NEW YORK
Federal officials on Friday moved to seize six real properties located in New York, New York, Southampton, New York, and Fisher Island, Florida, worth approximately $75 million.
Officials allege that the properties, which Russian oligarch Viktor Vekselberg beneficially owns, are the proceeds of sanctions violations, and were involved in international money laundering in promotion of sanctions violations.
Violations committed by, among others, Vladimir Voronchenko, a/k/a “Vladimir Vorontchenko,” who was indicted on Feb. 7.
To Read the Complaint filed in Federal Court, Click Here: DOJ
U.S. Attorney Damian Williams said: “Today’s action, filed on the anniversary of Russia’s full-scale invasion of Ukraine, seeks forfeiture of six luxury properties owned by Viktor Vekselberg that his associate Vladimir Voronchenko maintained by funneling millions of dollars into the United States.”
Adding, “with the filing of this complaint, the United States sends a strong message to those who violate sanctions and engage in money laundering that the United States will use every available tool to forfeit criminal proceeds and will use that money to help our allies in Ukraine under the newly enacted law.”
According to the allegations in the Complaint filed in Manhattan federal court today:[
On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Vekselberg as a Specially Designated National (“SDN”) in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constituted an unusual and extraordinary threat to the national security and foreign policy of the United States.
On or about March 11, 2022, OFAC redesignated Vekselberg as an SDN and blocked Vekselberg’s yacht and private airplane.
Before his designation by OFAC, between in or about 2008 and in or about 2017, Vekselberg, through a series of shell companies, acquired six real properties in the United States:
- Two apartments on Park Avenue in New York, New York.
- An estate in Southampton, New York
- Two apartments on Fisher Island, Florida
- A penthouse apartment also on Fisher Island, Florida
The properties were worth approximately $75 million.
Voronchenko, Vekselberg’s close friend and business associate, retained an attorney who practiced in New York, New York, in connection with acquiring the Properties, officials stated.
The Attorney also managed the finances of the Properties, including by paying common charges, property taxes, insurance premiums, and other fees associated with the Properties in U.S. dollar transactions from the Attorney’s interest on the lawyer’s Trust Account.
Before Vekselberg’s designation as an SDN, between February 2009 and March 2018, companies owned by Vekselberg sent approximately 90 wire transfers totaling approximately $18.5 million to the Trust Account.
At the direction of Voronchenko and his family member who lived in Russia, the Attorney used these funds to make various U.S. dollar payments to maintain and service the Properties.
Immediately after Vekselberg’s designation as an SDN, the source of the funds used to maintain and service the Properties changed.
The Trust Account began to receive wires from a bank account in the Bahamas held in the name of a shell company controlled by Voronchenko, Smile Holding Ltd., and from a Russian bank account held in the name of a Russian national who was related to Voronchenko.
Between approximately June 2018 and March 2022, approximately 25 wire transfers totaling approximately $4 million were sent to the Trust Account.
Although the source of the payments changed, the management of the payments remained the same as before: Voronchenko and his family member directed the Attorney to use the money to make various U.S. dollar payments to maintain and service the Properties.
Additionally, after Vekselberg was sanctioned in 2018, Voronchenko and others tried to sell both the Park Avenue apartment and the Southampton estate.
No licenses from OFAC were applied for or issued for any of these payments or attempted transfers.
On or about May 13, 2022, federal agents served Voronchenko on Fisher Island with a Grand Jury subpoena, which called for his personal appearance for testimony and his production of documents, including documents relating to the Properties.
About nine days later, on or about May 22, 2022, Voronchenko took a flight from Miami, Florida, to Dubai, United Arab Emirates, and then went to Moscow, Russia. Voronchenko failed to appear before the Grand Jury and has not returned to the United States.
The Properties subject to the forfeiture action are as follows:
- 19 Duck Pond Lane, Southampton, New York 11968;
- 515 Park Avenue, Units 21 and 2I, New York, New York 10022;
- 7002 Fisher Island Drive, Unit 7002 PH2, Miami Beach, Florida 33109; and
- 7183 Fisher Island Drive, Units 7182 and 7183, Miami Beach, Florida 33109.
On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.
The Task Force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jessica Greenwood, Joshua A. Naftalis, and Sheb Swett are in charge of this action.