Attempt to steal $1.6 billion in Mikhailovsky GOK shares

Investigator Karpov travels with Klyuev, joins the Organized Criminal Group and protects Klyuev.
Dmitry Klyuev attempted to steal $1.6 billion dollars of shares of the Mikhailovsky GOK iron ore company.

Many of the witnesses questioned in the case identified Klyuev as the mastermind of the crime. Three months prior to the court verdict, the main police investigator, Pavel Karpov, went on a secret vacation to Cyprus with his main suspect, Dmitry Klyuev. Upon his return, officer Pavel Karpov concluded his investigation in such a way that Dmitry Klyuev could avoid prison. He also made sure that lawyer Andrey Pavlov (another person with whom Officer Karpov vacations) was not even indicted. Major Karpov then blamed the crime on two low level associates of Klyuev, both of whom never had a chance to defend themselves in court because they died under mysterious circumstances before the trial.

Klyuev in an attempt to steal $1.6 billion of Mikhailovsky GOK shares

According to the materials of the Mikhailovsky GOK case, Criminal Case No. 1-215/06 Presninski Court, Klyuev attempted to steal $1.6 billion in shares of the iron ore company Mikhailovsky GOK.

Testimony of Dmitry Kluyev in Mikhailovsky GOK case, 4 August 2005 (English):

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Testimony of Dmitry Kluyev in Mikhailovsky GOK case, 4 August 2005 (Russian):

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Klyuev and his lawyer, Andrey Pavlov, applied the same techniques in the Russian courts as they used in future crimes to steal the taxes paid by Rengaz and Hermitage. Klyuev and Andrey Pavlov arranged sham lawsuits to enforce falsified agreements. As in later crimes, the criminal group represented both the plaintiff and defendant in court. In this particular case, the forged agreements used were sale and purchase agreements for US$1.6 bln worth shares of Mikhailovsky GOK and a forged bank guarantee issued by Universal Savings Bank beneficially owned by Dmitry Klyuev. As a result, courts in two different regions of Russia issued freezing orders over US$1.6 bln worth shares of Mikhailovsky GOK.

Witness testimony naming Klyuev as organizer of an attempted $1.6 billion theft

Testimony of Alexei Novokhatsky pointing out Dmitry Kluyev as organiser (Russian), 22 June 2005:

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Testimony of Olga Khasanova identifying Klyuev as the organizer, 4 August 2005 (Russian). Scroll down to underlined parts.

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In the records of the Criminal Case No. 1-215/06 Presninski Court, six different witnesses identified that Klyuev was behind the attempted $1.6 billion theft.

Klyuev light sentencing with no prison time

Conviction of Dmitry Klyuev in Mikhailovsky GOK case, 12 Jul 2006 (English). Scroll down to see highlighted text:

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Conviction of Dmitry Klyuev in Mikhailovsky GOK case, 12 Jul 2006 (Russian). Scroll down to see highlighted text:

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Conviction of Dmitry Klyuev showing that he was given a two year suspended sentence (no prison time) for organizing an attempted US$1.6 billion fraud.

The English translation of the conviction of Dmitry Klyuev showing that he was given a suspended sentence of two years (no prison time) for organizing an attempted US$1.6 billion fraud.

Dmitry Klyuev was recognized as the head of a criminal group and was given only a suspended sentence. Klyuev’s light sentencing was issued by judge Vasyuchenko of Presnensky district court of Moscow.

Reasons for Klyuev’s light sentence:

Investigator Pavel Karpov went on vacation to Cyprus with his principal suspect, Dmitry Klyuev, April 2006

Trip to Larnaka 05-04-2006 Karpov Klyuev

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This flight record shows that Officer Karpov and Dmitry Klyuev flew to Larnaca, Cyprus, together on 05/04/2006 when Officer Karpov was investigating Klyuev in the Mikhailovsky GOK case. Upon their return to Moscow, Major Karpov concluded that Klyuev’s crime had “no features of large-scale embezzlement.”

Numerous witnesses identified Klyuev as the mastermind of the attempted $1.6 billion theft. In spite of it, Major Karpov went on vacation with Klyuev, his main suspect. Upon his return, Karpov indicted low level associates of Klyuev – Sergei Albaev and Alexei Alexanov – as the masterminds of the crime. Their deaths before trial allowed Officer Karpov to blame Klyuev for an organizing role without “the features of large-scale embezzlement”. As a result, Klyuev was able to avoid prison time.

Indictments and Deaths of Low Level Klyuev Associates Indicted by Officer Karpov

Sergei Albaev

Two of the people Officer Karpov indicted, Klyuev’s driver, Sergei Albaev, and an administrator, Alexei Alexanov, died before the trial and had no opportunity to contest Officer Karpov’s findings.

Indictment and Death of Sergei Albaev, Klyuev’s driver.
Sergei Albaev: Date of Birth: 9 December 1965, Died 2005
According to the final verdict, Klyuev’s driver became an organizer of the complicated multi-million crime:
“He (Klyuev) gave an instruction to his assistant and colleague at Chelter LLC, Albaev S.A., to organise the seizure of shares of Mikhailovskiy GOK … For the purpose of implementing the criminal plan, Albaev… provided Pechkin A.N. with the necessary set of forged documents…”

Extract from conviction in Mikhailovsky GOK case, 12 July 2006 (English). Scroll down to see highlighted case:

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Extract from conviction in Mikhailovsky GOK case, 12 July 2006 (Russian). Scroll down to see highlighted case:

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This is the sentencing document from the Mikhailovsky GOK trial. The sections concerning Mr. Albaev are underlined. Albaev could not contest these findings nor be convicted or sentenced because he died before the trial.

This is an English translation of the sentencing document from the Mikhailovsky GOK trial. The parts relating to Mr. Albaev are underlined. Albaev could not contest these findings or be convicted or sentenced because he died before the trial.

According to the testimony of Albaev’s wife cited in the Indictment:
“Albaev was her husband. He served in the KGB until 1991, and from 1991 to 2003 worked as a security guard; he was able to earn extra money as a driver… She does not know who Albaev S.A. chauffeured… She found out from her child that her husband had gone away; she thought that he was in the hospital. An unknown person informed her by telephone of her husband’s death. It was ascertained later that Albaev S.A. died in Rostov-on-Don.”

Indictment and Death of Alexei Alexanov, nominal administrator in Klyuev’s firms InformAuditActive and TerraSoft

Alexei Alexanov Date of Birth: 4 June 1959, Died: 2006.
Alexei Alexanov was a nominal director of TerraSoft in Rostov, the company which alleged in court that it sold a 97% stake in Mikhailovsky GOK to Colchester Trading, when it never owned any shares in Mikhailovsky GOK to sell. Colchester Trading thereafter used the court decision to fraudulently freeze US$1.6 billion worth of shares of Mikhailovsky GOK that were never owned by either party.

Testimony of Alexei Alexanov from Mikhailovsky GOK case (Russian):

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The above document shows that Mr. Alexanov was nominal director of TerraSoft and had worked as Klyuev’s nominal deputy in InformAuditActive. As for his real role in the attempted theft, he could not contest Investigator Karpov’s findings or be convicted or sentenced because he died before the trial.

Karpov sends another man to prison for Klyuev’s crimes

Soon after accepting a job working for Klyuev, Igor Zhlobitsky was appointed CEO of Universal Savings Bank, just prior to the execution of the MIkhailovsky GOK fraud. Zhlobitsky was sent to prison instead of Klyuev by Officer Karpov.

While imprisoned, he wrote touching poetry about his misfortune: http://www.stihi.ru/2006/01/01-917.

Officer Karpov shields his travel partner, Klyuev’s lawyer Pavlov, from indictment

Klyuev’s partner, attorney Andrey Pavlov, prepared documents for the attempted $1.6 billion theft and would later be a key player in the collusive court judgments used for tax thefts. Notwithstanding that his name appears throughout the case, Officer Karpov never indicted him. This is not surprising as Officer Karpov and the Klyuev group’s lawyers, Pavlov and Mayorova, vacationed together on five occasions jointly taking nine flights.