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PREET BHARARA
United States Attorney for the
Southern District of New York
By: PAUL M. MONTELEONI
CHRISTINE I. MAGDO
ANDREW C. ADAMS
Assistant United States Attorneys
One Saint Andrews Plaza
New York, New York 10007
Telephone: (212) 637-2219/2297/2340
Facsimile: (212) 637-0084
E-mail: paul.monteleoni@usdoj.gov
christine.magdo@usdoj.gov
andrew.adams@usdoj.gov
:
:
UNITED STATES OF AMERICA, :
:
Plaintiff, : AMENDED VERIFIED COMPLAINT
:
- against - : No. 13 Civ. 6326 (TPG)
:
PREVEZON HOLDINGS LTD., : ECF Case
PREVEZON ALEXANDER, LLC, :
PREVEZON SOHO USA, LLC, :
PREVEZON SEVEN USA, LLC, :
PREVEZON PINE USA, LLC, :
PREVEZON 1711 USA, LLC, :
PREVEZON 1810, LLC, :
PREVEZON 2009 USA, LLC, :
PREVEZON 2011 USA, LLC, :
FERENCOI INVESTMENTS, LTD., :
KOLEVINS, LTD., :
:
Defendants, :
:
ALL RIGHT, TITLE AND INTEREST :
IN THE REAL PROPERTY AND :
APPURTENANCES KNOWN AS THE 20 :
PINE STREET CONDOMINIUM, 20 :
PINE STREET, NEW YORK, NEW YORK :
10005, UNIT 1816 (20 PINE :
STREET, UNIT 1816), :
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:
ANY AND ALL FUNDS ON DEPOSIT IN :
BANK OF AMERICA ACCOUNT NUMBER :
**********8293 HELD IN THE NAME :
OF PREVEZON ALEXANDER LLC (THE :
PREVEZON ALEXANDER ACCOUNT), :
:
ANY AND ALL FUNDS ON DEPOSIT IN :
BANK OF AMERICA ACCOUNT NUMBER :
**********8084 HELD IN THE NAME :
OF PREVEZON SOHO USA LLC (THE :
PREVEZON SOHO ACCOUNT), :
:
ANY AND ALL FUNDS ON DEPOSIT IN :
BANK OF AMERICA ACCOUNT NUMBER :
**********6021 HELD IN THE NAME :
OF PREVEZON SEVEN USA LLC (THE :
PREVEZON SEVEN ACCOUNT), :
:
ANY AND ALL FUNDS ON DEPOSIT IN :
BANK OF AMERICA ACCOUNT NUMBER :
**********8349 HELD IN THE NAME :
OF PREVEZON 1711 USA, LLC (THE :
PREVEZON 1711 ACCOUNT), :
:
ANY AND ALL FUNDS ON DEPOSIT IN :
BANK OF AMERICA ACCOUNT NUMBER :
**********9102 HELD IN THE NAME :
OF PREVEZON 2009 USA, LLC (THE :
PREVEZON 2009 ACCOUNT), :
:
ANY AND ALL FUNDS ON DEPOSIT IN :
BANK OF AMERICA ACCOUNT NUMBER :
**********8242 HELD IN THE NAME :
OF PREVEZON PINE USA, LLC (THE :
PREVEZON PINE ACCOUNT), :
:
ANY AND ALL FUNDS ON DEPOSIT IN :
BANK OF AMERICA ACCOUNT NUMBER :
**********5882 HELD IN THE NAME :
OF PREVEZON 2011 USA, LLC (THE :
PREVEZON 2011 ACCOUNT), :
:
ANY AND ALL FUNDS ON DEPOSIT IN :
BANK OF AMERICA ACCOUNT NUMBER :
**********9128 HELD IN THE NAME :
OF PREVEZON 1810 USA, LLC (THE :
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INTRODUCTION
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attorney who exposed the fraud scheme, was falsely arrested and
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FACTUAL ALLEGATIONS
HOLDINGS (either in his own name alone or in his own name and in
the name of another company he wholly owns) since June 19, 2008.
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PREVEZON PINE USA, LLC (PREVEZON PINE), PREVEZON 1711 USA, LLC
PREVEZON 2009 USA, LLC (PREVEZON 2009), and PREVEZON 2011 USA,
KATSYV.
KOLEVINS.
Russia. Until 2006, the Hermitage Fund was the largest foreign
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A. Overview
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refunds.
refunds. The basis of these refund requests was that the money
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day that they were made or the next business day, and
Scheme began on or about April 28, 2007, when key members of the
information and belief, they were met in Larnaca two days later
well as two lawyers, ANDREY PAVLOV and his wife YULIA MAYOROVA,
PAVLOV had known KLYUEV since 2001 and had provided him legal
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Tax Office No. 28, and her then-husband VLADLEN STEPANOV, who
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Companies.
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the parties to the contracts and the figures had been changed.
relevant time.
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missing in 2005.
information and belief, had met there with other members of the
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proceedings.
legal proceedings.
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Tax Office No. 25, and that Parfenion and Makhaon were re-
Office No. 28. During the relevant period, the head of Moscow
obtained judgments were issued but before one of them came into
and 28.
41. The basis for the requested refund was that the
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equal to, and thus negated, the profits the Hermitage Companies
had made during the last tax year, entitling the Hermitage
INSTAR and GRAND AKTIVE actually filed with the tax authorities
were based, by its own terms, did not go into legal effect until
most of the refund applications were filed and one business day
Moscow Tax Offices 25 and 28, approved the U.S. $230 million in
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December 26, 2007, just two days after the applications were
made, refunds totaling U.S. $230 million were paid from the
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53. These judgments then formed the basis for tax refunds
Moscow Tax Offices No. 25 and 28, the same tax offices that
approved the U.S. $230 million refunds in the $230 Million Fraud
were moved to Moscow Tax Offices No. 25 and 28, just as in the
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below, the $230 Million Fraud Scheme also involved the opening
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report which was used to open a criminal case against the two
fraud.
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Magnitsky.
fled Russia.
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guards with rubber batons on the last day of his life; and the
ambulance crew that was called to treat him as he was dying was
67. The report of the Human Rights Council also states the
uncovered.
called torturous.
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guilty to the U.S. $230 million tax fraud scheme. The verdict
imprisonment.
old.
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years after his death. Magnitstky was charged with tax evasion
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fraud proceeds.
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December 20, 2007 (six days before the transfers from the
17, 2007 (nine days before the transfers from the Russian
or about December 12, 2007 (two weeks before the transfers from
the board of USB was GENNADY PLAKSIN, who was the 100% owner of
was the 100% owner and director of GRAND AKTIVE until 2006. As
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2008.
not trace the fraudulent tax refund money because the relevant
million rubles.
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January 21, 2008, the Rilend USB Account made a series of seven
USB Account and the Rilend USB Accounts were closed as well. On
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the ZhK Account and the Univers Account then made transfers to a
525 million rubles, into the Bank Krainiy Sever Account. And
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rubles. And between February 5 and February 13, 2008, the Bank
92. On February 13, 2008, the day that the Bank Krainiy
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Exhibit C.
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STEPANOVA, the head of Moscow Tax Office No. 28, who had
Arivust.
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100. The tax returns for STEPANOV and STEPANOVA from 2006
$38,381.
U.S. $410,000.
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Germany.
2008 Bunicon and Elenast Transfers, KRIT was listed as the sole
in Russia.
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that after the February 2008 Bunicon and Elenast Transfers, Mr.
Katsyvs employee.
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undertook a full review of where they had come from and how the
derived from a deal between KRIT and his friend, a Mr. Petrov.
Elenast.
sanitary equipment.
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purportedly of Bunicon.
of Elenast.
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from the $230 Million Fraud Scheme from Bunicon and Elenast
follows.
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parts completing.
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Account).
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Bunicon.
The bank records for each of these wire transfers list them as
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these assets for five years and then transfer the properties to
purchased Unit 2009 of 20 Pine Street, New York, New York (20
building (20 PINE STREET, UNIT 1810) from 20 Pine Street LLC
from AFI Europe. The AFI Europe funds had been transferred to
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$772,687. Both purchases were made with funds from the PREVEZON
respectively.
unit COM-1 of 160 Wooster Street (160 WOOSTER STREET, UNIT COM-
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ACCOUNT contains rental proceeds from 250 EAST 49TH STREET, UNIT
proceeds from 160 WOOSTER STREET, UNIT COM-1; the PREVEZON 1711
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1816; and the PREVEZON 1810 ACCOUNT contains sale and/or rental
order of the Court as a substitute res for all right, title and
133. On or about April 30, 2014, 250 EAST 49TH STREET, UNIT
order of the Court as a substitute res for all right, title and
are the 250 EAST 49TH STREET, UNIT COMM3 SALE PROCEEDS.
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order of the Court as a substitute res for all right, title and
EUROPE DEBT.
FIRST CLAIM
(FORFEITURE UNDER 18 U.S.C. 981(a)(1)(A), 985)
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18 U.S.C. 1957(f)(1).
official.
981(a)(1)(A).
SECOND CLAIM
(CIVIL MONEY LAUNDERING PENALTIES,
18 U.S.C. 1956(a)(1)(A) and (b))
1 through 136 and 138 through 143 above as if fully set forth
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herein.
penalty of not more than the greater of (A) the value of the
the United States for the value of the funds and monetary
determined at trial.
THIRD CLAIM
(CIVIL MONEY LAUNDERING PENALTIES,
18 U.S.C. 1956(a)(1)(B) and (b))
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1 through 136, 138 through 143, and 146 above as if fully set
forth herein.
the United States for the value of the funds and monetary
determined at trial.
FOURTH CLAIM
(CIVIL MONEY LAUNDERING PENALTIES,
18 U.S.C. 1956(a)(2)(A) and (b))
1 through 136, 138 through 143, and 146 above as if fully set
forth herein.
place outside the United States, with the intent to promote the
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the United States for the value of the funds and monetary
determined at trial.
FIFTH CLAIM
(CIVIL MONEY LAUNDERING PENALTIES,
18 U.S.C. 1956(a)(2)(B) and (b))
1 through 136, 138 through 143, and 146 above as if fully set
forth herein.
the United States for the value of the funds and monetary
determined at trial.
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SIXTH CLAIM
(CIVIL MONEY LAUNDERING PENALTIES,
18 U.S.C. 1956(b) and 1957)
1 through 136, 138 through 143, and 146 above as if fully set
forth herein.
than $10,000.
the United States for the value of the funds and monetary
determined at trial.
SEVENTH CLAIM
(CIVIL MONEY LAUNDERING PENALTIES,
18 U.S.C. 1956(h) and (b))
1 through 136, 138 through 143, and 146 above as if fully set
forth herein.
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place outside the United States, with the intent to promote the
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value greater than $10,000, and which was derived from the $230
the United States for the value of the funds and monetary
determined at trial.
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in the Complaint.
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Exhibit A
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Exhibit B
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Russian Treasury
Dec. 26, 2007, Dec. 26, 2007, Dec. 26, 2007,
three transfers, two transfers, two transfers,
3.276 billion rubles 1.76 billion rubles 373 million rubles
Parfenion
Intercommerz Rilend USB Makhaon USB
Account, Account, Account,
Intercommerz USB, Russia USB, Russia
Bank, Russia
Jan. 18-Feb. 3, 2008, Jan. 11-21, 2008, Jan. 11-Feb. 4, 2008,
Jan. 21-25, 2008,
six transfers, seven transfers, ten transfers,
six transfers,
1.108 billion rubles 3.6 million rubles 266 million rubles
430 million rubles
Fausta
Intercommerz Anika Account,
Account, Ocean Bank,
Intercommerz Russia
Bank, Russia
Feb. 6-8, 2008,
ten transfers, Feb. 5, 2008, Feb. 5, 2008,
513 million one transfer, one transfer,
rubles 98.9 million rubles 69.9 million rubles
Univers Account,
ZhK Account,
Mosstroieconombank,
Sberbank, Russia
Russia
Exhibit C
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Exhibit D
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