Press Release
For Immediate Distribution
24 January 2014 – In its new report on the Magnitsky case, the Council of Europe Rapporteur has criticized the case opened by the Russian Interior Ministry against Hermitage Capital partner, Ivan Cherkasov, saying it was not a “bona fide pursuit of criminal justice.”
The criminal case against Mr Cherkasov was used as a pretext to search offices of Hermitage Capital and its law firm in Moscow, Firestone Duncan, and tounlawfully seize documents for the Hermitage Fund’s companies, which were then used to fraudulently re-register those companies into the names of previously convicted criminals. The criminals then fraudulently applied for $230 million of taxes that Hermitage Fund’s companies had paid in Russia.
Following the Council of Europe investigation, the Rapporteur, Swiss MP Andreas Gross, concluded that the case against Kameya was not a bona fide investigation.
“I conclude that the criminal case must have been opened for other reasons than the bona fide pursuit of criminal justice. One of the real reasons might well have been to justify the two “raids” on the offices of Firestone Duncan and Hermitage, during which items were taken by the investigators, which, as it is alleged, were later used in the commission of the tax reimbursement fraud denounced by Sergei Magnitsky,” says Council of Europe Rapporteur in his report.
The case alleged tax underpayment by Kameya, of which Cherkasov was general director, in spite of fact that the companies had received clean tax audits from the Russian Federal Tax Service. Sergei Magnitsky in his testimony stressed that the case against Kameya was fabricated by the Interior Ministry officers in order to commit fraud against Hermitage.
The Interior Ministry officers who were in charge of the Kameya case, Karpov and Silchenko, have been sanctioned for their role in the Magnitsky case by the U.S. government.
All appeals to close the case for the lack of evidence of any crime have been rejected by the Interior Ministry in spite of definitive conclusions by the tax bodies that all taxes had been paid in full and correctly.
Recently, Hermitage lawyers learned that the Interior Ministry appointed an expert to find evidence for continuing the case. The expert concluded that there was no basis, but his conclusions have been kept secret from Hermitagelawyers for three months. A complaint has now been filed by Hermitage lawyers against the Interior Ministry to compel them to close the Kameya case as groundless and unlawful.
For more information, please see:
Report “Refusing Impunity for the Killers of Sergei Magnitsky
