Task Force KleptoCapture

Last updated

Task Force KleptoCapture is a United States Department of Justice unit established in March 2022 with the goal of enforcing sanctions on Russian oligarchs in response to the Russian invasion of Ukraine. [1] [2] [3]

Contents

Background

Dating back to the outbreak of the pro-Russian unrest in Eastern Ukraine in 2014, the United States has imposed numerous economic sanctions against the Russian government, military, and strategic sectors of the economy for its actions. Following the Russian invasion of Ukraine in February 2022, the United States imposed new sanctions against Russia. Existing sanctions were also strengthened.

President Biden's statements during the 2022 State of the Union speech

During his State of the Union Address that same year, U.S. President Joe Biden announced this effort:

Tonight, I say to the Russian oligarchs and the corrupt leaders who’ve bilked billions of dollars off this violent regime: No more.

The United States — I mean it. The United States Department of Justice is assembling a dedicated task force to go after the crimes of the Russian oligarchs.

We're joining with European Allies to find and seize their yachts, their luxury apartments, their private jets. We're coming for your ill-begotten gains. [4]

The day after Biden's speech, U.S. Attorney General Merrick B. Garland announced the formation of Task Force KleptoCapture, an inter-agency effort. [5] [6]

Structure

The leader of the Task Force was initially described as "a veteran corruption prosecutor" from the U.S. Attorney's Office for the Southern District of New York assigned to the U.S. Deputy Attorney General's Office. On March 3, 2022, this prosecutor was revealed as Andrew Adams, who has previously worked as co-chief of the Southern District of New York's Money Laundering and Transnational Criminal Enterprises. His previous work includes the prosecutions of thief in law Razhden Shulaya as well as the asset forfeiture case against Bitcoin money launderer Charlie Shrem. [7] [8]

Others announced as part of the DOJ's team include deputy directors from the United States Department of Justice National Security Division and United States Department of Justice Criminal Division leading more than a dozen attorneys from those divisions, as well as the Tax Division, Civil Division, and U.S. Attorneys’ Offices across the country. The attorneys listed on KleptoCapture court filings are some of the most experienced prosecutors in the Justice Department. [9] [10]

In addition, was also announced as incorporating officials from the Federal Bureau of Investigation, United States Marshals Service, Internal Revenue Service, United States Postal Inspection Service, U.S. Immigration and Customs Enforcement, and United States Secret Service. The main goal of the task force is to impose the sanctions set against these Russian individuals to freeze and seize the assets that the U.S. government claimed were proceeds of their illegal involvement with the Russian government and the invasion of Ukraine. [11]

Activities

B-roll from seizure of $90M yacht of sanctioned Russian oligarch Vekselberg by Spain at U.S. request
United States Attorney General Merrick Garland announces the seizure of the motoryacht Tango

On March 11, 2022, United States President Joseph R. Biden signed Executive Order 14068, "Prohibiting Certain Imports, Exports, and New Investment With Respect to Continued Russian Federation Aggression," an order of economic sanctions prohibiting the trade in luxury goods. [12]

In tandem, the Treasury specifically designated assets of Viktor Vekselberg worth an estimated $180 million: an Airbus A319-115 jet and the motoryacht Tango. [13] Estimates of the value of the Tango range from $90 million (U.S. Department of Justice estimate) to $120 million (from the website Superyachtfan.com). [14]

On March 25, 2022, an FBI Special Agent filed an affidavit in support of seizure of the Tango with the United States District Court for the District of Columbia. The affidavit warrant states probable cause to seize the Tango for suspect violations of 18 U.S.C.   § 1349 (conspiracy to commit bank fraud), 50 U.S.C.   § 1705 (International Emergency Economic Powers Act), and 18 U.S.C.   § 1956 (money laundering), and that the seizure is authorized by American statutes on civil and criminal asset forfeiture. [15] [16]

On April 4, 2022, Magistrate Judge Zia M. Faruqui signed an Order approving the seizure. Judge Faruqui concluded his order stating, "The seizure of the Target Property is just the beginning of the reckoning that awaits those who would facilitate Putin's atrocities. Neither the Department of Justice, nor history, will be kind to the Oligarchs who chose the wrong side. […] The Department of Justice's seizure echoes the message of the brave Ukrainian soldiers of Snake Island." [17]

The Civil Guard of Spain and U.S. federal agents of both the United States Department of Justice and United States Department of Homeland Security seized the Tango in Mallorca. A United States Department of Justice press release states that the seizure of the Tango was by request of Task Force KleptoCapture. [18] [19] [10]

On June 6, 2022, the United States was authorized to seize two of Roman Abramovich’s aircraft, a Boeing 787-8 and a Gulfstream G650ER worth more than $400 million. A United States press release states that the seizures were requested by the U.S. Attorney's Office for the Southern District of New York, working with Task Force KleptoCapture. [9] [20]

On August 8, 2022, a U.S. federal magistrate judge signed an order authorizing the United States to seize the private airplane of Andrei Skoch, a sanctioned Russian oligarch who is a member of Russia's Duma. U.S. press releases indicated that the airplane is an Airbus A319-100 with tail number P4-MGU worth over $90 million, which had previously been blocked by the U.S. Treasury's Office of Foreign Assets Control (OFAC), and that the U.S. Attorney's Office for the Southern District of New York led this investigation in partnership with the KleptoCapture Task Force. [21] [22]

In February 2024, US Deputy Attorney General Lisa Monaco announced that the KleptoCapture Task Force had "restrained, seized, and obtained judgments to forfeit nearly $700 million in assets from Russian enablers and charged more than 70 individuals for violating international sanctions and export controls levied against Russia." [23]

Related Research Articles

<span class="mw-page-title-main">Viktor Vekselberg</span> Russian–Cypriot oligarch and businessman (born 1957)

Viktor Felixovich Vekselberg is a Ukrainian-born Russian-Israeli-Cypriot oligarch, billionaire, and businessman. He is the owner and president of Renova Group, a Russian conglomerate. According to Forbes, as of November 2021, his fortune is estimated at $9.3 billion, making him the 262nd richest person in the world.

Russian oligarchs are business oligarchs of the former Soviet republics who rapidly accumulated wealth in the 1990s via the Russian privatisation that followed the dissolution of the Soviet Union. The failing Soviet state left the ownership of state assets contested, which allowed for informal deals with former USSR officials as a means to acquire state property.

<span class="mw-page-title-main">Asset forfeiture</span> Confiscation of assets by the state

Asset forfeiture or asset seizure is a form of confiscation of assets by the authorities. In the United States, it is a type of criminal-justice financial obligation. It typically applies to the alleged proceeds or instruments of crime. This applies, but is not limited, to terrorist activities, drug-related crimes, and other criminal and even civil offenses. Some jurisdictions specifically use the term "confiscation" instead of forfeiture. The alleged purpose of asset forfeiture is to disrupt criminal activity by confiscating assets that potentially could have been beneficial to the individual or organization.

<span class="mw-page-title-main">Alexey Kuzmichev</span> Russian businessman

Alexey Viktorovich Kuzmichev or Kousmichoff is a Russian businessman. He is one of the founders of the LetterOne Group (LetterOne) and the Alfa Group.

<span class="mw-page-title-main">Dmitry Peskov</span> Russian politician and diplomat (born 1967)

Dmitry Sergeyevich Peskov is a Russian diplomat and the press secretary for Russian president Vladimir Putin.

<span class="mw-page-title-main">Gennady Timchenko</span> Russian billionaire businessman

Gennady Nikolayevich Timchenko is a Russian oligarch and billionaire businessman. He founded and owns the private investment firm Volga Group. He was previously a co-owner of Gunvor Group.

<span class="mw-page-title-main">Ihor Kolomoyskyi</span> Israeli–Cypriot and former Ukrainian businessman and politician

Ihor Valeriyovych Kolomoyskyi is a Ukrainian-born Israeli–Cypriot billionaire businessman, once considered the leading oligarch in Ukraine.

Dmytro Vasylovych Firtash is a Ukrainian businessman who heads the board of directors of Group DF. He was highly influential during the Yushchenko administration and the Yanukovych administration. As a middleman for the Russian natural gas giant Gazprom and with connections to the Kremlin, Firtash funneled money into the campaigns of pro-Russian politicians in Ukraine. Firtash obtained his position with the agreement of Russian president Vladimir Putin and, according to Firtash, Russian organized crime boss Semion Mogilevich.

<span class="mw-page-title-main">Equitable sharing</span> U.S. police practice in which state and federal police share revenue from asset forfeiture

Equitable sharing refers to a United States program in which the proceeds of liquidated seized assets from asset forfeiture are shared between state and federal law enforcement authorities. The Comprehensive Crime Control Act of 1984 set up the arrangement in which state and local police can share the seizures with federal agents. The law allows state and local law enforcement to retain up to 80% of the proceeds from seizures made in collaboration with federal agencies and from seized assets turned over to the federal government that the federal government then elects to adopt.

Bonnie S. Klapper is an American lawyer who was Assistant United States Attorney in both the Central District of California and the Eastern District of New York from January 1984 to February 2012. She is in private practice, specializing in the defense of extraditables and in matters before the Office of Foreign Assets Control. She is a member of the bar in the States of New York, California, and the District of Columbia and has been admitted to Federal District Court in New York, California, Florida, Texas and the District of Columbia.

<span class="mw-page-title-main">Specially Designated Nationals and Blocked Persons List</span> US sanctions list

The Specially Designated Nationals and Blocked Persons List, also known as the SDN List, is a United States government sanctions/embargo measure targeting U.S.-designated terrorists, officials and beneficiaries of certain authoritarian regimes, and international criminals. The list is managed by the U.S. Treasury’s Office of Foreign Assets Control (OFAC). When individuals are added to the list of Specially Designated Nationals (SDN), their U.S. assets are blocked. Moreover, their names are added to automated screening systems used by banks in the United States and many foreign countries, making it difficult for them to open or hold accounts, transfer money, or transact properties internationally. Any individual or entity that provides support related to terrorism, drug trafficking or unauthorized military use to any person or entity appearing on the SDN list risks being penalized under the USA PATRIOT Act.

International sanctions have been imposed against Russia and Crimea during the Russo-Ukrainian War by a large number of countries, including the United States, Canada, the European Union, and international organisations following the Russian annexation of Crimea, which began in late February 2014. Belarus has also been sanctioned for its cooperation with and assistance to Russian armed forces. The sanctions were imposed against individuals, businesses, and officials from Russia and Ukraine. Russia responded with sanctions against several countries, including a total ban on food imports from Australia, Canada, Norway, Japan, the United States, the EU and the United Kingdom.

<span class="mw-page-title-main">Civil forfeiture in the United States</span> Aspect of U.S. law enforcement

In the United States, civil forfeiture is a process in which law enforcement officers take assets from people who are suspected of involvement with crime or illegal activity without necessarily charging the owners with wrongdoing. While civil procedure, as opposed to criminal procedure, generally involves a dispute between two private citizens, civil forfeiture involves a dispute between law enforcement and property such as a pile of cash or a house or a boat, such that the thing is suspected of being involved in a crime. To get back the seized property, owners must prove it was not involved in criminal activity. Sometimes it can mean a threat to seize property as well as the act of seizure itself. Civil forfeiture is not considered to be an example of a criminal justice financial obligation.

<span class="mw-page-title-main">Arkady Rotenberg</span> Russian billionaire businessman (born 1951)

Arkady Romanovich Rotenberg is a Russian billionaire businessman and oligarch. With his brother Boris Rotenberg, he was co-owner of the Stroygazmontazh, the largest construction company for gas pipelines and electrical power supply lines in Russia.

Kirill Nikolayevich Shamalov is a Russian businessman, the ex-husband of Katerina Tikhonova and the ex-son-in-law of the Russian President Vladimir Putin. He was the former economic advisor to the Russian government.

<span class="mw-page-title-main">Countering America's Adversaries Through Sanctions Act</span> 2017 U.S. law sanctioning Iran, North Korea and Russia

The Countering America's Adversaries Through Sanctions Act (CAATSA) is a United States federal law that imposed sanctions on Iran, North Korea, and Russia. The bill was passed by the Senate on July 27, 2017, 98–2, after it passed the House 419–3. It was signed into law on August 2, 2017 by President Donald Trump, who nevertheless believed that the legislation was "seriously flawed".

Navalny 35 are a group of Russian human rights abusers, kleptocrats, and corruptioners involved in poisoning and imprisonment of Russian opposition leader Alexei Navalny. The initial list contained 35 individuals.

Following the full declaration of the Russian invasion of Ukraine, which started on 24 February 2022, institutions such as the United States, the European Union, and other Western countries introduced or significantly expanded sanctions covering Russian President Vladimir Putin, other government members and Russian citizens in general. Some Russian banks were banned from using the SWIFT international payments system. The sanctions and the boycotts of Russia and Belarus have impacted the Russian economy in various ways.

<span class="mw-page-title-main">United States and the Russian invasion of Ukraine</span> American intervention in the 2022 Russia-Ukraine War

The United States has supported Ukraine during the ongoing Russian invasion of Ukraine. After it began on 24 February 2022, President Joe Biden condemned the invasion, provided military and humanitarian aid to Ukraine, and sanctioned Russia and Belarus, the two countries most involved in invading Ukraine.

In March 2022 the Russian Elites, Proxies, and Oligarchs Task Force (REPOTF) was set up between the EU, G7 countries, and Australia. The signatories pledged to:

jointly commit to prioritizing our resources and working together to take all available legal steps to find, restrain, freeze, seize, and, where appropriate, confiscate or forfeit the assets of those individuals and entities that have been sanctioned in connection with Russia’s premeditated, unjust, and unprovoked invasion of Ukraine and the continuing aggression of the Russian regime. “Russia’s latest invasion of Ukraine represents a further assault on the fundamental norms and laws, including the UN charter, that underpin the international order. By working together to hunt down the assets of key Russian elites and proxies and to act against their enablers and facilitators, we take a further step to isolate them from the international financial system and impose consequences for their actions, and we encourage other countries to also take up this critical effort.

References

  1. ↑ Beitsch, Rebecca (March 2, 2022). "DOJ launches team to enforce sanctions on Russian oligarchs". The Hill. Archived from the original on March 6, 2022. Retrieved March 2, 2022.
  2. ↑ Strohm, Chris (March 2, 2022). "DOJ's 'KleptoCapture' Unit Will Target Russian Oligarchs". Bloomberg News. Retrieved March 2, 2022.
  3. ↑ Lynch, Sarah N. (March 2, 2022). "U.S. launches 'KleptoCapture' task force aimed at Russian oligarchs". Reuters. Archived from the original on March 2, 2022. Retrieved March 2, 2022.
  4. ↑ Biden, Joseph R. (March 1, 2022). President Biden's State of the Union Address (Speech). Archived from the original on March 26, 2022. Retrieved March 31, 2022.
  5. ↑ "Attorney General Merrick B. Garland Announces Launch of Task Force KleptoCapture". Justice.gov. United States Department of Justice. March 2, 2022. Archived from the original on March 2, 2022. Retrieved April 5, 2022.
  6. ↑ "Attorney General Merrick B. Garland Visits Ukraine, Reaffirms U.S. Commitment to Help Identify, Apprehend, and Prosecute Individuals Involved in War Crimes and Atrocities". www.justice.gov. June 21, 2022. Retrieved July 1, 2022.
  7. ↑ "Former Ceo Of Bitcoin Exchange Company Sentenced In Manhattan Federal Court To Two Years In Prison For Helping To Sell Nearly $1 Million In Bitcoins For Drug Buys On Silk Road". Justice.gov. United States Department of Justice. December 9, 2014. Archived from the original on July 13, 2017. Retrieved April 5, 2022. Assistant United States Attorney Andrew Adams of the Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case"
  8. ↑ Cohen, Luc; Lynch, Sarah N. (March 3, 2022). "Veteran U.S. prosecutor to lead task force probing Russian oligarchs". Reuters.com. Reuters. Archived from the original on March 3, 2022. Retrieved April 4, 2022.
  9. 1 2 "United States Obtains Warrant For Seizure Of Two Airplanes Of Russian Oligarch Roman Abramovich Worth Over $400 Million". Justice.gov. June 6, 2022. Retrieved June 6, 2022.
  10. 1 2 "$90 Million Yacht of Sanctioned Russian Oligarch Viktor Vekselberg Seized by Spain at Request of United States". Justice.gov. April 4, 2022. Archived from the original on April 4, 2022. Retrieved April 4, 2022.
  11. ↑ Macias, Amanda; Schwartz, Brian (March 2, 2022). "Biden administration launches new 'KleptoCapture' task force to go after Russian oligarchs". CNBC. Archived from the original on March 2, 2022. Retrieved March 2, 2022.
  12. ↑ "Russian Harmful Foreign Activities Sanctions". Office of Foreign Assets Control, US Department of the Treasury. Retrieved May 15, 2024.
  13. ↑ "Treasury Sanctions Kremlin Elites, Leaders, Oligarchs, and Family for Enabling Putin's War Against Ukraine". Treasury.gov. United States Department of the Treasury. March 11, 2022. Archived from the original on March 11, 2022. Retrieved April 4, 2022.
  14. ↑ https://home.treasury.gov/news/press-releases/jy06502%5B%5D
  15. ↑ "In the Matter of the Seizure of The Motor Yacht Tango, with International Maritime Organization Number 1010703". Justice.gov. Retrieved April 4, 2022.
  16. ↑ "Application for a Warrant To Seize Property Subject to Forfeiture" (PDF), In The Matter of the Seizure and Search of the Motor Yacht Tango, with International Maritime Organization Number 1010703 (Court Filing), no. 1:22-sz-00005, Docket 1, Attachment 0, D.D.C., March 25, 2022, retrieved April 11, 2022– via Recap ( PACER current docket view Lock-red-alt.svg)
  17. ↑ "Order as to the Vessel Tango with International Maritime Organization Number 1010703" (PDF), In The Matter of the Seizure and Search of the Motor Yacht Tango, with International Maritime Organization Number 1010703 (Court Filing), no. 1:22-sz-00005, Docket 7, Attachment 0, D.D.C., March 25, 2022, retrieved April 11, 2022– via Recap ( PACER current docket view Lock-red-alt.svg)
  18. ↑ "US seizes yacht owned by oligarch with close ties to Putin". AP NEWS. April 4, 2022. Retrieved April 4, 2022.
  19. ↑ "La Guardia Civil incauta en Mallorca el yate de un oligarca ruso reclamado por EEUU". GuardiaCivil.es (in Spanish). Guardia Civil. April 4, 2022. Archived from the original on April 4, 2022. Retrieved April 4, 2022.
  20. ↑ "UNITED STATES OF AMERICA v. A BOEING 787-8 DREAMLINER AIRCRAFT, BEARING TAIL NUMBER P4-BDL AND MANUFACTURER SERIAL NUMBER 37306, AND A GULFSTREAM G650ER AIRCRAFT, BEARING TAIL NUMBER LX-RAY AND MANUFACTURER SERIAL NUMBER 6417" . Retrieved March 24, 2023.
  21. ↑ "United States Obtains Warrant for Seizure of Airplane of Sanctioned Russian Oligarch Andrei Skoch, Worth Over $90 Million". www.justice.gov. August 8, 2022. Retrieved August 9, 2022.
  22. ↑ "United States Obtains Warrant For Seizure Of Airplane Of Sanctioned Russian Oligarch Andrei Skoch Worth Over $90 Million". www.justice.gov. August 8, 2022. Retrieved August 9, 2022.
  23. ↑ "Task Force KleptoCapture Announces Array of New Charges, Arrests, and Forfeiture Proceedings in Advance of Second Anniversary of Illegal Invasion of Ukraine". Office of Public Affairs United States Department of Justice. Retrieved June 18, 2024.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.