Tagged: Oleg Deripaska

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, 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?

Exclusive: Trump/Russia on Manhattan’s E. 64th Street

There’s a single block on Manhattan’s Upper East Side that perfectly embodies the conflicted state of relations between the Trump family and Russia.

The block is East 64th Street in Manhattan between Madison and Fifth avenues, one of the poshest in the city.

Residents and owners have over the years included Trump’s children, the family of Jared Kushner, a Russian oligarch, a Soviet-born billionaire and major GOP donor, and the family of another Russian oligarch friendly with Ivanka.

The story of East 64th Street isn’t a story of collusion over a cup of borrowed sugar, but rather a story about the global elite — people from all over the world who are connected by networks of money, power and influence that concentrate themselves in cities like New York and London.

Just across the street from Central Park, you’ll find the limestone mansion that Trump’s children once called home. Don Junior, Ivanka and Eric Trump moved into 10 E. 64th Street after their mother, Ivana, was granted sole custody in her tumultuous 1992 divorce. Ivana still lives in the building.

Across the street, at 11 E. 64 Street, sits a mansion owned by Oleg Deripaska, the Russian oligarch and aluminum tycoon who has been sanctioned by the U.S. government.

Deripaska’s stake in the building was revealed in a case brought in New York by Alexander Gliklad, who was seeking billions in dollars from Deripaska:

Gliklad v Deripaska

U.S. government sanctions prevent Deripaska from selling the pied-a-terre he purchased a decade ago for $42.5 million from art dealer Alec Wildenstein.

Complicating matters, Deripaska’s house was occupied last year by the ex-wife and children of Roman Abramovich, another Russian oligarch connected to Putin who is perhaps best known for his ownership of London’s Chelsea Football Club.

Dasha Zhukova, Abramovich’s ex-wife, listed her address as 11 East 64th Street on this New York City property record a year ago:

Perhaps not coincidentally, Dasha Zhukova happens to be good friends with Ivanka Trump. The two women have known each other for more than a decade and were photographed together at the U.S. Open tennis tournament during the 2016 presidential election. Abramovich and Kusher have met three to four times in social settings, Bloomberg reported.

Another owner on East 64th Street is Ukrainian-born Len Blavatnick, one of the richest men in the world. Blavatnik spent $90 million to buy a Gilded Age limestone townhouse at 19 E. 64th St.

Blavatnik is a business partner of his 64th Street neighbor, Oleg Deripaska. The two have stakes in Rusal, one of the world’s biggest aluminum producers, although Deripaska was recently forced by the U.S. government to give up control of the company.

One of Rusal’s major shareholders, SUAL Partners Limited, was founded by Blavatnik and the sanctioned Russian oligarch Viktor Vekselberg. Blavatnik resigned from Rusal’s board two days after Donald Trump was elected president.

Blavatnik, who is now a citizen of both Britain and America, donated $1 million donation to Trump’s inauguration

During the 2016 election, Blavatnik contributed another $6.35 million to leading Republican candidates and incumbent senators.

The top recipient was Senate Majority Leader Mitch McConnell, who raked in $2.5 million for his GOP Senate Leadership Fund under the names of two of Blavatnik’s holding companies, Access Industries and AI Altep Holdings.

Marco Rubio’s Conservative Solutions PAC and his Florida First Project received $1.5 million through Blavatnik’s two holding companies. Lindsey Graham of South Carolina received $800,000 from Blavatnik’s company. Ohio Governor John Kasich took $250,000 from Blavatnik and Arizona Senator John McCain another $200,000.

Blavatnik had tried to buy 19 E. 64th St. for years. He even sued the previous owners, the Wildenstein family, when an earlier deal fell through. His lawsuit describes the building in almost loving terms:

Access v 1964 Realty LLC

The Kushners long had a presence on the block as well. A family company purchased 26 E. 64th Street in 1989 and sold it 2007, the same year that Jared met Ivanka.

Finally, the last person I could find connected to Trump on this fascinating block was Verina Hixon, who used to rent an apartment at 14 E. 64th Street. She was kicked out for nonpayment of maintenance fees.

Hixon’s story is just as wild as any of her better-known neighbors. The Daily Beast ran a story about her titled “The Party Girl Who Brought Trump to His Knees.”

In 1982, the Austrian-born, Swiss-educated Hixon bought four apartments in Trump Tower for $10 million. The apartments were widely believed to belong to Hixon’s “friend,” John Cody, head of a local Teamsters union that was closely linked to the Cosa Nostra. Cody went to jail, Hixon went bankrupt and lost the Trump Tower apartments.

She found a new home on East 64th Street where she befriended Ivana Trump. Ivana visited Hixon’s $20 million chalet in St. Moritz, Switzerland. Ivana brought along her dachshunds who relieved themselves all over Hixon’s home and that was the end of their friendship.

Walter Soriano: The Security Consultant for Russian Oligarchs, the CIA … and Diego Maradona?

Walter Soriano

Updated with additional details on USG, specifics of Soriano’s work for Deripaska and Abramovich, and links to the CIA.

Natasha Bertrand at Politico was out with a big story earlier this week about Walter Soriano, a mysterious Orthodox Jew who runs a security firm in London.

Bertrand reported that the Senate Intelligence Committee issued a subpoena to Soriano seeking his communications with Paul Manafort and Michael Flynn.

The subpoena, sent April 5, also seeks records of Soriano’s contacts with three Israeli private intelligence firms as well as any communications he may have had with Orbis Business Intelligence, a firm co-founded by the former British spy Christopher Steele.

The 51-year-old Soriano is unknown in the United States, but he’s a figure of intense speculation in Israel where his name surfaced more than a year ago in connection with a bribery investigation of Israeli Prime Minister Benjamin Netanyahu.

Israeli Kan TV news reported that Soriano was hired to dig up dirt on the investigators investigating Netanyahu. This work was given to subcontractors, some of whom worked for Israeli military intelligence:

This prompted Netanyahu to write a Facebook post insisting that he had not spoken to Soriano in eight years.

What intrigued me about Soriano was that Bertrand’s story linked him to Oleg Deripaska, whose connections to Paul Manafort were at the heart of Robert Mueller’s investigation into Russian interference in the 2016 election.

What hasn’t been reported in the United States is that Deripaska was a client of Soriano’s consultancy, USG Security Limited, according to a court filing by Israeli investigative journalist Raviv Drucker. (Soriano is suing Drucker in Israel for libel.) Drucker wrote that Soriano worked for Deripaska during his long-running legal feud in London with Michael Cherney, who has long faced allegations—which he has denied—that he and his brother, Lev, are connected to Russian organized crime.

Another oligarch, Roman Abramovich, also was a USG client, according to Drucker. USG helped Abramovich in his legal dispute in London with Boris Berezovsky, Drucker’s court filing states.

Drucker claims that USG’s subcontractors carried out “sophisticated surveillance, information gathering and data acquisition by various technological means, such as eavesdropping, hacking, and so on.”

On its website, USG says that its consultants are “all former members of the world’s elite intelligence units, military forces and security organizations, with vast knowledge and practical experience.”

This sounds very much like the work of the three private Israeli security firms who are mentioned in the subpoena: Psy Group, Wikistrat, and Black Cube. Founded by former Israeli military intelligence officers, Black Cube has used operatives with false identities to investigate journalists, victims of Harvey Weinstein, and former Obama staffer Ben Rhodes. Published reports claim Trump aides hired Black Cube for a “dirty ops” campaign to discredit Rhodes and other supporters of the Iran nuclear deal. (Black Cube denied working for Trump.)

Another Soriano client is Dmitry Rybolovlev, another Russian billionaire who purchased a Florida mansion from Trump in 2008 for $95 million. Trump had purchased the mansion for $41 million four years earlier.

Rybolovlev hired Soriano to spy on art dealer Yves Bouvier, according to Drucker and an investigation by Le Point, a French newsweekly. Le Point also obtained correspondence from Soriano to Rybolovlev suggesting he was also hired to deal with problems at the football club the oligarch owns, AS Monaco. (See “L’étrange M. Soriano,” Le Point, February 7 2019.)

The football connection is an interesting thread in this strange world because someone named Walter Soriano emerged in 2010 — the same year that USG Security Limited went into business — as the UK representative of former Argentinian superstar Diego Maradona.

Diego Maradona

“I think Diego would be very open to the idea of coming to England and managing Aston Villa,” a reporter for the Sunday Mercury quoted “Walter Soriano” as saying.

The real Walter Soriano was at one time a partner in a now defunct UK firm called Football Universe Limited. And like Maradona, Soriano is a native Argentinian, the tireless blogger Richard Silverstein reported. (An Israeli judge threw out Soriano’s lawsuit against Silverstein.)

An earlier version of USG’s website names Soriano as director of operations and Simon Bird simply as “UK operations.” The equally mysterious Mr. Bird, who is 76 and not to be confused with an English actor of the same name, gave an address of Ware House in Lyme Regis, a manor immortalized in the film The French Lieutenant’s Woman. Bird is described as a historian and a longtime partner of Winston Churchill’s granddaugher-in-law.

Both Bird and Soriano were directors of a now-defunct UK firm, Universe Security Group, whose board included Nahum Admoni, a former head of Mossad; Uri Sagi, former head of IDF intelligence; and Albert Raes, formerly Belgium’s top spy. (Issac Molho, a trusted advisor to Netanyahu caught up in the prime minister’s scandals, received about $200,000 in “finder’s fees” from the company.)

Update: A reader who asked not to be named pointed out that Molho did not just receive finder’s fees. He owned 10 percent of the company, according to a letter of intent he signed in 2003. Soriano was the majority shareholder.

In 2003, the Panama Maritime Authority, which manages the world’s largest ship register, selected Universe Security Group as one of three “recognized security organizations” to approve ship security plans. Soriano told Lloyd’s List that company operatives come mainly from the UK, Belgium, Israel, Central and South America, North Africa and the US.

A sharp-eyed Twitter user, @brazencapital, pointed out something I had read many years ago and since forgotten. One of Universe Security Group’s contacts was Kyle “Dusty” Foggo, formerly the No. 3 at the CIA who went to prison in the scandal surrounding Congressman Randy “Duke” Cunningham. (Foggo was one of the subjects in my first book, Feasting on the Spoils.)

Buried in Foggo’s sentencing memorandum from 2008 is a statement from a CIA contractor named Joel Combs:

Sentencing memo, US v Foggo

Universe Security’s reputation suffered a fatal blow in 2009 when one of its customers was robbed, according to an administrator’s report. (The client was not identified in the report but Israeli media reports named Graff diamonds in London.) Admoni, Sagi and Raes all resigned from the company en masse. The company went into liquidation; its assets were acquired by Soriano and Bird’s newly-formed USG Security.

There’s more. Soriano’s USG Security also surfaced in a dispute between wealthy London property developers the Candy brothers and British businessman Mark Holyoake.

“I have reliable information that USG Security has been hired by [Ed Candy] for (sic) investigate and monitor my family, my colleagues and myself,” Holyoake told a London court. He described USG as a “military-based ‘security consultancy and security services provider.'” (See Holyoake v Candy, Queen’s Bench Division)

Holyoake declined to reveal who passed him this information saying it related to security arrangements for his family and “could have consequences for the safety of my source if revealed.” Candy’s representative denied hiring USG.

During trial, Holyoake’s wife testified that among the men in the Candys’ “extended circle who have died mysteriously” is Boris Berezovsky, the exiled Russian oligarch in London who became a fierce critic of Vladimir Putin.

Berezovsky lost his high stakes London court battle with Roman Abramovich in 2012 over control over a major Russian oil company. Seven months later, Berezovsky was found dead in his shower with a scarf around his neck. A coroner could not reach a verdict on the death.

The mysterious Mr. Soriano is much than he seems. Connected to the prime minister, deeply tied to the Israeli security establishment, he adds to the intrigue surrounding Trump and Russia.

Who is Victor Boyarkin?

The elusive Mr. Boyarkin

Victor Boyarkin, a close aide to the sanctioned oligarch Oleg Deripaska, is getting some unwanted attention these days.

“How did you find me here?” Boyarkin asked a TIME magazine reporter who managed to track him down at a conference in Greece.

Boyarkin, reportedly a former colonel in the GRU, is part of the constellation of intelligence officers employed by Deripaska that help him maintain his proximity to the Kremlin’s inner circle.

TIME had questions for Boyarkin about Paul Manafort, Trump’s former campaign chairman. References to Boyarkin (“Victor” and “our friend V”) were sprinkled in emails to Manafort during the 2016 presidential campaign.

“Tell V boss that if he needs private briefings we can accommodate,” Manafort wrote to his associate, Konstantin Kliminik.

Boyarkin told TIME he was talking to Manafort during the presidential campaign to collect on a debt. “He owed us a lot of money,” Boyarkin said. “And he was offering ways to pay it back.”

The fact that Trump’s campaign chairman was in debt to someone like Deripaska and being hounded for money by someone like Boyarkin shows, yet again, how deeply unqualified Trump was to be president. Trump’s best defense is that he didn’t know about any of this. The much darker, worst-case scenario is that he chose Manafort precisely because he had these sorts of connections to Russia.

Boyarkin headed up “special operations” for Deripaska, according to the Paris-based newsletter Intelligence Online. This work took him to the African country of Guinea where Rusal, Deripaska’s Russian giant aluminum concern, had a plant that was shuttered by a strike. But lately, Boyarkin’s “special projects” have involved the Trump administration.

According to Intelligence Online, Boyarkin recently returned to Deripaska’s inner circle to deal with the sanctions imposed in April 2018 by the Treasury Department on Deripaska and his companies. (Exactly what role he played isn’t clear.) Lord Barker of Battle, the chairman of Deripaska’s London-listed holding company, En+, paid the DC lobbying firm $108,500-a-month, Mercury Group, to lobby for sanctions relief.

It was money well spent. Ever since those tough sanctions were imposed on Deripaska, the Trump administration has been looking for ways to soften the blow, as I wrote for The New York Times. The Treasury recently said it intends to lift the sanctions on Deripaska’s companies in what seems like a sweetheart deal.

Boyarkin was himself sanctioned by the U.S. Treasury earlier this month “for having acted or purported to act for or on behalf of, directly or indirectly, Oleg Deripaska.” Notably, The Senate intelligence committee said the sanctions on Boyarkin “will help counter some of Russia’s malign influence efforts, and is a welcome step.” It seems the sanctions on Boyarkin appear to be part of the deal to lift the sanctions on his boss.

According to the U.S. Treasury, Boyarkin and Deripaska were both involved in providing Russian financial support to a Montenegrin political party ahead of Montenegro’s 2016 elections. A decade earlier, Manafort worked for Deripaska in Montenegro to manage a referendum campaign that ended with the country declaring its independence.

Boyarkin is a former colonel in the GRU, according to the British newspaper, The Telegraph. (Other sources describe him as a lieutenant colonel.) Boyarkin’s name shows up in the U.S. diplomatic list from the 1990s when he was posted to Washington as a Russian naval attache, often a cover for intelligence officers.

Have we learned all there is to know about Deripaska’s ties to the Trump administration?

I doubt it.