Category: Russia

Why did the FBI raid homes linked to Oleg Deripaska?

Editor’s note: Post has been updated to replace photo of DC property misidentified as the Haft mansion.

Sometimes you go looking for one thing and you find something else. I have a theory that’s what happened on December 13, 2018, when authorities in Britain served a search warrant on a London storage unit leased by a company connected to the Russian aluminum tycoon, Oleg Deripaska.

The warrant, made at the request of the U.S. Justice Department, was executed in search of evidence of crimes committed by Deripaska’s one-time business partner, Paul Manafort. It doesn’t appear that there was much on Manafort in that London storage unit, but U.S. authorities had obtained something else – 11 boxes and 100,000 pages of documents from the company that controls the billionaire’s global property empire.

The target of the 2018 UK raid, London-based Terra Services, controls Deripaska’s luxury properties around the globe through a network of subsidiary companies. These homes include stunning villas in St. Tropez and Sardinia, a mansion in London’s Belgrave Square estimated at £50 million, a home in Paris near the Seine, and an estate with two marble palaces in Montenegro.  

Oleg Deripaska

On Tuesday, FBI agents raided two properties connected to Deripaska in Washington and New York. Agents conducted simultaneous searches at the Haft mansion near DC’s Embassy Row and at 12 Gay Street in Manhattan’s Greenwich Village.  

A spokeswoman for Deripaska told The New York Times that the searches were “being carried out on the basis of two court orders, connected to U.S. sanctions.” The U.S. Treasury Department sanctioned Deripaska in April 2018, for “having acted or purported to act for or on behalf of, directly or indirectly, a senior official of the government of the Russian Federation.”  

That senior official of the Russian government may be none other than Vladimir Putin. The U.S. government received reports that Deripaska held assets and laundered funds on behalf of Russian President Vladimir Putin.

“I would like to ask: did you find Putin’s money in those abandoned houses?” Deripaska asked on Telegram the day after the FBI raided the New York and DC properties, an intemperate comment that was later edited out.

The sanctions on Deripaska mean that banks must steer clear of him and his money cannot enter the United States. According to Deripaska’s spokeswoman, the properties raided Tuesday were ultimately owned by the billionaire’s relatives.

But someone was paying the bills at the Haft mansion and 12 Gay Street. The property tax bill for the Haft mansion runs more than $132,000 a year.

Did the documents seized in the 2018 London raid provide evidence that Deripaska was violating sanctions with respect to the NY and DC properties?

I have a hunch they did.

First, whatever documents were in those 11 boxes seized by officers National Crime Agency, Britain’s version of the FBI, Deripaska did not want the U.S. authorities to see them. Over the course of 15 months, Terra Services challenged the warrant in five separate hearings. One of Terra’s arguments was that the materials in the boxes had little to do with Manafort, and the few pages that did involve him were already in the possession of the U.S. Justice Department. A British judge rejected Terra Services’ arguments for judicial review in March 2020, clearing the way for the documents to be sent to America.

Second, a previously-unreported court filing contended that Deripaska takes an extremely hands-on role in running his U.S. residences — down to the location of electric sockets. According to an affidavit filed in 2016 New York Superior Court, “Deripaska exercises dominion and control over NY properties.” The document cites emails Deripaska wanted kept secret that were obtained during discovery in a lawsuit filed against him by Alexander Gliklad, former chairman of a Russian coal company.

Gliklad’s lawyers cited an email from a U.S. realtor working for Deripaska that references the oligarch’s preferences for electronics and electrical outlets near his bed in 12 Gay Street. Other emails suggest Deripaska was involved in negotiating a price in a proposed sale of a $42.5 million townhome on the Upper East Side. (The document summarizing those and other emails was improperly redacted, allowing its contents to be read by selecting and pasting them.)  

Third, and finally, the person in charge of Terra Services was involved in the purchase and management of the NY and DC properties. A few months before he was sanctioned by the U.S. Treasury, Deripaska handed control of Terra Services over to Pavel Ezubov, his 46-year-old cousin.

Ezubov, the son of a member of Russia’s Duma, or lower house of parliament, set up the Delaware corporation that acquired the Haft mansion in 2006 for $15 million, according to records obtained by OpenSecrets’ Anna Massoglia.

And Ezubov’s name showed up on a New York city building permit for a $42.5 million Upper East Side Manhattan townhome connected to Deripaska. On the permit, Ezubov listed his address at a rented mailbox, located a short walk from 12 Gay Street, where property tax bills for all of Deripaska’s New York properties are sent.

It would make sense if Ezubov is managing these properties because his name shows up elsewhere in connection with properties connected to Deripaska that are being run by Terra Services. This includes Hamstone House, a 10-bedroom English mansion that was reportedly the Duchess of Windsor’s favorite property.

Euzbov’s name also shows up in connection with what may be the most expensive piece of property connected to his billionaire cousin. Villa Herakles in St. Tropez includes a 15,000-square foot main house, a guest house, a 345-acre park, two swimming pools, a tennis court, and a helipad.

Villa Herakles

Renovations on Villa Herakles cost 17.9 million Euros, according to the contractor’s website. The same contractor also worked on another home controlled by a Terra Services subisidary, Villa Walkirie, on the Italian island of Sardinia.

In a French court decision, an unidentified gardener who worked on Villla Heracles in St. Tropez from 2006 to 2009 said that his “real employer” was Basic Element – Deripaska’s holding company that comprises, Rusal, the world’s No. 2 aluminum maker.

Admittedly, the connection between Terra Services and the U.S properties raided Tuesday is not as strong as it is with the homes Terra Services controls in Europe. But what better place to sort this out then the 11 boxes of company documents that Deripaska did not want the U.S. to see?

Julian Assange’s Russian Connection

Israel Shamir, left, and Julian Assange

Whatever you think of Julian Assange — hero or villain, journalist or thief, high-tech revolutionary or paranoid narcissist — there is no denying his commitment to the cause of transparency.

Assange has paid a steep price for revealing the U.S. government’s hidden history. As I write this, he continues to battle extradition to the United States where he faces criminal charges of disclosing classified material — a case that could set a dangerous precedent for investigative journalism in the most powerful country on earth.

But the story of Assange and Russia reveals another history he prefers to keep private: his own.

The story begins well before the 2016 U.S. presidential election, when WikiLeaks’ served as a conduit for the emails Russian intelligence officers had hacked out of the Democratic Party and the Clinton campaign. By that time, Assange already had a years-old relationship to Russia.

It was Russia that Assange would often look to as a place to escape his mounting legal problems, something he would later advise Edward Snowden to do. It was Russia that offered him much-needed funds to keep his organization afloat. It was Russia that alternately terrified him and fascinated him.

Given how much we do know about WikILeaks activities during the 2016 presidential election, we still know relatively little about the origins of Assange’s relationship with Russia.

When did WikiLeaks’ relationship with Russia begin? And how did it start?

We have compromising materials on Russia

It may come as a surprise that Julian Assange — a man the U.S. government considers the Kremlin’s most useful idiot — once announced that his next target was Russia.

The year was 2010. Assange and WikiLeaks were riding a wave of notoriety after publishing thousands of secret US government documents that it had obtained from Chelsea Manning. First came the disclosure of a classified military video of a US Apache helicopter killing 18 people, including two journalists working for Reuters. That was followed by the disclosure of thousands of classified documents on the wars in Afghanistan and Iraq.

Everyone seemed to be wondering who or what WikiLeaks would expose next, and in July 2010, Assange showed his hand in an interview with Russia’s Izvestia newspaper.

Izvestia: Do you have compromising materials on Russia?
Assange: Yes, your government and businessmen. But not as much as we would like. The fact that most of your sites only post information in Russian limits our options. However, the Americans are helping us, they transmit a lot of materials about Russia.
Izvestia: Do you trust them in this matter?
Assange: Yes. Although, of course, we double-check all the information.
Izvestia: On which of the Russians has WikiLeaks already “opened a case”?
Assange: I will not name them. You will know them when we post the relevant content.

Alexandra Ovchinnikova, “WikiLeaks Co-Founder Receives US Threats,” Izvestia, July 28, 2010

Assange must have been dismayed when no one else picked up the scoop he dropped in Izvestia, because WikiLeaks tried again in October.

“I think that Russian readers will learn a lot about their country,” WikiLeaks spokesman Kristinn Hrafnsson told Kommersant, a Russian business daily.

This time, the U.S. media took notice.

So did the Kremlin. An anonymous representative of the FSB, the successor agency to the KGB, said there was no cause for concern, but then warned that Russia could shut the WikiLeaks site down for good if it so chose.

In the end, WikiLeaks’ next target wasn’t Russia.

Instead, Julian Assange sought its help.

Seeking Russia’s help

At the same time as journalists were asking whether the Kremlin was about to get WikiLeaked, Assange was coming under tremendous pressure from law enforcement authorities in Sweden.

Prosecutors accused the WikiLeaks founder of raping and molesting two Swedish women during an August trip to Stockholm. In November 2010, a warrant was issued for his arrest. (In 2019, prosecutors dropped the charges, citing insufficient evidence)

With his options dwindling, Assange turned to an unlikely source for help.

In letter dated Nov. 30, 2010 that was obtained by The Associated Press, Assange asked the Russian consulate in London for a visa.

WikiLeaks claimed, without evidence, that the document was a forgery.

Assange’s Man in Moscow

Julian Assange, left, and Israel Shamir

There’s good reason, however, to believe that Assange isn’t telling the truth.

For one, Israel Shamir, the man Assange named as his “friend” in the letter, told Russian News Service radio, that he had personally brokered a Russian visa. But by the time it was approved in January 2011, Shamir said, it was too late. Assange was in British custody.

Russia “would be one of those places where he and his organization would be comfortable operating,” Shamir explained, according to the AP’s report. Asked if Assange had friends in the Kremlin, Shamir smiled and said: “Let’s hope that’s the case.”

A Russian-Israeli journalist and citizen of Sweden, Shamir is best known as an anti-Semitic writer. He has argued that the Jewish “blood libel” myth has a historical basis in fact and likened Jews to a virus. “I think it is every Muslim’s and Christian’s duty to deny the Holocaust,” he said.

Born a Jew in Siberia, Shamir claims to be Greek Orthodox Christian convert. Once a Zionist, he says he’s now an anti-Zionist. Once a spokesman for Israel’s left-wing Mapam party, he now travels in Russian right-wing circles. Shamir was a member of Florian Geyer, a group that was co-founded by the far-right ideologue Aleksandr Dugin, who had longstanding ties to Russia’s military, government and the security services. (The group shared its name with a Nazi SS cavalry division.)

Aleksandr Dugin, left, and Israel Shamir at a Florian Geyer meeting

Searching the Hebrew-language press, I found that Shamir’s own mother couldn’t understand what happened to her son. “He received a Zionist education. He was a Zionist activist. He did great things,” Esther Schmerler-Lomovski told Makor Rishon in 2003. “It pains me, what happened to him. I would like to understand it myself. I think it’s a disease. It’s a mental illness. He seems sane. He’s not disturbed. He seems smart. But there’s something unhealthy.”

Maybe Israel Shamir did go insane, or maybe he built quite a legend for himself. More than one reporter has pointed out Shamir’s ties to Russia’s security services. “From the late 1960s, people who knew him wondered if he were a KGB plant; at the BBC, while some found him charming, others considered he spent too much time at the Soviet Embassy,” Private Eye reported in 2011. Former Wikileaks staffer James Ball wrote in The Daily Beast that Shamir had “ties and friends in Russian security services.”

For former WikiLeaks staffer James Ball and Assange’s close friend, Daniel Domscheit-Berg, Shamir was a step too far. Both men left the group.

Assange, however, would brook no criticism of his friend. Instead of banishing Shamir back to the freezing expanses from whence he came, he had invited him to join his nascent operation in 2007:

Dear Israel/Adam:

Someone wrote saying they ‘refused to associate with an organization that would work with an anti-Semite like Israel Shamir.’ From a brief sampling of your writing … I did not find the allegation borne out. I found these samples to be strong and compassionate. I suspect the name ‘Israel Shamir’ is a realpolitik deadweight we are not yet big enough to carry … Writing under another name in the interim … may be an option.

Assange’s Moscow Mule, Private Eye, Feburary 18, 2011.

What was Assange’s response when Private Eye published this email? Private Eye was part of a conspiracy led by journalists from the Guardian who “are Jewish.”

Друзья (Friends of) WikiLeaks

A Russian visa was only one way Shamir was using his ties to Russia to help get his friend out of trouble.

He would also help establish a “Friends of WikiLeaks” foundation in Russia, ostensibly to raise money for an Assange visit to Moscow that never took place.

The Russian Friends of WikiLeaks has received no attention in the United States. It got a lot of attention in Russia because it was backed by the weekly magazine, Russian Reporter, which billed itself as WikiLeaks’ “official partner” in Russia.

One of the founders of Friends of WikiLeaks was Vitaly Leibin, the editor of Russian Reporter, a Putin-friendly publication owned by one of Russia’s most notorious oligarchs.

According to Leibin, Yandex, the Russian search giant, approached him with an offer to help WikiLeaks at a time when PayPal, MasterCard, and VISA were severing their ties to WikiLeaks. “Yandex.Money said that they were ready to guarantee that this will not happen and you can collect donations for WikiLeaks on their site,” Leibin told Vesti Radio. (Yandex denied this.)

Israel Shamir. Source: Russian Reporter

Russian Reporter was an interesting partner for Shamir and WikiLeaks for another reason: Oleg Deripaska, the aluminum tycoon sanctioned by the U.S. Treasury for his close connection to the Kremlin, owned 30 percent of the Expert group that included Russian Reporter through his holding company, Basic Element.

(In 2017, Deripaska’s longtime U.S. lobbyist, Adam Waldman, would meet nine times with Assange in the Ecuadorian Embassy in London, according to the Guardian. Waldman was trying to broker a deal with the U.S. Justice Department about the investigation into Assange and Assange’s leaks of documents detailing the CIA’s cyberweapons known as “Vault 7.”)

How much money did Friends of WikiLeaks raise? Did Deripaska give money? What happened to the money raised by the fund?

Shamir wouldn’t say. “Dear Seth,” he wrote me in an email. “I suffered a micro-insult last year, and I hardly remember anything of the things you asked me about. Sorry, can’t be of help.”

Shamir Gets the Cables

Most revealing was the way Shamir used one of WikILeaks’ greatest coups — the release of thousands of secret U.S. State Department cables.

Before her arrest, Chelsea Manning had passed WikiLeaks 250,000 cables from U.S. embassies around the globe offering unvarnished commentary on countries and leaders.

According to emails obtained by the Swedish magazine, Expo, Shamir had expressed interest in the U.S. State Department cables in June, months before WIkiLeaks began publishing them in bulk.

“I have a lot of good guys who can help to analyze the treasure and it would be good to start spreading the news. I am now in Paris, and people want to know more! Tuesday I go to Sweden, and there is a whole operation for your benefit!” Shamir wrote.

Assange replied, “There certainly is! Tell the team to get ready. Give them my best. We have a lot of work to do.”

Later that year, Shamir had shown up at WikiLeaks’ HQ in Ellingham Hall in the north of England. Introduced to the team as “Adam,” Shamir quickly aroused suspicion among staff when he asked for the as yet unpublished cables concerning “the Jews.”

Former WikiLeaks staffer James Ball says Assange ordered him to give Shamir more than 90,000 State Department cables “covering Russia, all of Eastern Europe, parts of the Middle East, and Israel.” (Assange has denied this, too.)

First stop, Moscow

Cables in hand, Shamir traveled to Moscow in early December.

Shamir reportedly asked Kommersant for $10,000 to write articles based on the cables, sources told Russian journalist Julia Latynina and the Guardian. (A Kommersant representative told Latynina a fee was not discussed.)

Russian Reporter, the Putin-friendly outlet partly owned by Oleg Deripaska, took Shamir up on the offer and started calling itself “the official partner of the Wikileaks website in Russia.”

Shamir’s articles for Russian Reporter contained a mix or both true and false information — a classic KGB disinformation tactic. His reports claim that the cables showed United States was a puppet master controlling global affairs and blamed Georgia’s then president for starting a war with Russia. In fact, the cables said the opposite.

It was a clever way to deal with the fallout from the cables.

“Unable to refute the compromising information contained in U.S. diplomatic cables, Russia’s intelligence services are trying to minimize the damage by distorting their content, using Russian Reporter as a conduit,” The Moscow Times reported, citing Andrei Illarionov, a former economic adviser to then-President Vladimir Putin.

Next stop, Belarus

Shamir next headed to Belarus. He arrived in Minsk in time to observe the Dec. 19 presidential election as WikiLeak’s “only Russian-speaking accredited journalist.” Lukashenko would declare himself the winner of the election with nearly 80 percent of the vote.

Shamir, outside the administration building in Minsk

On Election Day in Belarus, the news service, Interfax, published an interview with Shamir in which he claimed that the cables contained a “Belarus dossier” and hinted at “black cash” being paid to undisclosed recipients. Interfax also reported that Lukashenko’s chief of staff, Vladimir Makei, met with Shamir.

Two days later President Lukashenko said the following:

“We’re simply going to publish certain documents. We’ll see how those who are published on the Belarusian WikiLeaks site — the supporters [of the opposition] and those who are working behind the scenes — react to this.”

In January 2011, Soviet Belarus, a state-run newspaper, began publishing extracts from the cables. Among those “exposed” as recipients of foreign money was the leading dissident, Andrei Sannikov, whom Lukashenko defeated for reelection, and Sannikov’s press secretary, who died under suspicious circumstances months before the election. (Sannikov was beaten by police in an Election Day protest, arrested on the way to the hospital, and then held in an undisclosed location, with no communication, for two months. He was ultimately charged with inciting protests and sentenced to five years in prison.)

“Because virtually every opposition leader was already under arrest at the time Shamir leaked the cables, the publication of these documents served to bolster, rather than prompt, the regime’s crackdown in the immediate aftermath of the presidential elections,” Kapil Komireddi wrote in Tablet magazine.

The relationship blossoms

Despite the damage he had done to WikiLeaks’ reputation, Shamir had somehow opened a door for Assange in Moscow.

In January 2012, Assange announced he would be hosting a show on Russia’s state-backed TV network, RT.

“The World Tomorrow” would be filmed in the Ecuadorian Embassy in London where Assange had taken refuge to avoid extradition to Sweden.

Once again, Russia was supplying Assange with much-needed cash. RT‘s purchase of a broadcasting license for Assange’s show came shortly after funding for WikiLeaks reportedly began “drying up.”

The following year, WikiLeaks personnel would help Edward Snowden take refuge in Russia. In an interview with DemocracyNow!, Assange said that he “advised Edward Snowden, that he would be safest in Moscow.”

RT’s editor-in-chief, Margarita Simonyan, visited Assange at the Ecuadorian Embassy in August 2013, where they discussed renewing his broadcast contract. Russian media subsequently announced that RT had become “the only Russian media company” to partner with WikiLeaks and had received access to “new leaks of secret information.”

Then came the DNC and Clinton campign hacks. “WikiLeaks actively sought, and played, a key role in the Russian campaign and very likely knew it was assisting a Russian intelligence influence effort,” the Senate Intelligence Committee concluded in the fifth volume of its multi-year inquiry into Russia’s efforts to interfere in the U.S. election. Assange received multiple visits at the Ecuador Embassy in London from RT employees during the summer of 2016.

In 2017, the government of Ecuador gave Assange diplomatic credentials and diplomatic immunity in order to allow him to leave its London embassy without fear of arrest by British police and take up a post in Russia. (Britain spoiled the plan by rejecting the appointment.)

As for Shamir, the nature of his relationship to Assange is unclear. (His son, Johannes Wahlstrom, remained part of Assange’s inner circle for years.) But there’s no denying that his association with WikiLeaks greatly benefited him. He writes a column for Russia’s largest daily, Komsomolskaya Pravda, and a blog on the ultra-nationalist newspaper, Zavtra.

Shamir remained an uncomfortable subject for Assange. It was a reminder of Assange’s own anti-Semitic leanings and his disastrous decision to hand over cables that were used to justify repression in Belarus. What’s more, Assange didn’t like discussing anything about himself other than his fame.

The man who dedicated his life to exposing government secrets didn’t want to reveal any of his own. Assange saw enemies everywhere, but he failed to see (or maybe he didn’t care to see) how his “friends” were using him to serve their own ends.

From Putin’s Kiss to Jeffrey Epstein

Tech investor Masha Drokova took an unusual path to Silicon Valley. First, she was a true believer in Vladimir Putin. Then she went to work did PR for Jeffrey Epstein.

There are numerous Russian women who are making substantial contributions in Silicon Valley. Only one can claim to have kissed Vladimir Putin, as Drokova famously did in 2009, and to have received a medal from Putin himself for “contributions to the fatherland.”

The 31-year-old Drokova has been very open about this and many other aspects of her life with one glaring exception: She will not discuss her work as a PR consultant for convicted sex offender Jeffrey Epstein. (Drokova did not respond to a request for comment for this article.)

Update: After this post was published, Drokova told me she did some PR work for Epstein as a favor but was never paid by him. See note at the end of this story.

But the secret was spilled by Jeffrey Mervis, a writer for Science magazine, who received an email from Drokova in August 2017 asking whether he wanted to interview Epstein, her client. No doubt there are others who received similar pitches who have not been so forthcoming.

It’s this Epstein-Putin connection — and Drokova’s ties to a figure of interest to the Senate’s Russia investigation — that has me wondering whether her life is following the whims of fate or someone’s directions. Because let’s face it, Epstein was an intelligence goldmine. He collected dirt on his rich and powerful friends, who over the years have included Bill Clinton, Donald Trump, Prince Andrew, Bill Gates, and Apollo Global founder Leon Black, who has his own connections to both Trump, Epstein and Russia. He had cameras in his house monitoring private moments. From an intelligence officer’s point of view, Epstein presented endless opportunities for blackmail.

Is Drokova’s life just a series of astonishing coincidences? Or might she be another Maria Butina or Anna Chapman, the sort of Russian woman who uses sex and charm to cozy up to powerful and connected American men in pursuit of information or influence? As I’ve written before, there’s a rich tradition of this Russia, going back to the KGB’s red sparrows.

It’s impossible to say for certain, but what is clear is that Drokova has a knack for showing up in places she doesn’t quite belong. First, she was the Putin superfan who befriended Putin’s critics. Then, she stunned many in her home country when she revealed that she is a proud permanent resident of the United States. She did public relations for Jeffrey Epstein and others despite a poor to middling command of English. Now, people entrust her with millions of dollars to invest in Silicon Valley based despite an investing philosophy — and I’m not making this up — that involves love and sex.

Putin’s Kiss

Let’s start at the beginning. In 2005, then 16-year-old Drokova joined Nashi, the Kremlin-sponsored youth group and rose to the rank of commissar, or core activist. Her spontaneous decision to plant a kiss on Putin’s cheek caught the eye of Danish filmmaker Lise Pedersen who chronicled Drokova’s time in the organization in the 2012 film, Putin’s Kiss.

Drokova was the softer face of an ugly movement. The writer Peter Pomerantsev described Nashi as “the Russian equivalent of the Hitler Youth, who are trained for street battles with potential pro-democracy supporters and burn books by unpatriotic writers on Red Square.”

Drokova didn’t beat people up but she did call for burning books and organized a campaign to throw shoes at then President Bush. (“A stupid action,” she told the Wall Street Journal years later, and one that led to her leaving the group.)

Her mentors included Vladislav Surkov, Nashi’s creator and the Kremlin’s former top political strategist. Drokova attended a 2009 conference organized by Surkov to work out a strategy for information campaigns on the Internet, Jeffrey Carr writes in Inside Cyber Warfare. In Putin’s Kiss, Drokova quotes Surkov’s famous line: “Putin was sent to Russia by God.”

She also worked closely with Konstantin Rykov, who went on to become the Kremlin’s “chief troll” as well as a figure of interest in the Senate’s investigation of Russian interference in the U.S. election. Drokova became a producer and presenter on Rykov’s Internet channel, Russia.ru. (More on him later)

Drokova’s departure from Nashi in 2010 came after she befriended a group of liberal journalists, the kinds of people Nashi marched through the streets to publicly denounce.

Opposition journalist Oleg Kashin, the film’s narrator, praises her bravery for supporting him in a protest after he is beaten within an inch of his life.

Others in Kashin’s circle, however, remained wary of “the girl with the big breasts [who] was sent to talk to liberals,” as one put it in Putin’s Kiss.

After leaving Nashi, Drokova put her propaganda skills to use in PR. Within a few years, she moved to the United States and began investing in Silicon Valley. It was a path that, as I’ve written, had been trailblazed by Russian oligarch Alisher Usmanov and Yuri Milner.

“Is She A Traitor? Nyet”

In 2017, the new and improved Drokova revealed on Instagram that she was a permanent resident of the United States. The news of Drokova’s U.S. green card caused a sensation in Russia, with many blasting her as a turncoat.

If you look closely at the photo of her visa above, you’ll see Drokova was granted an E16 visa. This is meant for “aliens of extraordinary ability” — aka the “Einstein visa.” (This is the same pathway through which Trump’s wife, Melania, gained U.S. citizenship.) It’s a category that, in theory, is reserved for people who are highly acclaimed in their field; the government cites Pulitzer, Oscar, and Olympic winners as examples.

Tech investor Esther Dyson, who sits on the board of Russian search engine giant Yandex NV, supported her visa application, according to Drokova. (Dyson also has a connection to Epstein. She traveled to Russia in the 1990s with Epstein where they posed for a photo outside the home of Soviet dissident Andrei Sakharov. She also attended the “Billionaire’s Dinners” that Epstein attended and helped pay for. )

While many in Russia mocked and derided Drokova, one notable figure rose to her defense: Konstatin Rykov, her former boss and the Kremlin’s “chief troll.”

One has to wonder whether Rykov was speaking for himself only. In Vol. 5 of its report on Russia, the Senate Intelligence Committee found that “Rykov has played a significant role in the Kremlin’s foreign and domestic influence efforts.” He also has ties to people outside the Kremlin who are associated with Russian intelligence services or pro-Kremlin political parties, the report noted.

Rykov was an early supporter of Trump and featured prominently in a Washington Examiner story headlined: “Putin loves Donald Trump.” (Trump tweeted out a link to this story in 2015, saying “Russia and the world has already started respecting us again!”) After Trump’s surprise victory, Russian elites congratulated Rykov, the Senate’s report notes.

On Election Day, Rykov hosted a party in Moscow that was attended by pro-Kremlin propagandist Maria Katasonova, and Jack Hanick, an American media consultant who is associated with U.S.-sanctioned oligarch Konstantin Malofeev and his pro-Kremlin propaganda media outlet Tsargrad TV.

Included in a list of guests Rykov invited to the election party in Moscow was Masha Drokova. (Drokova’s social media posts suggest she was in California at the time.)

The VC of Love

Next to Drokova’s name on Rykov’s election party guest list was the co-founder of NtechLab, Alexander Kabakov.

NtechLab is the creator of FindFace, which it bills itself as the best facial recognition algorithm in the world. NtechLab recently built a massive surveillance system in Moscow. Russia has also licensed the technology to the United Arab Emirates.

NtechLab was the first in a string of investments that Drokova started making in 2016 in early-stage tech companies. (The size of her investment has never been disclosed.) Another early stage investor in the company was Impulse VC, a firm based in Moscow that was backed by the Russian oligarch Roman Abramovich.

Other Drokova investments included StealthWorker, a service that connects employers with cybersecurity personnel. She invested more than $4 million in artifical intelligence startup DigitalGenius.

It’s yet another mystery how she came to invest millions at the same time she did PR work for Epstein and others. Why would a successful VC investor do PR? Whose money was she investing?

Not your typical VC photo. (Source: dayoneventures.com)

But it was only the start.

In 2017, Drokova started raising money for a Silicon Valley venture capital fund she founded, Day One Ventures. She has raised more than $70 million to date.

SEC filings show that Day One Ventures is backed by a small group of high-net-worth individuals, most likely from Russia.

Day One Ventures, SEC filing

Drokova had professional and expensive help setting up her fund, such as her New York lawyer from the firm of Willkie Farr. But it all seemed out of step for a carefree, almost childlike woman who said things like “Meditation is my Netflix.”

In 2018, Business Insider ran a remarkable article about Drokova’s VC fund headlined: This 28-year-old Silicon Valley investor builds businesses by helping entrepreneurs fall in love.

“Everyone is more productive when they fall in love,” Drokova explained. Really?

The article noted she sometimes recommends “sexual energy retreats,” or sets founders up on dates.

“It’s not necessarily matchmaking,” Drokova told the reporter, Zoe Bernard. “I just introduce them to my friends.”

Why anyone would entrust large sums of money to a person who says things like this is beyond me, but people have.

Twenty-five people invested more than $19 million in Day One Ventures Fund I. A total of 33 people have invested more than $52 million in her latest fund, Day One Ventures Fund II, according to a November 2020 filing.

One company receiving Day One Ventures money is a legal app called Do Not Pay. Its founder is Joshua Browder, the son of Bill Browder, one of Putin’s fiercest critics.

It’s one of the many absurd coincidences in Drokova’s life that render the word coincidence itself meaningless.


Drokova: “I never worked for Epstein”

Not long after this story ran, I called up Masha Drokova. To my surprise she answered.

Drokova told me she met Epstein once and agreed to do some work for him as a favor, without knowing about his sordid past. “I quickly find out I shouldn’t be connected with this person,” Drokova told me over the phone. “I didn’t do research in the beginning, which I very much regret.”

“I met him and he asked me, ‘I need connections with the media,'” Drokova told me. “I introduced him to some people. I dig deeper. Oh fuck, it’s a very bad story.”

She admitted she did send a pitch to Jeffrey Mervis, the writer for Science magazine. She also sent similar pitches to some of her friends. “Some of my friends told me: Do you know this person?” she said.

But Drokova was insistent that she was never paid by Epstein. There are bank statements that will show this, she told me. She added that she asked about hiring a lawyer to correct the record about the nature of her work for Epstein. She was told it would cost $50,000 and there was no guarantee of success so she gave up.

Drokova got off the phone before I could ask her a report that banking regulators in New York published about Epstein’s relationship with Deutsche Bank.

The report notes that the Deutsche Bank team monitoring Epstein’s accounts received an alert “about payments to a Russian model and Russian publicity agent.” (The bank’s monitoring team ignored the alert after a member of the team stated “[s]ince this type of activity is normal for this client it is not deemed suspicious.”)

If this wasn’t Drokova, then who was it? How many Russian publicity agents were working for Epstein?

It turns out the answer is more than one. In a follow-up conversation, Drokova tells me that there was yet another Russian publicity agent who was being paid by Epstein. But Drokova wouldn’t tell me the name of this Russian PR agent because she says it would ruin her life.

Facebook’s Russian (Gangster) Money

Vladimir Putin meets Alisher Usmanov in 2015. Source: Kremlin.ru

Much has been written about how Russia used Facebook to influence U.S. voters in the 2016 election. Few people realize that Facebook was built with the help of Russian money.

Alisher B. Usmanov, an Uzbek-born mining magnate and one of the world’s richest men, poured nearly $900 million into Facebook before it went public in 2012. For a time, he was one of the social media giant’s biggest investors.

CEO and founder Mark Zuckerberg said at the time that Facebook carried out “extensive due diligence” on this investment. That means the company would have had to have known that that its biggest outside investor was a man viewed in business, diplomatic, and intelligence circles as a gangster.

Such information wasn’t hard to come by. In 2007, two years before Usmanov invested in Facebook, Craig Murray, a controversial former UK ambassador to Uzbekistan, denounced the metals tycoon as a “vicious thug, criminal, racketeer, heroin trafficker and accused rapist.” Murray made these charges in a blog post on his website (see copy here), that was subsequently removed under legal threat from the UK firm Schillings. Similar allegations were made a few days later on the floor of the European Parliament.

Facebook’s crack due diligence team clearly didn’t see Usmanov as a risk. But Megafon, a Russian mobile phone company in which Usmanov had invested, did. Take a look at this disclosure in Megafon’s initial public offering in 2012:

Gafur Rakhimov was sanctioned by the U.S. Treasury in 2012. “Rakhimov is one of the leaders of Uzbek organized crime with a specialty in the organized production of drugs in the countries of Central Asia. He has operated major international drug syndicates involving the trafficking of heroin,” the Treasury Department stated.

Rakhimov, a man Usmanov has known for years, is a heroin kingpin. Sorry, an alleged heroin kingpin.

Usmanov’s ties to Rakhimov were no secret. The Observer of London reported in 1998 that Usmanov “admitted that he had known Rakhimov for 20 years, and had met him regularly in Tashkent and London, but denied that they have a business relationship and that Rakhimov was involved in drugs.” In 2007, Usmanov gave The Guardian another explanation of his Rakhimov ties. “I only knew him since he was a neighbor of my parents,” he said.

Alexander Litvinenko, a former Russian spy who defected and was famously poisoned with radioactive polonium, did some digging into Gafur Rakhimov. This is from a file made public during an official UK inquiry into Litvinenko’s death.

Komsomol was a Soviet Communist youth league. (When the Soviet union fell, former Komsomol bosses like Mikhail Khodorkovsky used their connections to acquire ex-Soviet assets.) The Solntsevo gang is Moscow’s most powerful organized crime group. (Usmanov has long denied any ties to organized crime groups.)

Litnvinenko goes on to note that Usmanov has connections with three former KGB officers, one of whom “saved” Usmanov from a “violent confrontation with Chechnian crime bosses.”

Testimony given in a German criminal case in 2007 identified Usmanov as a representative of the Solnestsevo Mafia.

Even so, Usmanov shrewdly assessed that, in the West, even a reputed gangster can buy respectability. “Putin’s Kremlin had accurately calculated that the way to gain acceptance in British society was through the country’s greatest love, its national sport,” Catherine Belton writes in her excellent book, Putin’s People. In 2007, Usmanov did just that by acquiring a large stake in London’s Arsenal football club.

If buying a football club was a ticket into British society, investing in a Silicon Valley unicorn like Facebook may have been a way for Usmanov to gain respectability in the United States.

Usmanov told Forbes that he got a call in 2009 from his associate, Yuri Milner, who asked him whether he had ever heard of Facebook.

“No,” Usmanov replied. “[But] my nephews know it.”

Milner ran Digital Sky Technologies (DST) Global, an investment firm backed with Usmanov’s money.

Born in Moscow, Milner attended the Wharton School of Business in the 1990s. After a stint at the World Bank, he returned to Russia to work at Bank Menatep, which was founded by former Komsomol boss Mikhail Khodorkovsky. Milner ran Menatep’s investment banking division, Alliance-Menatep, and rose to the position of deputy chairman.

Menatep rang alarm bells at the CIA in the 1990s because the bank was said to be “one of the main conduits for the transfer of Communist Party wealth abroad,” Belton wrote in Putin’s People. A leaked CIA report obtained by The Washington Times in 1994 stated that senior Moscow officials believed that Menatep was “controlled by one of the most powerful crime clans in Moscow.”

The bank collapsed in 1998 and Milner began investing in Russian Internet companies. Milner founded Digital Sky Technologies in 2005.

Usmanov acquired a large stake in DST in 2008 and helped finance investments in major Internet companies in Russia, including VKontakte, Russia’s version of Facebook. “Usmanov is interpreted as a person who, on the Kremlin’s instructions, buys up various Russian [Internet] properties,” a Russian executive told The Atlantic’s Julia Ioffe.

In 2008, Milner came calling in Silicon Valley looking for a place to invest Usmanov’s money. Goldman Sachs introduced him to Mark Zuckerberg and a deal was struck.

“We were not asking for board seats and even assigned our voting rights to Mark, which sent a strong message that we are not seeking any influence over Facebook’s operations,” Milner told Forbes. “We started to invest in Facebook in 2009 and continued through 2011.”

Milner and Zuckerberg in 2009.

It was an offer than would have been hard for Zuckerberg to refuse. Milner’s offer valued Facebook at $10 billion, above what other investors were willing to pay at the time. And Milner demanded little in return, something he has pointed to when reporters started to question Russia’s investment in Facebook. “If this had all been an influence operation,” Milner wrote later, “we would surely have sought some control over the companies.”

Milner sold off all of his firm’s Facebook holdings after the IPO. Usmanov also invested his own money in Facebook, and it remains unclear whether he has completely closed his position. (A 2014 Bloomberg article noted Usmanov made a “gradual reduction” in his Facebook holdings.)

Perhaps Usmanov’s Facebook investment was just a shrewd, well-researched bet. In 2017, however, new information surfaced that suggested there were other factors at play.

The Paradise Papers, a secret trove of documents leaked from an offshore law firm, revealed that Kremlin cash was financing Usmanov’s investments.

The money came from Gazprom Investholding, a subsidiary of the Russian gas giant, Gazprom, which has been sanctioned by the U.S. Treasury Department. Usmanov was CEO of Gazprom Investholding from 2000 until 2014.

In his censored blog post, Craig Murray, the former UK ambassador to Uzbekistan, wrote that Gazprom Investholding was a main conduit to export Russian corruption:

Alisher Usmanov had risen to chair of Gazprom Investholdings because of his close personal friendship with Putin. He had accessed Putin through Putin’s long time secretary and now chef de cabinet, Piotr Jastrzebski. Usmanov and Jastrzebski were roommates at college. Gazprom Investholdings is the group that handles Gazprom’s interests outside Russia. Usmanov’s role is, in effect, to handle Gazprom’s bribery and sleaze on the international arena, and the use of gas supply cuts as a threat to uncooperative satellite states.

Murray claimed in another 2007 blog post that “It was Usmanov who engineered the 2005 diplomatic reversal in which the United States was kicked out of its airbase in Uzbekistan and Gazprom took over the country’s natural gas assets. Usmanov, as chairman of Gazprom Investholdings paid a bribe of $88 million to Gulnara Karimova [the daughter of Uzbekistan’s president] to secure this.”

Russian opposition leader Alexei Navalny also has accused Usmanov of bribing Dmitry Medvedev, a former Russian president and prime minister with an $83 million mansion. (Usmanov succesfully sued Navalny for libel.) Navalny’s representatives recently called for the West to sanction Usmanov.

Remember that $880 million Usmanov said he invested in Facebook?

Well, in 2009, Gazprom Investholdings loaned $920 million to Kanton Services Ltd., Usmanov’s British Virgin Islands-registered firm. A large chunk of that money arrived three months before Facebook announced its deal with Milner. (Usmanov has denied using state funds to invest in Facebook.)

Two years later, Kanton took a majority stake in DST USA II. When Facebook went public in 2012, DST USA II sold 25 million shares of Facebook for more than one billion dollars.

Did Usmanov’s influence over Facebook end there?

We can only hope. But consider what happened to VKontakte, Russia’s version of Facebook. In 2014, Usmanov forced the founder of VKontakte, Pavel Durov, to resign. Durov said he believed he was forced out because he refused to cooperate with the FSB, the successor agency to the KGB. VKontakte is now a tool of Russian government influence operations, according to the Senate Intelligence Committee.

Interestingly, Volume 5 the Senate Intelligence Committee’s report on Russia noted that VKontakte reached out to the Trump campaign in 2016, asking whether Trump wanted to put a campaign page on the site. The ensuing discussion is heavily redacted, although Usmanov’s name lights up a few footnotes.

Facebook is many times more powerful than VKontakte. Alisher Usmanov should never have been allowed anywhere near it.

Jeffrey Epstein, Leon Black, and Russia

Leon Black, wearing sunglasses, watches the 2016 U.S. Open tennis tournament with Jared Kushner

Leon Black, co-founder of the private equity giant Apollo Global Management, has agreed to step down from his duties as CEO after an independent review found he had paid $148 million to the convicted pedophile Jeffrey Epstein over a period of four years.

The New York Times notes that Black’s millions bankrolled Epstein after he pleaded guilty in 2008 to a prostitution charge involving a teenage girl. Black’s payments to Epstein were made between 2013 and 2017.

Why would a sophisticated man like Leon Black, a billionaire with a reputation to protect, associate with and pay millions to Epstein?

The independent report commissioned by Apollo from the law firm, Dechert, provides an answer:

Black viewed Epstein as a confirmed bachelor with eclectic tastes, who often employed attractive women. However, Black did not believe that any of the women in Epstein’s employ were underage. Black has no recollection of ever seeing Epstein with an underage woman at any time.

“A confirmed bachelor with eclectic tastes.” OK, sure. And Hannibal Lecter is a erudite psychiatrist with unusual appetites.

The Dechert report notes that Black trusted Epstein and confided in him on “personal matters.” Epstein had intimate knowledge of Black’s personal finances. Black regularly visited Epstein to discuss business or meet “well known businessmen, political figures, diplomats, scientists and celebrities” who gathered at Epstein’s enormous New York townhouse.

For the conspiracy-minded, the connections between the two men are interesting in light of reports that Epstein collected dirt on powerful men and had cameras in his house monitoring private moments.

And let’s not forget Epstein’s ties to intelligence services. Alex Acosta, Trump’s former labor secretary who led the prosecution of Epstein in Florida said he had been told “Epstein ‘belonged to intelligence’ and to leave it alone,” according to Vicky Ward’s report in The Daily Beast.

No one has yet noted something I pointed out more than a year ago, namely, Black’s numerous ties to Russia, Donald Trump, and Russian money.

Both Black and Trump were friends of Epstein’s at different times. Black also socialized with Trump and Jared Kushner, as the photo at the top shows. Apollo loaned $187 million to Jared Kushner’s family real estate firm.

Volume 5 of the Senate Intelligence Committee’s Russia report establishes that Leon Black accompanied Trump during his 1996 visit to Moscow to pursue real estate deals.

Trump’s trip to Moscow was organized by investor Bennett LeBow, who was trying to get Trump to develop a site he owned in Moscow. Not only did he serve up a site for Trump, LeBow lined up financing from Apollo Group, a then six-year-old private equity firm.

Black, drink in hand, and Trump in Moscow in 1996.

Black told the Senate Intelligence Committee that he did not recall any compromising behavior during the trip. He also did not recall the event in the photograph above.

Black did recall going to a concert with Trump, followed by a “discotheque.” Black later added that he and Trump “might have been in a strip club together.”

Moscow strip clubs were well-known as a potential source of kompromat or blackmail.

For years in Russia there were a number of Russian government officials or others who were exposed in these strip clubs doing not very nice things that their wives, if they have wives, probably didn’t know about. I think most of us appreciated that there was that risk in these types of clubs.

Peter O’Brien, CFO of the Russian-government controlled oil firm Rosneft, as quoted in Vol. 5 of the Senate intelligence committee’ Russia report.

It’s worth noting that the Moscow trip was not part of Dechert’s investigation into Black’s dealings with Epstein. The report says it reviewed documents dating back to 1998.

In 2011, Black was back in Russia, this time for a one-on-one meeting with Russian President Vladimir Putin.

Black committed to help Russia set up a $10 billion sovereign wealth fund, the Russian Direct Investment Fund (RDIF).

It was a privilege to help the fund, Black told Reuters, and described Russia’s “strong political leadership” as an advantage for investors at a time of global economic and financial difficulty. Black was named to the advisory board of the RDIF in 2011.

Four years later, after Russia invaded Crimea, the U.S. Treasury imposed sanctions on the RDIF. `

Kirill Dmitriev, CEO of the RDIF, makes numerous appearances in the Mueller Report. After Trump’s election, it was Dmitriev who wrote, “Putin has won.” It was also Dmitirev who met in the Seychelles island with Erik Prince after Trump’s election.

Black also knows many Russian oligarchs. He met with the notorious aluminum tycoon Oleg Deripaska in Russia and the United States prior to Deripaska being sanctioned by the United States in 2018. Black knows Allen Vine, whom Black described as “consigliere” to the Russian oligarch Suleiman Kerimov, who was sanctioned by the United States in 2018.

And he does business with Vladimir Potanin, one of the world’s richest men. Unlike Deripaska and Kerimov, Potanin has not been sanctioned the U.S. government.

Potanin is a large investor in U.S. companies, including Apollo Global. In a 2014 court filing in her divorce, Potanin’s wife, Natalia, listed Apollo Global Management LLC as one of the companies in which her husband has had a financial interest.

Why did Black have such close connections to Russia? Did Epstein, who had an intimate knowledge of Black’s personal affairs, know the answer?