SJAC Weekly Update: Tuesday, 10 September 2013
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Press Release on US Asset Seizure in Magnitsky Case
PRESS RELEASE
For Immediate Distribution
U.S. Department of Justice Files Case to Seize Over $23 Million in Manhattan Real Estate Connected to Magnitsky Case
10 September 2013 – The United States Attorney’s Office in New York has filed a complaint to seize over $23 million in Manhattan property linked to the $230 million theft uncovered by Hermitage Fund’s Russian lawyer Sergei Magnitsky. The U.S. Attorney’s complaint seeks to further seize cash in connected bank accounts and impose civil money laundering penalties, according to documents filed today with the Manhattan Federal Court.
“This is the first action in the US to seize assets connected to the Magnitsky case, – said a Hermitage Capital representative. – It is a significant escalation in the campaign to bring justice for Sergei Magnitsky and his family. Sergei’s friends, colleagues and family will continue to pursue all the recipients of the blood money to make sure they are parted with the illicit proceeds, whoever and wherever they are.”
The complaint was filed by Preet Bharara, United States Attorney’s Office for the Southern District of New York, on behalf of the United States Government, who is plaintiff in the action. According to the filing, the U.S. Government’s claims over the real estate and cash in New York arise out of the laundering of proceeds of a criminal enterprise in Russia.
“A Russian criminal organisation including corrupt Russian government officials defrauded Russian taxpayers of approximately 5.4 billion rubles, or US$230 million, through an elaborate tax refund fraud scheme,” says the complaint.
“In order to procure the refunds, the Organization fraudulently re-registered the Hermitage Companies in the names of members of the Organization, and then orchestrated sham lawsuits against these companies,”
says the complaint.
“These sham lawsuits involved members of the Organization as both the plaintiffs (representing sham commercial counterparties suing the Hermitage
Companies) and the defendants (purporting to represent the Hermitage Companies,” says the complaint.
“After perpetrating this fraud, members of the Organization have undertaken illegal actions in order to conceal this fraud and retaliate against individuals who attempted to expose it. As a result of these retaliatory actions, Sergei Magnitsky, a Russian attorney who exposed the fraud scheme, was falsely arrested and died in pretrial detention,” says the complaint.
“Members of the Organization, and associates of those members, have also engaged in a broad pattern of money laundering in order to conceal the proceeds of the fraud scheme. This money laundering activity has included the purchase of pieces of Manhattan real estate with funds comingled with the fraud proceeds,” says the complaint.
“The $230 Million Fraud Scheme is strikingly similar to what appears to have been a fraud scheme carried out by the Organization in 2006 involving two subsidiaries of Rengaz,” says the complaint.
A portion of the stolen $230 million funds were laundered through several shell companies into Prevezon Holdings Ltd., based in Cyprus, according to the court filing. The court documents indicate that two Russian nationals were registered as shareholders of Prevezon, including Timofey Krit (during the period from 29 August 2006 to 18 June 2008) and Denis Katsyv, the son of a former Moscow regional government official (since 19 June 2008).
Prevezon’s bank account was owned by Alexander Litvak, named as a business partner of Katsyv in the filing.
According to the court documents, the payments traced by the U.S.
Department of Justice to Prevezon came from two Moldovan shell companies, Elenast and Bunicon-Impex which held accounts at Banca de Economii, which in turn received funds originating from the $230 million from the Russian treasury from Krainiy Sever, a Russian bank whose license was removed for violations of anti-money laundering regulations.
According to the court filing, the stated purpose of payment to Prevezon from Bunicon was “pre-payment for sanitary equipment”. However, this description was at odds with an explanation provided subsequently by a PR representative of Mr Katsyv who explained the transfers as derived from a deal between Mr Krit, a previous shareholder of Prevezon, and his friend, Mr Petrov, who “agreed jointly to develop a business based on investments in and management of property. Under the agreement Mr Petrov was to transfer funds to Prevezon for this purpose.” According to Mr Katsyv’s representative, funds from Bunicon and Elenast were accepted by Prevezon because Mr Petrov was “anticipating repayment through these companies of a debt owed him by a third party, Mr Kim.”
Some of the information identifying the flow of illicit funds came from whistleblower Alexander Perepilichnyy who died mysteriously at the age of
44 in Surrey, UK, in November last year. The cause of his death remains unexplained. As a result of the information he provided, five countries in Europe have now opened criminal investigations, with some freezing funds traced to the proceeds from the $230 million fraud uncovered by Sergei Magnitsky.
Sergei Magnitsky testified about the criminal conspiracy to Russian authorities in 2008, was arrested by some of the same officials he had implicated, ill-treated and tortured for nearly a year and killed in Russian state custody on 16 November 2009.
The investigation for this filing in New York was carried out by the Office of Homeland Security Investigations Division and supported by New York County District Attorney.
For further information, please see:
Asia-Pacific Study Reveals That One in Four Asian Men Have Committed a Rape
By Brian Lanciault
Impunity Watch Reporter, Asia
ASIA– Nearly 24% of men surveyed in a U.N. report looking at violence against women in parts of Asia have admitted to committing at least one rape. Some ten thousand men from six countries took part in the survey.
Researchers interviewed more than 10,000 men at nine sites in Bangladesh, China, Cambodia,Indonesia, Papua New Guinea and Sri Lanka in a first of its kind, multi-country survey on the prevalence of rape. Of those who admitted rape, just under half said they had done so more than once.
The prevalence of rape varied between countries.
In Papua New Guinea, more than six out of 10 men surveyed admitted forcing a woman to have sex. It was least common in areas of Bangladesh, where it was just under one in 10 and Sri Lanka where it was just over one in 10. In Cambodia, China and Indonesia it ranged from one in five to almost half of all men surveyed.
The men in the survey were questioned by trained male interviewers, and were left alone to record the answers to the most sensitive questions. The word “rape” was not used. Men were asked indirect questions such as, “Have you ever forced a woman who was not your wife or girlfriend at the time to have sex?” The results averaged around 11% of the men surveyed. When the question was altered to account for forcible intercourse with a wife or girlfriend, the average rose to 24%.
Nearly three quarters of those who committed rape said they did so for reasons of “sexual entitlement”. Report author Dr Emma Fulu said: “They believed they had the right to have sex with the woman regardless of consent.”
“The second most common motivation reported was to rape as a form of entertainment, so for fun or because they were bored,” Fulu reported. Some indicated using rape as a form of punishment or because they were angry. According to Fulu, “the least common motivation was alcohol.”
Men who had suffered violence as children, especially childhood sexual abuse were more likely to have committed rape.
“These data justifiably create global outrage, accentuated by horrific recent high-profile cases, including the brutal gang rape of a student in New Delhi,” said Dr. Michele Decker from the Johns Hopkins Bloomberg School of Public Health in Baltimore.
More than half of non-partner rape perpetrators first did so as adolescents, which affirms that young people are a crucial target population for prevention of rape.
“The challenge now is to turn evidence into action, to create a safer future for the next generation of women and girls,” said Dr. Decker.
For more information, please see:
Hindustan Times — Asia-Pacific study points to a seething crisis of rape — 10 September 2013
The Hindu — ‘One in four men across Asia admit to having committed rape’ — 10 September 2013
BBC — Almost a quarter of men ‘admit to rape in parts of Asia’ — 9 September 2013
Bloomberg — One in Four Men Surveyed in Asian Study Say They Raped — 10 September 2013
At Least 60 Killed in Central African Republic Clashes
By: Dan Krupinsky
Impunity Watch Reporter, Africa
BANGUI, Central African Republic – As violence continues to plague the Central African Republic, officials announced early in the week that fighters believed to be loyal to ousted President Francois Bozize killed dozens of people and displaced tens of thousands over the weekend.
The fighting was in the western region of the country, an area that has been the site of several massacres in the past few month, allegedly carried out by the Seleka coalition of fighters, who ousted Bozize in March. Since that time, Seleka leader Michel Djotodia was sworn in as president, vowing to return the country to democracy by organizing elections within a year and a half.
“The international community should keep a watchful eye on what is happening in this country, as we have just made a policy shift to pave the way for elections,” said presidential spokesman Guy Simplice Kodegue.
Kodegue put the death toll at 60, some estimates say that as many as 73 people were killed. According to the official government statement, a column of army soliders, with the support of Seleka fighters, were dispatched to the western region from Bangui to stop the assailants, who are accused of abusing civilians in the town of Bossangoa, which is located near Bozize’s home village.
According to Orongaye Rigobert, a community leader in Bossangoa, the pro-Bozize fighters had destroyed bridges used to access the town from Bangui in a bid to halt the army’s advance.
The clashes caused about 80 percent of the town’s population, some 30,000 people, to flee into the forest.
The latest fighting comes on the heels of a UN warning that the country is on the brink of collapse.
Another spokesman for the government accused Bozize of coordinating the most recent attacks, asking the international community for assistance in halting the violence and restoring order.
“It is an attempt by Bozize and his supporters to take power,” said Crepin Mboli-Goumba. “Six towns have been taken. This shows Seleka does not control the situation so we call on the international community to mobilize (peacekeepers) so they can intervene.”
According to recent estimates by UN humanitarian chief Valerie Amos, who recently visited the country, about one third of the country’s 4.6 million people need assistance with food, shelter, healthcare or water.
Since coming to power, Seleka fighters have been accused by aid workers of looting the healthcare system, as well as civilians.
If the accusations are true, it would be the first large-scale operation launched by the former President’s forces since his overthrow in March.
For further information, please see:
All Africa – New Fighting Reported As Security Continues to Deteriorate – 10 September 2013
BBC – Central African Republic says scores killed in new clashes – 9 September 2013
Reuters – Death toll rises in battles in Central African Republic – 9 September 2013
Washington Post – Official: 60 killed in attacks in home region of deposed Central African Republic leader – 9 September 2013
Russia Proposes Plan to Destroy Syrian Chemical Weapons; U.N. Chief Warns of Action
By Thomas Murphy
Impunity Watch Reporter, Middle East
DAMASCUS, Syria – Russia has proposed that Syria turn over all of its chemical weapons to the United Nations for destruction. The plan involves the creation of safe zones within Syria where U.N. chemical weapons experts can gather and destroy Syria’s chemical weapons supply. U.N. Secretary General Ban Ki-moon addressed the media regarding the plan.
“I am considering urging the Security Council to demand the immediate transfer of Syria’s chemical weapons and chemical precursor stocks to places inside Syria where they can be safely stored and destroyed,” Ban said.
Ban was optimistic at the suggestion of the plan, but took issue with the lack of action from a Security Council that has been suffering from “embarrassing paralysis”. He added that if Syria is found to have used chemical weapons that it would be an “abominable crime” that demands an international response, but did not elaborate on what exactly that response would entail.
U.N. chemical weapons experts are expected to present their report about an alleged August 21 chemical weapons attack by the Syrian government to the U.N. Chief later this week or next. The attack, reportedly carried out by Syrian President Bashar al-Assad forces, killed one thousand four hundred people, many of whom were children.
The sudden twist in the chemical weapons saga was prompted by a comment by United States Secretary of State John Kerry when he responded to a reporter’s question asking how Syria could avoid U.S. military intervention. Kerry responded by suggesting that a potential strike could be avoided if Syria was to surrender all of its chemical weapons within a week.
Shortly thereafter, Russia Foreign Minister Sergey Lavrov stated that he advised Syria that it should place its chemical weapons under international control if it would avert military intervention. Lavrov said that he expected “a quick and, I hope, a positive answer” from Syria.
Syrian Foreign Minister Walid al-Muallem issued a statement responding warmly to Russia’s proposal, but refused questions and did not address any specifics of the proposal.
“Syria welcomes the Russian proposal out of concern for the lives of the Syrian people, the security of our country and because it believes in the wisdom of the Russian leadership that seeks to avert American aggression against our people,” said al-Muallem.
Meanwhile, President Obama expressed caution at the plan’s potential, stating that the plan could avert U.S. action “if it’s real”.
“It’s going to have to be followed up on,” he said. “And we don’t want just a stalling or delaying tactic to put off the pressure that we have on there right now.”
For further information, please see:
ABC – Russia, Syria Push for UN Chemical Experts Return – 9 September 2013
Al Jazeera – Syria welcomes proposal on chemical weapons – 9 September 2013
CNN – Syria chemical arms plan promising ‘if it’s real,’ Obama says – 9 September 2013
Reuters – U.N. floats plan to destroy Syrian chemical weapons stock – 9 September 2013