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The Useless Man With The Hyperlink To Two Of The World’s Largest Cash Laundering Scandals

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BuzzFeed Information; Getty Pictures

That is half 4 of our FinCEN Recordsdata investigation. To learn extra, click here.


After Alexander Perepilichnyy dropped lifeless whereas jogging outdoors of London, US intelligence concluded that he was seemingly “assassinated on direct orders” from Russian President Vladimir Putin “or folks near him.” Perepilichnyy had uncovered the Magnitsky fraud, a $230 million tax rip-off by corrupt Russian authorities officers two years earlier than, which turned a flashpoint in US–Russian relations and led to sanctions in opposition to Russian officers.

Perepilichnyy knew concerning the rip-off as a result of he had facilitated it, serving to to launder the stolen funds into Swiss financial institution accounts. He labored with every kind of doubtful purchasers, from the alleged ringleader of the Magnitsky fraud to funders of Syria’s Assad regime, which has used chemical weapons on civilians. And even after Perepilichnyy’s demise in 2012, an organization he based, Monetary Bridge, would change into embroiled in one of many largest soiled cash fiascos in historical past.

In what turned often known as the mirror buying and selling scandal, cash launderers moved a minimum of $10 billion over 4 years by means of a number of the most prestigious banks on this planet. Throughout that point there have been a minimum of three inside alerts at Deutsche Financial institution about Monetary Bridge — and greater than 100 for the mirror buying and selling community. However Deutsche by no means halted the circulate of illicit funds.

The within story of how Deutsche stored transferring the darkish cash and stored raking in charges — exposed today in the FinCEN Files, a joint investigation between BuzzFeed Information and the Worldwide Consortium of Investigative Journalists — reveals new details about one of many largest monetary crimes in historical past.

However it additionally sheds mild on how illicit money is siphoned out of the previous Soviet republics and into the mainstream banking system. Perepilichnyy and Monetary Bridge function prime examples.


Provided to BuzzFeed Information

After Perepilichnyy remodeled himself from a cash launderer to a whistleblower, Monetary Bridge didn’t disappear — as an alternative it discovered a brand new life within the felony underworld. In October 2012 — a month earlier than Perepilichnyy’s demise — it was taken over by two nameless shell corporations.

Quickly afterward Monetary Bridge knowledgeable one other financial institution it held accounts with, Danske Financial institution, that it had two new “useful homeowners,” data obtained by L’Espresso and ICIJ present.

One was a safety advisor named Igor Marakin. US authorities have linked an organization he controls to the Russian mafia.

Monetary Bridge was a key a part of the mirror buying and selling scandal. The cash laundering gang moved illicit money for criminals and terror financiers, according to a secret US government report.

Had the banks acted forcefully within the wake of Perepilichnyy’s demise, they could have put a crimp in Monetary Bridge’s plans and maybe even halted one of many decade’s largest monetary scandals years earlier than it unfolded.


Alex Fradkin for BuzzFeed Information

The Deutsche Financial institution headquarters in London

The scheme was uncovered 4 years later in 2016, and the next yr authorities within the US and UK fined Deutsche Financial institution $630 million for its position. Mirror trades are permitted below the legislation, however they are often manipulated for unlawful functions resembling cash laundering.

A spokesperson for Deutsche famous that the mirror buying and selling community “was felony motion by people,” and mentioned that authorities within the US and Europe had praised the financial institution for being “exceptionally cooperative” with their investigations. Because the scandal hit, the financial institution has “dedicated important assets” to stopping cash laundering, the spokesperson mentioned.

Danske Financial institution declined to touch upon Monetary Bridge, however acknowledged its own 200 billion euro money laundering scandal. “We had been too gradual in realising the extent of the problems and to shut it down,” mentioned Philippe Vollot, its chief compliance officer, in an announcement.

Marakin’s alleged position within the huge mirror buying and selling community is specified by a secret intelligence report, written by analysts on the US Treasury Division’s Monetary Crimes Enforcement Community and shared by BuzzFeed Information with ICIJ.

The report, marked “Legislation Enforcement Delicate,” warned that the community “highlights a vulnerability within the international securities marketplace for cash laundering.” Utilizing a mixture of financial institution information and different intelligence, it detailed how the community allegedly performed billions of {dollars}’ price of trades, some on behalf of “illicit actors.”

On the coronary heart of the system, in line with the report, had been 4 Russians who used a collection of banks and brokerages to switch “billions of {dollars} per yr” for a “price of as much as 5 %.” Based on the report, they used Russian rubles to purchase inventory in massive corporations, then instantly transferred the shares to Europe and offered them on for {dollars}, euros, or kilos — permitting them to vary massive forex sums with out the same old oversight from the authorities.

Two of the 4 Russians, Alexei Kulikov and Oleg Belousov, owned stakes in Promsberbank, the place President Putin’s cousin Igor was a director. Thousands and thousands of {dollars} had been stolen from the financial institution. Chapter paperwork from Promsberbank present that cash had been siphoned into the mirror buying and selling community.

Kulikov was jailed for his position within the Promsberbank theft. Belousov’s whereabouts are unknown. Neither responded to requests for remark.

One other alleged key determine within the scheme, the Russian financier Andrei Babenko, is now in Israel the place he has labored within the cryptocurrency trade. The fourth, Andrey Gorbatov, is in Moscow, in line with his LinkedIn profile. Each Babenko and Gorbatov denied involvement within the community in interviews with BuzzFeed Information.

Marakin was a director or proprietor of a minimum of three corporations within the mirror buying and selling community, together with one which despatched money to a agency managed by Lazar Shaybazian, who was barred from the US monetary system in 2012 for his work with Vladislav “Blonde” Leontyev, described by US authorities as a Russian mobster and a high-level narcotics trafficker.

The federal government has declared that Shaybazian and Leontyev are a part of a gaggle known as the “Brothers’ Circle,” a community of Eurasian criminals linked to medicine, human trafficking, and violence all over the world.

Shaybazian didn’t reply to requests for remark. Leontyev mentioned he had been wrongly focused by US sanctions and didn’t know Shaybazian.

All these transactions occurred behind closed doorways whereas one other saga performed out in public: Was Perepilichnyy assassinated and, if that’s the case, was that homicide linked to his disclosures of Russian cash laundering?


Dominic Lipinski / PA Pictures

Invoice Browder helped Alexander Perepilichnyy expose the Magnitsky fraud, earlier than Perepilichnyy’s demise.

In 2017, a BuzzFeed Information investigation revealed that the American intelligence community had “high confidence” that Perepilichnyy was assassinated by brokers linked to Russia.

The coroner’s investigation, which had been held up for years by UK authorities requests to maintain details about his demise secret, finally mentioned that Perepilichnyy “seemingly” died from pure causes however that it was not doable to rule out that he was killed.

The proceedings had been overshadowed by revelations of an insufficient police investigation into Perepilichnyy’s demise. The police admitted that they had misplaced arduous drives of economic information belonging to the financier. Legal professionals argued on the inquest that the drives might have shed additional mild on the dangers Perepilichnyy confronted.

Earlier this yr, in a UK authorities evaluation into Russian interference within the nation, officers gave proof to Parliament a few collection of suspicious deaths, together with Perepilichnyy’s. However the proof was withheld from the general public for nationwide safety causes.

Igor Marakin didn’t reply to requests for remark. Pictures on-line present him partying and studying to fly. ●

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