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]
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.
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]
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]
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]
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.
Confiscation is a legal form of seizure by a government or other public authority. The word is also used, popularly, of spoliation under legal forms, or of any seizure of property as punishment or in enforcement of the law.
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.
Suleyman Abusaidovich Kerimov is a Russia-based billionaire, oligarch, and politician of Lezgian origin. Kerimov has close ties to Vladimir Putin's government in Russia, as well as Ramzan Kadyrov, the Chechen leader.
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.
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.
Alisher Burkhanovich Usmanov is an Uzbek–Russian businessman and oligarch. By 2023, Usmanov had an estimated net worth of $14.5 billion and was among the world's 100 wealthiest people.
650 Fifth Avenue is a 36-story 150 m (490 ft) building on the edge of Rockefeller Center on 52nd Street in New York City.
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.
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.
Andrey Leonidovich Kostin is a Russian businessman who is chairman of the United Shipbuilding Corporation's Board of Directors since August 25, 2023. President and Chairman of the Board of VTB since June 10, 2002
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.
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.
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.
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.
Madame Gu is a superyacht built in 2013 at the Dutch Feadship yard in Makkum. She was built as Project Dream. Madame Gu is designed by Andrew Winch Designs, who were responsible for both interior and exterior, opting for contemporary details in a classical style. Naval architecture was done by De Voogt Naval Architects.
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 Russia's invasion of Ukraine beginning on 24 February 2022, 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 impacted the Russian economy.
The United States has supported Ukraine during the ongoing Russian invasion of Ukraine. After it began on 24 February 2022, President Biden condemned the invasion, provided military and humanitarian aid to Ukraine, and sanctioned Russia and Belarus, the two countries most involved in invading Ukraine.
Assistant United States Attorney Andrew Adams of the Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case"