Businessman Allegedly Tied to Russian Treasury Fraud Agrees to Settle $6M Judgment
A Russian businessman has agreed to pay $6 million from the proceeds of three Manhattan apartments to satisfy a judgment against him in a forfeiture case.
March 08, 2018 at 03:39 PM
2 minute read
A Russian businessman has agreed to pay $6 million from the proceeds of three Manhattan apartments to satisfy a judgment against him in a forfeiture case.
Denis Katsyv, whose firm, Prevezon Holdings, has been alleged to have been tied to a $230 million fraud from the Russian treasury, signed an agreement with federal prosecutors stating that he would draw payments to satisfy the judgment from two condos at 20 Pine Street in Manhattan's Financial District and commercial space in Midtown at 250 E. 49th St.
U.S. District Judge William Pauley III of the Southern District of New York approved the stipulation on Thursday.
Katsyv and Prevezon's counsel in the case included Natalia Veselnitskaya, a Russian lawyer who in June 2016 during the election campaign of President Donald Trump met with Trump's son, Donald Trump Jr.; Jared Kushner, the elder Trump's son-in-law; and Paul Manafort, who managed Trump's campaign.
The meeting raised concerns about Russian interference in the 2016 presidential race.
The Prevezon case was begun in 2013 during the tenure of former U.S. Attorney Preet Bharara. Prosecutors said the property purchases were intended to launder the funds taken from the Russian treasury through an elaborate tax refund fraud scheme.
In March 2017, Trump fired Bharara as part of a mass purge of holdover U.S. attorneys.
In May 2017, two days before the Prevezon case was set to go to trial, Prevezon and federal prosecutors announced that a $5.9 million settlement had been reached in the case, but Katsyv argued in the ensuing months that he couldn't pay the settlement because his funds were being held hostage by the Dutch government.
Last month, Pauley granted the federal government's motion to enforce the settlement, finding that the Netherlands had actually released the money on Oct. 10.
Quinn Emanuel Urquhart & Sullivan partner Kevin Reed, who appeared for Prevezon in the case, also signed the agreement.
Assistant U.S. Attorneys Paul Monteleoni, Cristine Phillips and Tara La Morte prosecuted the case.
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