{"id":49313,"date":"2022-04-06T11:32:50","date_gmt":"2022-04-06T18:32:50","guid":{"rendered":"https:\/\/cjnotebook.com\/?p=49313"},"modified":"2022-04-06T11:33:17","modified_gmt":"2022-04-06T18:33:17","slug":"russian-allegedly-violated-u-s-sanctions-by-transfer-of-10-million","status":"publish","type":"post","link":"https:\/\/cjnotebook.com\/?p=49313","title":{"rendered":"Russian Billionaire Allegedly Violated U.S. Sanctions By Transfer of $10 Million"},"content":{"rendered":"<div class=\"field field--name-field-pr-body field--type-text-long field--label-hidden\">\n<div class=\"field__items\">\n<div class=\"field__item even\">\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong>NEW YORK<\/strong><\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">A Russian national is charged with allegedly violating U.S. sanctions in 2014, officials announced Wednesday.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">According to an indictment unsealed Wednesday in federal court, Konstantin Malofeyev, 47, of Russia, is charged with conspiracy to violate U.S. sanctions.\u00a0<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Malofeyev hired an American citizen, Jack Hanick, to work for him in operating television networks in Russia and Greece and attempting to acquire a television network in Bulgaria, according to officials.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">As alleged, Malofeyev also conspired with Hanick and others to illegally transfer a $10 million investment that Malofeyev made in a U.S. bank to a business associate in Greece, in violation of the sanctions blocking Malofeyev\u2019s assets from being transferred.<\/span><\/p>\n<\/div>\n<p style=\"text-align: center;\"><iframe loading=\"lazy\" title=\"YouTube video player\" src=\"https:\/\/www.youtube.com\/embed\/rvHoywqHCT8\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<div class=\"field__item even\">\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Along with the indictment, the United States issued a seizure warrant for Malofeyev\u2019s U.S. investment. Malofeyev remains at large and is believed to be in Russia.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">\u201cKonstantin Malofeyev is closely tied to Russian aggression in Ukraine, having been determined by OFAC to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine,\u201d said U.S. Attorney Damian Williams for the Southern District of New York. \u201cThe United States sanctions on Malofeyev prohibit him from paying or receiving services from United States citizens, or from conducting transactions with his property in the United States.&#8221;<\/span><\/p>\n<figure id=\"attachment_49315\" aria-describedby=\"caption-attachment-49315\" style=\"width: 275px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-49315 size-full\" src=\"https:\/\/cjnotebook.com\/wp-content\/uploads\/2022\/04\/download-4-2.jpg\" alt=\"\" width=\"275\" height=\"183\" \/><figcaption id=\"caption-attachment-49315\" class=\"wp-caption-text\">Konstantin Malofeyev, 47<\/figcaption><\/figure>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Adding, &#8220;but as alleged, he systematically flouted those restrictions for years after being sanctioned. The indictment unsealed today shows this office\u2019s commitment to the enforcement of laws intended to hamstring those who would use their wealth to undermine fundamental democratic processes. This office will continue to be a leader in the Justice Department\u2019s work to hold accountable actors who would support flagrant and unjustified acts of war.\u201d<\/span><\/p>\n<\/div>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong>Read the 21-Page Indictment Click Here:\u00a0 <a href=\"https:\/\/www.justice.gov\/opa\/press-release\/file\/1491311\/download\">USDOJ<\/a><\/strong><\/span><\/p>\n<div class=\"field__item even\">\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">According to court documents, in 2014, the president issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Executive Order 13660, along with certain regulations issued pursuant to it (the Ukraine-Related Sanctions Regulations) prohibits, among other things, making or receiving any funds, goods or services by, to, from or for the benefit of any person whose property and interests in property are blocked.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">On Dec. 19, 2014, the Department of Treasury\u2019s Office of Foreign Assets Control designation of Malofeyev explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of the so-called Donetsk People\u2019s Republic, a separatist organization in the Ukrainian region of Donetsk.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">As alleged in the indictment, Malofeyev hired a U.S. citizen named Jack Hanick in 2013 to work on a new Russian cable television news network (the Russian TV Network) that Malofeyev was creating. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Malofeyev negotiated directly with Hanick regarding Hanick\u2019s salary, payment for Hanick\u2019s housing in Moscow, and Hanick\u2019s Russian work visa, and Malofeyev paid Hanick through two separate Russian entities through the end of 2018.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Malofeyev also dispatched Hanick to work on a project to establish and run a Greek television network and on efforts to acquire a Bulgarian television network. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">At Malofeyev\u2019s direction, Hanick traveled to Greece and to Bulgaria on multiple occasions in 2015 and 2016 to work on these initiatives and reported directly back to Malofeyev on his work. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">For instance, in November 2015, Hanick wrote to Malofeyev that the Greek television network would be an \u201copportunity to detail Russia\u2019s point of view on Greek TV.\u201d <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">In connection with Malofeyev\u2019s efforts to acquire the Bulgarian television network, Malofeyev instructed Hanick to take steps to conceal Malofeyev\u2019s role in the acquisition by conducting the negotiations through a Greek associate of Malofeyev (the Greek Business Associate), so that it would appear the buyer was a Greek national rather than Malofeyev.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Malofeyev also employed Hanick to assist Malofeyev in transferring a $10 million investment in a Texas-based bank holding company (the Texas Bank) to the Greek Business Associate in violation of the Ukraine-Related Sanctions Regulations. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">In 2014, Malofeyev used a shell company to make the investment, and beginning in or about March 2015, Malofeyev began making plans to transfer ownership of the shell company to the Greek Business Associate as a means to transfer the investment in the Texas Bank. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">In or about May 2015, Malofeyev\u2019s attorney drafted a Sale and Purchase Agreement that purported to transfer the shell company to the Greek Business Associate in exchange for one U.S. dollar. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">In June 2015 Malofeyev had Hanick physically transport a copy of Malofeyev\u2019s certificate of shares in the Texas Bank from Moscow to Athens to be given to the Greek Business Associate. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Malofeyev signed the Sale and Purchase Agreement in June 2015, but the agreement was fraudulently backdated to July 2014 to make it appear that the transfer had taken place prior to the imposition of U.S. sanctions. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Malofeyev\u2019s attorney then falsely represented to the Texas Bank that the transfer had taken place in July 2014, even though Malofeyev and his attorney well knew that the transfer of the shell company was executed in June 2015.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Along with the unsealed indictment, a seizure warrant was issued in the Southern District of New York for Malofeyev\u2019s Texas Bank investment, which had been converted by the Texas Bank in 2016 to cash held in a blocked U.S. bank account. The United States recovered those funds pursuant to the warrant and will seek forfeiture of those funds as property that constitutes or is derived from proceeds traceable to the commission of the offenses alleged in the indictment.<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">Each of the two sanctions charges in the indictment carries a maximum penalty of 20 years in prison. <\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\">The FBI is investigating the case, with valuable assistance provided by the Justice Department\u2019s National Security Division and Office of International Affairs.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>NEW YORK A Russian national is charged with allegedly violating U.S. sanctions in 2014, officials announced Wednesday. According to an indictment unsealed Wednesday in federal court, Konstantin Malofeyev, 47, of Russia, is&#8230;<\/p>\n","protected":false},"author":1,"featured_media":49315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-49313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Russian Billionaire Allegedly Violated U.S. Sanctions By Transfer of $10 Million<\/title>\n<meta name=\"description\" content=\"NEW YORK A Russian national is charged with allegedly violating U.S. sanctions in 2014, officials announced Wednesday. 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