Posts Tagged ‘Chad Bray’

September 2013

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.

Read More →

  • Facebook
  • Twitter
  • Google Buzz
  • LinkedIn
  • Google Bookmarks
  • Yahoo! Buzz
  • Tumblr
  • StumbleUpon
  • FriendFeed
  • NewsVine
  • Digg