Russia: the Rule of Law in business

1 posts


Well, now that the jewish oligarchs are in exile and in hiding, we can sit around happy. Or not.

In his investigations into the charges against Hermitage, Firestone Duncan attorney, Magnitsky came to believe that tax fraud had been perpetuated, but not by Hermitage: evidence he discovered suggested a group of conspirators had stolen the seals and documents of Hermitage and used them to fraudulently reclaim $230m (£140m) of Hermitage's taxes. [2] [10] Magnitsky's testimony implicated police, the judiciary, tax officials, bankers and the Russian mafia . [2] In spite of the initial dismissal of his claims, Magnitsky's core allegation that Hermitage had not committed fraud but had been victimized by it would eventually be validated when a sawmill foreman pled guilty in the matter to "fraud by prior collusion", though the foreman would maintain that police were not part of the plan. [10] Before then, however, Magnitsky had himself been brought under investigation by one of the policemen he had testified was behind the fraud. According to Browder, Sergei was "the 'go to guy' in Moscow on courts, taxes, fines, anything to do with civil law." [6]
According to Magnitsky's investigation, the documents that had been stolen in June 2007 were used to forge a change in ownership. [6] In effect, the thieves used the forced contracts to claim Hermitage owed $1 billion to shell companies. Unbeknownst to Hermitage, those claims had been authenticated by judges. In every instance, Hermitage pled guilty, represented by lawyers it didn't even know. [6]
The new owner, based in Tatarstan , turned out to be Viktor Markelov , a convicted murderer released only two years into his sentence. [6] The company's fake debt was then used to claim a tax break of $230 million, issued Christmas Eve of 2008. It became the largest tax rebate in Russian history. [6] Hermitage contacted the Russian government with the investigation's findings. The money, which was not Hermitage's, belonged to the Russian people. Rather than Magnitsky, the Russian authorities opened a criminal case against Hermitage