Monday, September 16, 2013
Protective Order Issued Over US Properties Allegedly Linked To Russian Tax Fraud
A US federal court Wednesday issued a protective order over property implicated in a lawsuit alleging fowl play by a Russian criminal enterprise linked to the Hermitage Capital Fund. The protective order issued Wednesday applies to all in personam defendants, including numerous Prevezon entities, and two other companies – Ferencoi Investments, Ltd. and Kolevins, Ltd. – as well as any attorneys or other such representatives acting on their behalves. Prevezon Holdings belongs to Denis Kantsyv, the son of former Moscow Region Transport Minister Petr Kantsyv, an attorney for Denis Kantsyv confirmed to RAPSI Wednesday. Prosecutors allege that certain Manhattan properties were purchased with money fraudulently acquired through a Russian tax scheme unveiled by Hermitage Capital auditor Sergei Magnitsky, who died in a Moscow pre-trial detention center in 2009. Denis Katsyv's attorney stressed, however, that neither her client nor any of his relatives are linked with the Magnitsky case specifically or the Hermitage Fund in general. Magnitsky was arrested on November 24, 2008, on suspicion of having masterminded large-scale corporate tax evasion. He died while in pretrial detention on November 16, 2009, after spending a year behind bars. The case was closed after his death, only to be reopened later. Under Russian law, a person can be prosecuted after death. On July 11 Magnitsky was found guilty of tax evasion. On Dec. 6, 2012, the US Senate approved the Magnitsky Act, to severe criticism from the Russian State Duma, stipulating visa sanctions for Russians who are believed by US authorities to have been involved in human rights violations. The Magnitsky List, which was published in part on April 12, includes the names of 18 Russian officials who are barred from travelling to the United States.