Posts Tagged ‘Thomas P. Griesa’

November 2014

U.S. Alleges Further Laundering in Magnitsky-Linked Case

Wall Street Journal

A federal judge on Wednesday granted a request from U.S. prosecutors to file an amended complaint alleging further money laundering by a Russian businessman, as well as a forfeiture order narrowing the assets to be seized in the case.

U.S. District Judge Thomas P. Griesa approved the request at a contentious hearing between prosecutors and lawyers for companies owned by Denis Katsyv, who is accused of laundering some of the proceeds of an alleged $230 million tax fraud in Russia exposed by deceased lawyer Sergei Magnitsky. The amended complaint, prosecutors said, provides additional allegations of money laundering and “significantly narrows” the amount of property the U.S. seeks to forfeit.

“It is necessary to have” the amended complaint and forfeiture order for the case to continue, said Judge Griesa.

The civil forfeiture case brought by the Manhattan U.S. attorney’s office in September 2013 alleged that Mr. Katsyv used some of the laundered money to buy real estate in New York. Prosecutors say a portion of the funds traveled through several shell companies into Prevezon Holdings, a Cyprus-based real estate company that laundered the money into its real estate holdings, including those subject to the forfeiture action.

Mr. Katsyv and his company, Prevezon Holdings, deny the allegations, having tried to dismiss the case in March, and through its lawyers they denied the new accusations raised Wednesday.

The amended forfeiture order, prosecutors said, seeks about $14 million in assets, including $10 million in property in New York and about $4 million, in euros, at an account in the Netherlands. The original forfeiture action sought all assets, known and unknown, tied to Mr. Katsyv and his partners; Judge Griesa had told prosecutors to restrain the order after hearing from lawyers for the defendants that unrelated assets in Russia and elsewhere were frozen.

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