Posts Tagged ‘business insider’

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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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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05
March 2012

‘It Is Completely Naive To Think Anything Will Change After Russia’s Election’

Business Insider

We interviewed a bunch of experts about the significance of Russia’s March 4 election.

Bill Browder is the head of Hermitage Capital Management, which one controlled almost $4.5 billion worth of investments in Russia. He was barred from entering the country in 2005, and the death of Hermitage lawyer Sergei Magnitsky in a Russian prison in 2009 led to international condemnation. His comments are below.

“It is completely naive to think anything is going to change after this election.

“First of all, Putin has been in power for the last 12 years. Anyone who made the mistake of thinking Medvedev was in power, at this point, it’s pretty obvious that he wasn’t.

“If you go back and read any of Putin’s speeches, he said all sorts of things that looked good on paper. But none of them have ever been implemented, and it’s very clear why: because implementing real reforms would mean that Putin and the people around him could not be able to engage in all these financial crimes, which have made them so wealthy.

“The Russian government doesn’t function to serve the national interest by collecting taxes and providing services as most governments do.

“The current regime collects taxes so that the people in the government can steal that money. They steal it either directly, as Sergei discovered when he came across a $230 million tax rebate fraud involving government officials, or they steal it through other means, like enormous kickbacks from building roads and pipelines, and kickbacks from buying equipment for hospitals.

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01
March 2012

The Fund Manager At The Center Of Russia’s Tragic Hermitage Saga Talks Putin And Corruption

Business Insider

Bill Browder was one of the first Westerners to make a fortune in post-Communism Russia.

After arriving in the country in 1997, his fund Hermitage Capital Management started with $25 million and was at one point thought to have invested $4.5 billion, making it one of the largest foreign investors in the country.

However, in 2005 that all changed. While Browder had initially supported Vladimir Putin, he found himself barred from entry to the country.

When he began to investigate, tragedy struck. In 2008, Sergei Magnitsky, a young lawyer who was working for Hermitage Capital, was arrested after he reported allegations of a huge tax $230 million fraud to the authorities. He found himself accused of the very crimes he was reporting, and was thrown into prison.

Magnitsky died in prison in 2009. A Russian report later found he had been “tortured, beaten to death”. Despite his death, Magnitsky remains on trial, and no one has been charged with his death.

Browder and Hermitage are now based in London, where they still control $1 billion in assets.

However, Browder remains active in Russian life. Last year he released this video of their corruption allegations, and his pressure was able to get visa sanctions from the US and Canada on the officials involved in the death of Magnitsky.

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