Posts Tagged ‘Magnitsky’
U.S. Seeks Seizure Of Real Estate Connected To Magnitsky Fraud Scheme
U.S. authorities have moved to seize millions of dollars’ worth of Manhattan real estate in what would be the first asset seizure connected to the tax fraud scheme uncovered by Russian lawyer Sergei Magnitsky.
A complaint filed on September 10 by the U.S. Attorney’s Office for the Southern District of New York said Cyprus-based real estate corporation Prevezon Holdings, owned by Russian Denis Katsyv, was one of the companies that benefited from an elaborate scheme to steal $230 million from Russian state coffers that was later revealed by Magnitsky.
The company and its eight subsidiaries laundered some of the money through the purchase of four luxury condominiums and two commercial spaces in Manhattan, the complaint alleges.
Katsyv has previously said he is innocent of any involvement in the fraud scheme.
The complaint also seeks to seize the assets of two “related companies.”
Magnitsky died in 2009 in pre-trial detention after being repeatedly denied medical care. Supporters say his death was punishment for his whistleblowing.
His case provoked an international outcry and has led to passage of the Magnitsky Act in the United States, which sanctions officials implicated in the lawyer’s case and in other perceived gross human rights violations.
In July Russia convicted Magnitsky of tax fraud posthumously. unshaven girl займ срочно без отказов и проверок https://zp-pdl.com/how-to-get-fast-payday-loan-online.php https://zp-pdl.com/online-payday-loans-in-america.php займы на карту без отказа
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U.S. Justice Department Files Suit Against Companies Connected to Magnitsky Affair
The U.S. Justice Department has filed civil suits against 11 companies involved with Russian officials on the Magnitsky list, alleging that they used luxury New York real estate to launder $230 million in illegally begotten funds.
The action is “a significant step towards uncovering and unwinding a complex money laundering scheme,” Preet Bharara, a U.S. district attorney in New York, said in a statement.
Officials are accused of using an American subsidiary of the Cyprus-based company Prevezon Holdings, owned by former Transportation Minister Peter Katsyv’s son Denis, and other intermediaries to hide billions of rubles stolen from the Russian treasury.
Denis Katysv’s lawyer said that her client was surprised by the accusations because he bought the company six months after the alleged money laundering took place, Kommersant reported.
The complaint says the companies purchased high-end Manhattan condos with money that had been funneled to them in an elaborate tax fraud scheme that involved sham lawsuits against the investment fund Hermitage Capital Management.
A lawyer for the fund, Sergei Magnitsky, accused Russian government officials of masterminding the fraud scheme, but was arrested and later charged with the same crimes he had reported to the authorities and died after a beating in detention.
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As Putin Edges Out Obama In Syria Crisis, US Moves To Seize $230 Million From Alleged Russian Fraudsters
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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U.S. Seeks to Seize Properties Linked to Russian Tax Scheme
U.S. prosecutors seeks to seize high-end real estate they claim was bought with proceeds from a $230 million tax fraud allegedly committed by corrupt Russian officials
— The prosecutors allege the scheme took control of entities owned by U.S.-born investment fund manager Wiliam Browder
— Critics say the suit is emblematic of the Kremlin’s abuse of the legal process and has sparked tensions between the U.S. and Russia
U.S. prosecutors said Tuesday that they’re seeking to seize several luxury apartments and other high-end commercial spaces in New York that they claim were purchased with proceeds from a $230 million tax fraud allegedly committed by corrupt Russian officials.
Prosecutors said the fraud was allegedly uncovered by Sergei Magnitsky, a Russian lawyer who died in a Moscow prison in 2009 under suspicious circumstances. Mr. Magnitsky, before his death at age 37, claimed Russian police and security officials took control of entities owned by his client, U.S.-born fund manager William Browder, and defrauded the Russian government of hundreds of millions dollars in tax refunds. Mr. Magnitsky was arrested in 2008 after he provided testimony about the alleged fraud.
In July, a Russian court sentenced Mr. Browder without him being present in court to nine years in prison for tax evasion and returned a guilty verdict against Mr. Magnitsky, despite his death, on similar charges. Mr. Browder is a U.K. citizen living in London.
Critics of the Russian government have said the case is symbolic of the Kremlin’s abuse of the legal process and it has fueled tensions with the U.S., leading to a series of tit-for-tat recriminations between the nations. Russian President Vladimir Putin and other officials have denied allegations of judicial abuses in the case.
In a civil lawsuit filed in federal court in Manhattan on Tuesday, U.S. prosecutors alleged that a criminal organization, including officials at two Russian tax offices, corruptly sought tax refunds in the amount of 5.4 billion rubles, or about $230 million, on behalf of companies associated with Mr. Browder’s Hermitage Capital Management.
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U.S. wants to seize assets tied to Russian tax refund scheme
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.
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New York freezes $24m of Magnitsky fraud assets
A New York district prosecutor has frozen more than $20m of Manhattan property assets following allegations they were used to launder money for Russian criminals linked to a $230m fraud uncovered by dead whistleblower Sergei Magnitsky.
Preet Bharara, the US Attorney for the Southern District of New York, has filed a “civil forfeiture” complaint against nine companies that own $24m (£15m) of real estate, including “four luxury residential units and two high-end commercial spaces”. If the court upholds the complaint, the state would be able to seize the assets.
Mr Bharara said: “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. While New York is a world financial capital, it is not a safe haven for criminals seeking to hide their loot, no matter how and where their fraud took place.”
The court case is a major escalation in the ongoing diplomatic war between Russia and the US over Mr Magnitsky’s death and the fraud he uncovered. The former lawyer’s plight has become symbolic of state-backed corruption in Russia.
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US Targets Pricey Real Estate in Magnitsky Fraud Claims
US prosecutors said Tuesday they are seeking to seize expensive New York properties purportedly purchased with funds stolen from Russian coffers in an alleged scam detailed by whistleblowing lawyer Sergei Magnitsky, whose 2009 death in a Russian jail has sparked a diplomatic rift between Washington and Moscow.
“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,” Preet Bharara, the US District Attorney for the Southern District of New York, said Tuesday in announcing the civil action.
The properties, including four luxury residences and two upscale commercial spaces, were used to launder some of the $230 million in Russian government money that Magnitsky alleged were embezzled in a tax fraud involving Russian law enforcement and tax officials, Bharara’s office claimed in a complaint filed in US federal court Tuesday.
Prosecutors say a Cyprus-based company, Prevezon Holdings, purchased the properties in a complex attempt to obscure the origins of the money and are seeking to seize the real estate and impose fines as part of the so-called “civil forfeiture” complaint filed Tuesday.
According to a report last year by the Organized Crime and Corruption Reporting Project, an international investigative journalism consortium, Prevezon is owned by Denis Katsyv, son of Pyotr Katsyv, an official who oversees the Moscow Region’s cooperation with the Russian federal government.
Denis Katsyv and his spokesman told the Organized Crime and Corruption Reporting Project that he was the owner of Prevezon but denied that he has any connection “with any transactions related to the alleged frauds behind the Magnitsky matter” and that “neither he nor any members of his family” have benefited from the Magnitsky case.
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Russians Laundered $23.7 Million In Corrupt Cash Through NYC Real Estate, Says U.S. Attorney
American officials are seeking to seize $23.7 million in high-end Manhattan real estate they say were purchased with money from a huge fraud exposed by a lawyer who later died in prison.
U.S. Attorney Preet Bharara filed a civil forfeiture complaint Monday against properties held by nine offshore companies and the assets of two other companies they say laundered part of the proceeds of a huge Russian tax fraud that caused a rift in U.S.-Russian relations.
“Today’s forfeiture action is a significant step towards uncovering and unwinding a complex money laundering scheme arising from a notorious foreign fraud,” Bharara said in a statement. “A Russian criminal enterprise sought to launder some of its billions in ill-gotten rubles through the purchase of pricey Manhattan real estate. While New York is a world financial capital, it is not a safe haven for criminals seeking to hide their loot, no matter how and where their fraud took place.”
The complaint says that the real estate was purchased with money traced to a $230 million Russian tax fraud known as the “Magnitsky case” for the whistle-blowing lawyer who uncovered it. Sergei Magnitsky alleged in 2008 that corrupt officials and criminals conspired to steal subsidiaries of his client, Hermitage Capital Management, and claim a $230 million tax refund. He was jailed by the same officials he accused and died in prison a year later, aged 37. A report by Russia’s presidential human rights council in 2011 found that he had been systematically tortured, but President Vladimir Putin has repeatedly denied there was any criminality in Magnitsky’s death.
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US seeks to seize Russian criminal group’s real estate
US prosecutors are looking to seize New York property used by a Russian criminal organisation to launder funds derived from an elaborate $230m tax fraud, according to a complaint filed in a Manhattan court.
The civil action also seeks to impose money-laundering penalties on the companies set up by the organisation, whose members allegedly included corrupt Russian government officials, US Attorney Preet Bharara said.
“Today’s forfeiture action is a significant step towards uncovering and unwinding a complex money laundering scheme arising from a notorious foreign fraud,” Mr Bharara said on Tuesday in a statement.
“As alleged, a Russian criminal enterprise sought to launder some of its billions in ill-gotten roubles through the purchase of pricey Manhattan real estate. While New York is a world financial capital, it is not a safe haven for criminals seeking to hide their loot, no matter how and where their fraud took place.”
The $230m fraud was first uncovered by the late Sergei Magnitsky, a respected Russian lawyer who died in pre-trial detention in Moscow in 2009 shortly after making his whistleblowing allegations.
Prosecutors claim that members of the organisation stole the corporate identities of portfolio companies of the Hermitage Fund, a foreign investment fund operating in Russia, which were then used to make fraudulent claims for tax refunds through sham lawsuits. Officials at two Russian tax offices who were members of the organisation approved the disbursements.
Through a complex series of transfers through shell companies, $230m was laundered into numerous bank accounts in Russia and elsewhere, according to the civil complaint. A portion of the funds stolen from the Russian Treasury passed through a Cyprus-based property company Prevezon Holdings, which laundered the proceeds into Manhattan property including four luxury apartments and two high end commercial spaces, it is alleged.
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