Post by Sapphire Capital on Jul 25, 2008 21:33:25 GMT 4
Investment group alleges $230m Russia tax fraud
By Stefan Wagstyl in London and Catherine Belton in,Moscow
July 25 2008
Suspected fraudsters have allegedly stolen $230m from the Russian tax authorities in a complex scheme involving forgery, impersonation and the theft of three investment companies, according to Hermitage Capital Management, formerly the country's largest foreign portfolio investment manager.
The perpetrators allegedly fraudulently re-registered the ownership of the companies before using them to make false tax rebate claims, according to the fund manager, which is filing criminal complaints over the affair.
HSBC, the world's largest bank, is supporting Hermitage in its legal action in its role as the group's investment manager and trustee-owner of the three Moscow-based investment companies, Rilend, Parfenion and Makhaon.
In April this year Hermitage and HSBC claimed in legal complaints to Russian prosecutors that in late 2007 they lost control of the three investment companies through fraud involving "the falsification of evidence in court proceedings and manipulation of data".
Hermitage claims documents used in the fraud were removed from its offices and its Moscow lawyers' premises by interior ministry officials as part of an unjustified February 2007 tax raid - and remained in the ministry's custody.
Hermitage suffered little financial loss through the theft of the three companies because it had earlier sold their assets, mainly shares in Gazprom, the gas group.
However, it claims the court cases were used to generate fake losses at the three companies. According to court documents seen by the Financial Times, the courts accepted claims of losses totalling about Rbs23bn ($1bn, €627m, £493m), just over the companies' 2006 profits of Rbs22.9bn. Hermitage alleges the fraudsters proceeded to claim Rbs5.4bn from the tax authority.
Russia's official corporate database shows that a new bank account was opened in Parfenion's name in December 2007 at a little-known bank called Interkommerzbank. New accounts were opened for Makhaon and Rilend at Universal Savings Bank (USB).
The tax authority and the interior ministry declined to comment. USB said it was in liquidation and declined to comment. The chief executive of Interkommerzbank said he could not immediately comment.
By Stefan Wagstyl in London and Catherine Belton in,Moscow
July 25 2008
Suspected fraudsters have allegedly stolen $230m from the Russian tax authorities in a complex scheme involving forgery, impersonation and the theft of three investment companies, according to Hermitage Capital Management, formerly the country's largest foreign portfolio investment manager.
The perpetrators allegedly fraudulently re-registered the ownership of the companies before using them to make false tax rebate claims, according to the fund manager, which is filing criminal complaints over the affair.
HSBC, the world's largest bank, is supporting Hermitage in its legal action in its role as the group's investment manager and trustee-owner of the three Moscow-based investment companies, Rilend, Parfenion and Makhaon.
In April this year Hermitage and HSBC claimed in legal complaints to Russian prosecutors that in late 2007 they lost control of the three investment companies through fraud involving "the falsification of evidence in court proceedings and manipulation of data".
Hermitage claims documents used in the fraud were removed from its offices and its Moscow lawyers' premises by interior ministry officials as part of an unjustified February 2007 tax raid - and remained in the ministry's custody.
Hermitage suffered little financial loss through the theft of the three companies because it had earlier sold their assets, mainly shares in Gazprom, the gas group.
However, it claims the court cases were used to generate fake losses at the three companies. According to court documents seen by the Financial Times, the courts accepted claims of losses totalling about Rbs23bn ($1bn, €627m, £493m), just over the companies' 2006 profits of Rbs22.9bn. Hermitage alleges the fraudsters proceeded to claim Rbs5.4bn from the tax authority.
Russia's official corporate database shows that a new bank account was opened in Parfenion's name in December 2007 at a little-known bank called Interkommerzbank. New accounts were opened for Makhaon and Rilend at Universal Savings Bank (USB).
The tax authority and the interior ministry declined to comment. USB said it was in liquidation and declined to comment. The chief executive of Interkommerzbank said he could not immediately comment.