrongdoings in mid-2005, would even bother to put up a defense.
Mr. Sevan's lawyer, Eric Lewis, told The New York Sun yesterday that his client has little confidence in the American justice system. Mr. Nadler is an Egyptian-born Jewish businessman whose sister, Leia, is Mr. Boutros-Ghali's wife. Mr. Volcker's investigation did "not indicate" that the former secretary-general has directly benefited from illicit gains in the oil-for-food program. Nevertheless, in the Volcker investigation as well as in a related federal trial recently, Mr. Boutros-Ghali was described as "targeted" for bribery by agents for Saddam's Iraq.
Along with the Cypriote Mr. Sevan, Mr. Nadler was accused yesterday of bribery and wire fraud-related charges, as well as of violating rules of an organization — the United Nations — which is largely financed by America.
The indictment accuses Mr. Nadler of helping a third, unnamed co-conspirator to obtain the right to buy Iraqi oil under the U.N.-run humanitarian program in exchange for commissions from the oil sales. Mr. Nadler then allegedly funneled "approximately" $160,000 of these oil commissions to Mr. Sevan.
Mr. Sevan is the highest-ranking U.N. official indicted so far in the U.N. corruption trials. In 2005, he left New York for Nicosia, Cyprus. While in the past it had no solid extradition agreements with America, Cyprus is currently a member of the European Union, a fact that may make extradition easier.
