Tags: alexei kuznetsov

Former Moscow Region minister Kuznetsov arrested in absentia

http://rumafia.com/news.php?id=334

Moscow’s Basmanny Court has arrested Aleksey Kuznetsov, former finance minister in the government of the Moscow Region. Earlier the court issued an international arrest warrant for him. Now he has been detained in absentia. The ex-minister and his alleged associates - Kuznetsov’s first deputy Valery Nosov, director general of Russian Investment Group LLC Dmitry Kotlyarenko and Moscow’s Trust Company JSC Vladislav Telepnev - face charges of large-scale fraud, which involved embezzlement of assets of state-owned Moscow Region Investment and Trust Company (abbreviated MOITK). The indictment was brought in on 7 July. Next day the Moscow’s Basmanny Court detained Kuznetsov for 2 months in absentia. Kuznetsov has been on international wanted list since he fled from Russia in October 2010.  

The Russian Mafia (rumafia.com) has already reported about Kuznetsov’s machinations with public funds. It all began when Kuznetsov and his associates set up Rosveb firm, the accounts of which were used to accumulate the majority of assets of MOITK. A few months later, Russian Investment Group LLC (owned by Kuznetsov’s wife Janna Bullock) - or RIGroup - bought the shares issued by Rosveb. RIGroup seized 5.5b roubles ($0.2b) worth stake in Rosveb (officially, the group’s director general was Dmitry Kotlyarenko). Besides that, Kuznetsov and Nosov ordered MOITK to allocate 25b roubles ($0.9b) of state funds as loans to phony companies set up by Bullok and Kotlyarenko. As a result, MOITK was made bankrupt, putting the region on the verge of default.

Vladimir Markin, an official of the Russia’s Investigation Committee, said that the evidence had been found of 3.8b roubles ($0.13b) embezzlement of state funds, committed by the above-mentioned people. The investigators had asked a number of states to assist Russia in identifying the location of the embezzled funds, Markin said.     

Kommersant

Assets of 25 billion rubles have been returned to the State

http://rumafia.com/news.php?id=153

During the investigation of the case against former Finance Minister of the Moscow Region Government, Alexei Kuznetsov, Interior Ministry officers returned the stolen assets worth of 25 billion rubles to the State. The assets were as follows: movie theaters, shopping centers, land plots and apartments in the Moscow region. According to investigators, in total, 30 billion rubles had been stolen from the budget.

"As a result of activities undertaken, the arbitral tribunal of the Moscow region approved the settlement agreement on the transfer of state securities (stocks and bonds), shares in the authorized capital of commercial organizations, and non-payers' debts", employees of the Department of Economic Security (DES), MIA informed. Operational-investigative actions had been carried out in a criminal case of fraud against Alexei Kuznetsov, and former Deputy Finance Minister of the Moscow Region Government, Valery Nosov and the American Zhanna Bulok and Dmitry Kotlyarenko.

The case is connected with the Moscow Regional Investment Trust Company (MOITK), the main activity of which had been investing in social projects of the Moscow region, and the only shareholder was the Government of Moscow Region. That property of MOITK, according to investigators, was stolen. "It is established that Kuznetsov and Nosov, using their official powers, had been drawing the budget funds by transferring assets of MOITK in businesses controlled by Kuznetsov’ wife - Zhanna Bulok", the interior ministry officers said. According to the DES, currently Valery Nosov is arrested, Alexei Kuznetsov and Zhanna Bulok are put on the international wanted list, Dmitry Kotlyarenko is attempted to extradite from the Republic of Cyprus.

Let us recall that the investigation of those high-profile criminal cases started in the end of 2008 by identifying the theft of 600 million rubles in the Pushkin District, Moscow Region; it was allocated to the regional government to the needs of utilities. According to investigators, the essence of frauds, discovered not only in Pushkin, but nearly in a dozen of other areas of the suburbs, was as follows: Since 2006, the municipal unitary enterprises have started to create artificial debts of the Moscow Region Government for allegedly performed the work in the field of public utilities. Then, those unitary enterprises assigned the right to claim debts to fly-by-night firms, to whom the government of Moscow region paid on fictitious debts. The organizer of the crime is believed to be Alexei Kuznetsov, who has spearheaded the formation of MOITK (On September 29, 2009 - Arbitration Court declared the company bankrupt).

Source: Kommersant-Online, 21.10.2010

Businessman is no longer detained in Cyprus

http://rumafia.com/news.php?id=121

General Prosecutor's Office stated that the District Court of Larnaca (Cyprus) had decided to extradite to Russia the CEO of OOO “Russian Investment Group” Dmitry Kotlyarenko. Mr. Kotlyarenko, having also an American passport, is a defendant in several criminal cases in Russia, including theft of funds from Moscow budget totaling over 30 billion rubles. the former first deputy finance minister of the Moscow area, owner of the finance company "Horizon" and the publishing house OOO "ArtMedia Group”, Valery Nosov is targeted in one of these cases, as well as wanted ex-Finance Minister of the Moscow region Alexey Kuznetsov and his wife -President of OOO “RIGroup " Zhanna Bulok.
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As the Prosecutor General of Russia, Dmitry Kotlyarenko was declared in the federal wanted list in December 2008, and in the international wanted list - in March of 2009 due to a criminal case of large-scale fraud (Part 4 of Art. 159 of the Criminal Code), which investigates the Central Investigation Department at Internal Affairs of Moscow region. As stated in the materials of the case, Mr Kotlyarenko "in 2005-2008 committed embezzlement of OAO IKMO in excess of 1 billion rubles together with an organized criminal group he led; that fund was invested by the Government of Moscow Region in housing." According to investigation, the organizers of fraud entered into a fictitious contract for the construction of a residential complex in Klin, Moscow Region. To implement this agreement they had received targeted loans for the development of mortgage lending in accordance with the program of the Moscow region government. "As a result of a complicated criminal scheme the funds were stolen – they were transferred to the bank accounts in offshore zones", as it was stated in the case. Investigators are convinced that the organizers of the theft, including Mr. Kotlyarenko, originally had not planed to perform the contract, so their actions were regarded as fraud.
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Dmitry Kotlyarenko was detained by Interpol in Cyprus in March 2009. A month later, General Prosecutor of Russia requested Cypriot authorities for his extradition and for the criminal case materials. Larnaca District Court reviewed the case for extradition in November last year and on July, 8 decided to extradite Mr. Kotlyarenko.
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Note that the case of theft of 1 billion rubles is not the only one in which Dmitry Kotlyarenko performs. As Kommersant has repeatedly told, the investigation committee at the Interior Ministry is investigating the case of theft of about 24 billion rubles by fraud, taking the right of claim property worth about 5.5 billion rubles and the subsequent withdrawal of the assets of the Government of Moscow region abroad. In this case, former Finance Minister of the regional government Alexey Kuznetsov was also featured and his first deputy Valery Nosov together with Kuznetsov’s wife Zhanna Bulok. According to investigators, in 2007 on behalf of the Moscow Regional Investment Trust Company (MOITK), they founded the company "Rosveb", to which they passed a part of the assets. Six months later share issue of "Rosveb" was carried out at the expense of Russian investment group, the beneficial owner of which was Jeanne Buloke and the CEO - Dmitry Kotlyarenko. As a result, OOO “RIGroup" received a controlling stake in “Rosveb", however, the payment for the acquired shares was not made, according to the investigative committee. In addition, the gentlemen Nosov and Kuznetsov used their official position and instructed the Board of Directors of MOITK to sell Zhanna Bulok and Dmitry Kotlyarenko the most liquid assets at face value, while the remaining shares went to a few fictitious companies controlled by the same Ms. Bulok. At the same time payment of shares and assets was also made, according to the investigation. As a result MOITK lost the right to possess, use and dispose the property of the Moscow region. as suggested by consequence, the former Moscow Region Minister of Finance and his deputy damaged basically the treasury of the Moscow region, after MOITK began to issue loans of the budget money to entities controlled by Zhanna Bulok and Dmitry Kotlyarenko upon the direct instructions. This has led to the introduction of bankruptcy proceedings of MOITK (for details see "Kommersant" for March, 12 this year). In addition, Mr. Kotlyarenko is charged with theft of shares of Podolsky Chemical Plant in the amount of 2.875 billion rubles.
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Following the decision of the court in Larnaca, Mr. Kotlyarenko was taken into custody by the Cypriot police. If his extradition is not abolished by higher authorities of Cyprus, he will be deported to Russia.
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Source: “Kommersant” № 123 / P (4423) on 07/12/2010

«Plazas» and Rhinestones

http://rumafia.com/news.php?id=33

Details of an inquest on embezzlement of Podmoskovye (Moscow Region) budget funds amounting to USD 1 billion by RIGroup Company; this money was used by Moscow Region ex-Minister of Finance Mr Kuznetsov to pay for the most expensive wedding in the history of new Russia


Bride Zoe Bullock followed by step-father Alexei Kuznetsov coming to the banquet in the new Rolls-Royce

Russian law enforcement authorities investigate more and more facts of corruption and budget funds embezzlement in Podmoskovye. There already exist two criminal cases on fraud with government money amounting to RUR 4 billion, now a new criminal case has been added on embezzlement of RUR 27 billion (USD 1 billion). This rather big amount was not embezzled in one go, but as the result of many years’ systemic frauds with participation of the Minister of Finance Alexei Kuznetsov (retired on 27th July, 2008), his wife, US citizen and President of RIGroup Company Ms Janna Bullock, their subordinates and heads of municipalities’ administrations of the region. This budget fraud was structured on the basis of a scheme which may be easier understood at the example of one of the case’s episodes, the construction of “Plaza” business centre in Serpukhov that was later sold to the Moscow Region authorities at a much more expensive price than it really cost. In the result of this deal the Government of Podmoskovye lost RUR 300 million and the business centre itself.


Тhree Cases of Missing Billionaires

Now Russian law enforcement bodies conduct three separate investigations of the results of the Moscow Region Governmnet Minister of Finance Alexei Kuznetsov activities. The Main Investigations Directorate at the Moscow Region Chief Department of Internal Affairs investigates the case of over RUR 1 billion embezzlement, the Main Investigations Directorate of the Investigations Committee at the Prosecutor’s Office of Russia tries to find those guilty in embezzling over RUR 3 billion when conducting sham works in the sphere of housing and public utilities in Podmoskovye ten districts. On 12th February, 2010 the Investigations Committee at the Ministry of Internal Affairs of the RF has opened its own criminal case on RUR 27 billion embezzlement, and is now investigating it. Kuznetsov’s first deputy, Valery Nosov, is already arrested.

The wedding guests were taken to the church by boat

The persons involved in all three criminal cases are RIGroup Company («Russian Investment Group») headed by Janna Bullock, the wife of Podmoskovye ex Minister of Finance, Alexei Kuznetsov (before she relocated to USA in late 1980s her name was Zhanna Bullakh, after receiving the citizenship she became Janna Bullock), and the biggest subsidiary of the Moscow Region Government - ОJSC «Моscow Regional Investment Trust Company» (МОIТК).

МОIТК was founded in October, 2000 to implement the government order on infrastructure and investment projects in Podmoskovye. The company was 100% subsidiary of the Moscow Region Government, hence the regional authorities reimbursed all MOITK expenses on various projects from the budget. In 2003, the company became the authorized investment adviser of the Moscow Region Government Ministry of Finance, аs well as the customer and investor of most of the construction sites in Moscow Region.

Pumping with Money


МОIТК is an incorporator of the OJSC «Moscow Region Mortgage Corporation» (IKМО), while the latter in its turn incorporated «Моscow Regional Mortgage Agency» (МОIА). These three «daughters» of the Moscow Region Government pumped the money in various ways, including debenture issue, while the Moscow Region authorities were the guarantee for their transactions. In the result due to many debts of MOITK, IKМО and МОIА, one of the biggest Russian regions was on the verge of default in December, 2008.

Guests were shown at which table to seat at the entrance

At the same time the law enforcement bodies became interested by the fact where did all the government funds really flow. Starting from 2009, criminal cases began to appear on budget funds’ embezzlement. Тhus, the Investigations Committee at the Prosecutor’s Office of the RF investigates a fraud case amounting to over RUR 3 billion; accused are the former head of MOITK, Vladislav Telepnyov, and Moscow Region ex-Minister of Finance, Alexei Kuznetsov (he was put on the international wanted list). The Main Investigations Directorate at the Moscow Region Chief Department of Internal Affairs the case is at hand on over RUR 1 billion embezzlement; this money was transferred by IKMO to RIGroup-Finance accounts and later transferred to off-shores.

In the new investigation of Investigations Committee at the Ministry of Internal Affairs it becomes clear how the budget funds were «used». According to the Main Investigations Committee at the Moscow Region Chief Department of Internal Affairs, in 2004 Podmoskovye Government, Serpuknov administration and ООО «RIG» concluded an Investment Contract (No. 249/58-04) for the price of RUR 55.1 million for the building of “Plaza” business centre at Voroshilov Street. Under the Contract’s terms and conditions, 10% of the Contract’s price, i.e. RUR 5.1 million, was to be paid to Serpukhov budget.

The question on what money would the RIGroup headed by Janna Bullock construct the business centre was solved very quickly. The fact is that most of the money for its projects the RIGroup has been long receiving from the Moscow Region Government’s three «daughters» the activities of which was supervised by Bullock’s husband, Minister of Finance Alexei Kuznetsov. And this time as well the money for construction of the RIGroup’s new site was allotted by МОIТК. A corresponding contract was concluded (No. 23-05/05-ID-02), in which the initial stated cost of works increased from RUR 55 million to RUR 286 million.

Soon the cost of the site very mysteriously almost doubled again. RIGroup attracted OOO Rosweb-Office as co-investor, and the latter according to the documents allegedly allotted RUR 200 million for the construction of the business centre. Whether this amount was really used at the construction of «Plaza» or not, is impossible to find out, as the investigators state, because Rosweb-Office also is the RIGroup’s subsidiary and also controlled by Janna Bullock.

Janna Bullock likes to surround herself with influential people

In fact, one and the same entity just moved RUR 200 million from one «pocket» to another one, this latter being its own, and declared that the money was spent to build the business centre. Тhus, the total cost of the site now reached RUR 486 million. But the expert assessment conducted at MOITK request by the company, that had certain interests and was controlled by Alexei Kuznetsov, showed that the cost of the business centre did not exceed RUR 323 million.

Bullock’s “Plazas” Might Have Covered All the Moscow Region

On 21st November, 2007 the «Plaza» in Serpukhov was inaugurated. All the town’s authorities were present, including the Head of Administration Pavel Zhdanov, Janna Bullock, аs well as the cultural attache of the US Embassy Jeffrey Sexton. The appearance of the latter was a surprise only for strangers, those who did not know that Bullock was a US citizen. According to those who were present then, the «fathers» of the town kissed Ms Bullock’s hands and offered her to continue to build in the town.

Then more surprise happened. As later Pavel Zhdanov told at interrogations, a working group was created at the Moscow Region Government (him included) in order to implement the programme of «building multifunctional retail centres in Moscow Region» with a possibility to place certain institutions of town administrations in these centres. And the above mentioned working group recommended that these business centres would belong to the municipalities.

Guests were fed Russian cuisine – caviar, starlet, suckling pigs…

All Moscow Region officials well understood what business centres were meant here; by that time RIG aside from Serpukhov started its “Plazas” in 15 more towns of the Moscow Region. Pavel Zhdanov was no exception, he decided to acquire the business centre constructed by the RIGroup at Voroshilov Street, for it to become the town property. Serpukhov authorities agreed to pay the amount of RUR 715 million for the site. Where did this figure come from, 13 times exceeding the original project cost envisaged by the contract and almost twice as high as the amount spent by RIGroup and Rosweb-Office in accordance with their own documents. But these are the questions to the investigation and court now.

Pavel Zhsanov himself thus answered the investigating officer’s question, «The price named was formed on the basis of evaluation conducted at the request of OOO RIGroup. The assessment act was produced.” Meaning that the seller itself named the price, and the town administration agreed to it. It seems that if RIGroup had produced the act stating that “Plaza” cost RUR 5 billion, the district authorities would have paid it as well.

700 Million Passed via SIP

However, according to police investigators, it was clear that Serpukhov deputies would not have approved allocation of such funds from local budget, since they knew very well the actual cost of the building. So, a very cunning way was chosen. OJSC “Serpukhov Investment Projects” (SIP) was assigned to conduct the purchase of the business centre, SIP being the 100% subsidiary of the Serpukhov administration. Pavel Zhdanov’s evidence demonstrates how SIP searched for the money to purchase the building.

Unmarried RIGroup managers and other guests vividly fought for the bride’s stocking garter

It is interesting that the half a million loan for the state company was taken care of by two businessmen interested in the transaction. Moreover, both these gentlemen were close colleagues of Janna Bullock, and even her former managers. Now they are charged with other budget embezzlement case for the amount of over RUR 1 billion. Kotlyarenko has been arrested recently by Cyprus authorities at the request of the General Prosecutor’s Office of the RF, while Artyom Vasiliev is in Russia with a written pledge not to leave the country.

According to investigators of the Chief Department for Counteracting Economic Crimes at the Ministry of Internal Affairs RF, they discovered what might have happened in reality. SIP loan period for the amount of RUR 500 million had to terminate in December, 2008, and then the Moscow Region budget would have paid. No doubt that the Minister of Finance Alexei Kuznetsov would have approved such expenses. But this was hindered by force majeure.

On 27th July, 2008 promptly left his post and went abroad together with his wife Janna Bullock (now he abides in France, while Bullock in USA). Moscow Region’s Government inherited debts amounting to around RUR 50 billion. Serpukhov «Plaza» was arrested at the claim of the bank that did not receive back the loan money. So the state did not get the building after all.

Director of Moscow Photography House Olga Sviblova had her time at the wedding

It is not clear who won in this situation, what is clear is that it was RIGroup. According to police investigators, this company has not invested even a Rouble of its own into the site; it received RUR 286 million from МОIТК, аnd the fact that Risweb-Office invested RUR 200 million into the construction of the business centre is not confirmed. In exchange RIGroup received RUR 715 million from SIP. Even if we deduct RUR 286 million spent by МОIТК and virtual RUR 200 million of Rosweb-Office, net profit amounts to over RUR 200 million. This money went to the accounts of the company that belonged to Janna Bullock, the wife of Minister Kuznetsov.

«Successful American Developer» Turned out Junk Company

«When we started to examine all this story, we were terrified, to put it very mildly,” one of the Ministry of Internal Affairs officer sais. “One of the main developers of the Moscow Region, RIGroup Company positioned itself as the subsidiary of the well known US development company RIGroup, it was headed here by Janna Bullock. However, the check demonstrated that RIGroup has only debts in the USA amounting to USD 27 thousand, and no serious projects in its portfolio. The only advantage of RIG was that Bullock was the wife of the Minister of Finance Kuznetsov».

Officers of the Ministry of Internal Affairs RF have recovered many documents at RIGroup, Rosweb-Office, Serpukhov Administration, have interrogated Pavel Zhdanov and other officials that had to deal with the transaction.

Fisrt Deputy Minister of Finance Moscow Region Valery Nosov (left) shares his worries about the future with the curator of Guggenheim Foundation Nick Ilin. Now Nosov is in jail charged with embezzling RUR 27 billion together with bride’s parents Alexei Kuznetsov and Janna Bullock

«We have gathered material enough to open several cases: upon embezzlement of government funds during construction of business centre by RIGroup, upon exceeding the authority by officials of all levels who acted in favour of RIGroup and its owner Bullock, upon falsification of documents at “Plaza’s” registration, upon illegal reception of RUR 500 million loan, etc. But the law enforcement mountain could not for a while give birth even to a mouse; the Investigations Committee at the Ministry of Internal Affairs RF started a full-fledged investigation only on 12th February, 2010, i.e. a year and a half after the main organizers of the near-budget financial pyramid in Podmoskovye escaped abroad.

Why Kuznetsov and Bullock Were Safeguarded?

According to police investigators, the Moscow Region investigation authorities did not really want to examine this case. Only one case was open upon Part 4 Art. 159 Criminal Code RF («large scale fraud») on the allocation by МОIТК of RUR 217 million to OJSC SIP. The main Investigations Directorate at the Moscow Region Chief Department of Internal Affairs decided that when SIP took the money in order to purchase the business centre, it had no intention to pay back.

The case was open against «unidentified persons», though all the persons were identified. The materials on Serpukhov Administration officials were singled out into separate proceedings, and these went to the Investigations Directorate at the Prosecutor’s Office, Moscow Region RF. The policemen thought that some actions of Pavel Zhdanov may be subject to Article 293 Criminal Code RF («negligence»).

Under the Contract RIGroup had to transfer 10% of the amount invested into “Plaza” construction to Serpukhov budget. Originally the cost of works was stated as RUR 55 million, and RIGroup paid RUR 5.1 million. But later, as is written in the documents of the same RIGroup, the cost of works increased up to RUR 715 million. Hence, under the Contract the amount of RUR 71.5 million had to be transferred to the budget. According to police investigators, Pavel Zhdanov for unknown reasons did not demand that the company paid the additional money to the local budget. But no case was finally open against the head of Serpukhov administration.

«End of party» - Janna Bullock and Valery Nosov. Now Nosov claims at investigation that he is not guilty but let down by Kuznetsov and Bullock

Zhdanov evaded direct questions by investigators as to who else out of RIGroup took part in all these flimsy transactions, he would just say something like, «I cannot explain this or that». Such «short memory» and the unwillingness of investigators «to go deeper» are typical for all cases of corruption in connection with Podmoskovye ex-Minister of Finance.

According to Ministry of Internal Affairs RF officials, Alexei Kuznetsov and Janna Bullock still are on good terms with some officials and law enforcement officers who actually have to be the ones to investigate the frauds with money from the budget. «Why Zhdanov easily and willingly speaks about Kotlyarenko and Vasiliev at interrogations, but never mentions Janna Bullock, is quite clear to us,” police investigators say. “We know that they were closely connected in different spheres».

Тhe fact that many high ranking officials, heads of regions, senators, deputies and law enforcement officers ate out of Kuznetsov-Bullock hands is confirmed by the list of guests at the most expensive wedding in the history of new Russia.

The Most Expensive Wedding in New Russia

In particular, Pavel Zhdanov was one of the esteemed guests. The wedding of Zoe Bullock, daughter of Janna Bullock and Alexei Kuznetsov, took place a month sharp prior to the couple’s escape abroad, on 28th June, 2008. It was celebrated with great pomp and excess in Arkhangelskoye Estate near Moscow (according to witnesses, the bride’s parents spent USD 5 million on the wedding, bringing quite wealthy parents of the bridegroom Towson Remmel – his father, Harmond Remmel id the President of New York bank group Pryor Cashman - into the state of stupor).


Residents from around Arkhangelskoye Estate were woken and shocked at night – they’ve never seen such magnificent fireworks


If one looks at the wedding’s guests’ list, it becomes clear why the couple Kuznetsov-Bullock managed to pass the buck one way or other. (VIP guests job positions are given as of the wedding date). The member of the Council of Federation from the Legislative Assembly of the Moscow Region Igor Bryntsalov may be seen at the same table with the bride’s parents, as well as the Governor of Tver Region Dmitri Zelenin, Chairman of Legislative Assembly of Tver Region Andrei Yepishin.

At the next table one can see the head of Serpukhov Pavel Zhdanov, Moscow Region Government Minister of Foreign Economic Relations Tigran Karakhanov, Senior Vice-President VTB Bank Andrei Peregudov, Seniour Vice-President Bank of Moscow Dmitri Akulinin and MTS General Director Vasili Sidorov. Then come Kuznetsov-Bullock empire’s top-managers: General Manager ООО RIGroup Dmitri Kotlyarenko, General manager of IKМО and МОIА Dmitri Demidov, General Manager of State Unitary Enterprise Mosoblgas Dmitri Bolshakov, member of board of Moscow Loan Bank Kamil Narbekov - 250 guests of one or other degree of importance all in all (full list attached below).

Who Covers the Ex-Minister?

The ex-Minister of Finance has necessary connections in uniformed services as well. In particular, according to police investigators, the cases were slowed down until Investigators Committee at the Ministry of Internal Affairs RF interfered, slowed down by two high ranking official from prosecutor’s investigation office with whom Kuznetsov communicated as a suspect in case on bankruptcy and disappearance of the Inkom-Bank customers’ money back in 1998 when he was the Vice-President of the bank. He managed to communicate so successfully that avoided any responsibility at that time, and out of all participants received the biggest lot when Inkom-Bank collapsed.

According to the officers of the Ministry of Internal Affairs RF, Alexei Kuznetsov knows the present head of the Investigations Directorate at the Prosecutor’s Office RF Moscow Region, Andrei Markov, as well. It was exactly this Directorate that back in 2009 decided not to examine what role was played by the officials of all levels in the fraud of “Plaza” construction. Аnd when another case was at hand in the Investigations Directorate at the Prosecutor’s Office RF, on embezzlement of RUR 3 billion from budget funds by MOITK top managers, Аndrei Markov repeated to the journalists time and again that the investigators had no claims to Alexei Kuznetsov. Only when the case on RUR 3 billion was taken by the Main Investigations Directorate at the Prosecutor’s Office RF, Kuznetsov was charged with fraud and criminal money laundering, while he himself put on a wanted list.

Аlexei Tikhomirov, Аndrei Ivanov

Wedding Backfired

The guest list and layout of tables with 250 guests at the wedding of the daughter of Janna Bullock (RIGroup President at the time) and her husband Alexei Kuznetsov (Moscow Region Government Minister of Finance at the time). This was the most expensive wedding in the history of new Russia. Minimal evaluation of costs for the party – over USD 5 million, i.t. almost USD 20 thousand per guest. Exactly in a month Alexei Kuznetsov will retire and flee abroad together with his wife.


28th June, 2008, Аrkhangelskoye Estate, Моscow Region, Russia.



All the guests received valuable gifts on behalf of bride and bridegroom, Corrie Hugh (right), Janna Bullock’s PR-agent was not left behind


CAMOMILE Table


Igor Bryntsalov, Member of the Council of Federation (СF) from Legislative Assembly of Moscow Region, first Deputy of the Chairman of CF Committee on education and science, member of CF Committee on Culture, member of CF Committee on civil society institutions’ development;;

Larisa Bryntsalova, spouse of CF member;

Аlexei Kuznetsov, Moscow Region Government’s Minister of Finance, bride’s step-father; now on international wanted list upon the RUR 3 billion embezzlement case, also is involved in the case on RUR 27 billion embezzlement by Kuznetsov, Bullock, Nosov and Kotlyarenko;

Janna Bullock (nee Zhanna Bullakh), President RIGroup, US citizen, now is involved in the case on RUR 27 billion embezzlement by Kuznetsov, Bullock, Nosov and Kotlyarenko;

Vadim Andronov, Moscow Regional Duma (MOD) Deputy, member of «Unified Russia» faction, member of MOD Committee on budget issues, financial and tax policy,

Аnna Andronova, spouse of MOD Deputy;

Маria Galich,

Andrei Yepishin, Chairman of the Legislative Assembly Tver Region (ZS ТО), member of ongoing committee on budget and taxes ZS ТО, member of Council of Deputy faction "Unified Russia" in ZS ТО;

Dmitri Zelenin, Governor Tver Region;

Аlla Zelenina, сspouse of Governor Tver Region.

Visitng card of bride and bridegroom at the most expensive wedding in the history of new Russia

HYDRANGEA Table (parents and guardians of bridegroom Towson Remmel)


Harmond Remmel, bridegroom’s father, President of New York bank group Pryor Cashman;

Helen Remmel, bridegroom’s mother, spouse of Harmond Remmel;

Wheeler Mark;

Swoope Alexandra;

Riggs Rory;

Kay Richard;

Kirby Heather;

Qury S.;

Glatt Randy;

Gamble Susan;

Merriman Brigid.


PEONY Table (bridegeroom Towson Remmel’s relatives and friends)


Remmel Raymond;


Remmel Larry;

Remmel Dickinson Tyncoll;

Wheeler Elisabeth;

Ando Pamela;

Ray Lynn;

Rearcon Wain;

McCurcy Lisa;

Swocer Croter;

Glaty Mitchell.


СORNFLOWER Table


Vladislav Telepnyov, General Director ОJSC «Моscow Regional Investment Trust Company», now is under trial upon RUR 3 billion embezzlement case;

Maria Telepnyova, wife of Vladislav Telepnyov;

Andrei Varfolomeev, General Director ОJSC "Rosweb Telecom Holding Company";

Yelizaveta Varfolomeeva, wife of Andrei Varfolomeev;

Sakharov Sergei, Deputy of Legislative Assembly Vladimirski Region (ZS VО), Chairman of the Committee ZS VО jn economic policy and property, ex-Chairman Regional branch of the Party "Right Forces’ Union";

Sаkharova Victoria;

Vasiliev Artyom, General Director ООО «Rosweb Office», RIGroup subsidiary, winner of TV programme «Know-Alls Boys and Girls», now under trial on over RUR 1 billion embezzlement case;

Vasilieva Yekaterins, wife of Artyom Vasiliev;

Коptseva Alexandra;

Коptsev Alexander.

DAISY Table (bride and bridegroom table)


Тоусон Реммель (Remmel Towson);


Bullock Zoe;

White Thomas;

Remmel Helena;

Remmel Christina;

Lewies Dilon;

McCurdy Max;

Golushko Maria;

Тreskova Yulia;

Cherepanova Anastasia.

ORCHID Table


Awad James;

Morane Oliver;

Tane Elizabeth;

Markiz Nikolas;

McCurdy Charlotte;

Davis Daniel (American country-style singer);

McArtur Hymar Francis;

Praner James;

Flanagan Katherin & Sarah;

Madock Florance.

DAFFODIL Table

Sviblova Olga, Director, Moscow Photography House;

Каrakhanov Tigran, Minister of Foreign Economic Relations, Moscow Region Government;

Каrakhanova Tatiana, wife of the Minister of Foreign Economic Relations, Moscow Region Government;

Seioker Irina,

Кukova Tatiana, General Director, Advertising Agency ООО «Моkpolis»;

Craig Wilhelm;

Grudenai Reto;

Sulzenbacher Peter;

Sulzenbacher Tatiana;

Yesin Alexander;.

SUNFLOWER Table


Lyubimov Andrei, Deputy General Director "PATERO Development" (RC «Golf Babylon»);

Lyubimova Olga, wife of Andrei Lyubimov;

Кulikov Mikhail;

Gardarsdttir Arna;

Zarian Phillip, PR Director, RIGroup;

Tryggyason Jonas;

Моrozova Olga, Director “Independent Newspaper” Publishing House;

Аdrianov Alexander;

Аdrianova Oxana.


FORGET-ME-NOT Table



Cherepanov Pavel, Senior Deputy Manager «Кrasnyi Oktyabr» Factory, commercial director «United Confectioners» Holding;

Cherepanova Svetlana, wife of Pavel Cherepanov

Peregudov Andrei, Senior Vice-President VTB Bank;

Peregudova Lyudmila, wife of Andrei Peregudov;

Skorik Sergei;

Sidorov Vasili, MTS General Manager at the time;

Sidorova Victoria, wife of Vasili Sidorov;

Аkulinin Dmitri, Senior Vice-President Bank of Moscow;

Akulinina Natalia, wife of Dmitri Akulinin;

Luchinsk Sergei, son of ex-President of Moldavia Pyotr Luchinski, works in construction business.

LAVENDER Table


Hyman Francis;

Awad Olivia;

Merriman Grace;

Merriman Elice;

Remmel Ari;

Glatt Alixandra;

Glatt Gillian;

Remmel Reminston;

Golushko Yelena;

Wheeler Isabelle.

MIMOSA Table


Robinson Will;

Robinson Katherine;

Awad Maria;

Kina Maria;

Nakanara Erina;

Nakanara Marina;

Nakanara Ruriko;

Robin Jean Sebastian;

Robinson Carl.

RULIP Table


Zhdanov Pavel, Head of Administration, Serpukhov Municipality, is involved in the case on RUR 27 billion embezzlement by Kuznetsov, Bullock, Nosov and Kotlyarenko;

Zhdanova Svetlana, wife of Pavel Zhdanov;

Podstrigat Alexander;

Коshman Alexander and Galina, relatives of Nikolai Koshman, ex-Chairman of Gosstroi of Russia;

Daineko Dmitri, President of the World Cup Stage, Horseback Riding

Daineko Natalia, wife of Dmitri Daineko;

Chliyants Sergei, film producer and director;

Kravets Nina, DJ;

Коshman Sergei;

Bugaev Sergei (Аfrica), artist, аrt-dealer.

JASMIN Table


Chapurin Igor, clothes’ designer;

Dorozhkin Eduard, journalist;

Lewis Michael;

Pavlov-Andreevich Fyodor, аctor, жjournalist;

Bokov Alexei;

Nelson Britta;

O’Krreffe Gabhan;

O’Renuard Ophelie.

IRIS Table

Кuznetsov Alexei;

Кuznetsova Tatiana;

Demidov Dmitri, General Director IKМО and МОIА, subsidiary mortgage companies of the Moscow Region Government, now under trial on over RUR 1 billion embezzlement case, put on international wanted list. According to mass media was detained on 18th February, 2010, but according to his lawyer Maxim Pashkov, is free again (status on international wanted list).

Demidova Anastasia, wife of Dmitri Demidov;

Аrtyomenko Yekaterina;

Аntsyghin Alexander;

Tsaryov Mikhail;

Sinitsina Natalia;

Zhuk Maria, artist;

Коshman Anna.






HYACINTH Table (bride’s relatives)

Blokhin Alexander Mikhailovich;

Кuznetsova Zoya Petrovna;

Кuznetsova Antonina Ivanovna;

Кuznetsova Yelena Victorovna;

Blokhina Zoya Mikhailovna;

Blokhina Zoya;

Blokhin Mikhail

Теreshko Svetlana Vasilievna

EDELWEISS Table


Мilner Yuri

Мilner Yulia

Тrotsenko Roman;

Тrotsenko Sofia;

Nosov Valery, at that time – First Deputy Minister of Finance Moscow Region (MO) Government, now on trial upon the case on RUR 27 billion embezzlement by Kuznetsov, Bullock, Nosov and Kotlyarenko together with the bride’s parents that hide abroad, Minister of Finance MO Government
Alexei Kuznetsov (is in France) and President of RIGroup Janna Bullock (is in USA);

Nosova Natalia, wife of Valery Nosov;

Poluboyarinova Olga;

Poluboyarinov Mikhail;

Garber Marc;

Sexton Jeffrey.

LILY Table


Bush Sharon;

Cecil Blin;

Sowell Dara;

Pfeifer Bonnie;

Cancro Robert;

Cusi Georgio;

Hay R.Couri, PR-аgent of Janna Bullock in New York, lover of the famous American artist Warhal Andy, (1928-1987), a well known person in New York high society and bohemian circles;

Preston T.Phillips, architect NYC,

Michelson Michelle;

Forthofer Charles.

LILAC Table


Zabryanski Andrei;

Zabryanskaya Lyubov;

Gritsenko Tatiana;

Gritsenko Alexander;

Sotnikova Maria;

Мironov Sergei;

Коreshkov Vladimir;

Коreshkova Lyubov;

Rostopko Alecander;

Rostopko Tatiana

VIOLET Table


Nick Ilin, curator of Guggenheim Foundation projects in Europe;

Franco Marc;

Janssen Rita;

Коrsik Lyudmila;

Lekhoviich Maxim;

Kurieva Mitoucha & Nina;

Belousova Veronika;

Kuprina Elena;

Deihl Volker;

Ermar Elena.

LOTUS Table


Pinardi Massimo;

Pinardi Paulo;

Mossine Katia;

Mossine Anton;

Pascal Maria;

Pascal Vincent;

Shevtsova Alevtina;

Wiebke Fischer.

CARNATION Table

Glushkov Andrei;

Borisova Anna;

Kharlamova Daria;

Eliasson Dan;

Marsh Lucy;

Laoth George;

Campbell Nina;

Rheinhard Kroll.

ROSE (children’s) Table


Кuznetsova Yevgenia, daughter of Janna Bullock and Alexei Kuznetsov, now lives in the USA with her mother;

Michelson Jamie;

Michelson Lauren;

Bennet Jonnahan;

Bennet Naomi;

O’Shanessy Remi;

Rykel Johanna;

Rykel Alex;

Cherepanov Danila;

Cherepanova Masha.

BLUEBELL Table

Polishchuk Pavel;

Polishchuk Nadezhda;

Моiseev Sergei;

Моiseeva Nadezhda;

Krassilnikova Nenny;

Krassilnikova Vlada;

Belenkyi Boris Petrovich, President People of Culture Association «Мuses of Freedom», incorporator of the superior Moscow theatre award «Crystal Turandot», Vice-President of G.S. Ulanova Foundation;

Belenkaya Galina Alexandrovna, wife of Boris Belenkyi;

Farber Boris;

Farber Natalia;

Pauline Andre.

POPPY Table


Remmel Alexander & Margarita;

Forsblom Kay;

McCaurdy Charles;

Gamble Theodor;

Guff A.J.;

McCurdy Henry;

Tierny Mary;

Guff Drew;

Merriman Mark;

Forsblom Rafaela.

MAGNOLIA Table


Bennet JackBennet Anna, wife of Jack Bennet;

Каzakov Valery;

Коtlyarenko Dmitri, General Director ООО RIGroup, now on trial upon the case of over RUR 1 billion embezzlement, put on international wanted list, detained in Cyprus at the request of the General Prosecutor’s office RF on extradition, also is involved in the case on RUR 27 billion embezzlement by Kuznetsov, Bullock, Nosov and Kotlyarenko;.

Gorshkova Olga;

Bolshakov Dmitri, General Director GUP «Моsoblgas»;

Pechatnikova Yana;

Narbekov Kamil, at that time – member of board of Moscow Loan Bank (controlled by RIGroup);

Narbekova Olga, wife of Kamil Narbekov.

One for all

http://rumafia.com/news.php?id=29

Yesterday the Investigative Committee of MIA of the RF filed a charge of fraud on a large scale in an organized group (Part 4 of Art. 159 of the Criminal Code) to the former Deputy Minister of Finance, Government of the Moscow Region, an owner of the financial company "Horizon" and the publishing house Ltd. "Artmedia groups", Valery Nosov. Investigators believe that in 2007-2008 the ex-official along with accomplices had damaged the Moscow region budget in excess of 27 billion rubles.

He and his alleged accomplices (who are currently put on the international wanted list - former Minister of Finance of the Moscow region Alexei Kuznetsov, his wife and the president of JSC "RIGroup" Janna Bulok, and Director General of OOO “Russian Investment Group” Dmitri Kotlyarenko) have been charged with damage to the budget of the Moscow region for more than $ 27 billion rub. Mr Nosov does not plead guilty.

That criminal case was opened yet on February 12, 2010. It is connected with the Moscow Regional Investment Trust Company (MOITK); its main activity was investing in socially significant projects of the Moscow region, and the only shareholder was the Government of the Moscow district. According to investigators, the property of MOITK became an object of the theft. According to the case material, the activities of the company was controlled by the Finance Minister of the regional government Alexei Kuznetsov, while his deputy Valery Nosov was a chairman of the board of directors.

In addition, Messrs. Nosov and Kuznetsov used their official position, and directed the Board of Directors MOITK to sell the most liquid assets of "Rosweb” to Janna Bullok and Dmitry Kotlyarenko at face value, and the remaining shares were sold to several fictitious companies also controlled by the Mrs. Bullock. The payment of shares and assets, according to the investigation, also was not provided. Eventually MOITK lost the right to possess, use and dispose the property of the Moscow region of over 2.6 billion rubles.

Investigators believe that the main damage to the treasury of the Moscow region was made by the former finance minister and his deputy, i.e. by their direct orders to MOITK to lend budget money to the entities controlled by Jeanne Bullock and Dmitry Kotlyarenko. Over the past year and a half they received more than 25 billion rubles. That became the reason for implementation of the bankruptcy procedure in MOITK.

Source: newspaper "Kommersant» № 42 (4342) on 12/03/2010

A new Russian Blagojevich takes under control Pryor Cashman’s Banking Group

http://rumafia.com/news.php?id=73

A new Russian Blagojevich takes under control Pryor Cashman’s Banking Group

The head of one of Russian mafia’s groups Alexey Kuznetsov has legalized several billion US dollars in the USA through his wife’s (Janna Bullock) Russian-American company RIGroup and Pryor Cashman’s Banking Group. In order to strengthen his business connections last summer Kuznetsov and Bullock have married their daughter Zoya to Towson Remmel, the son of Lawrence Remmel, Chairman of Pryor Cashman’s Banking Group, specialized in corporate and banking financings and act transactions. The Russian don has spent 5 million US dollars on his daughter’s wedding, which was widely celebrated in Archangelskoe – the residence of a Russian tyrant tsar Ivan the IV (or Ivan the Terrible, whose policy was also carried out by a Soviet tyrant Joseph Stalin in the USSR and in Iraq by Stalin’s admirer Saddam Hussein). (see more www.nydailynews.com)

Having found out that he and his wife will be arrested for their criminal actions, Alexey Kuznetsov and Janna Kuznetsova escaped from Russia right after the wedding. However Russians have succeeded in arresting some of the mafia members, who were headed by Kuznetsov (see more Rosbalt.ru).

To duck out in the USA Janna uses her wide ties with American establishment. She has met a lot of haut monde members after she became the Board of Trustees of Guggenheim Foundation member and helped to organize a number of American artists’ exhibitions in Russia. Willing to cover the criminal activity and in order to create an image of a successful business lady Janna has hired R.Couri Hay Creative Public Relations.

The Russian Blagojevich

Alexey Kuznetsov is a talented mafia boss who has no baggage of bloody crimes, murders, racket and drug supplies (there are such stories but they don’t have a direct connection with Kuznetsov yet).



[flash=480,385,http://www.youtube.com/v/31U3eEQIpQg&hl;=ru_RU&fs;=1&]

Before his escape Alexey Kuznetsov, just like the Illinois governor Blagojevich, was in charge of financial flows in Moscow region – the second region in Russia in terms of capital and influence. As Blagojevich, who wanted to sell the senator’s place in return for his wife’s $ 150 000 annual salary in a NGO or an organization that worked with trade unions, Kuznetsov made the Moscow region business-men to conclude unprofitable agreements with RIGroup which belonged to his wife, Janna Bullock. They had to operate on RIGroup construction sites and Janna Bullock hasn’t paid for this work yet. As a result RIGroup now owes construction companies several hundred million US dollars.

“I want to make money” – these were the worlds of Blagojevich explaining his wish to get the money from the electoral funds. Besides he demanded to be appointed a member of the President’s team or an ambassador after he leaves his governor post. Instead he was arrested and charged of corruption in December 2008. “I have earned enough” – said Kuznetsov and spent 5 million dollars on his stepdaughter’s wedding and, having found out that he is going to be arrested, escaped from justice and transferred the capital of some Moscow region state enterprises (MRITC, ICMR and MRAM and others) to off-shore companies. After his disappearance these companies’ joint debt to creditors comes to 2 billion US dollars. As a result the Moscow region appeared to be on the verge of default ( Rosbalt.ru).

Kuznetsov considers that his stepdaughter’s marriage to the son of Lawrence Remmel, Chairman of Pryor Cashman’s Banking Group, in June 2008 will help him to legalize the criminal money in the USA. So as to control this process his wife, Janna Bullock, came back to the USA, where she spends all her time with Towson Remmel’s family. Alexey Kuznetsov’s location is unknown though he is always in touch with Janna Bullock and members of his criminal group by Skype. He has been seen a number of times in Europe, in Courchevel, where Janna Bullock had spent Russian mafia’s money on purchasing several. Probably Alexey Kuznetsov stays in one of these hotels and uses falsified documents. From there he directs the crime actions of subordinated mafia organizations in Europe, USA and Russia. But let us consider everything in details.

A family in style noire

Alexey Kuznetsov’s wife Janna Bullock was earlier involved in a scandal of Russian mafia’s money laundering through the Bank of New York. During that time she worked as a lawyer Zeltser’s assistant and, if her boss wished, also provided sexual services to his clients. Zeltser himself was frequently called to account for different jerrymanders and was even imprisoned for some ears in a Russian jail.

In the end of the 80s Zeltser had declared himself as a lawyer and surrounded himself by people of suitable quality – the lawyers Herbert Derman and Melvin Weiss, Zev Siegel, soon Janna Bullock, a sexy assistant who had recently immigrated from the USSR, appeared in his office. Herbert Derman was representing Zeltser in court when he and Doctors Richard Lipski, Vivienne Betalu and Anthony Tarasenko and Zev Siegel were judged in New Jersey for fraud towards American Urgy Medical Center and American Physician Services. Since the end of 1987 Zeltser worked there as a financial consultant and in 1988, according to the hospital owners, he and his companion Zev Siegel penetrated into the clinic, stole the statutory documents, changed the locks and after that declared that he owns American Urgy. The owners sued Zeltser and won the case, according to the court decision Zeltser had to pay them about 2 million dollars compensation in 1997. Note that under oath Zeltser said that he was not a lawyer and had no law education.

By that time Herbert Derman was under examination himself and in 1998 was sentenced to 10 years of imprisonment for a giant plantation of Indian cannabis that was found in an underground bin of his country house.

Russian mafia’s money found their way to the USA

In 1993 Zetser began to work in the representative office of Russian Inkombank in the USA. In the beginning he dealt with tenancy issues in New York and Janna Bullock was entertaining Inkombank managers who visited the USA during their business trips. This way she met Alexey Kuznetsov who came to the USA to organize channels of Russian mafia’s money legalization. Soon together with a stockbroker Donald Redfern, a worker of Shearson Smith Barney, Zeltser helped Alexey Kuznetsov to open a number of off-shore accounts and through Inkombank transferred there about $ 30 million of Russian mafia. Simultaneously Zeltser and Kuznetsov had stolen $ 5.6 million from the accounts of bank’s depositors. They were demanded to return the money but they didn’t agree, as a result in February 1994 Zeltser was fired from Inkombamk and it declared him in the Federal Court for the Southern District of New York accusing him of $ 5.6 million theft from Smith Barney and Chemical banks. Particularly $ 2 million were transferred to bank accounts of Anna Reid, Zeltser’s wife, and his business partner Alexander Fishkin. Zeltser’s old partner Zev Siegel helped him in this scheme. According to the Pittsburg Post Gazette of September 22nd 2002, Inkombank accused Zeltser of “laundering some part of money that was theft through a false corporation registered under the name of Zev Siegel and located in Marshall Islands”. Some years before Zev Siegel was judged for burning the college founded by him in order to get the insurance.

Soon Kuznetsov was laid-off by Inkombank too. However the hearing was stopped because Inkombank had gone bankrupt in 1998.

The BoNY case

In August 1999 the New York prosecutors have finally started to investigate the facts of Russian mafia’s money-laundering through accounts of Benex in the Bank of New York. As it was determined the bank’s employees were involved in this illegal scheme of Russian money-laundering through the departments of BoNY in Long Island since 1996 till 1999. Zeltser, Janna Bullock and other company’s employees were suspected in this case.

As it was once reported by The Times that the BoNY vice president Natasha Gurfinkel Kagalovsky had helped Inkombank to launder money. The Tetra Finance Establishment company was opened in Liechtenstein for this purpose and it was Janna Bullock who was appointed its head. Referring to “its own investigation” and “the attestation given by the New York bank department”, The Times reported that using Tetra, which existed since August 1994 till April 1998, they were laundering money and lead away the banks’ assesses through numerous off-shore accounts.

Later in the materials of the American judicial inquiry there appeared a golden American Express credit card, which was issued for the Inkombank board and was used by Janna Bullock. It took 8 pages of a report to list her expenses for a several months period of the year 1993. As a result American Express had to terminate the validity of this card. The following episode was mentioned during the hearings: in April 1996 Alexey Kuznetsov had bought a $575 000 house in the most prestigious New York district through another Inkombank’s off-shore company in the USA Avalon Capital (the head of this company again was Janna Bullock).

Yet they were not punished because BoNY, the oldest bank in the USA, had decided to settle this affair peacefully. It signed prejudicial agreement with the New York prosecutors, according to the agreement the bank had to improve its inner procedures of doubtful bargains’ monitoring and paid a $ 38 million fine. “We are satisfied with the agreement which meets the company’s and our clients’ interests”, — claimed the head of the bank Thomas A. Renyi.

(see «Bank of New York Executive Resigns in Laundering Inquiry» by Timothy L. O'Brien, October 13, 1999 or «Respite for Bank of New York, Then Back in Thicket», by Timothy L. O'Brien, February 18, 2000, «The New York Times» and others).

By the way, Zeltser’s partner attorney Melvin Vice, who was involved in the money-laundering scandal, some time ago was sentenced to 30 month of imprisonment for his machination.

Zeltser himself, who got by with the episode with Inkombank and BONY, became a very good specialist in Russian mafia’s money legalization in the USA. In January 2001 he represented the former Head of the Presidential Property Management Department of the Russian Federation Pavel Borodin, who was detained in the USA on suspicion of money-laundering. In 2008 Zeltser joined the battle for the criminal inheritance of Russian-Georgian don Badri Patarkatsishvili. He used a US citizen and a remote Patarkatsishvili‘s relative Josef Kay, whose name was Iosif Kakalashvili before the immigration, Zeltser declared him to be the disponent of the inheritance instead of Patarkatsishvili’s wife and daughter. “Zeltser came to me in two or three days after Badri’s death. He said that Patarkatsishvili had left a will and that he had made the will in Zeltser’s office in New York” – said Kay – “Zeltser came to my place and shown the will and a letter of attorney according to which I am now the disponent of his property”. By Kay’s words Zeltser is his and Patarkatsishvili’s legal counsel since the beginning of 1990s.

Back to USSR

After learning from Zeltser ways of mafia’s money legalization, Janna Bullock decided to organize her own channel and married the Russian don Alexey Kuznetsov. She registered her own company RIGroup (the abbreviation means Russian Investment Group in Russia and Renovation Interiors Group in the USA) and used it to legalize Russian mafia’s money and invest the money in building and reconstruction of premises in the USA. According to the information provided by The New York Times, RIGroup became a big developer in New York. Not long ago she was purchasing the most expensive projects in Upper East Side of Manhattan (see NYTIMES.COM:

«Ms. Bullock is in the top five of “maybe 10 developers,” doing what she does on the Upper East Side’s gold coast, from the 60s to the 80s, between Park and Fifth Avenues, said George W. van der Ploeg, a senior vice president at Prudential Douglas Elliman. Mr. van der Ploeg analyzes the luxury town house market for private clients, many of whom are competitors of Ms. Bullock’s, he said, and none of whom are women».)

Later on Kuznetsov and Bullock attracted Pryor Cashman’s Banking Group to the laundering of Russian mafia’s money.

Kuznetsov’s scheme – Madoff can take a rest

In order to make a semblance of legal inpayments to RIGroup account Kuznetsov created several companies in Moscow region (the second of the most important subjects of Russian Federation). These companies belonged only to the region’s government and were under Kuznetsov’s control as he was an assistant of the region governor.

In fact it was a multilayer financial pyramid quite similar to the one created by Bernard Madoff who was sentenced to 150 year of imprisonment on the 29th of June, 2009.

However unlike Madoff, who was lying to his investors and regulators for 20 years without making any deals but only transferring all the money to his bank account and giving out the assets only on his clients’ requests in the form of “profit”, Kuznetsov had come with a better scheme: he decided to legalize mafia’s money by constructing premises that he further sold to the region and simultaneously he had taken billion loans and made bonded debts for this activity.


To be able to perform the above he became a governor’s assistant in 2000 and created a number of branch establishments in Moscow region with 100% of state capital: Moscow Region Investment and Trust Company (МRITC), Investment Company of Moscow Region (ICMR), Moscow Region Agency of Mortgage (МRAM). Through RIGroup these companies order constructions of premises for the region needs – malls, sports objects and apartment houses. These objects were built partly on mafia’s money and sometimes conscientious contractors participated in the construction. After again with the help of RIGroup they were bought by MRITC, ICMR and MRAM for regions’ money at a very high price. The profit was mostly transferred to off-shore companies’ accounts and were then legalized in the USA through the Chairman of Pryor Cashman’s Banking Group, the lesser part of the money stayed on RIGroup accounts and was transferred to the USA where the money was used to purchase premises in the Upper East Side of Manhattan. After they were reconstructed with the use of mafia’s money and sold at fabulous prices, which exceeded the purchase price several times.

The Russian Investment Group (RIGroup) was created in 2004. By the time Kuznetsov and Bullock escaped Russia the company’s nominal capital (8,082 billion Russian roubles) was controlled by an American corporation RIGroup (3,6979%) and off-shore companies Vinilio Consulting Ltd. (5,7201%), Hotrust Consulting Ltd. (32,3965%), Nojion Holdings Ltd. (31,1651%), Trivalent Advisors CA (25,35%) and The Westbury Fund Ltd. (1,6704%).

The way they steal billions in Russia

Kuznetsov and Bullock didn’t bound themselves with Russian mafia’s money legalization. They began to attract bank deposits to the MRITC, ICMR and MRAM companies on a security of Moscow region and RIGroup. They had also issued several bonded debts of these companies to the sum of about $ 2 billion; the money was placed by Janna Bullock’s investment and financial company RIGroup Finance. The money they managed to get was transferred by Kuznetsov and Bullock to the accounts of off-shore companies and RIGroup. Nowadays the companies MRITC, ICMR, MRAM and RIGroup Russia owe their creditors several billion US dollars and are now in the stage of bankruptcy.

By this time RIGroup has made investment agreements concerning the construction of more than 60 objects of residential and commercial real estate. Their joint floor space is more than 2 million m2 and most of them exist only on paper – their construction was never started though they had the money to build them, but the money had gone to Kuznetsov’s and Bullock’s off-shore bank accounts (this was studied in details by the Russian Forbes: forbesrussia.ru and lots of other large media in Russia, e.g. the Kommersant newspaper).

Now Moscow region pays its branch companies debts. Among those who had become victims of Kuznetsov’s and Bullock’s activities are a lot of large Russian and Western banks including Vneshtorgbank, Svyaz-bank controlled by Vneshekonombank, Deutsche Bank, that possessed 2.9 billion roubles obligations in the interests of Goldman Sachs, and a lot more who trusted Mr. Kuznetsov.

But Bernard Madoff was one of the most influential businessmen in the USA for his being the Chairman of the Nasdaq stock exchange Board of Directors. Also the Madoff Securities Fund created by him was considered to be one of the safest in the USA. All this didn’t prevent him from lying to his depositors and among them there were not only the wealthiest people of the USA and celebrities but also the largest global banks - BNP Paribas, HSBC, Credit Agricole, Societe Generale, Natixis, Nomura, Royal Bank of Scotland, UniCredit.

On the 29th of June the court has sentenced Madoff to 150 years of imprisonment. But the sacred place is never empty, as they say in Russia. And Madoff will be very soon replaced by such swindlers as Alexey Kuznetsov and Janna Bullock.

In order to consolidate their position in the USA and to legalize “Russian mafia’s money” last summer they became a part of one of the oldest American families – the Remmels. Lots of members of this family left their mark on American history. Unfortunately their infamous offspring serve no more to their society and law but participate in “Russian mafia’s money” legalization.

Alexei Kuznetsov - Former Minister of Finance of Moscow Region Government

http://rumafia.com/person.php?id=1


Surname: Kuznetsov

Name: Alexei

Fathername: Viktorovich

Position: Former Minister of Finance of Moscow Region Government


The Biography:


Kuznetsov A.V. was born in 06.11.1962 in Moscow. His registration address is: Moscow, st. Ordzhonikidze, 11, apartment 6; Previously lived in: Moscow, Rublevsky highway, 11, apartment 6. Bullock JM (wife), 12.05.1967 (date of birth) and Leonidova M.A. (former wife), 08.11.1961 d.b. are registered at the same address.

He has children from the first marriage:

  • the son - Kuznetsov A.A., 31.07.1984 d.b., Registered at the address: Moscow, Rublevsky highway, 12, kv.100;
  • the son - Kuznetsov T.A., 12.11.1986 d.b.., According to unconfirmed information lives in Bulgaria, Sofia;<
  • the son Kuznetsov A.A., 22.11.1993 d.b.., Registered at the address: Moscow, Rublevsky highway, 12, kv.100.

Kuznetsov A.V. owns an apartment in Moscow, st. Ostozhenka, house № 7/15/12, with total area of 306.7 sq. m. According to some data, he owns a real estate in the U.S., France and UK.

Source: http://forum-msk.org/material/kompromat/807484.html

The former Minister of Finance of the Moscow region. Starting from June 2000 was a member of the Moscow region Government. Born in Oct. 6, 1962 in Moscow, graduated from Moscow Institute of Finance (currently the Finance Academy) on a specialty of economist; 1985 - 1990 - worked in a General Computing Center (GCC), the USSR State Bank ; starting from 1990 – Senior Economist, the Head of Credit Resources of the planning-economy direction, the Head of the Liabilities Management department, the Deputy Chairman of the board of AB "Inkombank; 1993 - 1998 – the First Deputy Chairman of the Board of AB" Inkom, the first Vice-President of AB Inkombank; since 1998 – President of CJSC IC "Russian investment company" ("R.I.O."); March - June 2000 – Acting Minister of Finance of the Moscow region.

Source: http://www.biografija.ru/show_bio.aspx?id=70957

In March 1997 Kuznetsov’s share in the statutory fund of “Inkom Bank” amounted to 0,04%.

Source: http://forum-msk.org/material/kompromat/807484.html

From 2004 to July 2008 worked as Minister of Finance, the first Deputy Chairman of the Moscow area.

The Dossier:

Participation of Kuznetsov in financial frauds surfaced in 1996. Kuznetsov served as vice president of “Inkombank”. American shareholders started to sue the bank.


In 1993, Americans discovered the disappearance of money from the accounts and through their lawyers began internal reviews. It was found out that the methods of keeping bank accounts allowed stealing to everyone – starting from operator up to the president. Some frauds had been swung by middle managers, others - by top managers, including President Vladimir Vinogradov and his deputy Alexei Kuznetsov. The latter transferred the money to bank accounts of offshore companies through a network of Global Custody. Thus they took 60 million dollars. Subsequently, the officers who had been caught stealing - gave the money back, but shareholders had quarreled with the president completely. They had been judging with the bank for several years in the U.S. courts, and then some details of the frauds became known.

In many respects Russians got caught because of their own ignorance. Thus, vice-president Alexei Kuznetsov owned a gold card American Express, designed exclusively for corporate spending. The same "Gold" card was issued to his girlfriend in the States Janna Bullock; in 1993 she spent $ 29 thousand within six months just on underwear and shoes. In 1996 Kuznetsov bought a house for $ 575 thousand in the South Hampton - the New York area.

In 1993, Kuznetsov on behalf of the bank signed the deal guarantee, which later turned out to be a "refundable" credit of $ 15 million. Formally it was a purchase of copper wire party for $ 15 million of Samara company “Rosskat" from the American firm Southwire. "Rosskat" paid to the company with bills guaranteed by "Inkombank. The amount was debited from the accounts of shareholders of American Bank, which promised a refund with interest. But according to the documents, the guarantor appeared to be "Incombank. Money was never returned to the shareholders.

Source: "Kommersant", № 152 (1110) on 13/09/1996.

In 1998, "Inkombank” started bankrupting, and its top people created then a new structure called ZAO “IK Russian Investment Company”. In August 1998, on a wave of defaults the investment company in alliance with affiliated "Russobank" began buying debts of commercial banks. This is called creating a "trading platform for dealing with debts of banks and large corporations."

Source: www.rusbonds.ru/enwsinf.asp?emit=7180&nid;=32335

 Kuznetsov was one of the founders and the president. Co-sponsors were those associated with “Inkombank": the former senior vice president S.A. Gusher, the former vice-president Sergei Mitrofanovich Migulya, and ZAO "IK "Intrastkom” headed by general direktor E.V. Semin. Migulya headed the board of directors "Rio". The vice-president’ post was taken by the former judge of the Board "Inkombank" Andrey Vyacheslavovich Mazurov. In 2000 Mazurov became a chairman.

In March 2000, Kuznetsov applied for resignation from the presidency. His post was taken by Migulya, while chairman of the board of directors post was obtained by Mazurov (general director of “Russian Aircraft Corporation MiG”, since 2001 - Adviser to Deputy Prime Minister Klebanov). In March 2000, Kuznetsov was appointed acting Minister of Finance, Government of the Moscow Region, since 2004 - Minister and Deputy Prime Minister of Defense.

Source: www.lin.ru/discl_event.htm?doc_id=DBA8DD0D0CEACBB5C3256D3D001A350B

In July 2008, the Investigation Committee of the Prosecutor's Office of the RF (ICP) filed criminal charges of abuse of office against Kuznetsov. Being an official, he seized the land of 20 billion dollars near Moscow; and he had been hiding his dual citizenship status - Russia and the United States - over the whole period of service. Immediately after the start of the investigation Kuznetsov resigned on his own volition, and emigrated to the United States.

Source: "The Case of the Week" on 16/10/2008

Kuznetsov was declared wanted. However it did not prevent him from having a rest in Courchevel in January 2009 together with the head of the FSO Yevgeny Murov and executive office to the President, Kozhin.

Source: "Kommersant", № 1 (4056) on 11/01/2009

Investigation of the theft schemes of budgetary funds of the Moscow region, unprecedented in size and audacity, revealed more and more shocking details. The amount of stolen goods and an exceptional organization level together with a high level of administrative and legal support of the fraudsters were extremely impressing. Thanks to the latter the plotters, led by former members of the Moscow area government had been ruining with impunity one of the most successful regions of Russia for many years.

In fact, the fraudsters turned the System of the off-budget financing of investment programs in the Moscow region into a "milch cow". The system was established by the Government of the Moscow Area in early 2000’s to attract investment and to protect the property interests of the region. The system consisted of a group of commercial entities - subsidiaries and "granddaughter" companies of the MA. Key roles were allotted to three of them:

  • OAO "Moscow Regional Investment Trust Company (MOITK) - 100% subsidiary of the Moscow region, established to invest in construction of dwelling, municipal and public buildings in the Moscow region under the investment programs approved by the Government of the Moscow region;
  • OAO “Moscow Region Mortgage Corporation” (IKMO) - belonged to MOITK (66%) and to the Moscow region; was created for the refinancing of mortgages and loans, and for work as an investor-developer of dwelling buildings in the Moscow Region Mortgage Program.
  • OAO "Moscow Regional Mortgage Agency” (MOIA) 100% subsidiary of the Moscow Area, appealed borrowed funds on the market to finance investment programs of the MA which was implemented by IKMO.

These companies were actively involving on the market and investing borrowed funds in construction projects in the Moscow region. It has been estimated that by 2008 they gained credit for 70 billion rubles. In those years, investments in construction projects could bring good profits, and borrowers were first-rated - the structures of one of the leading regions in Russia. Moreover, for a variety of loans the Area acted as a guarantor.

As commercial entities, those companies were free to choose their contractors, they were not obliged to carry out tenders as well as to negotiate estimates of the investment projects with government officials. They could be engaged in construction of commercial housing, office, retail and entertainment centers.

The simplest "construction" scheme of theft, which ideology was attributed to Kuznetsov: the estimates which had been approved annually by MOITK on dozens of investment projects - contained "extra" millions attributed, and in the most egregious cases, there were even billions. On obvious reasons MOITK produced payments forward and in full. Sometimes there were no estimates yet, but the money had been already listed. Therefore, they built a lot and at a very high price in the Moscow region (not to be mixed with "high quality").

Cost of building schools, kindergartens, hospitals, sports facilities and other facilities was inflated by 50-75%.Taking into account the magnitude of developed budgets, on this point the MA budget had overpaid (i.e., had been robbed) at least 20 billion rubles.

Thus, MOITK (and in the end - the regional budget) paid 2 billion rubles in the entire cost for the construction of stadium "Arena Khimki” with a capacity of 18 thousand people. Assessment of work and materials (the stadium was built of inexpensive light structures) showed a two-fold excess of the estimated cost over the market one.

Another striking story was about the business center "Two Captains" which was located at the Moscow Ring Road on the site of 2.4 hectares literally right under the prestigious shopping complex "Crocus Mall”, and the Government House of the Moscow region. In 2006 MOITK retained the customer ZAO “Stroyinvest” for the construction works of the center, and contributed to the project 9.55 billion rubles. This crazy amount was transferred to “Stroyinvest” in advance without any estimates of the project ready. Actually they spent about 2 billion rubles for the construction. And on the rest of funds “Stroyinvest bought a 40% stake in OAO “ROSWEB" (owner of telecommunications companies and high yield commercial real estate objects in Moscow and Moscow region) through the front companies. It was bought from MOITK. In such a cynical was a very profitable asset was acquired from MOITK for the MOITK money. By the way, "Stroyinvest" is a 100 percent subsidiary of "RIGroup”.

In 2005 IKMO, MOIA and the Government of MA initiated issue of MOIA bonds to finance the programs which implementation was entrusted by the Government to IKMO. Organizer of the bond issues was the company "RIGroup Finance”.

IKMO transferred more than 1 billion rubles from the obtained of the bonds 4.4 billion rubles to the company “RIGroup Finance" at the expense of buying the company which owned the land for a dwelling district construction in the suburban Klin, and belonged to "RIGroup Finance. However, the company never became the property of IKMO, and "RIGroup Finance never returned the money: it was withdrawn on account of offshore companies.

In late 2008, the Central Investigation Department in the Moscow region police department opened a criminal case on the grounds of a crime under Part 4 of Art. 159 of the Criminal Code (fraud). As part of this investigation CEO of “RIGroup Finance” Ludmila Bezdel was arrested, who was also engaged in the Audit Commission of the Moscow Mortgage Bank. Member of the Board of Directors of the bank was Vladislav Telepnev.

This bank served the majority of debtors’ accounts of the Moscow region subsidiaries including the structures of "RIGroup”. When the MBZ became fevering due to the lack of liquidity, from the order of Kuznetsov came to support the bank at the expense of MOITK. Then the company was still in the money and promptly provided short-term borrowing patterns to "RIGroup" structures by transferring on their accounts in the MZB more than 2 billion rubles. The Bank "died on feet" - the money got disappeared. They said it had been "taken out", but it was impossible to follow those operations.

As part of this criminal case, three issues of MOIA bonds were arrested by regulations of Odintsovo City Court of Moscow region. MICEX suspended all operations in the issuance of bonds for 5.2 billion rubles in total; a technical default was declared. Accordingly, the regional administration could not meet its obligations and promptly redeem the bonds.

As the Moscow government acted as a guarantor of redemption, Standard & Poor `s lowered the long-term credit ratings of MOIA and the Moscow region to the level of selective default.

In April 2009, FAS of Russia declared that IKMO in violation of the antimonopoly legislation acquired the exclusive right on state guarantees for 750 million rubles in the framework of the regional program for the resettlement of dilapidated housing. As a result, the Moscow Region Duma was prosecuted for breaching Part 1 Article 15 of the Federal Law "On Protection of Competition" (the prohibition of authorities’ acts restricting competition). It turned out that Duma members made amendments to the regional budget, in accordance with which the state guarantees could be used not by any organization involved in the implementation of housing programs on a competitive basis, but only by IKMO.

As a result, for the period October 2007 to July 2008 IKMO had become the winner of more than three auctions in various suburban municipalities, and acquired rights to tens of hectares of urban land for peanuts. Those areas were badly needed by the structures of "RIGroup" for the implementation of new commercial projects of Kuznetsov family. The damage caused to the area, has not been quantified yet, but clearly it will be hundreds of millions of rubles.

Source: «Solomin» on 31.08.2009

At the end of 2009 a corpse appeared in the case Kuznetsov. At least, journalists referring to law enforcement sources linked the murder of the top manager of “VTB Bank” Oleg Zhukovsky with this case. In 2007 His body was found bound at the bottom of the pool in a suburban cottage. As “Rosbalt” learnt, Oleg Zhukovsky appeared in the case of theft from the budget of the Moscow region for more than 3 billion rubles.

Oleg Zhukovsky held in VTB a post of managing director of department on work with large clients. His death left aroused many questions, causing a great resonance in the media. On the rim of the pool next to the corpse of a banker a suicide note laid in which Zhukovsky wrote,"In my death no one is to blame”. The first version was proposed that the top manager of VTB committed suicide in such a strange way. An assistant to Zhukovsky, employee of VTB Timur Valeryevich Telepnev told reporters that the death of the banker was not of a criminal nature.

However, forensic experts questioned then the possibility of such a suicide. Moreover, on the doors of the cottage were seen signs of tampering. As a result, bodies of the Investigative Division of UPC RF, Moscow region opened a criminal case under article 105 of the Criminal Code (murder).

Zhukovsky's name became involved in the case of a large-scale embezzlement from the budget of the Moscow region, in which the charges were brought against the former general director of the Moscow Regional Investment Trust Company (MOITK) Vladislav V. Telepnev (correspondent Rosbalt did not manage to determine whether he was a relative to Timur Telepnev).

By the time that message came, Investigation Committee of the RF Prosecutor's Office investigated three criminal cases of frauds with the billions of state funds including those under Art. 210 of the Criminal Code (organization of a criminal community).

Witnesses testified that Oleg Zhukovsky was aware of the credit schemes development which later became used for stealing billions of rubles from the budget of the Moscow area, the source of “Rosbalt” said. Many of the decisions had been taken with his approval. The evidence shows that the death of Zhukovsky had not been not accidental, and it was possibly linked to the events, which were under investigation that time.

As the source Rosbalt noted, primarily those were loans obtained from the banks of VTB24. "We suspect that the money could have never left the banks, and their receipt by the municipal utilities existed only on paper; in connection with that we have got serious questions to certain representatives of the VTB 24", said interlocutor of the agency. The government of the Moscow region guaranteed the return of those loans.

Then MUP (with the permission of the local legislative assembly), suddenly began to conclude contracts passing the right to claim debts of housing and communal services to various companies. Those firms were faked and were registered on the names of alcoholics, prisoners, other people who had lost their documents, etc. Despite the apparent doubtful character of those structures, the regional government regularly transferred the budget money to them, paying for non-existent debts to the housing and public utilities. Then the funds were laundered and derived abroad. There is a sum of 3 billion rubles (plus interest which came running for the use of those funds) appeared in the materials of the investigation.

On November 10, 2009 Telepnev was presented the charges in a final form under art. 159 of the Criminal Code (fraud). The record shows that investigation considers Alexei Kuznetsov to be an organizer of crime schemes of embezzlement. On November 12 a criminal case directly against the former Minister of Finance in the Moscow region was separated from the case against the former leaders of MOITK; he was declared wanted. Telepnev refused to familiarize himself with the case, but already on November 25 he suddenly was already charged under Art. 210 of the Criminal Code.

Source: "Rosbalt-Moscow" from 01.12.2009

In February 2010, Dmitry Demidov was arrested. He was the former head of the largest subsidiaries of the Moscow region government - OAO Moscow Region Mortgage Corporation (IKMO) and OAO "Moscow Regional Mortgage Agency (MOIA), launched an international search. He was accused of stealing a billion of rubles from the regional budget. The money was earmarked for implementation of the program "Development of residential mortgage Moscow region in 2005-2010"

Source: Gazeta.ru was dated 12/02/2010

On March 4, 2010 they arrested the former First Deputy Minister of Finance of the Moscow area, the owner of the financial company "Horizon" and the publishing house Ltd. "Artmedia Group” Valery Nosov. He is suspected of damaging the budget of the Moscow region for 25 billion rubles by fraud; along with the launched in the international wanted list former Finance Minister Alexei Kuznetsov of the Moscow region, his wife, the president of JSC "RIGroup" Janna Bullock, and CEO of OOO “Russian Investment Group" Dmitry Kotlyarenko.

Mr. Kuznetsov, Mr. Nosov, Ms. Bullock and Mr. Kotlyarenko are suspected pf issuing budgetary credits to the organizations controlled by the same Jeanne Bullock and Dmitry Kotlyarenko through MOITK. Mr. Kuznetsov and Mrs. Bullock are not available for the investigation - they are hiding abroad. Dmitry Kotlyarenko was detained in Cyprus a year ago, but it refused to extradite him to Russia. Thus, the only direct figurant of the new trials may happen to be Valery Nosov.

Source: "Kommersant» № 37 (4337) on 04/03/2010

Caught on the “secondary extraction"

http://rumafia.com/material.php?id=137

Investigation Committee of the Interior Ministry made a decisive step while investigating one of the largest corruption crimes in nowadays Russia - a theft of $ 1 billion from the budget of the Moscow region. On August, 5 the offices of the group of companies "Orsi" were searched ("Open Market of Building Investments) and several other locations in Moscow and Moscow region associated with this firm, led by Andrey Pashkovsky and Georgy Kopylenko.

Raiders got stumble in the Moscow region assets

The offices on Butikovskiy Lane, 16 (where OOO “Orsi group”, ZAO " FPG "Stolitsa" and OOO "Chelovek I zakon") and Ostozhenka, 10 (extra office group) were raided, as well as in private houses of Pashkovsky and Kopylenko in the elite settlement "Benelux" on Novorizhskoye highway. The subject of the investigation was the theft of assets of "RIGroup" totaling more than $ 500 million, which was to be returned to the Government of Moscow region as a result of restructuring, but never was returned to the budget.

The tool of the grand theft, a kind of "commercial master key", was ZAO "Project", to which the most liquid assets "RIGroup" had been re-registered instead of returning them to the treasury. However, the group of Pashkovsky and Kopylenko had dozens of controlled entities, including "Orsi groups", ZAO "FPG" Stolitsa” and ZAO “DISA-invest”. These structures had been carrying out hostile takeovers in various regions of Russia for ten years, which the media called a forceful takeover.

The objects of the attacks were the firm “Aviatehnologiya” and construction and industrial company "SPK Razvitie” in Moscow, Boxitogorsk alumina refinery in the Leningrad region, the company" Irkutsky marganets” in Siberia, Kulebaksky Metallurgical factory and Kulebaksky ring-rolling factory in Nizhny Novgorod region, ZAO "Barit” in Khakassia, and a number of other enterprises, the seizure of which has been repeatedly reported in print and electronic media in recent years.

The last operation by that successful masters of hostile mergers and acquisitions became the assignment of liquid assets in the Moscow region, such as OOO “RIGroup ", OAO "Rosveb”, OOO “Radionet "and their subsidiaries. It is natural that the raid group, which had been operating in Russia for decades, got collapsed as soon as it attempted to seize the assets belonging to public authorities - the Government of Moscow Region. However, investigators from the UK under the MIA so far managed to detain and interrogate only Kopylenko Georgy (former CEO of ZAO "Project") and former deputy director of "Orsi" Zoya Galeeva (100% owner of ZAO "Project"). The Director-General of "Orsi" Andrey Pashkovsky had disappeared even before the searches.

The budget was pumped for $ 1 billion

The origins of the fraud can be traced in a criminal case number 280008, filed by IC of Interior Ministry on February 12, this year. The defendants in the case are the former Finance Minister of the Moscow region Alexey Kuznetsov, his wife, Janna Bulakh (this American citizen introduced herself as a president of the American real estate development corporation RIGroup - Janna Bullock), a former deputy of Kuznetsov of the Moscow region Finance Ministry, Valery Nosov (currently in jail) and a U.S. citizen Dmitry Kotlyarenko, who served as director-general of RIGroup.

By the order of their ministry Kuznetsov and Nosov Swipe initiated an additional issue and thus diluted the assets of "Rosveb" and deprived of a controlling stake OAO "MOITK", 100% owned by the Government of Moscow Region. The control over "Rosveb” was intercepted by the business structures of "RIGroup", belonging to Bulakh and Kotlyarenko. 7.2 billion rubles has been allocated from the regional budget, on which the controlled structures paid for the shares of "Rosveb”. These funds did not reach the addressee as well –that was "MOITK": under the pretext of financing the construction of business center, they were returned in "Moscow Mortgage Bank”, controlled by Kotlyarenko - under the fictitious contracts.

In addition, during the four years Kuznetsov and Nosov gave direct instructions to Director General of "MOITK" Vladislav Telepnev to transfer the funds belonging to the company (and, accordingly, to the Government of Moscow region) on accounts of their firms. There were over twenty operations like this, the result was: OAO MOITK " (its only shareholder was the Government of Moscow region) gave to the bureaucratic business speculators more than 23.8 billion rubles. Together with the theft from the budget on the part of subordinates Kuznetsova and Bullock (for example, Dmitry Demidov, a former employee of "RIGroup”, and then the leader of the two subsidiaries of the Moscow Region Government - IKMO and MOIA) the total amount of" pumping "was almost $ 1 billion.

Memorandum “from the thief to the thief "

There is about a dozen criminal cases in respect of members of Kuznetsov’s group investigated by. Kuznetsov and Bullock fled abroad in July 2008, and Dmitry Kotlyarenko was arrested in Cyprus and is waiting for extradition to Russia in the local jail at the request of the Prosecutor General. However, the fugitives actually handed the baton to another light-fingered gang by Pashkovsky and Kopylenko – the evidence is memorandum signed by Andrey Pashkovsky and fugitive Finance Minister Alexey Kuznetsov in December 2008.

The general sense of the document is as follows. Kuznetsov, referred to as "Party 1", passes to Pashkovsky the right to manage and to restructure of the pumped assets (dozens of Russian legal entities and offshores with an intricate financial system of mutual settlements - see Figure 1) and all the data about them until January 15, 2009. in his turn, Pashkovsky referred to as "Party 2", guarantees Kuznetsov the fulfillment of obligations, some restructuring, "... maintaining current operations and financial solvency to the structures of RIGroup, the implementation of their commitments" ... Also Pashkovsky promises to the fugitive ex-official a settlement of the property and other claims."

The other claims, as one might guess, are the prosecution of Kuznetsov and his wife by Russian law enforcement bodies. Such a promise looks like fraud. Due to the fact Pashkovsky, according to witnesses, enjoyed introducing himself as a person close to the emperor, or as the assistant to the first vice-premier Igor Shuvalov, he does not obtain a single public office post. Indeed he can not guarantee the inaction of law enforcement agencies.

"Steal the stolen!"

However, as shown by the following two years, Pashkovsky, Kopylenko and their management team trained in raider wars did not plan to return the funds stolen by Kuznetsov’s and Bullock’s clan to the Moscow region. Instead, the most expensive and liquid assets were either sold or transferred to the balance of legal entities and offshore controlled by them (see Figure 2).Thus, the land plots, businesses and infrastructure facilities in the suburbs did not return to the regional treasury, but were re-registered on ZAO "Project" and its subsidiaries, and offshore companies controlled by Pashkovsky and Kopylenko.

100% owner of the company "Project" was a leading manager of the raider team by Pashkovsky-Kopylenko, Zoya Galeyeva and its CEO - Georgy Kopylenko. In the result of "restructure" of the assets at more than 15 billion rubles -those from previously stolen from suburbs by the clan of Kuznetsov-Bullock - were not returned to the region and were settled in ZAO "Project" and its subsidiaries: OOO "Velyaminovo-Development”, OOO "Invest Consulting" and OOO "Paritet" (it has a building re-registered on it in Tver worth about 170 million rubles), OOO "RIGroup Business, OOO “RIGroup Plaza Stupino”, OOO Sibur-Energo" (about 160 million rubles .) ZAO TeploInvestEnergo ", ZAO "TeploEnergoInvest”, OOO “Horugvino-1” (12 ha plot in Solnechnogorsk area worth of 50 million rubles), OOO "Echo-2" (land of 140 acres in the Istra district worth of 2.1 billion rubles.) OOO “Promstroy" and "Tsifra Odin”.

The assets and funds were also sold to third parties or displayed on the controlled companies: marketing companies in Belgorod, Tver, Kursk and Smolensk (about 2 billion rubles.) OOO “BK-Estate" (premises on the Rozhdestvesky Boulevard in Moscow worth about 443 mln.).Trading and entertainment complexes in Klin, Sergiev Posad, Serpukhov, Vidny and Kolomna, OOO ENERGOPROMINVEST "(about 390 million rubles.), OAO PROTEP" (about 187 million rub.) were sold for approximately 2.5 billion rubles.

In December 2009, Orsi gave to the Moscow suburbs one of the assets of "RIGroup", a construction company "Spetsstroy-2", it told the business media about that with fanfare. However Pashkovsky and Kopylenko forgot to mention that before returning to the State, they released a legal entity from the assets of 191 million rubles by selling the company-owned land (20 hectares) in the Chekhov district and 10 apartments in a building in Fryazino.

Generally, during the two years the “restructure makers" returned three assets to the region from the empire" RIGroup”, inflated by budget money and attained under its control: OOO" SK "Spetsstroy-2" (transferred with debts for 3.3 billion rubles, as soon as "Orsi " sold or withdrew all liquid assets from the company before the transfer); bankrupt company ZAO "Stroyinvest" and OAO "KIT "(" Public investment and technologies "). However, shares of the last two "assets" never reached the regional treasury - at least, there are no supporting documents of the proceedings in the regional government. In general, for two years of active work "Orsi"

did not return a single "real" ruble to the region. Instead, the regional treasury gained new debts that used to be the debts of “RIGroup” previously It is understandable why the government of Moscow region flatly refuses to discuss with journalists the outcome of the commissioned “restructure makers ", Pashkovsky and Kopylenko.

In addition to the above assets, top managers of "Orsi" managed to sell or re-register assets and securities for a few billion rubles. Prior to its transfer of OOO "SK "Spetsstroy-2" to the Oblast, property bonds and bonds of OOO “RIGroup" and OOO"RADIONET" were sold for 400 million rubles. The scheme was as follows: On behalf of "SK" Spetsstroy-2", Pashkovsky actually concluded a contract of trust management with himself - in the person of the controlled OOO "STK-finance ".Thus, "STK-finance” had bonds " Spetsstroy-2 "," Radionet "," RIGroup "- passed to it; in total 1,5 billion of the notional value (the actual market valuation of these assets amounted to 400 million rubles). By the order the same Pashkovsky, the bonds were replaced with shares of ZAO "StroyInvest" and OAO "KIT" committing a bankruptcy procedure.

The land that had to be returned to the region was cynically sold as well: 300 hectares in the village of Kuznechikovo in the Klinsky district worth about 490 million rubles and 23 acres in Narofominsk area of 115 million rubles, they were registered to "NARA-1”, as well as the land in Dmitrovskaya, Serpukhov, Istra and Klinsky district near Moscow.

Stolen from us, stolen from you - UNAMEKRAL Trading Limited

The police believe that Pashkovsky and Kopylenko originally planned to act on the logic of Bulgakov’s character Sharikov from “Heart of a Dog”. That is to say, "take everything and divide" - between themselves, naturally. Having learned about the escape of Kuznetsov abroad in 2008, the group of honored raiders agreed that it was their finest hour. They had contacts in influential "Rostechnologies”, they were familiar with Dmitry Demidov, a member of the clan by Kuznetsov-Bullock, the then director of the state “Moscow Region Mortgage Agency" and "Moscow Region Mortgage Corporation” (now Demidov is in the wanted list, as well ex-Finance Minister Kuznetsov and his wife, an American Janne Bullock). So this is how the puzzle has been put together.

The only thing lacking was the official status, otherwise the fugitive former minister Kuznetsov would have believed in the ability of Pashkovsky and Kopylenko to solve problems at the state level. This was not a barrier however - in fact a clever and cunning Georgy Kopylenko (namely, he was the brain in the raider structure, while Pashkovsky - the ringleader, and Zoya Galeyeva - the main organizer and performer) came up to play on the actual crisis theme in 2008. Thus ZAO “Open Market of building investments” came into being, which was positioned as the market for the debts trade for developers and builders, its aim was to help the state stop the collapse of the market of real estate under construction.

Under those beautiful goals the participants of ZAO “Orsi "(or close to it OAO “Orsi" and "Orsi groups") became the investment division CEO of “Rostekhnologii” and OOO “Oboroneks" Mikhail Shelkov (25%), SMP-bank by Arkady Rothenberg (25%) and ZAO "UK" Razvitie" (27,5%), Mikhail Cherkasov. Having saluted these famous names, Pashkovsky and Kopylenko managed to realize their scam of the century.

In July 2010 SMP Banking and UK “Razvitie” announced of their withdrawal from the" Orsi"; probably, they had understood the true motives of its top managers. In early August the offices of Orsi and cottages of its top managers were searched. Georgy and Zoya Kopylenko Galeyeva were questioned, and the ringleader Andrey Pashkovsky managed to escape and to decline communication with the investigator at the UK Ministry of Internal Affairs.

The cynicism of Pashkovsky and Kopylenko becomes particularly evident when the names of their offshore areas become known. A peculiar sense of humor is generally inherent to fraudsters who are accustomed to working in a grand style. Thus, in early 2000’s, free newspapers in Moscow and St. Petersburg published advertisement of the next super drug that seemed to cure all deseases - from lameness and stuttering to hemorrhoids and dipsomania. They offered to order it by phone, because the pharmacy had not got such a "unique product” yet. The organizers of the next scam were cynically called - "LOHEIN” (in Russin –“a hayseed”).

Thus, “restructure makers" Pashkovsky and Kopylenko transferred the "secondary pumped” assets in offshore accounts, two of which have charactonym names: Cyprus" UNAMEKRAL Trading Limited "and the Seychelles “Azero Business Inc”. Indeed, having stolen from everyone, every business multiplied on zero.

A scheme can be better than schemes

But lets come back to the history of fraud by "Orsi". So, in December of 2008, Pashkovsky and Kopylenko talked with Kuznetsov and conducted a memorandum. The company's assets were placed under the management of "Orsi" - without any documented formalities, upon agreement with Kuznetsov. The gullible managers of "Rosveba" were pressed tough enough. Sometimes the stamps and documentation of the company were literally ripped out by direct threats. Just in word, but still convincing (Pashkovsky once has acquired the necessary "skills of the nineties").

At the beginning of 2009 all the structures mentioned in the memorandum of Kuznetsov-Pashkovsky had their top management replaced. The leadership was taken by people of Pashkovsky. The CEO of the main creditor - OAO MOITK - Lipkin signed an agreement on debt restructuring. Now it is clear that the Pashkovsky did not plan to make debt payments as "MOITK" expected, but still he was granted a long grace period. This, Pashkovsky and Co. got the time to implement the planned "restructuring" in their favor.

The following year was marked by the orgy, comparable to the acts of Kuznetsov and Ko. Pashkovsky formally resigned as CEO of "Orsi", then along with Kopylenko he effectively conducted a set of measures to transfer the property to his structures, a sale of assets and prepared a series of abusive bankruptcies.

For example, the significant share of property by telecommunication company “Radionet” and its eleven affiliated companies - OAO “MASTAK”, OOO “Tele-Service-M ", OAO" Troitsk Telecom, ZAO “Lan-Telecom”, OOO “ROSVEB Tver”, OOO “ROSVEB Severo-Zapad”, OOO “Vostoktelecom”, OOO “Inet”, OOO “Startel”, OOO “UNIKOMPORT ", ZAO” Firma"Progress" - passed to ZAO “Project” controlled by Kopylenko and Pashkovsky through a newly created OOO “Tsifra Odin”.

The scheme is as follows. By the order of Pashkovsky, the authorized capital of " Tsifra Odin " involved equipment and real estate of "Radionet”. The authorized capital of " Tsifra Odin " got increased and distributed among the firms by Pashkovsky. Then, a 100% stake in the authorized capital of " Tsifra Odin " went to Cyprus and the Seychelles offshore: "UNAMEKRAL TRADING LIMITED (Cyprus, 51.07%), Rekambo Group SA (Seychelles, 27.13%), Azero Business Inc. "(Seychelles, 11.94%)," Kelemvar Assets Ltd (Seychelles, 9.88%).

"Radionet" was empty and placed under the supervision of the Arbitration Court of Moscow on the insolvency proceeding. Characteristically, the arbitration proceedings were initiated, in particular, on the application of OAO RusKomProm controlled by Pashkovsky "which has received more than 51% of the share capital of OOO" Tsifra Odin ".

At the same time in the village Lyutoretskoe Chekhov district of Moscow region passed from " Spetsstroy-2" to one of Pashkovsky’s company - OOO PROMSTROY "- its carrying valueamounted to 162 million rubles. After such a thorough increment to the capital of "PromStroy", in September 2009, its 100% share was sold to ZAO "Project". "Project" did not pay for the share, and the debt incurred was transferred to an offshore company Lazarnelle Trading Corp. In its turn, it gave Two and a half thousand shares of bankrupting ZAO "KIT" to "Spetsstroy-2"...

Such was the giddy carousel of "the restructuring in Pashkovsky and Kopylenko style», let us consider the scheme with only one company. We have excluded such "little things" as 20 millionth rewards for" effective management paid by the" Orsi " from the corporate funds of OOO “SK “Spetsstroy-2"

Upon completion of the complex of these actions, Pashkovsky and Kopylenko initiated bankruptcy proceedings of the seven companies purchased from Kuznetsov. The endings were to sink, leaving on the surface only 15 billion rubles of net income of the raiders - this is the total financial loss of OAO “MOITK: and the Moscow region because of the activities of the Pashkovsky and co brigade.

However, as mentioned above, on August 5, 2010 the first serious setback occurred in the raider career of Andrey Vladislavovich: IC of Ministry of Internal Affairs under a criminal case number 280008 (the case of theft by fraud of the assets of Moscow Region by the group of Kuznetsov-Bullock-Nosov-Kotlyarenko) searched and seized the documents in "Orsi". Georgy Kopylenko and Zoya Galeev, former deputy director of "Orsi" (owns 100% stake in ZAO "Project") were detained and questioned.

Andrey Pashkovsky managed to escape before the investigative activities started, on August 5. It is likely that law enforcement made a leakage of information. His disappearance confirmed the validity of suspicion against him. In general, this nervous breakdown is quite understandable. But now Pashkovsky can not count on being released on recognizance not to leave or on bail if detained.

Supposedly, soon Andrey Vladimirovich Pashkovsky will either escape in a warm non-visa country, or as another "economic migrant" will end up in some European capital. For example, in London or Paris, where his predecessor - ex-Finance Minister Alexey Kuznetsov - is hiding from investidation – he had primary pumped assets in the Moscow region.

***Memorandum between Andrey Pashkovsky and Alexey Kuznetsov

Alexey Gabulbarov