View source for FIMACO

{{Short description|English company}}
'''Financial Management Company''' Ltd ('''FIMACO''' or '''FIMAKO''') was a [[Jersey]] company founded in 1990.<ref name=AuditResultsLetterFIMACO>{{cite news |url=https://www.kommersant.ru/doc/223023 |title=Результаты аудиторской проверки Центрального Банка России |trans-title=Results of the audit of the Central Bank of Russia |language=ru |work=[[Kommersant|«Коммерсантъ»]] |date=3 August 1999 |access-date=16 October 2023 |archive-date=16 October 2023 |archive-url=https://archive.today/20231016192141/https://www.kommersant.ru/doc/223023}} [https://www.compromat.ru/page_10381.htm Alternate archive]</ref><ref>{{cite news |url=https://flb.ru/files_full.phtml?id=676 |title=FIMACO Audited |work=[[:ru:Агентство федеральных расследований|Агентство федеральных расследований "FreeLance Bureau" (FLB)]] (flb.ru) |date=29 December 1999 |access-date=24 October 2023 |archive-date=16 November 2002 |archive-url=https://web.archive.org/web/20021116124540/https://flb.ru/files_full.phtml?id=676}}</ref>
The company has gained fame as a result of a series of scandals related to the [[IMF]] loan funds, operations on the Russian debt market and the issue of obtaining commission income from operations with the state currency reserve.<ref>{{cite news |url=http://www.flb.ru/files_full.phtml?id=701 |title=О функционировании росзагранбанков в 1990-1999 годы: Конфиденциально. Аналитический отчет |trans-title=On the Functioning of Russian Foreign Banks in 1990-1999: Confidential. Analytical report |language=ru |work=[[:ru:Агентство федеральных расследований|Агентство федеральных расследований "FreeLance Bureau" (FLB)]] (flb.ru)  |date=29 December 1999 |access-date=24 October 2023 |archive-date=16 November 2002 |archive-url=https://web.archive.org/web/20021116122957/http://www.flb.ru/files_full.phtml?id=701}}</ref><ref>{{cite news |url=http://www.flb.ru/files_full.phtml?id=702 |title=Аналитическая записка: О некоторых факторах, способствующих коррупционным проявлениям в деятельности Центрального Банка России |trans-title=Policy Brief: On Some Factors Contributing to Corruption in the Activities of the Central Bank of Russia |language=ru |work=[[:ru:Агентство федеральных расследований|Агентство федеральных расследований "FreeLance Bureau" (FLB)]] (flb.ru)  |date=29 December 1999 |access-date=24 October 2023 |archive-date=8 March 2002 |archive-url=https://web.archive.org/web/20020308080053/http://www.flb.ru/files_full.phtml?id=702}}</ref> The company has also been the subject of analysis as part of investigations into the fate of party financial resources of the Communist Party.
==Introduction==
According to [[Fritz W. Ermarth]], the "Saga of the KGB Money" began before the [[Dissolution of the Soviet Union|breakup of the Soviet Union]].<ref name=ErmarthP1>{{cite news |last=Ermarth |first=Fritz W. |author-link=Fritz Ermarth |url=https://nationalinterest.org/article/seeing-russia-plain-839 |title=Seeing Russia Plain. Mini Teaser: Why U.S. intelligence has not performed better with respect to the crime and corruption that have helped frustrate Russia's transition to a stable, free-market democracy. |work=[[The National Interest]] |page=1 |date=1 March 1999 |access-date=23 October 2021}}</ref><ref name=ErmarthP2>{{cite news |last=Ermarth |first=Fritz W. |author-link=Fritz Ermarth |url=https://nationalinterest.org/article/seeing-russia-plain-839?page=0%2C1 |title=Seeing Russia Plain. Mini Teaser: Why U.S. intelligence has not performed better with respect to the crime and corruption that have helped frustrate Russia's transition to a stable, free-market democracy. |work=[[The National Interest]] |page=2 |date=1 March 1999 |access-date=23 October 2021}}</ref><ref name=ErmarthP3>{{cite news |last=Ermarth |first=Fritz W. |author-link=Fritz Ermarth |url=https://nationalinterest.org/article/seeing-russia-plain-839?page=0%2C2 |title=Seeing Russia Plain. Mini Teaser: Why U.S. intelligence has not performed better with respect to the crime and corruption that have helped frustrate Russia's transition to a stable, free-market democracy. |work=[[The National Interest]] |page=3 |date=1 March 1999 |access-date=23 October 2021}}</ref><ref name=ErmarthP4>{{cite news |last=Ermarth |first=Fritz W. |author-link=Fritz Ermarth |url=https://nationalinterest.org/article/seeing-russia-plain-839?page=0%2C3 |title=Seeing Russia Plain. Mini Teaser: Why U.S. intelligence has not performed better with respect to the crime and corruption that have helped frustrate Russia's transition to a stable, free-market democracy. |work=[[The National Interest]] |page=4 |date=1 March 1999 |access-date=23 October 2021}}</ref>{{efn|In the mid-1950s, western intelligence agencies began collecting information about deposits outside the [[Soviet Union]] by persons with Soviet passports that involved secret numbered bank accounts in Switzerland and other countries.<ref name=MN12082003>{{cite news |last=Сотник |first=Андрей (Sotnik, Andrey) |url=http://www.mn.ru/issue.php?2003-31-26 |title=Саддаму было у кого учиться: Деньги, пропавшие во время российского дефолта, возможно, найдут на счетах тех же банков, которые обслуживали Саддама Хусейна |trans-title=Saddam had someone to learn from: Money missing during the Russian default may be found in the accounts of the same banks that served Saddam Hussein |language=ru |work=[[Moskovskiye Novosti|Московские новости]] 31 26 (mn.ru) |date=1 April 2003 |access-date=25 March 2022 |archive-date=2 September 2003 |archive-url=https://web.archive.org/web/20030902050002/http://www.mn.ru/issue.php?2003-31-26}} [http://www.compromat.ru/page_13469.htm Alternate archive] and [https://web.archive.org/web/20100521143711/http://www.compromat.ru/page_13469.htm another alternate archive]</ref> From French data in 1991, the [[CPSU|Communist Party of the Soviet Union (CPSU)]] owned 84 companies outside the Soviet Union, had more than 7,000 bank accounts, and had investments and deposits of more than $25 billion.<ref name=MN12082003/>{{sfn|Belton|2020|pages=76, 515 see notes 83 & 84}}<ref>{{cite web |url=http://magazines.russ.ru/continent/2010/146/ |title=Содержание номера |trans-title=Contents of the issue |language=ru |work=[[:ru:Журнал «Континент»|«Континент» Литературный, публицистический и религиозный журнал]] (continent.russ.ru) №146 2010, № 4 октябрь — декабрь |date=4 May 2011 |access-date=25 March 2022 |archive-date=3 November 2011 |archive-url=https://web.archive.org/web/20111103155228/http://magazines.russ.ru/continent/2010/146/}}</ref><ref>{{cite web |last=Илларионов |first=Андрей (Illarionov, Andrey) |author-link=Andrey Illarionov |url=https://magazines.russ.ru/continent/2010/146/il7.html |title="Трудный путь к свободе" Часть вторая |trans-title=Hard road to freedom: Part two |language=ru |work=[[:ru:Журнал «Континент»|«Континент» Литературный, публицистический и религиозный журнал]] (continent.russ.ru) №146 2010, № 4 октябрь — декабрь |date=4 May 2011 |access-date=25 March 2022 |archive-date=10 November 2012 |archive-url=https://web.archive.org/web/20121110070748/https://magazines.russ.ru/continent/2010/146/il7.html}}</ref><ref>{{cite web |last=Илларионов |first=Андрей (Illarionov, Andrey) |author-link=Andrey Illarionov |url=https://vtoraya-literatura.com/pdf/kontinent_146_2010__ocr.pdf |title="Трудный путь к свободе" Часть вторая |trans-title=Hard road to freedom: Part two |language=ru |work=[[:ru:Журнал «Континент»|«Континент» Литературный, публицистический и религиозный журнал]] (continent.russ.ru) №146 2010, № 4 октябрь — декабрь |pages=13–17 |date=4 May 2011 |access-date=25 March 2022 |archive-date=25 March 2022 |archive-url=https://web.archive.org/web/20220325233002/https://vtoraya-literatura.com/pdf/kontinent_146_2010__ocr.pdf}}</ref><ref>{{cite web |last=Илларионов |first=Андрей (Illarionov, Andrey) |author-link=Andrey Illarionov |url=https://vtoraya-literatura.com/pdf/kontinent_146_2010__ocr.pdf |title="Трудный путь к свободе" Часть вторая |trans-title=Hard road to freedom: Part two |language=ru |work=[[:ru:Журнал «Континент»|«Континент» Литературный, публицистический и религиозный журнал]] (continent.russ.ru) №146 2010, № 4 октябрь — декабрь |pages=150–153 |date=4 May 2011 |access-date=25 March 2022 |archive-date=25 March 2022 |archive-url=https://web.archive.org/web/20220325233002/https://vtoraya-literatura.com/pdf/kontinent_146_2010__ocr.pdf}}</ref>}}{{efn|With the collapse of international oil prices beginning on 13 September 1985 when Saudi Arabia's Minister of Petroleum [[Sheikh Yamani]] announced a new oil policy and that Saudi Arabia would increase its production and which, over the next six months, oil production in Saudi Arabia rose tremendously, very large outflows of capital from the Soviet Union occurred from 1985 to 1991 to financially support Soviet friendly firms and countries because, previous to the Saudi Arabia's increase in oil production, the Soviet Union relied upon its oil sales to support Soviet friendly firms and countries which needed very large funds.<ref name=MN12082003/><ref>{{cite web |last=Илларионов |first=Андрей (Illarionov, Andrey) |author-link=Andrey Illarionov |url=https://aillarionov.livejournal.com/388133.html?noscroll |archive-url=https://archive.today/20220326003625/https://aillarionov.livejournal.com/388133.html?noscroll |url-status=dead |archive-date=2022-03-26 |title=Падение нефтяных цен и академических репутаций: Краткая биография одной дезинформации (page 1) |trans-title=Falling oil prices and academic reputations: Brief biography of one disinformation (page 1) |language=ru |date=12 February 2012 |access-date=25 March 2022}}</ref><ref>{{cite web |last=Илларионов |first=Андрей (Illarionov, Andrey) |author-link=Andrey Illarionov |url=https://aillarionov.livejournal.com/388133.html?page=2 |archive-url=https://archive.today/20220326012630/https://aillarionov.livejournal.com/388133.html?page=2 |url-status=dead |archive-date=2022-03-26 |title=Падение нефтяных цен и академических репутаций: Краткая биография одной дезинформации (page 2) |trans-title=Falling oil prices and academic reputations: Brief biography of one disinformation (page 2) |language=ru |date=12 February 2012 |access-date=25 March 2022}}</ref>}}{{efn|A typical Soviet transfer of funds occurred using bankruptcy. Through bankruptcies, funds would be transferred for black cash operations which were susceptible to fraud and personal enrichment. For example, in April 1989, after one transfer of $100 million to Technopromimport (TPI) ({{langx|ru|Технопромимпорт (ТПИ)}}), which was a Soviet foreign economic association under the [[Ministry of Foreign Economic Relations (Soviet Union)|USSR Ministry of Foreign Trade]], through ''Interplastica'', which is a firm that employed a friend of the Soviet Union [[Behgjet Pacolli]], financed by a loan from Banco del Gottardo{{efn|According to Felipe Turover Chudionov, Banco del Gottardo, which had been the overseas branch of [[Banco Ambrosiano]], was chosen to run Russian black cash schemes and to maintain commodities and barter schemes while VEB was closed because "We needed a very small bank with a very dirty reputation."{{sfn|Belton|2020|pages=118-9}}}} in [[Lugano]], [[Switzerland]], using guarantees from [[Vnesheconombank (USSR)|Vnesheconombank]], ''Interplastica'' declared bankruptcy after Paccoli transferred 25% of the loan to Technopromimport leaving the remaining funds of the loan to "disappear".<ref name=MN12082003/>}} Ermarth stated that top-level [[Communist Party of the Soviet Union]] (CPSU) officials gave instructions: "Using semi-private cooperatives, the [[KGB]] sold cheaply acquired Soviet commodities abroad at world prices, putting the proceeds into disguised foreign accounts and front companies" beginning in the mid-1980s.<ref name=ErmarthP2/> For example, [[Paul Klebnikov]] explained that [[Marc Rich]] was the mentor to the 1990s looters of Russia.{{sfn|Klebnikov|2000}}<ref name=NYP20010215>{{cite news |last=Dreher |first=Rod |url=https://nypost.com/2001/02/15/how-marc-helped-plunder-russia/ |title=How Marc Helped Plunder Russia |work=[[New York Post]] |date=15 February 2001 |access-date=23 October 2021}}</ref> Before the 1990s to trade between the West and the Soviet Union, Rich established a trading house in Switzerland for each commodity to be traded: oil, aluminum, zinc, chromium, steel, etc.{{sfn|Klebnikov|2000}}<ref name=NYP20010215/> Each trading house had a monopoly on the trade for its commodity between the Soviet Union and the West and would purchase the commodity from the Soviet producers for only 5% to 10% of its market value then sell the commodity through its Swiss trading house at market value and pocket the difference.{{sfn|Klebnikov|2000}}<ref name=NYP20010215/> Marc Rich's firm Nordex followed this scheme.{{sfn|Klebnikov|2000}}<ref name=NYP20010215/> Ermarth stated, "Initially the KGB objective was simply commercial cover. But the program evolved into operating businesses for off-budget revenues, and from there into avenues for squirreling away funds for the safe retirement or political comeback of embattled communist leaders. Lines of business came to include money laundering, arms and drug trafficking, and other plainly criminal activities. Before long, intelligence, business, politics and crime blurred indistinguishably into each other."<ref name=ErmarthP2/> In the 1990s, the looting of Russia followed a similar scheme and, by 1993, the looters muscled Marc Rich out of commodities trading.{{sfn|Klebnikov|2000}}<ref name=NYP20010215/> Ermarth stated that the Soviet Union was engaging in this scheme in 1985 and, in the 1990s, Russia had many that were "squirreling away funds for the safe retirement or political comeback of embattled communist leaders."<ref name=ErmarthP2/><ref name=NYP20010215/>{{efn|With support from [[Yuri Shvets]], a 19 January 1999 ''Corriere della Sere'' article written by Carlo Bonini alleged that [[Vladimir Putin]] had instructed [[Nikolai Patrushev]] to investigate the corruption with the looting, which is often called ''Russiagate'' and was instigated by Chernomyrdin according to Putin, in order to leverage [[Vagit Alekperov]], who was the head of [[Lukoil]] that had a large data base on United States citizens acquired from its business interests in the United States, to support Putin's future agenda.<ref>{{cite news |last=Бонини |first=Карло (Bonini, Carlo) |url=http://www.inopressa.ru/details.htm?id=773 |title=Скандалы: "Путин может наказать Соединенные Штаты" |trans-title=Scandals: "Putin can punish the United States" |language=ru |work=Corriere della Sera |date=January 19, 1999 |access-date=September 13, 2024 |archive-url=https://web.archive.org/web/20010721063442/http://www.inopressa.ru/details.htm?id=773 |archive-date=July 21, 2001}} This is a Russian translation of an article originally published in Italian. The [http://www.corriere.it/hermes original website] is a dead link.</ref>}}
==History==
On August 23, 1990, a secret memorandum from [[Vladimir Ivashko|Vladimir A. Ivashko]], who was [[Gorbachev]]'s deputy general secretary, outlined strategies to hide the [[Communist Party]]'s assets through Russian and international joint ventures because [[Boris Yeltsin]], who was the new president of the Russian Republic in the [[Soviet Union]], wanted to levy taxes on the Communist Party's vast administrative property holdings and on the Party itself.<ref name="WP01021993">{{Cite news |last1=Dobbs |first1=Michael |author-link=Michael Dobbs (journalist) |last2=Coll |first2=Steve |date=1 February 1993 |title=Ex-Communists are scrambling for quick cash |newspaper=[[The Washington Post]] |url=https://www.washingtonpost.com/archive/politics/1993/02/01/ex-communists-are-scrambling-for-quick-cash/00a47cf2-1f47-4051-90cd-844e3e35643b/#:~:text=Typical%20of%20the%20new%20breed%20of%20international%20%22communist-capitalist%22,in%20their%20ongoing%20investigation%20of%20Communist%20Party%20finances. |access-date=23 November 2020 |author2-link=Steve Coll}}</ref> The memorandum was to organize the transfer of [[Communist Party of the Soviet Union|CPSU]] funds, CPSU financing and support of its operations through associations, ventures, foundations, etc. which are to act as invisible economics.<ref name="PalmerTestimony">{{Cite web |last=Palmer |first=Richard L. |date=September 21, 1999 |title=Statement of Richard L. Palmer, president of Cachet International, Inc. on the Infiltration of the Western Financial System by Elements of Russian Organized Crime before the House Committee on Banking and Financial Services |url=https://archives-financialservices.house.gov/banking/92199pal.shtml |archive-url=https://web.archive.org/web/20190729221747/https://archives-financialservices.house.gov/banking/92199pal.shtml |archive-date=July 29, 2019 |access-date=December 7, 2020 |website=[[United States House of Representatives|House]] Committee on Banking and Financial Services}}</ref>{{efn|Richard L. Palmer, president of Cachet International, Inc., was the [[Central Intelligence Agency|CIA]] [[station chief]] at the [[Embassy of the United States, Moscow|United States Embassy in Moscow]] from 1992 to 1994.<ref name=PalmerTestimony/><ref>{{Cite news |last=Foer |first=Franklin |author-link=Franklin Foer |date=March 1, 2019 |title=Russian-Style Kleptocracy Is Infiltrating America: When the U.S.S.R. collapsed, Washington bet on the global spread of democratic capitalist values—and lost. |work=[[The Atlantic]] |url=https://www.theatlantic.com/magazine/archive/2019/03/how-kleptocracy-came-to-america/580471/ |access-date=December 7, 2020 |archive-url=https://web.archive.org/web/20201208004338/https://www.theatlantic.com/magazine/archive/2019/03/how-kleptocracy-came-to-america/580471/ |archive-date=December 8, 2020}}</ref>}} In November 1990, the offshore structure '''Fimaco''' (also spelled '''Fimako''') was formed by documents signed by [[Yury Ponomaryov (banker)|Yury Ponomaryov]] under the direction of V. Gerashchenko of the [[Russian Central Bank]], then known as [[Gosbank]], to hide these funds.{{sfn|Belton|2020|page=94}}<ref>{{Cite news |last=Овчинников |first=О. (Ovchinnikov, O.) |date=8 November 2000 |title=ЦБ - центральный Банд ... |trans-title=Central Bank - Central Gang ... |work=[[:ru:Агентство федеральных расследований|Агентство федеральных расследований "FreeLance Bureau" (FLB)]] (flb.ru) |url=https://flb.ru/info/6216.html |access-date=5 April 2022 |language=ru}} [http://www.compromat.ru/page_10394.htm Alternate archive]</ref><ref>{{cite news |last1=Соколов |first1=Сергей (Sokolov, Sergey) |last2=Плужников |first2=Сергей (Pluzhnikov, Sergey) |url=https://flb.ru/material.phtml?id=5010 |title=Судороги пробежали по телу Геракла |trans-title=Convulsions ran through Hercules' body |language=ru |work=[[:ru:Агентство федеральных расследований|Агентство федеральных расследований "FreeLance Bureau" (FLB)]] (flb.ru)  |date=14 November 2000 |access-date=24 October 2023 |archive-date=24 October 2023 |archive-url=https://web.archive.org/web/20231024181553/https://flb.ru/material.phtml?id=5010}}</ref><ref>{{Cite book |url=https://books.google.com/books?id=-dPpeeU84h0C&dq=Bobkov+KGB&pg=PA317 |title=Russian Money Laundering: United States Congressional Hearing (serial number 106-38) |date=September 21, 1999 |publisher=Diane Publishing |editor-last=Leach |editor-first=James A. |editor-link=James A. Leach |page=316 |isbn=9780756712556 |access-date=December 7, 2020}}</ref> In November 1990, Leonid Veselovsky, a [[colonel]] in the [[First Chief Directorate]] of the [[KGB]] and an expert in international economics, was transferred from his KGB post in Portugal to Moscow to be under deputy chairman of the KGB of the [[USSR]] [[Philip Bobkov]]; however, two weeks before the [[1991 Soviet coup d'état attempt|August Putsch]] in 1991, Veselovsky quit the KGB and began working for the Switzerland office of [[Boris Birshtein]]'s Seabeco; but, in the meantime, hundreds of banks, joint stock companies, and joint ventures had been created under the direction of the CPSU Central Committee.<ref name=WP01021993/>{{sfn|Belton|2020|pages=57-61}}<ref name="Sokolov20010507">{{Cite news |last1=Соколов |first1=Сергей (Sokolov, Sergey) |author-link=:ru:Соколов, Сергей Викторович |last2=Плужников |first2=Сергей (Pluzhnikov, Sergey) |date=7 May 2001 |title=Золото КПСС - десять лет спустя: Почему "новые русские" капиталисты финансируют коммунистов |language=ru |trans-title=Gold of the CPSU - ten years later: Why the "new Russian" capitalists finance the communists |work=[[:ru:Агентство федеральных расследований|Free Lance Bureau]] (FLB) |url=http://flb.ru/info/4911.html |access-date=15 December 2020 |archive-url=https://web.archive.org/web/20050220001125/http://www.flb.ru/material.phtml?id=4911 |archive-date=20 February 2005}}</ref>{{efn|Five days after the failed [[1991 Soviet coup d'état attempt|21 August 1991 Putsch]], [[Nikolay Kruchina]], the chief treasurer of the Communist Party who was responsible for the party's gold ({{langx|ru|золото Партии}}) since 1983 and who had never been publicly linked to the Putsch, died in the early morning as a result of falling out of his apartment window in [[Moscow]], but he left behind two notes and a thick file near his desk on the armchair that contained recent Communist Party's illegal commercial operations.<ref name=Sokolov20010507/>{{sfn|Klebnikov|2000|page=76}}{{sfn|Belton|2020|pages=49-61}}<ref>{{cite news |last=Смехов |first=Вениамин (Smekhov, Veniamin) |author-link=Veniamin Smekhov |url=https://www.ntv.ru/peredacha/Delo_temnoe/m33240/o309106/video/ |title="Золото партии"  |trans-title=Party Gold |language=ru |work=[[NTV (Russia)|NTV]] |date=4 December 2014 |access-date=26 March 2022 |archive-date=27 January 2022 |archive-url=https://web.archive.org/web/20220127171557/https://www.ntv.ru/peredacha/Delo_temnoe/m33240/o309106/video/}}</ref><ref>{{cite news |url=https://www.tvc.ru/channel/brand/id/2766/show/episodes/episode_id/54983  |title=90-е "Золото партии" |trans-title=90s "Party Gold" |language=ru |work=[[:ru:ТВ Центр|ТВ Центр]] (tvc.ru) |date=29 June 2020 |access-date=26 March 2022}} [https://www.youtube.com/watch?v=XizA5hC0bw4 ''окументальный фильм ТВ Центр: Золото партии Девяностые'' Alternate link on YouTube] from 2018</ref><ref>{{Cite news |date=27 August 1991 |title=SOVIET TURMOIL; New Suicide: Budget Director |work=[[The New York Times]] |agency=[[Associated Press]] |url=https://www.nytimes.com/1991/08/27/world/soviet-turmoil-new-suicide-budget-director.html |access-date=15 December 2020}}</ref><ref>{{Cite magazine |last=Jackson |first=James O. |date=9 September 1991 |title=The Party Is Over |magazine=[[Time (magazine)|Time]] |url=http://www.time.com/time/magazine/article/0,9171,973790-1,00.html |access-date=15 December 2020 |url-status=dead |archive-url=https://web.archive.org/web/20070930070525/http://www.time.com/time/magazine/article/0,9171,973790-1,00.html |archive-date=30 September 2007}}</ref>}}{{efn|[[Philip Bobkov]] masterminded the transfer of CPSU funds to foreign locations.<ref>{{Cite book |url=https://books.google.com/books?id=-dPpeeU84h0C&dq=Bobkov+KGB&pg=PA317 |title=Russian Money Laudering: United States Congressional Hearing (serial number 106-38) |date=September 21, 1999 |publisher=Diane Publishing |editor-last=Leach |editor-first=James A. |editor-link=James A. Leach |page=317 |isbn=9780756712556 |access-date=December 15, 2020}}</ref> [[Vladimir Gusinsky]] recruited Philip Bobkov for his Most Group so Bobkov left KGB in 1991 began working as Security for [[Most Bank]] in its analytical department in 1992 with most of the 5th Main Directorate of the KGB with him as well as all of the Fifth Main Directorate's files from [[Lubyanka Building|Lubyanka]].<ref name=Sokolov20010507/><ref>{{Cite news |last=Шемедловский |first=Феликс (Shemedlovsky, Felix) |date=4 March 2005 |title=Идеолог многоразового использования: 20 декабря - святая дата для российских контрразведчиков. В этот день они собираются в ресторанах, кафе, клубах и просто на квартирах поднять рюмку за "железного Феликса" и за родное ведомство. Столичные чекисты отмечают праздник в клубе напротив Лубянки. В подвале клуба расположен знаменитый буфет, где в этот день рядом могут оказаться и генерал, и лейтенант. Пару месяцев назад был там и генерал армии, бывший начальник Пятого управления КГБ СССР Филипп Денисович Бобков. |language=ru |trans-title=Reusable ideologue: December 20 is a holy date for Russian counterintelligence officers. On this day, they gather in restaurants, cafes, clubs and just in apartments to raise a glass for "Iron Felix" and for their own department. The capital's security officers celebrate the holiday in the club opposite the Lubyanka. In the basement of the club there is a famous buffet, where on that day both the general and the lieutenant can be nearby. A couple of months ago, there was also an army general, former head of the Fifth Directorate of the KGB of the USSR, Philip Denisovich Bobkov. |work=[[:ru:Агентство федеральных расследований|Free Lance Bureau]] (FLB) |url=http://www.flb.ru/info/33789.html |access-date=15 December 2020 |archive-url=https://web.archive.org/web/20050414210907/http://www.flb.ru/info/33789.html |archive-date=14 April 2005}}</ref><ref>{{Cite news |last=Шемедловский |first=Феликс (Shemedlovsky, Felix) |date=22 February 2005 |title=Идеолог многоразового использования: 20 декабря - святая дата для российских контрразведчиков. В этот день они собираются в ресторанах, кафе, клубах и просто на квартирах поднять рюмку за "железного Феликса" и за родное ведомство. Столичные чекисты отмечают праздник в клубе напротив Лубянки. В подвале клуба расположен знаменитый буфет, где в этот день рядом могут оказаться и генерал, и лейтенант. Пару месяцев назад был там и генерал армии, бывший начальник Пятого управления КГБ СССР Филипп Денисович Бобков. |language=ru |trans-title=Reusable ideologue: December 20 is a holy date for Russian counterintelligence officers. On this day, they gather in restaurants, cafes, clubs and just in apartments to raise a glass for "Iron Felix" and for their own department. The capital's security officers celebrate the holiday in the club opposite the Lubyanka. In the basement of the club there is a famous buffet, where on that day both the general and the lieutenant can be nearby. A couple of months ago, there was also an army general, former head of the Fifth Directorate of the KGB of the USSR, Philip Denisovich Bobkov. |work=Российские Вести Федеральный Еженедельник |url=http://www.rosvesty.ru/numbers/1762/nongrata/ |access-date=15 December 2020 |archive-url=https://web.archive.org/web/20051108090332/http://www.rosvesty.ru/numbers/1762/nongrata/ |archive-date=8 November 2005}}</ref><ref>{{Cite web |date=October 2003 |title=Гусинский Владимир Александрович: С самого начала |trans-title=Gusinsky Vladimir Alexandrovich: From the very beginning |url=http://informacia.ru/facts/gusinsky/1.htm |archive-url=https://web.archive.org/web/20111011001026/http://informacia.ru/facts/gusinsky/1.htm |archive-date=11 October 2011 |access-date=15 December 2020 |website=informacia.ru |language=ru}}</ref>}}
According to [[Sergei Tretyakov (intelligence officer)|Sergei Tretyakov]], [[KGB]] chief [[Vladimir Kryuchkov]] sent US$50 billion worth of funds of the Communist Party to an unknown location in the lead up to the [[History of the Soviet Union (1985–1991)|collapse of the USSR]].<ref name="WPsypVSspy">{{Cite news |last=Wise |first=David |author-link=David Wise (journalist) |date=January 27, 2008 |title=Spy vs. Spy: They had Robert Hanssen. We had Sergei Tretyakov |newspaper=[[The Washington Post]] |url=http://www.washingtonpost.com/wp-dyn/content/article/2008/01/24/AR2008012402750.html |access-date=December 8, 2020 |archive-url=https://web.archive.org/web/20080726003040/http://www.washingtonpost.com/wp-dyn/content/article/2008/01/24/AR2008012402750.html |archive-date=July 26, 2008}}</ref>{{sfn|Earley|2008}}{{efn|Sergei Tretyakov, SVR rezident in United States from 1995-2000, was a double agent for the FBI from 1997-2000.<ref>{{Cite news |last=Steigerwald |first=Bill |date=March 31, 2008 |title=Comrade J by Pete Earley |work=Townhall.com |url=https://townhall.com/columnists/billsteigerwald/2008/03/31/comrade-j-by-pete-earley-n1222481 |access-date=December 8, 2020}}</ref>}}
Russian officials claimed that FIMACO was 100% owned by the state-owned [[Banque Commerciale pour l'Europe du Nord]], but never provided any proof according to a ''[[Newsweek]]'' article in March 1999.<ref name=Powell28031999/><ref name="newsweekfimaco" />
From 1989 to 1998, [[Yury Ponomaryov (banker)|Yury Ponomaryov]] was the CEO and chairman of the board at the [[Banque Commerciale pour l'Europe du Nord – Eurobank|Commercial Bank for Northern Europe (BCEN) - Eurobank]] in Paris; from 1993, he was chairman of the board of directors of the [[Evrofinance Mosnarbank|Moscow bank "Evrofinance"]] ({{langx|ru|"Еврофинанс"}}){{efn|"Evrofinance" ({{langx|ru|"Еврофинанс"}}) is also transliterated incorrectly as ''Eurofinance''.}} which was a subsidiary of Eurobank;<ref>{{cite news |last=Сухотина |first=Инна (Sukhotina, Inna) |url=https://rg.ru/2003/11/10/banki.html |title=Сколько стоит приданое "дочек" Банка России? |trans-title=How much is the dowry of the "daughters" of the Bank of Russia? |language=ru |work=[[Rossiyskaya Gazeta|«Российская газета»]] (Rossiyskaya Gazeta) |date=10 November 2003 |access-date=16 October 2023 |archive-date=29 November 2003 |archive-url=https://web.archive.org/web/20031129165942/https://rg.ru/2003/11/10/banki.html}}</ref> and during 1998 to 1999, he was chairman of the board of the [[Moscow Narodny Bank Limited|Moscow Narodny Bank in London (MNB)]].<ref name=PonomaryovBioLetopis>{{cite web |url=http://letopis.org/hero/274 |title=Пономарёв Юрий Валентинович |trans-title=Ponomaryov Yury Valentinovich |language=ru |work=Экономическая Летопись России (Economic Chronicle Russia) |access-date=24 July 2021 |archive-date=13 February 2020 |archive-url=https://web.archive.org/web/20200213102808/http://letopis.org/heroes/ponomarevjv/}}</ref>{{efn|From February to May 1992, Ponomarev was in Moscow as the chairman of the Committee for Operational Management of [[Vnesheconombank (Russia)|Vnesheconombank]], then returned to Paris and resumed his duties at the Eurobank at which he had remained Eurobank's CEO and chairman of the board while he was in Moscow.<ref name=PonomaryovBioLetopis/>}}{{efn|From 1999 to 2002, he lived in Moscow and was president, chairman of the board at [[VTB Bank|Vneshtorgbank]] and also worked for Russian banks abroad as the chairman of the boards of directors (supervisory boards) of banks in Paris, Vienna, Cyprus, Zurich, and Luxembourg after which he became Chairman of the Board of Directors, Managing Director of East-West United Bank, Luxembourg from 2002 until 2005.<ref name=PonomaryovBioLetopis/>}} Ponomaryov was the principal executor during the privatization of funds of international financial organizations and state foreign exchange reserves of Russia through FIMACO and other shadow companies.<ref>{{cite news |last=Овчинников |first=О. (Ovchinnikov, O.) |url=http://www.compromat.ru/page_10394.htm |title=ЦБ - центральный Банд ... |trans-title=Central Bank - Central Gang ... |language=ru |work=compromat.ru |date=8 November 2000 |access-date=24 July 2021 |quote=Archived 22 November 2000.}}</ref> BCEN - Eurobank had numerous correspondent accounts with Western banks to secure lines of credit for facilitating financial flows from the Soviet Union and later Russia to both the West and also less developed countries.<ref>{{cite web |url=http://www.foia.cia.gov/sites/default/files/document_conversions/89801/DOC_0000233857.pdf |title=Intelligence Report Soviet-owned Banks in the West |work=[[CIA]] |pages=7, 8 |date=1969 |access-date=24 July 2021 |archive-date=4 March 2016 |archive-url=https://web.archive.org/web/20160304080756/http://www.foia.cia.gov/sites/default/files/document_conversions/89801/DOC_0000233857.pdf |url-status=dead }}</ref>
In 1990 [[Alexander Mamut]] founded the "ALM-Consulting" law firm (ALM abbreviated after Mamut's name) and served as Managing Partner from 1990 to 1993. In 1991, ALM Consulting partnered with Frere Cholmeley Bischoff, a law firm based in London and headed by [[Tim Razzall, Baron Razzall|Tim Razzall]] from 1990 to 1994, to establish many offshore shell companies with support from ALM Consulting.<ref name=Meduza20210302>{{cite news |url=https://meduza.io/feature/2021/03/04/chelovek-bez-kostey |title=A man without bones Meduza special correspondent Anastasia Yakoreva tells how an excellent lawyer and successful negotiator Alexander Mamut broke down in the media business |work=[[Meduza]] |date=3 March 2021 |access-date=8 June 2021}}</ref><ref>{{cite news |last=Lindsay |first=Robert |url=https://www.thelawyer.com/issues/30-november-1998/freresan-offer-it-could-not-refuse/ |title=Freres: an offer it could not refuse: Robert Lindsay takes a look at the causes of Frere Cholmeley Bischoff's demise and assesses the prospects of its successor firms. |work=[[The Lawyer]] |date=30 November 1998 |access-date=8 June 2021}}</ref> In 1993, Mamut hired [[Igor Shuvalov]]{{efn|In 1993, [[:ru:Колодкин, Роман Анатольевич|Roman Kolodkin]] ({{langx|ru|Роман Колодкин}}) introduced [[Alexander Mamut]] to [[Igor Shuvalov]] who worked at the [[Ministry of Foreign Affairs (Russia)|Russian Ministry of Foreign Affairs]] in the legal department as an attache.<ref name=Meduza20160722>{{cite news |url=https://meduza.io/feature/2016/07/22/vitse-premier-po-roskoshi |title=Вице-премьер по роскоши Как складывалась карьера Игоря Шувалова |trans-title=Deputy Prime Minister for Luxury How did Igor Shuvalov's career develop? |language=ru |work=[[Meduza]] |date=22 July 2016 |access-date=8 June 2021 |archive-date=30 January 2018 |archive-url=https://web.archive.org/web/20180130121452/https://meduza.io/feature/2016/07/22/vitse-premier-po-roskoshi}}</ref> From 5 November 2009 until 15 September 2015, Roman Kolodkin was the [[:ru:Список послов России и СССР в Нидерландах|Russian Ambassador]] to the [[Netherlands]].<ref>{{cite web |url=http://graph.document.kremlin.ru/page.aspx?1032318 |title=УКАЗ Президента РФ от 05.11.2009 N 1239 "О НАЗНАЧЕНИИ КОЛОДКИНА Р.А. ЧРЕЗВЫЧАЙНЫМ И ПОЛНОМОЧНЫМ ПОСЛОМ РОССИЙСКОЙ ФЕДЕРАЦИИ В КОРОЛЕВСТВЕ НИДЕРЛАНДОВ И ПОСТОЯННЫМ ПРЕДСТАВИТЕЛЕМ РОССИЙСКОЙ ФЕДЕРАЦИИ ПРИ ОРГАНИЗАЦИИ ПО ЗАПРЕЩЕНИЮ ХИМИЧЕСКОГО ОРУЖИЯ В ГААГЕ, КОРОЛЕВСТВО НИДЕРЛАНДОВ, ПО СОВМЕСТИТЕЛЬСТВУ" |trans-title=DECREE of the President of the Russian Federation of 05.11.2009 N 1239 "ON THE APPOINTMENT OF KOLODKIN RA THE EMERGENCY AND Plenipotentiary AMBASSADOR OF THE RUSSIAN FEDERATION IN THE KINGDOM OF THE NETHERLANDS AND PERMANENT REPRESENTATIVE OF THE RUSSIAN FEDERATION ORGANIZATION |language=ru |work=[[Ministry of Foreign Affairs (Russia)|Russian Ministry of Foreign Affairs]] website |date=5 November 2009 |access-date=8 June 2021 |archive-date=6 May 2014 |archive-url=https://web.archive.org/web/20140506101751/http://graph.document.kremlin.ru/page.aspx?1032318}}</ref><ref>{{cite web |url=http://publication.pravo.gov.ru/Document/View/0001201509150020 |title=Указ Президента Российской Федерации от 15.09.2015 № 462 "О Колодкине Р.А." |trans-title=Decree of the President of the Russian Federation of September 15, 2015 No. 462 "On R. Kolodkin." |language=ru |work=[[Ministry of Foreign Affairs (Russia)|Russian Ministry of Foreign Affairs]] website |date=15 September 2015 |access-date=8 June 2021 |archive-date=4 March 2016 |archive-url=https://web.archive.org/web/20160304192020/http://publication.pravo.gov.ru/Document/View/0001201509150020}}</ref>}} as a senior advisor and instructed Shuvalov to establish many offshore companies to conduct special assignments to [[money launder]] very large amounts of cash away from Russia.<ref name=Meduza20160722/><ref name=RussianGate>{{cite news |url=https://russiangate.com/person/khoroshiy-papa-plokhoy-papa-istoriya-shuvalova-i-ego-detey/ |title=ХОРОШИЙ ПАПА, ПЛОХОЙ ПАПА: ИСТОРИЯ ШУВАЛОВА И ЕГО ДЕТЕЙ: Сыну — самолет и элитный военный билет, дочери — балетную пачку и активы |trans-title=GOOD DAD, BAD DAD: THE STORY OF SHUVALOV AND HIS CHILDREN: Son - an airplane and an elite military ID, daughter - a ballet tutu and assets |language=ru |work=[[:ru:Russiangate|RussianGate]] (russiangate.com) |date=27 October 2017 |access-date=8 June 2021 |archive-date=8 November 2017 |archive-url=https://web.archive.org/web/20171108224523/https://russiangate.com/person/khoroshiy-papa-plokhoy-papa-istoriya-shuvalova-i-ego-detey/}}</ref> In 1995 when Shuvalov was the head of ALM, Mamut introduced Shuvalov to [[Roman Abramovich]], [[Alisher Usmanov]], and [[Oleg Boyko]] who established Shuvalov's first investment which was in a business associated with Boyko.<ref name=Meduza20160722/><ref name=RussianGate/> ALM was the preferred law firm for [[Russian oligarchs]] during the 1990s including [[Alisher Usmanov]], [[Roman Abramovich]], [[Boris Berezovsky (businessman)|Boris Berezovsky]], [[Oleg Boyko]], and others.<ref name=Meduza20160722/><ref>{{cite news |last=Alpert |first=Bill |url=https://www.barrons.com/articles/SB50001424052748703827804577056191874119450 |title=How a Putin Aide Gained $119 Million |work=[[Barron's (newspaper)|Barron's]] |date=3 December 2011 |access-date=8 June 2021 }}</ref><ref>{{cite news |last=Amos |first=Howard |url=https://www.themoscowtimes.com/2012/11/07/think-tank-reopens-shuvalov-corruption-scandal-a19213 |title=Think Tank Reopens Shuvalov Corruption Scandal |work=The Moscow Times |date=7 November 2012 |access-date=8 June 2021 |archive-date=13 December 2020 |archive-url=https://web.archive.org/web/20201213102554/https://www.themoscowtimes.com/2012/11/07/think-tank-reopens-shuvalov-corruption-scandal-a19213}}</ref> During the 1990s, [[Mikhail Kasyanov]], while he was the head of the department of external loans and foreign debt at the [[Ministry of Finance (Russia)|Russian Ministry of Finance]], made decisions in support of Mamut.<ref name=CorruptionWhoIsWho>{{cite news |url=http://www.corruption.ru/whoiswho/mamut.html |title=КТО ЕСТЬ КТО: МАМУТ - ЧЕЛОВЕК КАСЬЯНОВА И ЛУЖКОВА |trans-title=WHO IS WHO: MAMUT - THE MAN OF KASIANOV AND LUZHKOV |language=ru |work=corruption.ru |date=28 February 2001 |access-date=8 June 2021 |archive-date=28 February 2001 |archive-url=https://web.archive.org/web/20010228175227/http://www.corruption.ru/whoiswho/mamut.html}}</ref>
In Autumn 1990, [[Vladislav Surkov]] established an advertising company with support from [[Bank Menatep|Menatep Bank]] that achieved tremendous return on investments.<ref name=MENATEP>[[Mikhail Khodorkovsky|Ходорковский, Михаил]]; [[Leonid Nevzlin|Невзлин, Леонид]] (1992 г.). [http://www.compromat.ru/page_26910.htm "Человек с рублем": Часть III. Горшки и боги]</ref> With offices in Paris, Gibraltar, Budapest, and Geneva, [[Mikhail Khodorkovsky]]'s MENATAP united a trading house, 2 insurance companies, 18 independent commercial banks, and about 30 industrial and other enterprises according to Delovoy Mir ({{langx|ru|«Деловой мир»}}) on 8 June 1991.<ref name=MENATEP/> Organized by the [[Ministry of Finance (Russia)|Russian Ministry of Finance]], MENATEP proposed methods of privatization and ways to secure foreign funds and support for securities.<ref name=MENATEP/>
On 13 August 1991, [[Valērijs Kargins]] and {{Interlanguage link|Viktor Krasovitsky|lv|Viktors Krasovickis|lt|Viktoras Krasovickis}} ({{langx|lv|Viktors Krasovickis}}) in [[Riga]], Latvia, opened the first foreign currency exchange as a closed joint stock company in the [[Soviet Union]].<ref>{{Cite web |title=Vesti.lv: Каргин Superstar. Часть 10 |trans-title=Kargin Superstar. Part 10 |url=http://vesti.lv/news/kargin-superstar-chasty-10 |archive-url=https://web.archive.org/web/20201124233956/http://helpynew.ucoz.lv/publ/21-1-0-201 |archive-date=2020-11-24 |access-date=2020-11-24 |website=vesti.lv |language=ru}}</ref><ref name="2000forbes1">{{Cite news |last=Watts |first=Christopher |date=October 2, 2000 |title=Survival Of The Fittest |page=1 |work=[[Forbes]] |url=http://www.forbes.com/global/2000/1002/0319032a.html |access-date=November 29, 2011 |archive-url=https://web.archive.org/web/20010810012249/http://www.forbes.com/global/2000/1002/0319032a.html |archive-date=August 10, 2001}}</ref><ref name="2000forbes2">{{Cite news |last=Watts |first=Christopher |date=October 2, 2000 |title=Survival Of The Fittest |page=2 |work=[[Forbes]] |url=https://www.forbes.com/global/2000/1002/0319032a_2.html |access-date=November 29, 2011 |archive-url=https://web.archive.org/web/20010822232005/https://www.forbes.com/global/2000/1002/0319032a_2.html |archive-date=August 22, 2001}}</ref> They had opened a currency exchange at their [[Riga Central Station|Riga train station]] tourism office, previously on 3 April 1991. He along with Viktor Krasovitsky and Krasovitsky's wife Nina Kontratyeva later founded [[Parex Bank]] in January 1992.<ref>{{Cite web |title=Vesti.lv: Каргин Superstar. Часть 12 |trans-title=Kargin Superstar. Part 12 |url=http://vesti.lv/news/kargin-superstar-chasty-12 |archive-url=https://web.archive.org/web/20201124024128/http://helpynew.ucoz.lv/publ/21-1-0-203 |archive-date=2020-11-24 |access-date=2020-11-24 |website=vesti.lv |language=ru}}</ref><ref>{{Cite web |title=Vesti.lv: Каргин Superstar. Часть 14 |trans-title=Kargin Superstar: Part 14 |url=http://vesti.lv/news/kargin-superstar-chasty-14 |archive-url=https://web.archive.org/web/20201124023832/http://helpynew.ucoz.lv/publ/21-1-0-208 |archive-date=2020-11-24 |access-date=2020-11-24 |website=vesti.lv |language=ru}}</ref> Riga was intended to become the global financial center in the former Soviet Union and Parex promoted itself as "We are closer than Switzerland!" ({{langx|ru|«Мы ближе, чем Швейцария!»}})<ref name=PalmerTestimony/><ref name=LatvianBankWoes30October2011>{{cite news |url=https://www.reportingproject.net/proxy/en/latvian-bank-woes |title=Latvian Bank Woes |work=[[Organized Crime and Corruption Reporting Project|Organized Crime and Corruption Reporting Project (OCCRP)]] |date=30 October 2011 |access-date=21 July 2021}}</ref><ref>{{Cite news |last=Caruana Galizia |first=Paul |date=1 June 2019 |title=Dirty money, bloody murder |language=en |url=https://members.tortoisemedia.com/2019/06/01/martins-bunkus/content.html |access-date=27 November 2020 |archive-url=https://web.archive.org/web/20200616073645/https://members.tortoisemedia.com/2019/06/01/martins-bunkus/content.html |archive-date=16 June 2020}}</ref><ref>{{Cite news |date=10 July 2019 |title=Кровь на счетах: Как связаны "латвийская прачечная" и расстрел адвоката, мешавшего банку ABLV Эрнеста Берниса и Олега Филя самоликвидироваться |language=ru |trans-title=Blood on the bills: How are the "Latvian laundry" and the shooting of the lawyer who prevented the ABLV bank Ernest Bernis and Oleg Filya from self-liquidation? |work=www.compromat.ru |url=http://www.compromat.ru/page_40559.htm |access-date=27 November 2020}}</ref><ref>{{Cite book |url=https://books.google.com/books?id=-dPpeeU84h0C&dq=Bobkov+KGB&pg=PA317 |title=Russian Money Laudering: United States Congressional Hearing (serial number 106-38) |date=September 21, 1999 |publisher=Diane Publishing |editor-last=Leach |editor-first=James A. |editor-link=James A. Leach |pages=321–3 |isbn=9780756712556 |access-date=December 15, 2020}}</ref>
In a 1991 report, former KGB colonel Veselovsky, whose responsibility was to manage Communist Party commercial affairs overseas, explained that he had found ways to funnel party money abroad. In addition to [[Nikolai Kruchina]] and [[Viktor Geraschenko]], Russian prosecutors also considered Veselovsky to be a principal figure in the money transfers.<ref name=WP01021993/>{{sfn|Belton|2020|pp=50-60}}<ref>{{Cite news |last=Овчинников |first=О. (Ovchinnikov, O.) |date=8 November 2000 |title=ЦБ - центральный Банд ... |trans-title=Central Bank - Central Gang ... |work=Compromat.ru |url=http://www.compromat.ru/page_10394.htm |access-date=5 January 2021 |language=ru}}</ref><ref>{{Cite news |last1=Альбац |first1=Евгения (Albats, Evgenia) |last2=Пауэлл |first2=Билл (Powell, Bill) |date=21 April 1999 |title=Черная касса страны |trans-title=Country black box office |work=[[Kommersant]] |url=http://www.compromat.ru/page_10382.htm |access-date=5 January 2021 |language=ru}}</ref> The stated goal was to ensure the financial well-being of party leaders after they lost power.<ref name="Powell28031999">{{Cite news |last=Powell |first=Bill |date=28 March 1999 |title=Follow the Money |work=[[Newsweek]] |url=https://www.newsweek.com/follow-money-163696 |access-date=10 February 2020 |archive-url=https://web.archive.org/web/20140304045010/https://www.newsweek.com/follow-money-163696 |archive-date=4 March 2014}}</ref><ref name="newsweekfimaco" />
Large amounts of state assets were transferred through FIMACO. One estimate is about US$50 billion.<ref>Russian Money Laundering: Congressional Hearing. James A. Leach. p. 816</ref> [[Alexander Litvinenko]] stated that millions from the IMF loan went to [[Russian mafia]].<ref>{{Cite news |last=Кириленко |first=Анастасия (Kirilenko, Anastasia) |date=21 January 2016 |title=Путин и мафия. За что убили Александра Литвиненко |trans-title=Putin and mafia. Why Alexander Litvinenko was killed |work=[[:ru:The Insider|The Insider]] |url=http://theins.ru/politika/19049 |access-date=18 December 2020 |archive-url=https://web.archive.org/web/20160123092315/http://theins.ru/politika/19049 |archive-date=23 January 2016 |language=ru}}</ref> On 30 September 1991, [[Yevgeny Primakov]] became the head of foreign espionage or the KGB First Chief Directorate (FCD) which in December 1991 became the SVR which he headed until January 1996.<ref name=PalmerAmericanRussianLaw>{{cite web |url=http://www.russianlaw.org/palmer.htm |title=STATEMENT OF RICHARD L. PALMER, PRESIDENT OF CACHET INTERNATIONAL, INC. ON THE INFILTRATION OF THE WESTERN FINANCIAL SYSTEM BY ELEMENTS OF RUSSIAN ORGANIZED CRIME BEFORE THE HOUSE COMMITTEE ON BANKING AND FINANCIAL SERVICES ON SEPTEMBER 21, 1999. STATEMENT BY RICHARD L. PALMER |work=American Russian Law Institute |date=21 September 1999 |access-date=5 April 2022 |archive-date= 2000-08-24|archive-url=https://web.archive.org/web/20000824094446/http://www.russianlaw.org/palmer.htm}}</ref><ref>{{cite web |url=http://miamioh.edu/cas/academics/centers/havighurst/cultural-academic-resources/putins-russia/index.html |title=Putin's Russia |work=Havighurst Center for Russian and Post-Soviet Studies at [[Miami University]] |date=November 2014 |access-date=5 April 2022 |archive-date=19 November 2014 |archive-url=https://web.archive.org/web/20141119000317/http://miamioh.edu/cas/academics/centers/havighurst/cultural-academic-resources/putins-russia/index.html}}</ref> Both the FCD and later the SVR had significant participation in transferring funds during this time frame because the staff of the FCD had previously created, developed and oversaw the commercial structures for illegal economies supported by the CPSU.<ref name=PalmerAmericanRussianLaw/>
In 1991 in a dacha outside Moscow, [[Andrey Vavilov]], [[Konstantin Kagalovsky]], and three others developed an economic platform for Russia.<ref name=NYT20150211>{{cite news |last1=Saul |first1=Stephanie |last2=Story |first2=Louise |url=https://www.nytimes.com/2015/02/12/nyregion/russia-time-warner-center-andrey-vavilov.html |title=At the Time Warner Center, an Enclave of Powerful Russians |work=[[The New York Times]] |date=11 February 2015 |access-date=13 April 2021 |archive-date=12 February 2015 |archive-url=https://web.archive.org/web/20150212170513/https://www.nytimes.com/2015/02/12/nyregion/russia-time-warner-center-andrey-vavilov.html}}</ref> Beginning in 1990 Kagalovsky was the Soviet Union's and later Russia's representative on financial matters with the IMF and the World Bank.<ref name=Kommersant>{{cite news|last1=Бутрин|first1=Дмитрий (Butrin, Dmitry)|last2=Кваша|first2=Максим (Kvasha, Maxim)|last3=Плешанова|first3=Ольга (Pleshanova, Olga)|last4=Разумова|first4=Мария (Razumova, Maria)|last5=Аскер-Заде|first5=Наиля (Asker-Zade, Nailya)|url=http://www.kommersant.ru/doc.html?docId=766368|title=Дела давно минувших рублей: Против Bank of New York подан иск на $22,5 млрд|trans-title=Cases of long past rubles: Bank of New York filed a $ 22.5 billion lawsuit|work=[[Kommersant]]|date=18 May 2007|access-date=13 April 2021|archive-date=20 May 2007|archive-url=https://web.archive.org/web/20070520052814/http://www.kommersant.ru/doc.html?docId=766368}}[http://www.compromat.ru/page_20751.htm Возобновление расследования о махинациях 90-х Reopening of the investigation into the machinations of the 90s]</ref><ref name=Economist26081999>{{cite news|url=http://www.economist.com/node/234642|title=Crime without punishment|newspaper=[[The Economist]]|date=26 August 1999|access-date=6 July 2021|archive-date=26 October 2018|archive-url=https://archive.today/20181026030251/https://www.economist.com/special/1999/08/26/crime-without-punishment}}</ref> In November 1991, he became Russia's representative on international financial matters and finally between October 1992 and 1995, he was Russia's representative to the [[IMF]].<ref name=Economist26081999/><ref>{{cite news |last1=Bonner |first1=Raymond |last2=O'Brien |first2=Timothy L. |url=https://www.nytimes.com/1999/08/19/world/activity-at-bank-raises-suspicions-of-russia-mob-tie.html |title=ACTIVITY AT BANK RAISES SUSPICIONS OF RUSSIA MOB TIE |work=[[The New York Times]] |date=19 August 1999 |access-date=13 April 2021}}</ref>
On April 4, 1992, Yeltsin issued "The fight against corruption in the public service" decree to provide for maximum transparency of officials and their institutions by providing a listing of their financial obligations, liabilities, securities, income, bank deposits, real estate holdings and their personal property and to prohibit officials from owning businesses.<ref>{{Cite news |last=Kalinina |first=Alexandra |date=January 29, 2013 |title=Corruption in Russia as a Business |work=Institute of Modern Russia |url=https://imrussia.org/en/nation/376-corruption-in-russia-as-a-business |access-date=December 7, 2020 |archive-url=https://web.archive.org/web/20200728220115/https://imrussia.org/en/nation/376-corruption-in-russia-as-a-business |archive-date=July 28, 2020}}</ref> The people with access to FIMACO included senior officers of the [[Communist Party of the Soviet Union|Communist Party]], [[Komsomol]], state banks, [[KGB]], and the [[military of Russia|military]].<ref>{{cite book |last=Goldman |first=Marshall I. |author-link=Marshall Goldman |title=The Piratization of Russia: Russian Reform Goes Awry |publisher=[[Routledge]] |date=10 April 2003 |isbn=978-0415315289}}</ref>
In June 1992, four tranches of IMF money totaling $4 billion were approved for transfer to Russia with the first $1 billion to be sent in June 1992.<ref>{{cite news |last=Hubert-Rodier |first=Jacques |url=https://www.lesechos.fr/1992/06/vers-une-premiere-tranche-de-credits-du-fmi-a-la-russie-928572&prev=search&pto=aue |title=Vers une première tranche de crédits du FMI à la Russie |trans-title=Towards a first tranche of IMF credits to Russia |language=fr |work=[[Les Echos (France)|Les Echos]] |date=25 June 1992 |access-date=5 August 2021}}</ref>
A 1993 document signed by a senior deputy to [[Viktor Gerashchenko]], the head of the [[Central Bank of Russia]], forbid disclosure of transfers to FIMACO: "The balance of the investment account of the [Central Bank] in FIMACO shouldn't be disclosed on the balance sheet of the bank."<ref name=Powell28031999/><ref name="newsweekfimaco" />
[[Coopers & Lybrand]] performed audits of the Central Bank of Russia during the period of 1993 and 1994, discovered FIMACO, and comdemned its activities.<ref name=Kommersant06021999>{{cite news |url=https://www.kommersant.ru/doc/212530 |title=Геращенко добился своего: Проверять ЦБ будет Coopers & Lybrand |trans-title=Gerashchenko got his way: Coopers & Lybrand will check the Central Bank |language=ru |work=[[Kommersant|"Коммерсантъ"]] |date=6 February 1999 |access-date=16 July 2021}}</ref><ref>{{cite news |last=Belton |first=Catherine |author-link=Catherine Belton |url=http://oldtmt.vedomosti.ru/sitemap/free/1999/7/article/imf-was-told-of-fimaco-years-ago/275227.html |title=IMF Was Told of FIMACO Years Ago |work=[[Moscow Times]] |date=7 July 1999 |access-date=16 July 2021}}</ref><ref>{{cite news |url=https://jamestown.org/program/russia-close-to-getting-multibillion-dollar-imf-loan/ |title=RUSSIA CLOSE TO GETTING MULTIBILLION-DOLLAR IMF LOAN. |work=[[Jamestown Foundation]] |date=14 July 1999 |access-date=16 July 2021}}</ref>{{efn|British courts determined that [[Coopers & Lybrand]] made gross errors during their 1990s audit of the [[Robert Maxwell]] group of companies, which were then controlled by [[Kevin Maxwell]] after Robert Maxwell's tragic death in 1991, and fined Coopers & Lybrand a record 3.3 million pounds.<ref name=Kommersant06021999/>}}{{efn|In 1998, Price Waterhouse merged with Coopers & Lybrand forming [[PricewaterhouseCoopers]].<ref>{{cite news |url=http://www.findarticles.com/p/articles/mi_qa3755/is_199709/ai_n8768518 |title=Price Waterhouse and Coopers & Lybrand to merge |work=Weekly Corporate Growth Report |date=29 September 1997 |access-date=16 July 2021 |archive-date=25 June 2006 |archive-url=https://web.archive.org/web/20060625115425/http://www.findarticles.com/p/articles/mi_qa3755/is_199709/ai_n8768518}}</ref>}} The IMF and the World Bank did not receive the Russian Central Bank's audits for 1993 and 1994.<ref name=CamdessusLetter>{{cite news |last=Camdessus |first=Michel |author-link=Michel Camdessus |url=https://www.imf.org/fr/News/Articles/2015/09/28/04/54/vc081999 |title=Le FMI, la Russie et " Le Monde " |trans-title=The IMF, Russia and "Le Monde" |language=fr |work=[[IMF]] |date=19 August 1999 |access-date=5 August 2021 |archive-date=6 August 2021 |archive-url=https://web.archive.org/web/20210806044807/https://www.imf.org/fr/News/Articles/2015/09/28/04/54/vc081999}}</ref>
In 1995, Jules Muis, a [[Netherlands|Dutch]] auditor formerly with [[Ernst & Young]] that became a vice-president and controller for the [[World Bank]], had his World Bank staff target Russia with audits because of dealings between government officials and consulting firms "where doubts have been raised".<ref name=WorldBankAuditRussia>{{cite news |last=Celarier |first=Michelle |url=https://www.euromoney.com/article/b13209pjh9rz3z/corruption-the-search-for-the-smoking-gun |title=Corruption: The search for the smoking gun. Watch out! A hit squad of World Bank auditors could be making a surprise visit to a project near you. This is the Bank's first serious attempt, led by president James Wolfensohn, to address corruption head on. But nailing the culprits, some of them dictators and governments, is not so easy. |work=[[Euromoney]] |date=1 September 1996 |access-date=15 April 2021 |archive-date=16 April 2021 |url-status=live |archive-url=https://web.archive.org/web/20210416001052/https://www.euromoney.com/article/b13209pjh9rz3z/corruption-the-search-for-the-smoking-gun}}</ref> Since auditing Russian operations became the World Bank's most critical concern, Donald Strombom, a former procurement chief at the World Bank who later established the International Development Business Consultants and was an advisor to the [[Ministry of Economic Development (Russia)|Russian Ministry of Economy]] which was headed by [[Yevgeny Yasin]], stated, "Obviously the Bank would not like to shut down operations in Russia."<ref name=WorldBankAuditRussia/>{{efn|The World Bank believed that the Russian ministry of foreign trade was very corrupt with many high ranking officials resigning.<ref name=WorldBankAuditRussia/>}} In June 1995 [[James Wolfensohn]], who later became a president of the World Bank, wrote a memo that spot audits would occur using the in-house staff at the World Bank.<ref name=WorldBankAuditRussia/> According to Raghavan Srinivasan who was the chief procurement adviser at the World Bank, "We want to put the fear of God in them."<ref name=WorldBankAuditRussia/>{{efn|In the 1990s according to Jules Muis, the "Big Five" auditing firms are [[PricewaterhouseCoopers]], [[Ernst & Young]], [[KPMG]], [[Deloitte Touche Tohmatsu]] and [[Arthur Andersen]].<ref>{{cite news |last= Petersen |first=Melody |url=https://www.nytimes.com/1998/10/24/business/un-report-faults-big-accountants-in-asia-crisis.html |title=U.N. Report Faults Big Accountants in Asia Crisis |work=[[The New York Times]] |date=24 October 1998 }}</ref>}}
According to [[:ru:Дубинин, Сергей Константинович|Sergei Dubinin]], from February 29, to May 28, 1996, just before the [[1996 Russian presidential election|1996 presidential elections in Russia]] that were held in June and July 1996, the Central Bank of Russia issued approximately $1 billion to Eurobank and then FIMACO invested a comparable amount of funds in [[GKO]]s ({{langx|ru|Государственное Краткосрочное Обязательство (ГКО)}}) or Russian ''State Short-Term Bonds'' which are often referred to as Russian Government Bonds or T-Bills.<ref name=AuditResultsLetterFIMACO/><ref name=StakesDaughtersFeb2005>{{cite news |url=http://www.compromat.ru/imgup/converted_18319.jpg |title="Дочерние" российские зарубежные банки и сеть ВТБ: доли ЦБ, ВТБ и др. |trans-title=Russian Foreign "Daughter" Banks and the VTB Network: stakes held by Central Bank, VTB, others |work=compromat.ru |date=February 2005 |access-date=16 October 2023}}</ref><ref name=Company21022005>{{cite news |last=Бирман |first=Александр (Birman, Alexander) |url=https://ko.ru/document.asp?d_no=11319&p=1 |title=В советских сетях: Нефтедоллары пойдут по проверенным каналам загранбанков |trans-title=In Soviet networks: Oil dollars will go through proven channels of foreign banks |work=[[:ru:Компания (журнал)|ООО Журнал «КО»]] (ko.ru) |date=21 February 2005 |access-date=16 October 2023 |archive-date=13 March 2005 |archive-url=https://web.archive.org/web/20050313182643/https://ko.ru/document.asp?d_no=11319&p=1}}</ref><ref>{{cite news |last=Hoffman |first=David |author-link=David E. Hoffman |url=https://archive.globalpolicy.org/component/content/article/209-bwi-wto/42912.html |title=Russian IMF Loans |newspaper=[[Washington Post]] |via=[[Global Policy Forum]] |date=23 March 1999 |access-date=16 October 2023 |archive-date=7 April 2021 |archive-url=https://web.archive.org/web/20210407022038/https://archive.globalpolicy.org/component/content/article/209-bwi-wto/42912.html}}</ref>
Felipe Turover Chudínov, a senior intelligence officer with the foreign-intelligence directorate of the KGB, alleged that $15 billion of IMF funds had been funneled through Switzerland, [[Liechtenstein]] and Caribbean countries as black cash or ''[[:ru:Общак|obschak]]'' to support Kremlin friendly operations and companies.{{sfn|Belton|2020|pages=91-5}}<ref>{{Cite news |date=28 August 1999 |title=Un español, clave en el escándalo de corrupción que salpica al Kremlin: Estados Unidos pide al FMI que suspenda sus préstamos a Rusia |language=es |trans-title=A Spaniard, key to the corruption scandal that dots the Kremlin: U.S. calls on IMF to suspend its loans to Russia |work=[[El País]] |url=https://elpais.com/diario/1999/08/29/portada/935877601_850215.html |access-date=12 December 2020 |archive-url=https://web.archive.org/web/20140815173919/https://elpais.com/diario/1999/08/29/portada/935877601_850215.html |archive-date=15 August 2014}}</ref><ref>{{Cite news |last=Fernandez |first=Rodrigo |date=28 August 1999 |title=Felipe Turover, un aventurero en el Kremlin: Retrato del español cuyas revelaciones sobre el desvío de fondos implican al entorno de Yeltsin |language=es |trans-title=Felipe Turover, an adventurer in the Kremlin: Portrait of the Spaniard whose revelations about the diversion of funds involve Yeltsin's surroundings |work=[[El País]] |url=https://elpais.com/diario/1999/08/29/internacional/935877621_850215.html |access-date=12 December 2020 |archive-url=https://web.archive.org/web/20190704151551/https://elpais.com/diario/1999/08/29/internacional/935877621_850215.html |archive-date=4 July 2019}}</ref><ref>{{Cite news |last=Fernandez |first=Rodrigo |date=4 September 1999 |title=Un banquero suizo, hombre clave en la trama internacional de la corrupción rusa: Bruce Rappaport, embajador de Antigua en Moscú, en el punto de mira de la justicia |language=es |trans-title=A Swiss banker, key man in the international plot of Russian corruption: Bruce Rappaport, Antigua's ambassador to Moscow, in the spotlight of justice |work=[[El País]] |url=https://elpais.com/diario/1999/09/05/internacional/936482413_850215.html |access-date=12 December 2020 |archive-url=https://web.archive.org/web/20140815181146/https://elpais.com/diario/1999/09/05/internacional/936482413_850215.html |archive-date=15 August 2014}}</ref><ref name="Intel20000302">{{Cite news |date=2 March 2000 |title=The Enigmatic Mr. Turover & Mabetex Case |work=Intelligence Online |url=https://www.intelligenceonline.com/threat-assessment/2000/03/02/the-enigmatic-mr-turover--mabetex-case,145554-ART |access-date=10 December 2020 |archive-date=20 March 2022 |archive-url=https://archive.today/20220320000000/https://www.intelligenceonline.com/threat-assessment/2000/03/02/the-enigmatic-mr-turover--mabetex-case,145554-ART |url-status=live}}</ref><ref>{{Cite news |last=Higgins |first=Andrew |author-link=Andrew Higgins |date=20 September 1999 |title=Swiss Shop Might Carry Clues To Russia Money-Laundering Case |work=[[The Wall Street Journal]] |url=https://www.wsj.com/articles/SB93778629256833747 |access-date=10 December 2020 |archive-url=https://archive.today/20201211045532/https://www.wsj.com/articles/SB93778629256833747 |archive-date=11 December 2020}}</ref><ref name="Intel20010308">{{Cite news |date=8 March 2001 |title=Felipe Turover |work=Intelligence Online |url=https://www.intelligenceonline.com/who-s-who/2001/03/08/felipe-turover,1699329-ART |access-date=10 December 2020 |archive-date=22 August 2020 |archive-url=https://archive.today/20200822000000/https://www.intelligenceonline.com/who-s-who/2001/03/08/felipe-turover,1699329-ART |url-status=live}}</ref><ref>{{cite news |last1=Powell |first1=Bill |last2=Albats |first2=Yevgenia |last3=Bonini |first3=Carlo |last4=D'Avanzo |first4=Giuseppe |url=http://www.newsweek.com |title=A Scheme of Beauty |work=[[Newsweek]] |date=4 October 1999 |access-date=23 October 2021 |archive-date=24 October 2021 |archive-url=https://archive.today/20211024001116/https://groups.google.com/g/soc.culture.ukrainian/c/tDuhnOeMml8?pli=1}}</ref> Turover maintained that since the Russian state bank responsible for foreign operations, [[VEB.RF|VEB]], had severe economic hardship during the collapse of the Soviet Union and that Russia had taken on all Soviet republics' foreign debts of the Soviet Union which caused Russia to claim it was bankrupt in 1991, VEB's accounts were frozen on January 1, 1992, because Russia had no more money to spend.{{sfn|Belton|2020|pages=92-3}}{{efn|On 4 December 1991, VEB declared that it would suspend payments on the former Soviet Union's debts indefinitely. On 20 December 1991, the state bank of the USSR was liquidated. On 13 July 1992, the Bank of Russia was formed. In 1994, VEB resumed its operations.<ref>{{cite news |last=Буйлов |first=Максим (Builov, Maxim) |url=http://www.compromat.ru/page_11356.htm |title=Банки-2001: Кому принадлежит Россия |trans-title=Banks-2001: Who owns Russia |language=ru |work=[[Kommersant|Коммерсант]] |date=11 December 2001 |access-date=12 August 2021 |quote= Archived at compromat.ru on 11 December 2001.}}</ref>}}{{efn|Vnesheconombank kept the records of the country's financial assets and debts. Repayment of loans from countries using hard currency was very rare and only occurred with "Algeria, Iraq, Libya (including the form of oil supplies for re-export), and Indonesia."<ref>{{cite news |url=https://bankir.ru/publikacii/20141202/vneshnii-dolg-i-aktivy-rossii-istoki-i-sovremennaya-istoriya-10005800/ |title=Внешний долг и активы России: истоки и современная история. В последнее время Запад широко использует угрозы в отношении зарубежных российских активов в связи с украинским кризисом. |trans-title=External debt and assets of Russia: origins and modern history. Recently, the West has been widely using threats against foreign Russian assets in connection with the Ukrainian crisis. |language=ru |work=«Банкир.Ру» (bankir.ru) |date=2 December 2014 |access-date=23 March 2022 |archive-date=23 March 2022 |archive-url=https://web.archive.org/web/20220323210638/https://bankir.ru/publikacii/20141202/vneshnii-dolg-i-aktivy-rossii-istoki-i-sovremennaya-istoriya-10005800/}} [https://polpred.com/?ns=1&ns_id=1239717 Alternate archive]</ref>}}{{efn|For approximately seven years during the 1990s, the Kremlin's ''obshchak'' ([[:ru:Общак|«общак»]]) or black cash was stored in the vaults of Vnesheconombank (VEB) because [[Viktor Gerashchenko]] stated that in 1992 VEB became an agency for the return of the state debt of the USSR due to a decree by the [[Supreme Soviet of the Soviet Union|Supreme Soviet]]: "Vnesheconombank does not have a central banking license. It does not need it, since it does not conduct any commercial operations." He also added, "Due to the lack of a license, this is the only Russian bank that the Central Bank does not check – it does not have the right."<ref>{{cite news |last=Наталья |first=Морарь (Morar, Natalia) |author-link=Natalia Morar |url=https://newtimes.ru/articles/detail/6628/ |title="ЧЕРНАЯ КАССА" КРЕМЛЯ |trans-title=THE KREMLIN'S BLACK CASH REGISTER |language=ru |work=[[Russian language|The New Times]] |date=10 December 2007 |access-date=13 September 2022 |quote=«У Внешэкономбанка нет лицензии ЦБ на банковскую деятельность. Она ему и не нужна, поскольку никаких коммерческих операций он не проводит, — говорит бывший глава Банка России. — В связи с отсутствием лицензии это единственный российский банк, который Центробанк не проверяет — не имеет права».}}</ref>}} Turover said that this prevented the typical Cold War cash flows through VEB to pro Kremlin operations and companies and caused, instead, schemes to be established.{{sfn|Belton|2020|pages=93-4}}{{efn|One operation Turover explicitly stated was that IMF money was funding white supremacist neo-nazi groups.<ref name=Intel20010308/>}} In 1992, Turover stated that he was mandated to negotiate with Russia's creditors.<ref name=Intel20000302/>{{sfn|Belton|2020|pages=91-2, 118-9, 525-6 see note 7}}{{efn|On 4 March 1994, Felipe Turover Chudínov was appointed at the Banco del Gottardo as an adivsor with a mandate for "all matters pertaining to our relationship with the government authorities and agencies of the Russian Federation and of our dealings with financial, commercial and economic entities, companies and corporations of the Russian Federation."{{sfn|Belton|2020|pages=118-9, 525-6 see note 7}}}} According to Turnover, the [[Lugano]] based {{Interlanguage link|Banco del Gottardo|de|Gotthard-Bank|it|Banca del Gottardo}}, which had been the overseas branch of [[Banco Ambrosiano#Before 1981|Banco Ambrosiano]], was chosen to run Russian black cash schemes and to maintain commodities and barter schemes while VEB was closed because "We needed a very small bank with a very dirty reputation."{{sfn|Belton|2020|pages=118-9}}{{efn|In the early 2000s, the Russian government recognized the debts that VEB accrued through its guarantees on loans at Banco del Gottardo and included these debts as external public debt.<ref name=MN12082003/>}}
From July 1996 to March 1997, [[Vladimir Putin]] was head of [[:ru:Управление делами президента Российской Федерации|Russia's presidential property management department]] and was responsible for both the former Soviet Union's property and the Communist Party's property worth hundreds of billion-dollars after a Yeltsin decree that became effective on 11 December 1996.{{sfn|Dawisha|2014|pp=165-174}}{{sfn|Скуратов|2013}}<ref>{{cite news |last=Yablokova |first=Oksana |url=http://www.themoscowtimes.com/news/article/skuratov-turover-list-is-real/268363html |title= Skuratov: 'Turover List' Is Real |work=[[The Moscow Times]] |date=29 December 1999 |access-date=22 May 2021 |archive-date=23 February 2021 |archive-url=https://archive.today/20210223222942/http://russialist.org/archives/4001.html |quote=See article #12.}}</ref><ref name="Lurie19991229">{{Cite news |last=Лурье |first=Олег (Lurie, Oleg) |author-link=:ru:Олег Лурье Анатольевич |date=27 December 1999 |title=Список Туровера |trans-title=Turover List |work=[[Novaya Gazeta]] |url=http://www.novayagazeta.ru/article.phmtl?article_id=2257 |language=ru}} [http://www.compromat.ru/page_9275.htm Alt URL]</ref><ref>{{Cite news |last=Lurye |first=Oleg |date=27 December 1999 |title=Turover List |work=[[Novaya Gazeta]] |url=http://www.russialist.org/archives/4023.html#8 |access-date=20 January 2021 |via=[[Johnson's Russia List|Russialist.org]]}}</ref><ref name="Taibbi">{{Cite news |last=Taibbi |first=Matt |author-link=Matt Taibbi |date=10 February 2000 |title=On the Trail of Star Witness Felipe Turover |work=[[The eXile|eXiledonline.com]] |url=http://exiledonline.com/old-exile/vault/feature/feature83.html |access-date=20 January 2021 |archive-url=https://archive.today/20201227110402/http://exiledonline.com/old-exile/vault/feature/feature83.html |archive-date=27 December 2020}}</ref> Turover stated that Putin created schemes involving Joint Ventures, LLCs, and JSCs as front companies in order to claim large stakes in the transfer of state property to other persons and entities: for example, in East Germany, he fraudulently leased the huge cultural center of Russia in Berlin to a company for almost nothing but the company then leased the building for a very large amount.<ref name=Lurie19991229/><ref name=Taibbi/> Turover alleged that Putin pocketed the money that the company received from the expensive lease.<ref name=Lurie19991229/><ref name=Taibbi/> Because of this very large loss of assets, Russia needed over $300 billion in foreign investments and demanded even more IMF money during 1998 and 1999 in order to not declare bankruptcy in the spring of 1999.{{sfn|Browder|2013|pp=133-134}}<ref>{{Cite news |last1=Borisov |first1=Aleksey |last2=Moskvina |first2=Nina |date=17 February 1999 |title=Citizens Keeping $40 Billion 'in Their Socks' |work=[[Moskovsky Komsomolets]] |url=http://www.cdi.org/russia/feb1999.html#14 |access-date=19 January 2021 |archive-url=https://web.archive.org/web/20010308102455/http://www.cdi.org/russia/feb1999.html#14 |archive-date=8 March 2001 |quote=Original title Долги в носках; Россия Снова пытаюсь Соблазнить МВФ, забыв о собственных резервах (Debts in Our Socks; Russia Again Trying To Seduce IMF, Forgetting Its Own Reserves). |via=[[Center for Defense Information]]}}</ref><ref>{{Cite news |date=4 March 1999 |title=War of Words with IMF Continues... |work=[[Radio Free Europe]] |url=http://www.cdi.org/russia/mar0599.html#15 |access-date=19 January 2021 |archive-url=https://web.archive.org/web/20010308102906/http://www.cdi.org/russia/mar0599.html#15 |archive-date=8 March 2001 |via=[[Center for Defense Information]]}}</ref> However, IMF officials did not approve additional IMF money for Russia.
A key prospective witness in improper financial affairs was Lyubov Tarasova ({{langx|ru|Любовь Тарасова}}) who was a senior auditor for the Central Bank of Russia and worked for the "Unicom" ({{langx|ru|"Юникон"}}) auditing firm which had been established on 20 August 1991 and was responsible for "checking the correctness of the documentation and the essence of business transactions that are in doubt" ({{langx|ru|"проверка правильности документального оформления и сущности хозяйственных операций, вызывающих сомнение"}}), but was stabbed to death in her apartment in Moscow on 15–16 October 1997.<ref name=RussianLawChristy>{{cite news |url=http://russianlaw.org/004.htm |title=Arthur Christy. Inkombank lawyer former US Attorney: US lawyers hired as spin doctors for Russian mob |work=US-Russia Press Club |via=russianlaw.org |date=30 April 1999 |access-date=10 April 2021 |archive-date=1 July 2007 |archive-url=https://web.archive.org/web/20070701095101/http://russianlaw.org/004.htm}}</ref><ref name=KommersantTarasovaDeath>{{cite news |url=https://www.kommersant.ru/doc/186099 |title=Убили аудитора: Убит хранитель тайн Центробанка |trans-title=The auditor was killed: Keeper of secrets of the Central Bank killed |language=ru |work=[[Kommersant]] |date=18 October 1997 |access-date=8 April 2021}}</ref><ref>{{cite news |url=https://www.kommersant.ru/doc/186089 |title=били аудитора: Кого проверяла Любовь Тарасова |trans-title=The auditor was killed: Whom Lyubov Tarasova checked |language=ru |work=[[Kommersant]] |date=18 October 1997 |access-date=10 April 2021}}</ref>
In 1998, [[Edmond Safra]]'s banks alerted the [[FBI]] about a $4.8 billion money laundering scheme involving IMF money, his [[Republic National Bank of New York]], his Republic National Bank of New York (Suisse) in [[Geneva]], [[Mikhail Kasyanov]] and [[Vladimir Putin]].<ref name="Lurie20000724">{{Cite news |last=Лурье |first=Олег (Lurie, Oleg) |author-link=:ru:Лурье, Олег Анатольевич |date=24 July 2000 |title=Если Касьянов приедет в Швейцарию, его вызовут к следователю? |trans-title=If Kasyanov arrives in Switzerland, will he be summoned to the investigator? |work=[[Novaya Gazeta]] |url=http://old.novayagazeta.ru/data/2000/52/00.html |access-date=8 January 2021 |archive-url=https://web.archive.org/web/20131202222313/http://old.novayagazeta.ru/data/2000/52/00.html |archive-date=2 December 2013 |language=ru}}</ref> He also provided evidence to the Geneva prosecutor [[:fr:Bernard Bertossa|Bertrand Bertossa]].<ref name=Lurie20000724/><ref name="Jamestown20000725">{{Cite news |date=25 July 2000 |title=NEWSPAPER SCANDAL OVER IMF DIVERSION EXPANDS. |work=[[Jamestown Foundation]] |url=https://jamestown.org/program/newspaper-scandal-over-imf-diversion-expands/ |access-date=8 January 2021}}</ref> In mid July 1998, IMF money transfers of $22 billion to Russia were approved which were negotiated by John Odling-Smee of the IMF and [[Anatoly Chubais]] of Russia.<ref>{{cite news |last=Nathan |first=Hervé |url=https://www.liberation.fr/futurs/1998/07/14/un-gros-cheque-pour-soulager-moscou-la-russie-va-recevoir-22-milliards-de-dollars-via-le-fmi-sur-deu_241488/ |title=Un gros chèque pour soulager Moscou. La Russie va recevoir 22 milliards de dollars via le FMI sur deux ans. |trans-title=A big check to relieve Moscow. Russia will receive $22 billion through the IMF over two years. |language=fr |work=[[Libération]] |date=14 July 1998 |access-date=5 August 2021 |archive-date=5 August 2021 |archive-url=https://web.archive.org/web/20210805213753/https://www.liberation.fr/futurs/1998/07/14/un-gros-cheque-pour-soulager-moscou-la-russie-va-recevoir-22-milliards-de-dollars-via-le-fmi-sur-deu_241488/}}</ref> According to ''[[la Repubblica]]'', an account in Safra's Bank of New York received $21.4 billion between 27 July 1998 and 24 August 1998.<ref>{{Cite news |date=6 October 1999 |title=La Repubblica: Деньги МВФ были разворованы |trans-title=La Repubblica: IMF money was stolen |work=[[la Repubblica]] |url=http://www.compromat.ru/page_25494.htm |access-date=19 January 2021 |via=Lenta.ru |language=ru}}</ref> Turover stated that the scheme would not have occurred without the Russian Finance Minister Mikhail Kasyanov's approval.<ref>{{Cite news |last=Лурье |first=Олег (Lurie, Oleg) |author-link=:ru:Лурье, Олег Анатольевич |date=23 October 2000 |title=Интервью Туровера. "Если я приеду, получу пулю в аэропорту." Крупнейшие финансовые структуры России времен Ельцина- это насосы для перекачки украденных миллиардов в карманы "семьи" и ее окружения |trans-title=Turover's interview. "If I come, I'll get a bullet at the airport." The largest financial structures in Russia during the Yeltsin era are pumps for pumping stolen billions into the pockets of the "family" and its entourage |work=[[Novaya Gazeta]] |url=http://www.compromat.ru/page_10307.htm |access-date=19 January 2021 |language=ru}}</ref><ref>{{Cite news |last=Лурье |first=Олег (Lurie, Oleg) |author-link=:ru:Лурье, Олег Анатольевич |date=1 April 2005 |title=Эпизоды Касьянова |trans-title=Kasyanov's Episodes |work=ВВП (Валовой внутренний продукт) (2vp.ru) |url=http://2vp.ru/article.php?id=407 |access-date=19 January 2021 |archive-url=https://web.archive.org/web/20050409085835/http://2vp.ru/article.php?id=407 |archive-date=9 April 2005 |language=ru}}</ref> Safra told British press that a "contract had been put on his life" and that he feared that Russian mafia would kill him.<ref>{{cite news |last=Rousselot |first=Fabrice |url=https://www.liberation.fr/planete/1999/12/07/safra-un-banquier-qui-se-sentait-menace-il-a-declenche-l-enquete-sur-les-detournements-de-fonds-russ_291625/ |title=Safra, un banquier qui se sentait menacé. Il a déclenché l'enquête sur les détournements de fonds russes du FMI. |trans-title=Safra, a banker who felt threatened. He launched the investigation into Russian IMF embezzlement. |language=fr |work=[[Libération]] |date=7 December 1999 |access-date=23 October 2021 |archive-date=17 July 2021 |archive-url=https://archive.today/20210717010935/https://www.liberation.fr/planete/1999/12/07/safra-un-banquier-qui-se-sentait-menace-il-a-declenche-l-enquete-sur-les-detournements-de-fonds-russ_291625/}}</ref>
[[Fitch Ratings]] estimated $136 billion had been looted from Russia between 1993 and 1998 and [[Lloyd's of London]] estimated $200 billion to $500 billion had been looted from Russia between 1993 and 1998.<ref>{{cite news |last=Brookfield |first=James |editor-last=Johnson |editor-first=David |editor-link=Johnson's Russia List |url=http://www.russialist.org/archives/3466.html##8 |title=Bank of New York probe exposes ties between Western financiers and Russian Mafia |work=[[World Socialist Web Site]] (www.wsws.org) |via=[[Johnson's Russia List|Russia List]] |date=27 August 1999 |access-date=23 October 2021}}</ref> In August 1999, the [[Ministry of Internal Affairs (Russia)|Russian national police (MVD)]] concluded that large sums had left Russia and, according to intelligence sources, an estimated $350 billion had been looted from Russia during the 1990s which led [[Fritz Ermarth]], a former CIA analyst for Russia in the 1990s, to state that "We have outright criminals at one end, but at the other end we call them statesmen."<ref>{{cite news |last=Kaplan |first=David |author-link=David E. Kaplan (author) |url=https://www.usnews.com/usnews/issue/990830/bank.htm |title=When the Russian mob feels the need to wash: Money laundering marks a nation's looting |work=[[US News]] |date=30 August 1999 |access-date=10 June 2021 |archive-date=18 February 2001 |archive-url=https://archive.today/20010218172700/https://www.usnews.com/usnews/issue/990830/bank.htm}}</ref><ref>{{cite web|last=Ermarth|first=Fritz W.|author-link=Fritz Ermarth|title=Frtiz W. Ermarth|url=https://www.strategicstudies.it/fritz-w-ermarth/?lang=en|access-date=10 June 2021|website=Machiavelli's Institute|language=en}}</ref><ref>{{cite news |url=https://www.c-span.org/person/?fritzermarth |title=Fritz Ermarth |work=[[C-SPAN]] |access-date=10 June 2021}}</ref>
FIMACO's existence was disclosed by Russia's chief prosecutor [[Yuri Skuratov]] in February 1999 when Skuratov stated about $50 billion was transferred from the Central Bank to FIMACO and then out of Russia including IMF funds between 1993 and 1998 and that he had given to [[Carla del Ponte]], the [[:de:Bundesanwaltschaft (Schweiz)|Prosecutor General of Switzerland]], a list of about twenty names which had received a total of $40 billion of the IMF money in accounts at Swiss banks.{{sfn|Скуратов|2013}}<ref name="BostonGlobe19990211">{{Cite news |last=Filipov |first=David |date=11 February 1999 |title=Big Russian scam is alleged : Officials profited as reserves moved to secret account, ex-minister says |work=[[The Boston Globe]] |url=http://www.cdi.org/russia/feb1299.html#6 |access-date=19 January 2021 |archive-url=https://web.archive.org/web/20010308103114/http://www.cdi.org/russia/feb1299.html#6 |archive-date=8 March 2001 |via=[[Center for Defense Information]]}}</ref><ref name="Meek">{{Cite news |last=Meek |first=James |date=2 April 1999 |title=Yeltsin attacks fraud crusader |work=[[The Guardian]] |url=http://www.theguardian.com/world/1999/apr/03/jamesmeek |access-date=20 January 2021}}</ref><ref>{{cite news |last=van Schaik |first=John |url=https://www.euromoney.com/article/b1320fz4twswbl/russia-the-newly-wed-and-the-nearly-dead |title=Russia: The newly-wed and the nearly dead |work=[[Euromoney]] |date=1 June 1999 |access-date=15 April 2021 |archive-date=20 September 2020 |url-status=live |archive-url=https://web.archive.org/web/20200920232728/https://www.euromoney.com/article/b1320fz4twswbl/russia-the-newly-wed-and-the-nearly-dead}}</ref>{{efn|Skuratov listed 11.98 billion French francs, 9.98 billion Deutsche marks, 862.6 million British pounds, $37.3 billion, and 379.9 billion yen.<ref name=BostonGlobe19990211/>}} Soon afterwards, [[Federal Security Service (Russia)|FSB]] chief [[Vladimir Putin]] attacked Skuratov with a campaign which included a video where Skuratov allegedly has sex with two prostitutes.<ref name=Powell28031999/><ref name="newsweekfimaco">{{Cite news |date=1999-03-29 |title=Follow The Money - The Latest Kremlin Scandal Involves Billions Of Dollars Moving Offshore--Plus Sex And Videotape |work=[[Newsweek]] |url=http://europe.newsweek.com/follow-money-163696}}{{Dead link|date=August 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> The video which was released to the public in February 1999 led to Skuratov's dismissal on 2 April 1999.{{sfn|Скуратов|2013}}<ref name=Meek/>{{efn|Skuratov's dismissal occurred just days before a second search of the owner of Mabatex the Albanian businessman [[Behgjet Pacolli]] linked interests during an ongoing money laundering investigation which had begun in 1992 in Bern involving Pacolli and Yakut officials involved in gold and diamonds especially the Mayor of [[Yakutsk]] [[Pavel Borodin|Pavel Pavlovich Borodin]] who was Putin's architect for the transfer of the Presidential Property Management Department assets to LLCs, JSCs, and Joint Ventures during early 1997.{{sfn|Скуратов|2013}}<ref>{{Cite news |last=Иванидзе |first=Владимир (Ivanidze, Vladimir) |date=7 May 2000 |title=Якутский дом в Лугано. Российские корни "Мабетекса" |trans-title=Yakut house in Lugano. Russian roots of "Mabetex" |work=[[:ru:Совершенно секретно (газета)|«Соверше́нно секре́тно»]] |url=http://www.compromat.ru/page_9710.htm |access-date=20 January 2021 |language=ru}}</ref><ref>{{Cite news |last=Степовой |first=Сергей (Stepovoy, Sergey) |date=13 October 2000 |title=Мерседес за 20 копеек. Таланты Павла Бородина. Паша-"Мерседес" |trans-title=Mercedes for 20 kopecks. Pavel Borodin's talents. Pasha- "Mercedes" |work=«Стрингер» ("Stringer") |url=http://www.compromat.ru/page_10283.htm |access-date=20 January 2021 |language=ru}}</ref><ref>{{Cite news |last1=Бонини |first1=Карло (Bonini, Carlo) |last2=Малагутти |first2=Витторио (Malagutti, Vittorio) |date=12 September 2000 |title=Коррупция: обвинения против клана Ельцина |trans-title=Corruption: accusations against the Yeltsin clan |work=[[Corriere della Sera]] |url=http://www.inopressa.ru/details.html?id=2926 |access-date=20 January 2021 |archive-url=https://web.archive.org/web/20010409230838/http://www.inopressa.ru/details.html?id=2926 |archive-date=9 April 2001 |language=ru}} [http://www.compromat.ru/page_10143.htm Alt URL]</ref><ref>{{Cite news |date=12 September 2000 |title=Международное поручение Дево (Документ) "Кремлингейт": закрыть нельзя расследовать. В чем швейцарцы подозревают бывших высокопоставленных чиновников кремлевской администрации |trans-title=Devo's international mission (Document) "Kremlingate": you can't investigate it. What the Swiss suspect of former high-ranking officials of the Kremlin administration |work=«Сегодня» ("Today") |url=http://www.segodnya.ru/w3s.nsf/Contents/2000_203_polit_text_segodnya1.html |access-date=20 January 2021 |archive-url=https://web.archive.org/web/20010225220602/http://www.segodnya.ru/w3s.nsf/Contents/2000_203_polit_text_segodnya1.html |archive-date=25 February 2001 |language=ru}} [http://www.compromat.ru/page_10130.htm Alt URL]</ref> According to Turover, the Mabatex scandal was just the beginning of a very large scandal involving Putin which was referred to as Russiagate.}}
On July 20, 1999, the IMF directors received the July 9, 1999, [[PricewaterhouseCoopers]] (PWC) report about FIMACO's activities.<ref name=CamdessusLetter/> Following two 6 August 1999 ''[[Le Monde]]'' articles ''"Le FMI et la Russie"'' and ''"Comment la Russie detournait l'argent du FMI"'' which were critical of the relationships among the International Monetary Fund (IMF), the World Bank, and the Russian Central Bank, both John Odling-Smee, who was director of the European II department at the IMF, and [[Michel Camdessus]], who was the managing director of the IMF from 16 January 1987 to 14 February 2000, responded with a 5 August 1999 letter and a 19 August 1999 ''Le Monde'' article respectively.<ref name=CamdessusLetter/><ref name=OldinLetter>{{cite news |last=Camdessus |first=Michel |author-link=Michel Camdessus |url=http://www.imf.org/external/np/vc/1999/080599f.htm |title=Le FMI, la Russie et " Le Monde " |trans-title=The IMF, Russia and "Le Monde" |language=fr |work=[[IMF]] |date=19 August 1999 |access-date=5 August 2021 |archive-date= 2000-08-18|archive-url=https://web.archive.org/web/20000818000130/http://www.imf.org/external/np/vc/1999/080599f.htm}}</ref> PWC performed three audits ''"PricewaterhouseCoopers report on relations between the Central Bank of Russia and the Financial Management Company Ltd (FIMACO)"'' posted on the IMF website on 5 August 1999, ''"PricewaterhouseCoopers report on the funds transferred to the Central Bank of Russia by the IMF in July 1998, and the use, by the Central Bank of Russia, of those funds between July 1 and September 1, 1998"'' posted on the IMF website on August 17, 1999, ''"PricewaterhouseCoopers report on the statistics compiled by the Central Bank of Russia for the IMF in the period from January 1, 1996 to September 1, 1998"'' posted on the IMF website on 17 August 1999, but these three audits were removed from the IMF website on 30 September 1999.<ref>{{cite web |url=https://www.imf.org/external/country/rus/fimaco/index.htm |title=Russian Federation |work=[[IMF]] |date=30 September 1999 |access-date=5 August 2021}}</ref><ref>{{cite news |url=http://www.imf.org/external/country/RUS/index.htm |title=Russian Federation and the IMF: news |work=[[IMF]] |date=7 August 2000 |access-date=5 August 2021 |archive-date=16 August 2000 |archive-url=https://web.archive.org/web/20000816065439/http://www.imf.org/external/country/RUS/index.htm}}</ref> On 31 August 2000, the IMF published annual totals of money transferred to the Russia.<ref>{{cite news |url=http://www.imf.org/external/np/tre/tad/expurch2.cfm?acctType1=GRASDA&Yeartype=C&memberKey=819&startDate=1970&endDate=2000 |title=Summary of Disbursements and Repayments, Russian Federation, January 1, 1970 To August 31, 2000 |work=[[IMF]] |date=31 August 2000 |access-date=5 August 2021 |archive-date=2000-09-30 |archive-url=https://web.archive.org/web/20000930034213/http://www.imf.org/external/np/tre/tad/expurch2.cfm?acctType1=GRASDA&Yeartype=C&memberKey=819&startDate=1970&endDate=2000}}</ref>
In July 2000 because of the central banks of both Russia and Ukraine lied about their reserves, the IMF/World Bank required that all central banks must publish their annual financial statements and have outside auditors review those statements using internationally accepted standards.<ref>{{cite news |url=https://www.coalitionforintegrity.org/archive/who/documents/TIUSANewslettervol42-Apr2000.pdf |title=Transparency International-USA Newsletter (volume 4 issue 2) |work= |page=3 |date=April 2000 |access-date=15 April 2021}}</ref>
[[Mikhail Khodorkovsky]]'s [[Yukos Oil]] conglomerate received some of the money and he gave [[Viktor Gerashchenko]] chairmanship of Yukos for the help Khodorkovsky received from Gerashchenko.<ref name="Saker">{{Cite web |last=The Saker |date=19 November 2020 |title=Putin expels the families |url=http://thesaker.is/putin-expels-the-families/ |archive-url=https://archive.today/20201119230349/http://thesaker.is/putin-expels-the-families/ |archive-date=19 November 2020 |access-date=23 November 2020 |website=The Saker}}</ref>{{efn|"The Saker" lists the seven Russian oligarchs of the 1990s as [[Boris Berezovsky (businessman)|Boris Berezovsky]], [[Vladimir Gusinsky]], [[Mikhail Khodorkovsky]], [[Mikhail Fridman]], [[Alexander Smolensky]], [[Petr Aven]], and [[Vladimir Potanin]].<ref name="Saker"/> According to Dmitry Butrin of ''[[Kommersant]]'', the group known as the Semibankirshchina ({{langx|ru|Семибанкирщина}}) are Boris Berezovsky, Vladimir Gusinsky, [[Vladimir Vinogradov]], Mikhail Fridman, Alexander Smolensky, and [[Vitaly Malkin]] and during a follow up article added three more Peter Aven, Vladimir Potanin, and Mikhail Khodorkovsky.<ref>{{cite news |last=Бутрин |first=Дмитрий (Butrin, Dmitry) |url=http://www.compromat.ru/page_13969.htm |title=Семибанкирщина: Сдача и гибель постсоветского олигарха |trans-title=Semibankirshchina: The surrender and death of the post-Soviet oligarch |language=ru |work=[[BBC]] |via=compromat.ru |date=October 2003 |access-date=6 August 2021 }}</ref><ref>{{cite news |last=Бутрин |first=Дмитрий (Butrin, Dmitry) |url=http://www.bbc.co.uk/russian/specials/1637_rusoligarchs/index.shtml |title=Мечты олигархов России |trans-title=Dreams of Russian Oligarchs |language=ru |work=[[BBC]] |date=September 2003 |access-date=6 August 2021 |archive-date=12 December 2003 |archive-url=https://web.archive.org/web/20031212200455/http://www.bbc.co.uk/russian/specials/1637_rusoligarchs/index.shtml}}</ref><ref>{{cite news |author=КоммерсантЪ staff |url=https://www.kommersant.ru/archive/archive-material.html?docId=423226 |title=Судьбы немалого бизнеса |trans-title=The fate of a considerable business |language=ru |work=[[Kommersant|"КоммерсантЪ"]] |date=27 October 2003 |access-date=6 August 2021 |archive-date=14 March 2004 |archive-url=https://web.archive.org/web/20040314105420/https://www.kommersant.ru/archive/archive-material.html?docId=423226}}</ref>}}
Reports by Swiss and German intelligence implicated numerous persons in the [[Russian mafia]] through {{Interlanguage link|Grigory Luchansky|ru|Лучанский, Григорий Эммануилович|uk|Лучанський Григорій Еммануїлович|de|Grigori Emmanuilowitsch Lutschanski}}'s [[Vienna]], Austria based Nordex and [[Boris Birshtein]]'s [[Zurich]] Switzerland  based [[Seabeco|Seabeco AG]], KGB, FSB, and others in the scheme to move billions away from the Soviet Union and into a secret economy.<ref>{{Cite web |date=17 January 2019 |title=The connection between the FSB and organized crime: Swiss Intelligence's analytical report (English translation) |url=https://tbcarchives.org/fsb-and-organized-crimes-connection-analytical-report-english-translation/ |archive-url=https://web.archive.org/web/20201104150606/https://tbcarchives.org/fsb-and-organized-crimes-connection-analytical-report-english-translation/ |archive-date=4 November 2020 |access-date=23 November 2020 |website=Trans Border Corruption Archive}}</ref><ref>{{Cite web |date=29 January 2019 |title=The connection between the FSB and organized crime: Swiss Intelligence's analytical report, Chapter 4 |url=https://tbcarchives.org/fsb-and-organized-crimes-connection-swiss-intells-analytical-report-chapter-4/ |archive-url=https://web.archive.org/web/20200927071924/https://tbcarchives.org/fsb-and-organized-crimes-connection-swiss-intells-analytical-report-chapter-4/ |archive-date=27 September 2020 |access-date=23 November 2020 |website=Trans Border Corruption Archive |language=de}}</ref><ref>{{Cite web |date=23 October 2018 |title=The connection between the FSB and organized crime: Swiss Intelligence's analytical report |url=https://tbcarchives.org/fsb-and-organized-crime-connection-analytical-report/ |archive-url=https://web.archive.org/web/20201021182839/https://tbcarchives.org/fsb-and-organized-crime-connection-analytical-report/ |archive-date=21 October 2020 |access-date=23 November 2020 |website=Trans Border Corruption Archive |language=de}}</ref>{{efn|Grigory Emmanuilovich Luchansky, also spelled Grigori Loutchansky ({{langx|ru|Григорий Лучанский}}), is Latvian-Israeli-Georgian with ties to money laundering with the Latvian Parex Bank according to the [[Panama Papers]]. He was very close to [[Marc Rich]] and [[Pincus Green]] and their Switzerland based [[Glencore]].<ref name="CaucasusConnections">{{Cite news |last=Intelligence Online staff |date=8 March 2001 |title=The U.S. Connection in Caucasus |work=[[Indigo Publications#Intelligence Online|Intelligence Newsletter]] (No. 401) |url=https://www.intelligenceonline.com/threat-assessment/2001/03/08/the-us-connection-in-caucasus,1699344-ART |access-date=21 November 2020 |archive-url=https://web.archive.org/web/20151014155303/http://www.intelligenceonline.com/threat-assessment/2001/03/08/the-us-connection-in-caucasus,1699344-ART |url-status=live |archive-date=14 October 2015}}</ref>}} Some of the funds were sent to the United States through Semyan "Sam" Kislan from Odesa, [[Michael Cherney]] and Lev Cherney using the United States firm ''Newtel Company'' and [[Alexander Smolensky]]'s [[:ru:Столичный банк сбережений|Stolichny Bank]].{{sfn|Belton|2020|p=66}}<ref>{{cite news |url=http://www.chernoi.nu/htm/in_bio.htm |title=Биографическая справка на Льва Черного |trans-title=Biographical information on Lev Cherny |language=ru |work=chernoi.nu |date=15 December 1999 |access-date=13 September 2022 |archive-date=11 April 2000 |archive-url=https://web.archive.org/web/20000411000000/http://www.chernoi.nu/htm/in_bio.htm}} [http://www.compromat.ru/page_9252.htm Alt URL]</ref> Russian prosecutors had previously tried to implicate Birshtein, Veselovsky, Luchansky, and others of illegally money laundering Communist Party funds.<ref name=WP01021993/><ref name=Saker/>
On 15 December 2011, the [[Frankfurt am Main]] prosecutor's office and German criminal authorities named [[Leonid Reiman]] as a suspect in a 1990s money laundering scheme involving [[Commerzbank]], his longtime attorney [[Jeffrey Galmond]], and four employees of Commerzbank. The case had begun as an investigation into the looting of Russia during the 1990s.<ref>Дзядко, Тимофей (17 February 2012). [https://www.forbes.ru/sobytiya/lyudi/79318-leonid-reiman-dose-svyazista Леонид Рейман: связист, министр, подозреваемый]. ''[[Forbes]].'' Retrieved 12 June 2021.</ref><ref>Филонов, Дмитрий (30 March 2017). [https://republic.ru/posts/81158 Кассовое братство. Кто стоит за новой реформой в торговле? Силовики, чиновники и человек, разыскиваемый Интерполом. Кто под присмотром ФСБ делает бизнес на кассовых аппаратах]. [[:ru:Republic (издание)|republic.ru]]  website. [http://www.compromat.ru/page_37844.htm Archived] from the original on 31 March 2017 as Новые чипы обогатят Германа Грефа, Алишера Усманова, Григория Березкина, Леонида Реймана: Кассовое братство on compromat.ru website. Retrieved 12 June 2021.</ref>
In the 2015 report "Dark Matter" which took into account the very large net errors and omissions (NEO) for Russian capital flight during the looting of Russia in the 1990s, the Russian capital flight tracked with the [[United Kingdom]]'s inflows.<ref>{{cite web |url=https://www.documentcloud.org/documents/3036316-Special-Report-9-Mar-2015-2.html |title=Dark Matter: the hidden capital flows that drive G10 exchange rates |work=[[Deutsche Bank]] Securities Inc. |via=[[The New Yorker]] |page=8 |date=9 March 2015 |access-date=21 July 2021}}</ref>{{efn|Dominated by omissions not errors because of the non random nature of the NEOs, [[Switzerland]], [[Norway]], the [[United Kingdom]], [[New Zealand]], and [[Sweden]] all have very large NEOs when compared with their GDP with Sweden having the largest NEOs accumulated since the early 1990s totaling nearly 40% of GDP.<ref>{{cite web |url=https://www.documentcloud.org/documents/3036316-Special-Report-9-Mar-2015-2.html |title=Dark Matter: the hidden capital flows that drive G10 exchange rates |work=[[Deutsche Bank]] Securities Inc. |via=[[The New Yorker]] |pages=4–6 |date=9 March 2015 |access-date=6 August 2021}}</ref>}}
In a 2004 interview of Russia's IMF director Alexey Mozhin ({{langx|ru|Алексей Можин}}) by Andrei Denisov of [[Vremya Novostei]] about the IMF money transferred on 22, 23, 24 and 24 July 1998 and 14 August 1998 and the subsequent locations of the money, Mozhin cites the Central Bank of Russia's [[PricewaterhouseCoopers]] audit.<ref name="Vremya20040419">{{Cite news |last=Денисов |first=Андрей (Denisov, Andrei) |date=19 April 2004 |title=Алексей Можин: Украсть деньги МВФ вообще невозможно |trans-title=Alexey Mozhin: Stealing IMF money is generally impossible |work=[[Vremya Novostei|Время новостей]] (Vremya Novostei) |url=https://www.vremya.ru/2004/67/13/96662.html |access-date=19 January 2021 |archive-url=https://web.archive.org/web/20040905142340/http://www.vremya.ru/2004/67/13/96662.html |archive-date=5 September 2004 |language=ru}}</ref>{{efn|The July 1999 [[PricewaterhouseCoopers]] audit confirmed that, in 1996, $1 billion of IMF funds were deposited with FIMACO but [[Stanley Fischer]], deputy managing director at the IMF, stated that the money had been illegally sent to FIMACO and that Russians had lied about the matter.<ref name=Economist26081999/> The IMF lent over $20 billion to Russia from 1992 according to the report.<ref name=Economist26081999/>}} In a 31 August 1999 interview with ''[[Libération]]'', Michel Camdessus, the managing director of IMF, refused to call the flight of capital a theft and dismissed any money laundering, but was "worried" that Russia had lied to the IMF about the state of its reserves ({{langx|fr|«la Banque centrale russe nous a menti sur l'état de ses réserves en 1996 et ses transactions légales mais dissimulées avec la Fimaco»}}). In early September 1999, Patrice Delozière, who is a Paris-based representative of the Central Bank of Russia at Eurobank, told ''[[Libération]]'' that "the PricewaterhouseCoopers audit was only provisional" ({{langx|fr|«le rapport Price Waterhouse n'est que provisoire»}})<ref>{{cite news |last=Sabatier |first=Patrick |url=https://www.liberation.fr/evenement/1999/08/31/le-directeur-general-du-fonds-monetaire-international-la-russie-a-mis-un-coup-de-canif-dans-son-cont_280230/ |title=Interview. Le directeur général du Fonds monétaire international: "La Russie a mis un coup de canif dans son contrat avec le FMI". Dans une interview à "Libération", Michel Camdessus s'exprime sur les accusations de détournements de capitaux. |trans-title=Interview. The Managing Director of the International Monetary Fund: "Russia has put a knife in its contract with the IMF". In an interview with "Liberation", Michel Camdessus speaks about the accusations of embezzlement. |language=fr |work=[[Libération]] |date=31 August 1999 |access-date=16 July 2021 |archive-date=17 July 2021 |archive-url=https://archive.today/20210717011500/https://www.liberation.fr/evenement/1999/08/31/le-directeur-general-du-fonds-monetaire-international-la-russie-a-mis-un-coup-de-canif-dans-son-cont_280230/}}</ref><ref>{{cite news |last=Thoraval |first=Armelle |url=https://www.liberation.fr/societe/1999/09/09/fonds-russes-du-fmi-la-justice-francaise-se-lance-le-parquet-de-paris-ouvre-une-enquete-preliminaire_282737/ |title=Fonds russes du FMI: la justice française se lance. Le parquet de Paris ouvre une enquête préliminaire sur le rôle de la Fimaco, banque impliquée dans les transactions douteuses de Moscou. |trans-title=Russian IMF funds: French justice is launched. The Paris prosecutor's office opens a preliminary investigation into the role of Fimaco, a bank involved in Moscow's dubious transactions. |language=fr |work=[[Libération]] |date=9 September 1999 |access-date=16 July 2021 |archive-date=17 July 2021 |archive-url=https://archive.today/20210717010701/https://www.liberation.fr/societe/1999/09/09/fonds-russes-du-fmi-la-justice-francaise-se-lance-le-parquet-de-paris-ouvre-une-enquete-preliminaire_282737/}}</ref> The stolen IMF funds caused the [[Russian financial crisis of 1998]] which began on 17 August 1998.<ref name=Vremya20040419/><ref name="Lurie20030303">{{Cite news |last=Лурье |first=Олег (Lurie, Oleg) |author-link=:ru:Олег Лурье Анатольевич |date=3 March 2003 |title=Украденные миллиарды: Исчезнувший кредит МВФ найден в швейцарских структурах Романа Абрамовича |trans-title=Stolen billions: Disappeared IMF loan found in Swiss structures of Roman Abramovich |work=[[:ru:Наша версия|"Версия"]] (Versiya)  |url=http://www.compromat.ru/page_12850.htm |access-date=19 January 2021 |language=ru}}</ref>
==See also==
* [[Corruption in Russia]]
* [[Kroll Inc.#Capital outflows from the Soviet Union and Russia|Kroll Inc.]]
* [[Cronies of Ferdinand Marcos#Suspected role in Marcos' "techniques of plunder"|Philippines Cronyism]]
==Notes==
{{notelist}}
==References==
{{Reflist}}
==Books and journals==
{{Refbegin}}
*{{Cite book |last=Klebnikov |first=Paul |url=https://books.google.com/books?id=vb2ZAAAAIAAJ |title=Godfather of the Kremlin: the Life and Times of Boris Berezovsky and the Looting of Russia |date=16 September 2000 |publisher=[[Houghton Mifflin Harcourt]] |isbn=9780151006212 |location=New York |author-link=Paul Klebnikov}}
*{{Cite book |last=Browder |first=Bill |title=Red Notice: A True Story of High Finance, Murder, and One Man's Fight for Justice |date=February 3, 2013 |publisher=[[Simon & Schuster]] |isbn=978-1476755717 |author-link=Bill Browder}}
*{{Cite book |last=Dawisha |first=Karen |url=https://books.google.com/books?isbn=1476795207 |title=Putin's Kleptocracy: Who Owns Russia? |publisher=[[Simon & Schuster]] |year=2014 |isbn=978-1-4767-9519-5 |author-link=Karen Dawisha}}
*{{Cite book |last=Bernstein |first=Jake |title=Secrecy World: Inside the Panama Papers Investigation of Illicit Money Networks and the Global Elite |date=November 21, 2017 |publisher=[[Henry Holt and Company]] |isbn=978-1250126689 |author-link=Jake Bernstein (journalist)}}
*{{Cite book |last=Bullough |first=Oliver |author-link=Oliver Bullough |title=Moneyland: The Inside Story of the Crooks and Kleptocrats Who Rule the World |date=May 7, 2019 |publisher=[[St. Martin's Press]] |isbn=978-1250208705}}
*{{Cite book |last=Belton |first=Catherine |author-link=Catherine Belton |title=Putin's People: How the KGB Took Back Russia and Then Took on the West |date=23 June 2020 |publisher=[[Farrar, Straus, Giroux]] |isbn=978-0374238711 |location=New York}}
*{{Cite book |last=Earley |first=Pete |title=Comrade J: The Untold Secrets of Russia's Master Spy in America After the End of the Cold War |date=2008 |publisher=[[G. P. Putnam's Sons|Putnam]] |isbn=9780399154393 |author-link=Pete Earley}}
*{{Cite book |last=Скуратов |first=Юрий Ильич (Skuratov, Yury Ilyich) |author-link=Yury Skuratov |title=Кремлёвские подряды: Последнее дело прокурора |trans-title=Kremlin contracts. The last case of the Attorney General |language=ru |publisher=[[:ru:Алгоритм (издательство)|ООО «Издательство Алгоритм»]] (Algorithm Publishing House) |location=[[Moscow]] |date=2013 |isbn=978-5-4438-0301-2}}
*{{cite journal |last=Илларионов |first=Андрей (Illarionov, Andrey) |author-link=Andrey Illarionov |url=https://vtoraya-literatura.com/pdf/kontinent_146_2010__ocr.pdf |title="Трудный путь к свободе" Часть вторая |trans-title=Hard road to freedom: Part two |language=ru |journal=«Континент» Литературный, публицистический и религиозный журнал (continent.russ.ru) №146 2010, № 4 октябрь — декабрь |date=4 May 2011 |access-date=25 March 2022 |archive-date=25 March 2022 |archive-url=https://web.archive.org/web/20220325233002/https://vtoraya-literatura.com/pdf/kontinent_146_2010__ocr.pdf}}
*{{cite journal |last=Илларионов |first=Андрей (Illarionov, Andrey) |author-link=Andrey Illarionov |url=https://magazines.russ.ru/continent/2010/146/il7.html |title="Трудный путь к свободе" Часть вторая |trans-title=Hard road to freedom: Part two |language=ru |journal=«Континент» Литературный, публицистический и религиозный журнал (continent.russ.ru) №146 2010, № 4 октябрь — декабрь |date=4 May 2011 |access-date=25 March 2022 |archive-date=10 November 2012 |archive-url=https://web.archive.org/web/20121110070748/https://magazines.russ.ru/continent/2010/146/il7.html}}
{{Refend}}
==External links==
* Bohlen, Celestine (July 30, 1999). [https://www.nytimes.com/1999/07/30/world/secrecy-by-kremlin-financial-czars-raises-eyebrows.html Secrecy by Kremlin Financial Czars Raises Eyebrows]. ''The New York Times''. Retrieved December 8, 2020. [https://web.archive.org/web/20190616144105/https://www.nytimes.com/1999/07/30/world/secrecy-by-kremlin-financial-czars-raises-eyebrows.html Archived] from the original on June 16, 2019.
* Coulloudon, Virginie (July 3, 2003). [http://www.princeton.edu/~lisd/publications/wp_russiaseries_coulloudon.pdf Putin's Russia: A confusing notion of corruption]. ''Princeton.edu''. [https://web.archive.org/web/20121015092025/http://www.princeton.edu/~lisd/publications/wp_russiaseries_coulloudon.pdf Archived] from the original on October 15, 2015.
[[Category:Companies of Jersey]]
[[Category:Corruption in Russia]]
[[Category:Economic history of Russia]]
[[Category:Political scandals]]
[[Category:Financial scandals]]
[[Category:Money laundering]]
[[Category:Communist Party of the Soviet Union]]