First Russian Oligarch Charged with Violating U.S. Sanctions
Tatyana Makeyeva | Reuters
The Justice Department unsealed an indictment Wednesday revealing federal prosecutors have found Russian media executive Konstantin Malofeyev in violation of U.S. sanctions—the first oligarch to be charged with a sanction’s violation in the wake of Russia's war against Ukraine. Malofeyev is regarded as one of Russia's most influential business moguls and is among the country's Kremlin-allied elite with strong ties to President Vladimir Putin.
Prosecutors allege Malofeyev hired former Fox News Director Jack Hanick to operate a Russian cable news network and transfer a $10 million investment from a Texas bank to an unidentified shell company in Greece.
Hanick was arrested in London last month and faces the first-ever criminal indictment charging a violation of U.S. sanctions arising from Russia’s invasion of Ukraine.. The sanctions charge carries a maximum penalty of 20 years in prison. Hanick also faces a maximum penalty of five years in prison for making false statements to Federal Bureau of Investigation (FB) agents about his work for Malofeyev.
Though Malofeev is believed to be in Russia, Attorney General (AG) Merrick Garland said the Justice Department seized millions from a U.S. financial institution associated with the oligarch.
"Our message to those who continue to enable the Russian regime through their criminal conduct is this: It does not matter how far you sail your yacht; It does not matter how well you conceal your assets; It does not matter how cleverly you write your malware or hide your online activity," stated AG Garland during recent remarks, "The Justice Department will use every available tool to find you, disrupt your plots, and hold you accountable."
Earlier this week, the Justice Department announced it had seized a $90-million mega yacht belonging to sanctioned Russian oligarch Viktor Vekselberg after obtaining a warrant for the seizure.
Those actions demonstrated the reach of the newly established KleptoCapture task force, charged with finding and seizing the assets of wealthy Russians who violate U.S. sanctions on Russia. The penalties appeared designed to enforce the economic sanctions the U.S. and its allies have imposed on Russia.