Posts Tagged ‘samual rubenfeld’

September 2013

US Sues Over Magnitsky Scandal-Linked Assets

Wall Street Journal

Prosecutors filed a civil complaint seeking the assets of 11 companies linked to a $230 million Russian tax-refund fraud uncovered by deceased Russian lawyer Sergei Magnitsky.

Mr. Magnitsky’s death in 2009 led to tit-for-tat recriminations between Washington and Moscow as the relationship between the two countries, which the U.S. had sought to “reset,” also deteriorated around other issues.

The 65-page complaint, filed Tuesday in New York federal court, accused 11 corporations of laundering a portion of the money through the purchase of real estate, including four luxury residential apartments and two commercial spaces in Manhattan.

“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,” said Preet Bharara, the Manhattan U.S. attorney, in a statement.

Among the properties targeted by thee forfeiture are four units at 20 Pine St., in Manhattan, an “office-to condo pioneer” in the borough’s Financial District.

According to the complaint, a Russian criminal organization stole the identities of portfolio companies owned by Hermitage Capital Management, an investment fund operating in Russia. (The story of the alleged scam was reported in 2011 by Barron’s.)

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