A court in the United States ordered the son of a Russian official to pay $ 6 million for laundering money stolen from the Russian treasury

The Manhattan Federal Court 7 February ordered the Cyprus company Prevezon Holdings, owned by Denis Katsyv, son of Deputy Director General of the Russian Railways Peter Katsyva, to pay 6,039 million dollars in favor of the United States, reports with the BBC.

Фото: Depositphotos

At the end of October 2017 of the year Prevezon did not pay on time to 5,9 million dollars, which she pledged to pay to the income of the American state in accordance with the out-of-court agreement concluded in May with the federal prosecutor's office of the Southern District of New York.

Civil action against Prevezon and a dozen of its subsidiaries were excited as early as 2013. Prosecutors accused them of laundering Russian budget money through the acquisition of luxury real estate in Manhattan. It was about a small part of 230 million dollars stolen more than 10 years ago from the Russian treasury in the course of an ambitious tax fraud, which exposed the auditor Sergei Magnitsky.

According to Magnitsky, Katsyva’s companies got 1,96 million dollars, which were invested in European real estate, out of this amount. Profit from these investments was later invested in real estate in New York.

Lawyers for Katsyva companies, who themselves were not accused of anything, in the spring of 2017, suddenly agreed with the prosecutor's office just two days before the start of the process.

As he wrote then considering the claim against Prevezon Federal Judge William Pawley said that if the parties had not settled amicably, “the trial would have painted the picture of an international intrigue, a colossal tax scam that ended with $230 million being funneled through a tangled web of shell companies.”

According to the judge, without the global deal, the process would have lasted several weeks and could end unfavorably for the defendants, who would then have to pay about 14 million dollars.

According to the deal, Prevezon should have paid off with the US government before October 31 2017. However, on that day, her lawyer, Faith Gay, sent a letter to the judge, stating that, in terms of PrevezonMay agreement with the prosecutor's office does not oblige the company to pay the amount sought by this date.

According to the lawyer, back in 2014, the American prosecutor’s office secured the consent of the government of the Netherlands to freeze a little more than 3 million euros, which the company AFI Europe N. V. was supposed to Prevezon.

The 15 global deal, concluded that the prosecutor’s office would ask the Dutch authorities to unfreeze the money, and Prevezon in 15 working days after that, the prosecutor’s office will pay out about 5,9 million dollars.

After that, the prosecutor's office will unfreeze the amounts obtained through the sale of Manhattan apartments, allegedly bought to launder money from the scam, which was exposed by Magnitsky.

On October 10, the prosecutor’s office informed the defendants that Holland agreed to defrost the indicated 3 million euros, which AFI Europe was supposed to Prevezon. But at the same time, the Dutch authorities again froze this amount due to their own effect on the possible money laundering by Katsyva. This investigation was initiated in response to a complaint filed in Holland. Hermitage Capital Management.

The latter is owned by British investor William Browder, who presented to the New York prosecutors the lion's share of the evidence base of their lawsuit against Prevezon.

Lawyer Katsyva found it suspicious that the complaint was filed in Holland on May 16, that is, literally the next day after the conclusion of a global deal in New York.

In light of the above, Gaye wrote, the defendants do not believe that they should at the moment make any payments according to the transaction with the prosecutor’s office.

The prosecutor’s office responded by saying that she honestly and on time informed the Dutch that the freezing of money, which AFI Europe should Katsyvu, is no longer required, that is, fulfilled its obligations. For what happened in Holland after this, she is not responsible.

During the litigation, which lasted from October, the parties dispersed in the interpretation of the English word release. Prevezon interpreted it as “pay” (to her the money that was owed to her in Holland). The prosecutor's office insisted on interpreting it as “unfreeze” and argued that the Dutch court, at her request, did exactly that. It's not her fault that he immediately froze the money back in connection with his own investigation.

As a result of judicial review, the court ordered Prevezon pay the US government the desired 5,9 million dollars with accrued interest at the rate of 9% per annum.

On 6, February, the percentages that accrued due to non-payment amounted to 142 481 dollar.

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