DOJ Secures Guilty Plea, Announces Charges in Russian Money Transfer Scheme
DOJ last week announced a guilty plea and indictments as part of a scheme by Russians to illegally use U.S.-based companies to transfer and launder money.
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The agency said Feliks Medvedev, a Russian national living in Georgia, pleaded guilty to operating an unlicensed money transmitting business, including by registered eight companies in Georgia to illegally transmit over $150 million in more than 1,300 transactions. A "large majority" of the money transferred into the accounts came from multiple overseas companies, DOJ said, and was transferred within days to other foreign companies. The money was partly used to buy more than $65 million in gold bullion from the Singapore Precious Metals Exchange.
The agency also announced charges against sanctioned Russian business consulting company KSK Group and employees Alexey Chubarov and Lev Solyannikov for working with Medvedev to transfer and launder the money. Chubarov and Solyannikov allegedly "informed" Medvedev about incoming wires and then "directed" him "concerning the outgoing transfers he should make," DOJ said, including the transfer of funds to the Singapore exchange.
The cases were coordinated through DOJ's Task Force KleptoCapture, an interagency law enforcement group focused on enforcing sanctions against Russia and seizing frozen assets. U.S. Attorney Ryan Buchanan said Medvedev "will face severe consequences for his crimes," adding that the indictment shows the agency is going after people "who seek to facilitate the illegal transfer of Russian money.”
Medvedev’s sentencing is scheduled for May 7. SK Group, Chubarov and Solyannikov were charged with conspiracy, operating an unlicensed money transmitting business and money laundering.