Posts Tagged ‘adam taylor’

21
December 2020

Russian Probe Finds Hedge Fund Lawyer Was ‘Tortured, Beaten To Death’

Business Insider

An investigation into the death of Hermitage Capital lawyer Sergei Magnitsky has found that police torture may have contributed to his demise, reports Russia Today.

“The documents we possess testify to the illegal use of rubber clubs,” council member and human rights defender Valery Borshchyov was quoted by Interfax. “It turns out that 8 prison employees were beating one prisoner.”

Other details noted included the delay in medical attention and wounds on the wrists that indicate Magnitsky was struggling to get free.

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19
March 2014

How U.S. sanctions hope to strike at Putin’s allies without actually targeting Putin

Washington Post

On Monday, President Obama released a list of individuals sanctioned for their involvement in Crimea’s vote to join the Russian Federation. Of the 10 names on the list, seven are Russian.

One person, however, was notable by his absence: Russian President Vladimir Putin.

While Putin’s name appears three times in the list, U.S. officials have explained that it would be “extraordinary” for them to target a head of state in such a case, despite calls to do so from people such as Bill Browder, one of the key supporters of the Magnitsky Act.

The list does strike at Putin, however, by targeting some of his key allies. These people may not be household names in the United States or Western Europe, but they hold real power in Russia, which may not be apparent from the one-line descriptions given by the White House.

For starters, there’s Vladislav Surkov, described as a presidential aide to Putin. Surkov is notorious in Russia-watching circles as the theater director who later became a PR man for Mikhail Khodorkovsky. He eventually came to the Kremlin and used his understanding of publicity and image to help sustain and strengthen Putin’s presidency, with some even suggesting that he was the real power behind the throne. He was called “Putin’s Rasputin” in the London Review of Books, and the “Gray Cardinal” by many others. While he apparently fell out of favor after anti-Putin protests in 2012, he was brought back last fall to help deal with Ukraine and other situations.

Then there’s Sergei Glazyev, once a fierce critic of Putin and even a rival to his presidency, who was brought into the president’s fold in 2012, and is described as a “Presidential Adviser to Russian President Vladimir Putin.” Glazyev was tasked with developing the Customs Union between Russia, Belarus and Kazakhstan, a precursor to the “Eurasian Union” that is said to be close to Putin’s heart. It had been hoped that Ukraine might join the Customs Union, and Glazyev had acted as Putin’s main emissary to the country over 2013. He had issued a number of warnings to Ukrainians as the Euromaidan protests progressed.

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04
March 2014

The man behind the Magnitsky Act explains why now is the time to go after the Russian elite’s assets

Washington Post

As much as everyone is very mad at Russia right now for its actions against Ukraine, it still isn’t exactly clear what will happen next. Might the United States and Western Europe send troops into battle against Russia? Even if Russia weren’t a nuclear power, that seems incredibly dangerous.

Instead, the discussion is moving to economic measures, with the Obama administration saying it is “highly likely” they will use sanctions against Russia.

However, at least one person is arguing that there may be another option, one that could zero in on the interests of the Russian elite more accurately without hurting the Russian public in general: a 2012 human rights law known as the Magnitsky Act.

“This is exactly what the Magnitsky Act was created for,” Bill Browder, founder of the investment fund Hermitage Capital Management explained in a phone call from his London base Monday morning. For Browder, his link to the act isn’t just political — it’s also personal. The man for whom “the Magnitsky Act” is named worked for him.

The story of the Magnitsky Act began in 2008, when Sergei Magnitsky, a Moscow-based lawyer working for the Hermitage Fund, testified in a Russian court that he had uncovered a huge scam by top police officials. According to Magnitsky, the officials had embezzled $230 million in taxes from money that Hermitage Fund companies had paid in 2006, with corrupt police officers using stolen corporate seals and documents seized in a 2007 raid on Hermitage’s Moscow offices to set up fake companies under the same names, and then used these fake companies to get a tax rebate.

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11
September 2013

As Putin Edges Out Obama In Syria Crisis, US Moves To Seize $230 Million From Alleged Russian Fraudsters

Business Insider

The Russia-U.S. relationship is the focus of a lot of attention this week, with President Vladimir Putin widely perceived to have out-maneuvered President Barack Obama and winning respect from unlikely corners.
Syria, however, is not the only issue between Russia and the U.S. at the moment.

Manhattan U.S. Attorney Preet Bharara announced Tuesday that authorities are seeking to seize luxury apartments and other property said to be used to launder funds by Russian criminal networks.

According to a 63-page lawsuit, Cyprus-based company Prevezon Holdings Ltd. and its New York affiliates must hand over more than $230 million for trying to launder tax fraud money with the purchase of real estate in the U.S. — notably the Alexander Condominium building at 250 East 49th street.

The case relates specifically to the notorious case of Sergei Magnitsky, the Moscow-based lawyer who was imprisoned and died mysteriously in jail after calling attention to an alleged Russian tax fraud scheme.

Magnitsky had been working for Hermitage Capital, a fund managed by American Bill Browder. After Hermitage’s Moscow offices were raided in 2007, Magnitsky began investigating and later testified that he had uncovered a huge scam by top police officials to embezzle $230 million in taxes from money that Hermitage Fund companies had paid in 2006.

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26
July 2013

The Son Of Putin’s Worst Enemy Explains What’s Going Wrong With Russia

Business Insider

Relations between Russia and the U.S. have recently hit a rough patch.

In December, Congress passed the Magnitsky Act, which will create a black list of Russian officials suspected of human rights abuses. Hermitage Capital founder William Brouder had lobbied for years for the legislation, which is named after Sergei Magnitsky, a Hermitage-lawyer who died in a Moscow jail after accusing officials of involvement in an enormous tax fraud.

Before the list could even be finalized, however, the Russian Duma hit back with its own legislation seeking to ban the adoption of Russian children by U.S. families. Russian media had complained about high profile cases of abuse for years, but the timing and severity of the legislation made it clear this was retaliation.

Given that just a few years ago we were talking about a U.S.-Russia “reset” in relations, the whole thing seems like a remarkable step backwards for the two countries. Add to that an ongoing clampdown on dissent in the country — most notably in the case of the anti-Putin feminist group Pussy Riot — and strict new legislation on homosexuality, the situation in Russia looks dark.

For insight on the matter, we talked to Pavel Khodorkovsky, the head of the Institute of Modern Russia and the son of a bitter enemy of President Vladimir Putin. Pavel’s father, Mikhail, was once Russia’s richest man, head of the enormous Yukos oil company with a personal fortune of $15 billion. A public spat with President Vladimir Putin, however, left him as one of Russia’s most famous prison inmates — and one of Putin’s most outspoken critics.

Pavel hasn’t been back to Russia since his father’s arrest, but keeps in close correspondence with Mikhail, monitoring events in Russia. He explained how the adoption ban seemed to be a bargaining chip for Russia, and one that Russian orphans would lose out from. He admitted that his family’s hope for the Russian opposition had initially been high, but that the Kremlin’s clampdown means “criteria by which we judge the progress will have to change.” Finally, he explained why the Magnitsky Act was so important, not just in the Hermitage Capital case, but also for other jailed dissidents, such as his father.

The transcript of our conversation with Pavel, lightly edited for clarity, is below.

The first thing to talk about is the U.S. adoption ban in Russia. Were you surprised at how quickly that went through and with so little opposition?

I think the legislators in Russia have quickly realized that they’re really not going to achieve anything with the original piece of legislation [a Russian black list for U.S. officials] because not many state officials travel to Russia. I don’t think that McCain is going skiing in the Ural Mountains anytime soon. It’s just a futile effort at retaliation. And I think there was this idea — I actually don’t believe that it was coming from the Kremlin — to create an additional lever. Basically create a negotiating avenue, something that people would care about in the U.S., and that became the adoption ban.
You know the statistics — 60,000 kids were adopted over the course of the last 10 years. Nineteen cases, yes, tragedies. But compare that to 1,500 kids who are dying in orphanages every year in Russia, and those are just the official statistics, taken straight out of the website of the general prosecution office. It certainly looks like they have a much better chance of getting proper medical care, and frankly surviving, here in the U.S.

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25
March 2013

Sergei Magnitsky uncovered Russia-to-Cyprus money laundering, and look what happened to him

Business Insider

The latest eurozone crisis comes down to controversy over bailing out a Cypriot banking system that is flooded with Russian black money.

The EU-proposed “haircut” solution — with a 9.9 percent levy on large deposits in Cyprus — received zero votes in Cyprus’ parliament and Russian president Vladimir Putin called it “unjust, unprofessional and dangerous.” Attempts to find a compromise have foundered.

In any case, it is clear that powerful people in Russia want to preserve the ability to use Cyprus as a tax haven, alleged money-laundering vehicle, and backdoor into the eurozone.

Just look at what happened to Sergei Magnitsky, the Moscow-based lawyer who was imprisoned and died mysteriously in jail after calling attention to Russian corruption, including alleged money-laundering in Cyprus.

Magnitsky had been working for Hermitage Capital, a fund managed by American Bill Browder. After Hermitage’s offices were raided in 2007, Magnitsky began investigating and later testified that he had uncovered a huge scam by top police officials to embezzle $230 million in taxes from money that Hermitage Fund companies had paid in 2006.

Magnitsky alleged that the corrupt cops had used corporate seals and documents seized in the raid on Hermitage’s Moscow office and set up fake companies under the same names, which then received a full tax rebate.

Hermitage said that some $31 million of that money was then moved out of Russia using five Cypriot banks: Alpha Bank, Cyprus Popular Bank, FBME Bank, Privatbank International and Komercbanka.

The story quickly turned tragic. In November 2008, Magnitsky himself was charged with tax evasion and taken to prison. Kept in Moscow’s notorious pre-trial prisons, Magnitsky unexpectedly died in November 2009. His death was originally attributed to a an abdominal membrane rupture before officials changed that to a heart attack. Magnitsky is one of four witnesses in the case who have died in mysterious circumstances.

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22
March 2013

Sergei Magnitsky Uncovered Russia-To-Cyprus Money Laundering, And Look What Happened To Him

Business Insider

The latest eurozone crisis comes down to controversy over bailing out a Cypriot banking system that is flooded with Russian black money.

The EU-proposed “haircut” solution — with a 9.9 percent levy on large deposits in Cyprus — received zero votes in Cyprus’ parliament and Russian president Vladimir Putin called it “unjust, unprofessional and dangerous.” Attempts to find a compromise have foundered.

In any case, it is clear that powerful people in Russia want to preserve the ability to use Cyprus as a tax haven, alleged money-laundering vehicle, and backdoor into the eurozone.

Just look at what happened to Sergei Magnitsky, the Moscow-based lawyer who was imprisoned and died mysteriously in jail after calling attention to Russian corruption, including alleged money-laundering in Cyprus.

Magnitsky had been working for Hermitage Capital, a fund managed by American Bill Browder. After Hermitage’s offices were raided in 2007, Magnitsky began investigating and later testified that he had uncovered a huge scam by top police officials to embezzle $230 million in taxes from money that Hermitage Fund companies had paid in 2006.

Magnitsky alleged that the corrupt cops had used corporate seals and documents seized in the raid on Hermitage’s Moscow office and set up fake companies under the same names, which then received a full tax rebate.

Hermitage said that some $31 million of that money was then moved out of Russia using five Cypriot banks: Alpha Bank, Cyprus Popular Bank, FBME Bank, Privatbank International and Komercbanka.

The story quickly turned tragic. In November 2008, Magnitsky himself was charged with tax evasion and taken to prison. Kept in Moscow’s notorious pre-trial prisons, Magnitsky unexpectedly died in November 2009. His death was originally attributed to a an abdominal membrane rupture before officials changed that to a heart attack. Magnitsky is one of four witnesses in the case who have died in mysterious circumstances.

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28
January 2013

The Son Of Putin’s Worst Enemy Explains What’s Going Wrong With Russia

Business Insider

Relations between Russia and the U.S. have recently hit a rough patch.

In December, Congress passed the Magnitsky Act, which will create a black list of Russian officials suspected of human rights abuses. Hermitage Capital founder William Brouder had lobbied for years for the legislation, which is named after Sergei Magnitsky, a Hermitage-lawyer who died in a Moscow jail after accusing officials of involvement in an enormous tax fraud.

Before the list could even be finalized, however, the Russian Duma hit back with its own legislation seeking to ban the adoption of Russian children by U.S. families. Russian media had complained about high profile cases of abuse for years, but the timing and severity of the legislation made it clear this was retaliation.

Given that just a few years ago we were talking about a U.S.-Russia “reset” in relations, the whole thing seems like a remarkable step backwards for the two countries. Add to that an ongoing clampdown on dissent in the country — most notably in the case of the anti-Putin feminist group Pussy Riot — and strict new legislation on homosexuality, the situation in Russia looks dark.

For insight on the matter, we talked to Pavel Khodorkovsky, the head of the Institute of Modern Russia and the son of a bitter enemy of President Vladimir Putin. Pavel’s father, Mikhail, was once Russia’s richest man, head of the enormous Yukos oil company with a personal fortune of $15 billion. A public spat with President Vladimir Putin, however, left him as one of Russia’s most famous prison inmates — and one of Putin’s most outspoken critics.

Pavel hasn’t been back to Russia since his father’s arrest, but keeps in close correspondence with Mikhail, monitoring events in Russia. He explained how the adoption ban seemed to be a bargaining chip for Russia, and one that Russian orphans would lose out from. He admitted that his family’s hope for the Russian opposition had initially been high, but that the Kremlin’s clampdown means “criteria by which we judge the progress will have to change.” Finally, he explained why the Magnitsky Act was so important, not just in the Hermitage Capital case, but also for other jailed dissidents, such as his father.

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16
November 2012

The 2009 Death Of A Moscow Lawyer Could Totally Derail US-Russian Relations

Business Insider

The House is voting on a bill today that could drastically improve or worsen US-Russian relations.
It all depends on whether a human rights bill, the Magnitsky Act, is included in a bill to end Cold War-era restrictions on Russian trade.

The administration and economists have predicted that US exports of goods and services, currently at $11 billion, could double in five years if trade relations were normalized, the AP reports. But the Magnitsky act, which imposes restrictions on Russian officials involved in human rights violations, could cause severe retaliation.

To understand the Magnitsky Act, you have to go back to 2009, and the death of its namesake, Moscow lawyer Sergei Magnitksy. While the case of Pussy Riot may have grabbed more headlines, it is the Magnitsky’s sad case that may have more real impact inside and outside Russia.

Moscow-based civil-law lawyer Magnitsky had been working for Hermitage Capital, a fund managed by American Bill Browder. After Browder was refused entry to Moscow in 2005 and Hermitage’s offices were raided in 2007, Magnitsky began investigating.

Magnitsky later testified that he had uncovered a huge scam by top police officials to embezzle $230 million in taxes, from money that Hermitage Fund companies had paid in 2006. Magnitsky alleged that the corrupt cops had used corporate seals and documents seized in a June 2007 raid on Hermitage’s Moscow office and set fake companies under the same names, which then received a full tax rebate.

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