TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Monday, September 16, 2013

DOJ Seeks to Seize NYC Property Linked to Russian Tax Fraud Case

DOJ Logo (2013)U.S. Attorney for the Southern District of New York, Manhattan U.S. Attorney Announces Civil Forfeiture Complaint Against Real Estate Corporations Allegedly Involved In Laundering Proceeds Of Russian Tax Refund Fraud Scheme:

Preet Bharara, the United States Attorney for the Southern District of New York, James T. Hayes, Jr., the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Cyrus R. Vance, Jr., the District Attorney for New York County, announced today the filing of a civil forfeiture complaint against the assets of nine corporations controlling real estate in Manhattan, including four luxury residential units and two high-end commercial spaces, as well as against the assets of two related companies, and seeking the imposition of civil money laundering penalties. The Complaint filed today in Manhattan federal court alleges that these corporations laundered a portion of the proceeds of a $230 million Russian tax refund fraud scheme involving corrupt Russian officials that was uncovered by Sergei Magnitsky, a Russian lawyer who died in pretrial detention in Moscow under suspicious circumstances.

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