Posts Tagged ‘Magnitsky’
The Son Of Putin’s Worst Enemy Explains What’s Going Wrong With Russia
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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Libel suit over Magnitsky allegations challenged in London court
British investment fund manager Bill Browder has asked a London court to throw out a libel suit brought against him by a Russian former police officer who denies allegations that he played a part in the death of the lawyer Sergei Magnitsky, court documents show.
Pavel Karpov, a former Russian Interior Ministry investigator who is on the “Magnitsky list” of people barred from the United States over the lawyer’s death, is suing Browder over four videos and two articles linking Karpov to the case.
Magnitsky, who was acting for Browder and his Hermitage Capital Management at the time, was arrested after accusing Russian officials of a $230-million fraud, and died in prison in suspicious circumstances.
He was posthumously found guilty of tax evasion by a Moscow court on July 11 this year and Browder was convicted in absentia and sentenced to nine years in jail in the same trial, which was criticised by both the United States and the European Union.
Browder’s campaign to vindicate Magnitsky helped to bring about the U.S. Magnitsky Act, which bars Russians suspected of involvement in the lawyer’s death from the United States and freezes their assets there.
During a two-day hearing at the London High Court, which Browder attended, his lawyers argued that Karpov’s libel suit against him was an abuse of process.
“An avowed purpose of (Karpov) in pursuing the claims, to attack his inclusion on the United States government’s Magnitsky list, is not an appropriate use of the process of the court,” the lawyers wrote in a document presented to the judge.
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Statement on the Rule of Law in the Russian Federation In Light of Magnitsky and Navalny Convictions
As delivered by Charge d’Affaires Gary Robbins to the Permanent Council, Vienna
The United States is disappointed and saddened by the posthumous conviction of Sergey Magnitsky on July 11 and by the July 18 conviction and sentence of Alexei Navalny to five years in prison. In both cases we have deep concerns about the apparent political motivation behind these trials. We remain troubled by the failure to respect the rule of law or to ensure the fair trial guarantees required by international law and OSCE commitments.
Sergey Magnitsky’s conviction in a tax evasion case was an insult to the efforts of those who continue to seek justice with respect to the circumstances of his death. The Kremlin’s own human rights council has said there was evidence suggesting Magnitsky was beaten to death while in custody. We continue to call for full accountability for all those responsible for Magnitsky’s death, and will continue to support the efforts of those in Russia who seek to hold these individuals accountable.
The conviction of Alexei Navalny, who was sentenced to five years in prison on charges of embezzlement, is another troubling case. For the past several years Navalny has been a leading member of the political opposition, campaigning against corruption. The case had been dismissed twice for lack of evidence. We understand Mr. Navalny is appealing his case while continuing his bid to be the next mayor of Moscow.
Notwithstanding Navalny’s interim release on bail, both his and Magnitsky’s convictions raise serious questions about respect for the rule of law in the Russian Federation. We call on Russian authorities to cease any campaign of pressure against individuals seeking to expose corruption and to guarantee that individuals can freely exercise their human rights and fundamental freedoms, including freedoms of expression and assembly. We call on Russia to embrace serious efforts, like Mr. Navalny’s and Mr. Magnitsky’s before him, to improve government accountability and combat corruption in order to nurture a modern economy.
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Browder asks court to throw out Magnitsky libel lawsuit
Bill Browder, the UK-based fund manager behind the US Magnitsky Act, is asking the High Court to throw out an extraordinary libel lawsuit brought against him by a Russian he accused of being involved in Russia’s biggest tax fraud.
Mr Browder has become a hate figure for the Russian leadership after lobbying Congress to adopt the Magnitsky law last year. The law imposed sanctions on Russians allegedly involved in the $230m fraud and the death in custody of Sergei Magnitsky, a lawyer Mr Browder employed to investigate it.
The defamation case has been brought by Russian-based Pavel Karpov, a former policeman who is suing over allegations on a campaigning website run by Mr Browder.
Magnitsky died in a Russian jail four years ago but he was convicted of tax evasion this month in a posthumous Russian trial that drew widespread criticism in the west.
Mr Browder’s campaign has accused Mr Karpov of being involved both in the fraud and of being among police who arranged for Magnitsky’s arrest and torture in jail. Mr Karpov’s libel writ says those claims are false.
The case is bound to reignite concerns around libel tourism and that London’s courts are being used by the rich and powerful who have tenuous links with the UK but want to exploit its claimant-friendly rules.
Mr Browder alleges the Russian government is ultimately behind the case and is using it to attempt to force him to take down videos on his website.
Antony White QC, Mr Browder’s barrister, claims in court papers that Mr Karpov “does not have the means to pay for this litigation himself” and is relying on an unidentified friend.
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Magnitsky libel case ‘may be backed by the Kremlin’
The Kremlin has been accused of abusing the British justice system to wage a politically motivated campaign against UK hedge fund boss Bill Browder after libel proceedings were launched against the millionaire in the High Court.
Pavel Karpov, an unemployed former Russian police officer, is suing Mr Browder and his UK-based fund Hermitage Capital for saying he was complicit in the “torture and murder” of anti-corruption whistleblower Sergei Magnitsky four years ago.
Mr Karpov strongly denies the allegations, along with suggestions he was involved in fraud and kidnapping, and is seeking to clear his name.
However, in a pre-trial hearing, Antony White QC for Mr Browder demanded the case be thrown out for “abuse of process” as Mr Karpov had “no connection with England and no reputation to protect here”. He added that the case was politically motivated and possibly funded by the Kremlin.
Mr White drew attention to Mr Karpov’s admission that he does not have the means to pay for litigation, which could come to £6m, as well as the “highly political dimension” of the case. Mr Magnitsky has become an anti-corruption martyr in Russia, and Mr Browder’s relentless campaigning a diplomatic headache for President Vladimir Putin.
According to Mr Karpov’s witness statement, the cost of his libel claim is being covered by a loan from Transnational Bank in Russia and backed by a wealthy entrepreneur friend who has agreed “to stand as a personal guarantor”.
Mr White told the court that if the case went to trial, the costs would be “£3m to £4m on our side alone”. Under UK libel law, Mr Karpov can seek up to a maximum of £240,000 in damages. Even if he wins, lawyers said, his damages would be unlikely to cover his costs.
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Europe must oppose humans rights abuses in Russia, says David Trimble
Europe must provide much stronger opposition to human rights abuses and corruption in Russia, the former first minister of Northern Ireland said tonight.
Lord Trimble said the Council of Europe must press for countries to impose visa bans and freeze the assets of Russian officials who had been implicated in corruption.
In the United States, the Obama administration had already passed a “Magnitsky law” which banned from America any Russian officials thought to be involved in the death of Sergei Magnitsky, a lawyer who died in detention in Russia.
Speaking during a debate in the House of Lords, the peer said the Council of Europe, the continent’s leading human rights organisation of which Russia is a member, needs to increase pressure on president Vladimir Putin’s government.
Lord Trimble said: “I think what we should do is that we should have no illusions about the regime. Their legal system is an extension of the ruling party, and the party of the government as a whole are deep in corruption and will stop at nothing to preserve their power.
“I hope that the European Court of Human Rights will vindicate the fundamental rights and freedoms of the convention in the cases that come before it.
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Retired Russian police officer accused of complicity in tax fraud and murder of whistleblowing lawyer Sergei Magnitsky ‘receiving Kremlin help’
A retired Russian police officer accused of complicity in a massive tax fraud and the murder of whistleblowing lawyer Sergei Magnitsky was claimed to be receiving Kremlin help in bringing a multi-million pound libel case in London.
Lieutenant Colonel Pavel Karpov, an unemployed former interior ministry investigator who lives in a luxury Moscow flat, is suing British businessman William Browder, a millionaire hedge fund investor who employed Mr Magnitsky and is leading a campaign against corruption in the Russian government, for substantial damages in the High Court.
A pre-trial hearing was told yesterday that the case is likely to cost a minimum of £6m and that Mr Karpov has admitted he cannot afford to fund the proceedings himself. He is refusing to name a businessman friend who he insists is guaranteeing bank loans to fund the case and he says has no connection with the Russian state.
Mr Browder is seeking to have the libel suit, which arises from a series of internet postings made on his behalf about the Magnitsky scandal, thrown out as an abuse of the legal system on grounds including the claim that Mr Karpov has no links with Britain. In turn, Mr Karpov is seeking to have elements of Mr Browder’s defence struck out, including any suggestion that he could have had a hand in or responsibility for Mr Magnitsky’s death.
The case is likely to raise fresh debate about the use of the English courts for so-called “libel tourism”. Mr Karpov has said he is justified in bringing his proceedings in part because the website used to post the material he claims is defamatory is based in the United Kingdom.
Antony White QC, for Mr Browder and his company, Hermitage Capital Management, told the court there was “evidence” that previous libel proceedings brought by Mr Karpov in Russia linked to the Magnitsky case had been instigated from within the Kremlin, adding there were grounds to suspect that a similar arrangement was in place in the London case.
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Bill Browder, The Brit Fighting Russia Death Threats And Libel Suits To Take On The Kremlin
A Russian policeman planning to sue a British hedge fund boss through British courts, for alleging he was part of a conspiracy to torture and murder lawyer Sergei Magnitsky, could end up “driving a truck through British law”.
The case, if a judge allows it to be heard, will be a true test for the long battle for libel reform in the UK.
On Wednesday, a judge will consider whether an hitherto unknown Russian official, Lieutenant Colonel Pavel Karpov, can use the British justice system and British lawyers to fight his case.
Russian officials have called financier Bill Browder a fraudster and a fantasist, and he is the subject of death threats, legal battles and diplomatic crises.
But, he says, it will not deter him from fighting for justice for a friend who he believes died at the hands of Russian authorities.
Browder alleges Russian officials falsely imprisoned, tortured and killed his lawyer, Sergei Magnitsky after both he and Browder blew the whistle on a massive scandal, involving criminal gangs colluding with Russian authorities to steal millions from Russian taxpayers.
“They are so desperately trying to cover it up, that they are willing to kill the key whistleblower, prosecute him posthumously, and pursue me in every possible way, including threatening my life,” Browder told The Huffington Post UK.
“We weren’t the main victims of the fraud, the Russian people were the victims. But the other victim was Sergei, who exposed the fraud. When he died, it changed my life. I couldn’t live comfortably knowing he died because of me.”
A British judge will hear arguments this week from both sides as to whether the case is an “abuse” of the British legal system, because it concerns a Russian litigant.
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Latvia – like a Virgin island
If you’ve ever wondered what sort of tax dodges they get up to in the British Virgin Islands, take a trip to Latvia and speak with Kristaps Zakulis, chairman of the country’s financial regulator, the Financial and Capital Markets Commission (FKTK). Zakulis displays impressive knowledge of and enthusiasm for talking about the Caribbean archipelago whenever Latvia’s own offshoring industry is mentioned.
During the course of an interview lasting less than an hour, he racks up a couple of dozen uses of the words “British Virgin Islands”, “former British colony” and “John Smith” – all the more impressive when the conversation was supposed to be about his agency’s investigation into the links between Latvian banks and the notorious Magnitsky affair in Russia.
The annoyance Zakulis expresses over anything bearing a Union Flag was clearly supposed to provoke your correspondent into a fit of patriotic indignation, yet never having been to the Caribbean archipelago or of a high enough net worth to open any tax-efficient account more impressive than a Post Office savings book, it was a wasted expenditure of energy.
But Zakulis’ probable point is that whatever is happening in Latvia is happening elsewhere too – which is certainly true as far as offshoring goes. To an extent the point could also be applied to the Magnitsky case, as banks in Moldova, Lithuania, Estonia and Cyprus holding accounts from the UK, Belize and – you guessed it, the British Virgin Islands – have been named by lawyers representing Hermitage Capital Management of laundering $230m in the case that led to the death in detention of their lawyer Sergei Magnitsky. According to the lawyers, around $63m of that total was laundered via six Latvian banks in 2007 and last year, Hermitage filed a complaint in Riga demanding the authorities look into its allegations.
Latvia’s Economic Police initially seemed disinterested, but did eventually open an investigation that is ongoing though yet to bring any criminal charges.
To its credit, FKTK was much more active in conducting an investigation and even found one bank culpable enough to impose the maximum fine it is allowed by law, LVL100,000 (€142,000). But the Magnitsky case has a way of making everyone it touches look absurd, from the ridiculous contradictory accounts of how the lawyer met his death in the first place to his ludicrous posthumous conviction pushed by the Kremlin. The Latvian connection does not disappoint in this regard either, for FKTK refuses to say not only when the fine was imposed, but even the name of the bank that is supposed to pay it.
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To learn more about what happened to Sergei Magnitsky please read below
- Sergei Magnitsky
- Why was Sergei Magnitsky arrested?
- Sergei Magnitsky’s torture and death in prison
- President’s investigation sabotaged and going nowhere
- The corrupt officers attempt to arrest 8 lawyers
- Past crimes committed by the same corrupt officers
- Petitions requesting a real investigation into Magnitsky's death
- Worldwide reaction, calls to punish those responsible for corruption and murder
- Complaints against Lt.Col. Kuznetsov
- Complaints against Major Karpov
- Cover up
- Press about Magnitsky
- Bloggers about Magnitsky
- Corrupt officers:
- Sign petition
- Citizen investigator
- Join Justice for Magnitsky group on Facebook
- Contact us
- Sergei Magnitsky