On November 30, prosecutors decided to confiscate $5,4 million from the bank account of Russian businessman Konstantin Malofeev in the United States. Washington accused him of financing separatists in eastern Ukraine and Crimea, and imposed sanctions on the businessman.
The New York federal prosecutor's office said they were entitled to the money. The reason for this was that Malofeev was trying to transfer a large amount to a business partner, which violated US sanctions.
This is another blow from the US government aimed at gaining control over the assets of wealthy Russians. Thus, America puts pressure on Moscow and persuades the Kremlin to end the war in Ukraine.
This case reveals a tactic people sometimes use to get funds out of the reach of sanctions.
It was not possible to contact Malofeev for comment. He is allegedly at large in Russia and, of course, denies funding the separatists. Russia calls its activities in Ukraine a “special military operation.”
On the subject: Real estate manager of Russian oligarch in New York arrested: he faces up to 60 years in prison
According to the case, in March 2014, Malofeev used a shell company in the Seychelles. He also invested $10 million in Texas-based Strategic Growth Bancorp Inc.
And the very next year, the businessman sold the shell company for $1 to an anonymous Greek business partner. At the same time, the sale agreement is deliberately dated July 2014. That is, until the date of the introduction of sanctions against the Russian businessman.
The Texas bank, considering Malofeev the owner of the shares, signaled to the US Department of the Treasury about an attempt to transfer funds
Malofeev's shares were converted into cash and deposited into a blocked account. That's when Strategic merged with Denver-based Sunflower Bank in 2016.
In a statement regarding the case, Sunflower Bank said it is "proud to work with US law enforcement." Neither Strategic Growth Bancorp Inc nor Sunflower Bank were charged with wrongdoing.
In March of this year, the work of the KleptoCapture task force began. Within its framework, the US Department of Justice received arrest warrants for yachts and aircraft of those it suspects of assisting Russian President Vladimir Putin.
Prosecutors filed sanctions violation charges against several more Russians and their various American and European partners.
Malofeev himself was charged with evading sanctions and using accomplices to covertly acquire media across Europe back in March.
