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10 December 2015 – Documents filed in the US court in the first US civil money laundering case involving the $230 million crime that Sergei Magnitsky had uncovered, show that Pyotr (also spelled Petr) Katsyv, a senior Russian government official, offered to become an FBI informant to help settle the money laundering action brought against his son’s company in the Magnitsky case.
According to court documents, Pyotr Katsyv, currently Vice President of Russian Railways, and former Vice Premier of the Moscow Regional Government, offered the US Government to meet to provide information on “criminal activity in Russia.” This offer was preceded by a meeting between his son, Denis Katsyv, and FBI Special Agent in Rome, Italy.
Following the offer from Pyotr Katsyv, plans were made by the US Department of Justice to meet him in Hungary in September 2014. However, he did not show up at the meeting.
One month later, in October 2014, it was announced that Pyotr Katsyv was appointed vice president of Russian Railways, the Russian state company, whose former chairman Vladimir Yakunin is a close ally of President Vladimir Putin and subject of US sanctions. Pyotr Katsyv then informed the US Government that that he wanted to “negotiate a settlement” in the case of his son, Denis Katsyv.
Denis Katsyv’s company, Prevezon Holdings, is defendant in the civil forfeiture and money laundering case brought by the US Department of Justice in 2013. The US court froze US$14 million of Prevezon assets in real estate and bank accounts pending trial in this action.
In addition to the US proceeding, assets of Denis Kastyv and Prevezon have been frozen by the Swiss General Prosecutor under the criminal money laundering investigation connected to the same $230 million fraud uncovered by Sergei Magnitsky. In 2005, another company of Denis Katsyv, Martash, had 35 million shekels (U.S. $8 million) confiscated as part of settlement of a separate money laundering investigation by the Government of Israel.
According to the US Government, Katsyv’s company was involved in laundering into Manhattan real estate proceeds connected to the $230 million crime. The US Government has traced over US$4.2 million in false and questionable wire transfers to Prevezon, described as payments for “bath tubs,” “auto spare parts,” video equipment” and other goods, while Prevezon is a real estate company that has nothing to do with manufacturing or trading goods. Nearly $2 million of those transfers have been traced by the US Government to the $230 million crime in Russia uncovered by Sergei Magnitsky.
According to court filings, Denis Katsyv met with FBI Special Agent Penza in Rome on 12 February 2014. He was accompanied to the meeting by his Russian attorney. The meeting, according to Denis Katsyv’s lawyers, was held at the recommendation of an unnamed Israeli “consultant.”
Explaining the original meeting with FBI, Denis Katsyv’s lawyers said:
“Mr Katsyv was approached by an Israeli gentleman who represented that he was a consultant in forfeiture cases and could assist Mr Katsyv in this case. This individual convinced Mr Katsyv to meet with FBI agents in Rome.”
After the Rome meeting, the FBI informed the US Department of Justice, that Denis Katsyv and his father, Pyotr Katsyv, wanted to meet again “to provide information about criminal activity in Russia.”
After learning that Katsyv senior wanted to “act as an arguable intermediary” for Katsyv junior, the US Department of Justice terminated plans to meet with him.
Born in 1953, Denis Katsyv’s father, Pyotr Katsyv, has been a long-standing Russian government official. For twelve years, during 2000-2012, he served as Minister of Transportation of the Moscow region, while his son’s company was awarded transportation contracts from the Moscow regional budget. During 2012-2013, Pyotr Katsyv was head of the Moscow Regional Government’s Department in charge of relations with federal government. In October 2014, Pyotr Katsyv was appointed vice president of Russian Railways. Katsyv senior is also member of the development committee of the Transportation Ministry.
Sergei Magnitsky uncovered and testified about the $230 million fraud in Russia. He was arrested by some of the same Russian officials he had implicated in his testimony. Sergei Magnitsky was tortured and killed in police custody after 358 days in pre-trial detention on 16 November 2009. In 2012, the US Congress passed Sergei Magnitsky Rule of Law Accountability Act imposing sanctions on those involved in Magnitsky’s ill-treatment and death, and their cover up.
The trial in the USA vs Prevezon is due to begin on 6 January 2016. This US action is one in multiple facets of the $230 million fraud, uncovered by Sergei Magnitsky. Proceeds from that crime have previously been traced to Swiss banks and real estate in Dubai owned by Russian officials and their relatives.
For more information please contact:
Justice for Sergei Magnitsky
+44 207 440 1777
e-mail: info@lawandorderinrussia.org
Twitter: @KatieFisher__
By Christine Khamis
Impunity Watch Reporter, Asia
BEIJING, China –
One of the most prominent human rights lawyers in China, Pu Zhiqiang, will go on trial next week for his blog posts criticizing the Communist Party. Mr. Pu faces a potential sentence of eight years in prison for charges of “inciting ethnic hatred” and “picking quarrels and provoking trouble”. The Chinese government has brought the latter charge against many other government critics and rights advocates to support their detainment and imprisonment since President Xi Jinping became the leader of China’s Communist Party in late 2012.
Mr. Pu will go on trial before Beijing’s Number Two Intermediate Court on Monday. The court’s only evidence against him consists of seven among thousands of posts that Mr. Pu posted on a micro-blog service, according to one of his defense attorneys, Mo Shaoping. Mr. Mo believes that Mr. Pu is almost certainly going to be convicted and sentenced to imprisonment by the court, which is controlled by the Communist Party.
The prosecutors who brought charges against Mr. Pu have stated that his posts on the micro-blog were insulting to others and disrupted public order. His posts included statements questioning the Chinese government’s treatment of the Uighurs, a Muslim ethnic group living in the province of Xinjiang, and critical remarks against the Communist Party. Mr. Mo has stated that Mr. Pu has admitted that his posts were rude and has offered to apologize for his remarks.
Police detained Mr. Pu last year after he attended a seminar marking the 25th anniversary of the 1989 Tiananmen Square Massacre. He has remained in detention for over a year and has not been allowed to see his wife, who says that he has been interrogated extensively and has been tortured both physically and mentally.
Human rights groups such as Amnesty International have called for Chinese officials to release Mr. Pu, along with the United States. Max Baucus, the United States’ Ambassador to China, has urged the Chinese government to release Mr. Pu because he and other human rights lawyers should be seen as partners, rather than enemies of China’s government.
China’s government, led by President Xi Jinping, has increasingly cracked down on dissidents and human rights advocates, including several lawyers. According to China Human Rights Lawyers Concern Group, over 250 people have been questioned and detained and nearly 30 people have been prohibited from leaving China in the last several months.
For more information, please see:
Hong Kong Free Press – China to Put Top Human Rights Lawyer on Trial Next Week – 10 December 2015
The New York Times – Chinese Rights Lawyer’s Trial Over Online Comments to Begin Soon – 10 December 2015
Radio Free Asia – Charges Against Top Chinese Rights Lawyer Based on Seven Tweets – 8 December 2015
Voice of America – US: Detained China Lawyers ‘Partners, not Enemies” – 10 December 2015
By Christine Khamis
News Desk Reporter, Asia
BAKU, Azerbaijan –
Leyla Yunus, a prominent human rights activist in Azerbaijan, was released from prison on Wednesday. An appellate court in Baku decided to suspect the charges against Ms. Yunus, which included alleged fraud and tax evasion and placed her on a five-year probationary period.
The suspension of Ms. Yunus’s sentence does not mean that the charges against her will be dropped. At this time, her guilty verdict still stands. Additionally, Ms. Yunus and her husband Arif Yunus, also an activist, still face treason charges which are part of another case against them.
Ms. Yunus was initially imprisoned in July 2014 and received an 8 ½ year sentence for the alleged crimes of fraud and tax evasion. Mr. Yunus was charged for similar crimes and was sentenced to time in prison as well. She and Mr. Yunus were also charged with alleged treason for spying for Armenia. Both worked for the Peace and Democracy Institute in Baku.
Ms. Yunus suffers from illnesses of diabetes and hepatitis C and was released primarily due to her deteriorating health. During her time in prison, Ms. Yunus says that she was also beaten severely by prison guards. Mr. Yunus, imprisoned on similar charges, was released in November due to his own deteriorating health.
Human rights organizations such as Amnesty International have called for the charges against Ms. Yunus to be dropped completely, calling her and Mr. Yunus as “prisoners of conscience” who were charged with their crimes for their human rights advocacy and critiques of the government.
American and European Union officials have welcomed the release as a step forward in the promotion of human rights in Azerbaijan. Some, such as European Parliament President Martin Schulz, still call for the charges against the Yunuses to be fully dropped and for other prisoners of conscience to be released.
Nearly 20 other individuals, including activists, journalists, and government critics, including a journalist for Radio Free Europe/Radio Liberty (RFE/RL) are currently in Azerbaijan prisons after being convicted of charges human rights groups have called “politically motivated”.
For more information, please see:
Amnesty International – Azerbaijan: Release of Leyla Yunus Should Spur Freedom for All Prisoners of Conscience – 9 December 2015
Human Rights Watch – Dispatches: Azerbaijan’s Leyla Yunus is Free – 9 December 2015
The New York Times – Azerbaijan: Activist Freed From Prison – 9 December 2015
Radio Free Europe/Radio Liberty – Rights Activist Leyla Yunus Freed From Jail In Azerbaijan – 9 December 2015
Since the attacks in Paris last month, discussions about Syria have focused exclusively on the Islamic State of Iraq and al-Sham (ISIS) and the growing refugee crisis. In an effort to counter ISIS and limit the flow of refugees, Europe and the United States have been sending Syrians all the wrong messages. The Syria Justice and Accountability Centre (SJAC) has compiled and summarized just a few of the most problematic messages over the last three weeks:
In the wake of a coordinated and far-reaching attack like the one in Paris, it is understandable that national security is a top priority for Europe. It is the role of the state to protect its citizens, and European governments have been acting accordingly. But the issue of refugees has become so much entangled in the national security debate that the two disparate topics have become blurred in the media and political rhetoric. Since the start of the conflict, Syrian President Bashar al-Assad has justified his brutality by claiming that those who oppose him are terrorists and should be treated as threats. Instead of viewing the refugee crisis as a humanitarian problem and human rights failure, the current international debate has reinforced Assad’s justifications by painting refugees as a national security problem, ignoring the mass human suffering Syrians have experienced after four years of war.
In recent weeks, the world has united against ISIS. The UK, which previously voted against military involvement, decided last week to expand airstrikes into Syria. Germany has said it will send 1,200 ground troops, and France has been aggressively bombing Syria since the Paris attacks. Russia, a Syrian government ally, has welcomed these efforts, which have by and large deflected criticism from Assad. In addition, the growing consensus among the anti-ISIS coalition is that Assad will need to be part of negotiations and the future transition in Syria. As a result, pressure on Assad has waned. For Syrians, it seems as though the West is willing to now turn a blind eye to Assad’s crimes in order to stand united against ISIS, a no doubt brutal extremist group, but not the original cause of the Syrian conflict.
Over the last several years, Turkey has been in a downward spiral with regards to democracy and free speech. Journalists and social media activists are being targeted at an unprecedented rate, anti-Kurdish violence and rhetoric is increasing, and many observers criticized the political manipulation of the latest round of elections. Five years ago, when Europe stalled accession negotiations, Turkey was in a much better position than it is now to accede; yet, despite Turkey’s democratic downturn, the EU has recently agreed to relaunch accession talks if Turkey takes measures to prevent refugees from migrating to Europe. In reaching this decision, the EU has apparently decided to ignore its first criteria for accession talks — guarantees of “democracy, the rule of law, human rights and respect for and protection of minorities.” The message is that the EU is willing to sacrifice its democratic values for guarantees that refugees will be kept out of Europe, thus discrediting many of the EU’s founding principles.
Many of the conversations about Syria’s future transition appear to be happening behind closed doors between high-level, non-Syrian officials. Recently, Russian President Vladimir Putin said that he had a fruitful discussion about the parameters of a Syrian transition with US President Barack Obama on the sidelines of the climate change talks in France. Even in the recent Vienna talks on Syria, only the foreign ministers of the International Syria Support Group (including Russia, the US, several EU countries, Iran, Turkey, and Saudi Arabia) attended. Syrian representatives — either from the government or the opposition — were notably absent. Despite the oft repeated mantra that Syrians must be the ones to decide their future, the broad trajectory of a peace plan and transition are being negotiated without Syrian participation, and many Syrians on the ground are confused and uninformed about the process.
Talks planned for Vienna after the New Year will eventually include Syrian participation, as the Syrian government and a delegation of the Syrian opposition are expected to begin negotiating an end to the four year conflict. In addition to the Syrian National Coalition, the delegation will include leaders of the armed opposition. Already, Saudi Arabia has invited potential members of the delegation to a meeting in Riyadh to prepare. Jordan has been tasked with determining which of the groups and relevant factions should be excluded from Vienna due to ties with terrorism, but a satisfactory human rights record is not a factor for determining eligibility. Representatives from Jeish al-Islam and Ahrar al-Sham will likely participate in both the Saudi prep meeting and the Vienna negotiations. While it is true that the buy-in of fighters is needed to assure the success of any future deal, many of these armed groups are responsible for gross human rights violations. Since the talks will involve extensive political bargaining, it would be a shame for the leaders of Jeish al-Islam to have a role in Syria’s transitional government simply because they had a seat at the table. Which brings us to the last point of concern…
Billions of Euros, British Pounds, and US Dollars have been spent to build the capacity of Syrian civil society on the international human rights framework, nonviolent resistance, and democratic transitions. Yet Syrian activists who have dedicated their lives, often as volunteers, to these ideals have not been invited to Riyadh and will likely not have a seat at the table in Vienna. Although a few Syrian “national figures” will attend the meeting in Riyadh, these individuals are not considered to be credible and impartial representatives of the larger civil society. To the knowledge of SJAC, not a single civil society organization will participate. Instead, as previously mentioned, leaders of armed groups, often with tenuous human rights records, will be in attendance. This sends mixed messages to Syrians about the actual importance of the international human rights framework and nonviolence when it comes to power and politics.
These are likely not the messages that Europe and the United States want to be projecting. Yet, many Syrians are already pointing to the abovementioned issues and highlighting the paradox of the statements made by the United States and Europe. There is a need for clarity, particularly in regards to the role of justice as well as the values and ideals that form the basis for Syria’s transition. Because the negotiations and political bargaining that happen today will affect the stability and democratic foundations of Syria tomorrow.
For more information and to provide feedback, please email SJAC at info@syriaaccountability.org.