WASHINGTON — ​Geoffrey S. Berman was outraged.

The top federal prosecutor in Manhattan, Mr. Berman had traveled to Washington in June 2019 to discuss a particularly delicate case with Attorney General William P. Barr and some of his top aides: a criminal investigation into Halkbank, a state-owned Turkish bank suspected of violating U.S. sanctions law by funneling billions of dollars of gold and cash to Iran.

For months, President Recep Tayyip Erdogan of Turkey had been pressing President Trump to quash the investigation, which threatened not only the bank but potentially members of Mr. Erdogan’s family and political party. When Mr. Berman sat down with Mr. Barr, he was stunned to be presented with a settlement proposal that would give Mr. Erdogan a key concession.

Mr. Barr pressed Mr. Berman to allow the bank to avoid an indictment by paying a fine and acknowledging some wrongdoing. In addition, the Justice Department would agree to end investigations and criminal cases involving Turkish and bank officials who were allied with Mr. Erdogan and suspected of participating in the sanctions-busting scheme.

Mr. Berman didn’t buy it.

The bank had the right to try to negotiate a settlement. But his prosecutors were still investigating key individuals, including some with ties to Mr. Erdogan, and believed the scheme had helped finance Iran’s nuclear weapons program.

“This is completely wrong,” Mr. Berman later told lawyers in the Justice Department, according to people who were briefed on the proposal and his response. “You don’t grant immunity to individuals unless you are getting something from them — and we wouldn’t be here.”

It was not the first time Mr. Berman, the United States attorney for the Southern District of New

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