Stop the Untouchables. Justice for Sergei Magnitsky.

U.S. wants to seize assets tied to Russian tax refund scheme

Reuters

U.S. authorities are looking to seize luxury apartments and other property they say Russian companies used to launder proceeds from a $230 million tax fraud.

The scheme was uncovered by Sergei Magnitsky, a lawyer who died in a Russian jail, U.S. prosecutors said in a civil complaint filed in New York on Tuesday.

According to the complaint, the organization stole corporate identities belonging to the Hermitage Fund, an investment fund operating in Russia, and used them to make fraudulent claims for tax refunds.

“As alleged, a Russian criminal enterprise sought to launder some of its billions in ill-gotten rubles through the purchase of pricey Manhattan real estate,” Manhattan U.S. Attorney Preet Bharara said in a statement.

The organization included officials at two Russian tax offices, Olga Stepanova and Yelena Khimina, who approved the refunds of approximately $230 million, according to the complaint. Stepanova and Khimina could not be immediately reached for comment.