Ukrainian Billionaires Allegedly Laundered Money in the US
gijn.org
gijn.org
Funny enough, KD Group is a primary beneficiary of this ”new” money laundering: https://m.clevescene.com/scene-and-heard/archives/2019/06/11...
It really doesn't matter though, Zelensky was a protest vote against the status quo and everything that entails.
When politics turns into a show it’s obvious that professional showman beauts amateurs.
First, the amount appears to be the total through a bank, where this number would be aggregated over a several (possibly many) individuals.
Second, the amounts reported do not reflect the total funds laundered (illicit funds made to appear legitimate) but the total revenue stream, which would be offset by liabilities. For example, one laundering technique I've read about involves buying real estate and selling it at an inflated price to someone who has the illicit funds. For example, A has illicit cash and wants to transfer it to (apparently) legitimate profits by B. B buys a property for $1m. B sells the property to A1 for $2m. B keeps the $1m difference as profit. A1 later sells the property at a loss, and the cycle is complete. Repeat this a few thousand times, but probably with a smaller % margin. But assuming a 100% margin (and the whole laundering effort being exactly this scheme) that'd be $450B total revenue but $225B actually laundered.
Interesting side effect: This pushes up the cost of housing in an area until the launderers abandon it, at which point demand and purchase volume dries up significantly and valuations sink. Additional profit could be made off this market manipulation.
Could be half a trillion easily.
Some of the properties mentioned in the full complaint were owned by KD Group, the company at the center of the early-2010’s mob money laundering scheme
Could it be just to bring attention to them in the civil suit and then hope the department of justice comes in with the criminal sanctions and asset freezes? Maybe PrivatBank makes a little money in the process?
[1] https://therealdeal.com/miami/2016/01/13/secret-buyers-in-mi...
It links to this commentary which is much more interesting to read https://www.atlanticcouncil.org/blogs/ukrainealert/how-kolom...
Looks like the claim is that they misappropriated clients funds and invested it in USA under companies whose control can be linked back to them.
I am somewhat puzzled how this could fly under the radar of US banks... this is much bigger deal than the recent Danske Bank scandal in Estonia.
Goes way more in depth, giving local history on some of the construction projects.
"Kolomoisky is now reported to have made a return to Ukraine for the first time in several years, a decision which is believed to be linked to the recent victory in the Ukrainian presidential election of the television star and comedian Mr. Volodymyr Zelenskiy, behind whom Kolomoisky is widely reported as being the principal power and financial backer. Press reports speculate that there is a deal between Mr. Kolomoisky and Mr. Zelenskiy: in exchange for Kolomoisky’s support, Mr. Zelenskiy will ensure the return of PrivatBank to the ownership of Mr. Kolomoisky in order to circumvent any pending or threatened litigation against Kolomoisky." -- https://www.atlanticcouncil.org/images/royaltyfree/kolomoisk...
That is some serious corruption allegations right there.
From a financial controls perspective it seems like the US government was pursuing these folks (according to the complaint) so somebody was making complaints.
To make sure you have a local community support when things start to heat up, I would not be surprised by
- How much London real estate these businessmen own
- How much money also was poured into Israel communities
Pretty far fetched though, you would have have someone on the inside running your faux campaign, etc. Perhaps I'm reading too much Stieg Larsson.
Previously it was the other way around — to be in office yourself and book profits for your son in law (Kuchma—Pinchuk) or other related person. Conflict of interest? Never heard about that.
This was commercialized and outsourced at some point, but only at MP level, so you could enjoy Presidential impunity yourself.
Zelensky happened as a controlled exit strategy because all other contenders had highly toxic reputations to assume office for themselves after being in some office or another for nearly 30 years, so it was a chance that somebody really from the outside would get ir
The man in question however could simply bribe officials on lower levels with the same effect and for far price.
To top it — extradition of a citizen is constitutionally prohibited, so everybody could sleep well and show middle finger to the rest of the world, as we traditionally do here.
In this case, it seems nothing has failed. From what I read, news of this were all around, and they knew their customer more than very well.
Anybody going to launder that much of money can setup or buy his own bank and hire an army of financial lawyers to keep it compliant on paper.
All those CFT, KYC laws do sound as completely nonsensical and ineffectual in light of that. Why to go after money laundry clients, when they should really go after the bank laundry owner
What will happen to the property? Confiscated to the government?