Never Ending Story

// General Prosecutor Office is prepared to bring more charges against Mikhail
YUKOS Case
Yesterday the General Prosecution and Interior Ministry conducted large-scale searches and expropriation of documents from business structures connected with YUKOS in Russia and abroad. According to the General Prosecution Office, the investigative measures were done "within a frame of criminal case of legalization of the money, which was received illegally." This was an exact motive of the criminal charges of the second criminal case against Mikhail Khodorkovsky and Platon Lebedev that was brought up by prosecution in the end of the last year. It means that Khodorkovsky and Lebedev would be charged in the nearest time with new offenses and they would not be sent into the correctional labor facilities.
"Unpredictable scale"

In the nearest time, Mikhail Khodorkovsky and Platon Lebedev have to be transferred to the prison labor camp. According to the Criminal Code, the transfer usually happens within 10 days after the Administration of the prison will receive notification about the sentencing. The sentencing went in effect on Sept.22, after Moscow City Court rejected the appeal of Khodorkovsky and Lebedev lawyers (only one count was dropped and because of that the prison term for the defendants was reduced from nine to eight years.) according to Kommersant, the document arrived in Matrosskaya Tishina prison on Sept. 27. It means that the prisoners should be transferred out of Moscow already tomorrow. Less than two days before this date the prosecution did another large-scale search in YUKOS offices. The official information about the prosecution’s operation was publicized only after Vladimir Putin returned from his European visit. All this proves that law enforcement officials intend to keep Khodorkovsky and Lebedev in Moscow. Yesterday's events are indicating that today or tomorrow the prosecution will bring up the new charges against both prisoners, which will provide the opportunity to keep them in Moscow.

In the first part of the day, Kommersant received information that there are some investigations activities being conducted in Khodrokovsky’s attorney’s office. Anton Drel, lawyer of the former YUKOS chief, has an office on Zhukovka, 88. Kommersant could not establish the connection with Drel. The General Prosecution Office did not make any comments. After some time, news agency reported that the representative of Dutch authorities in the presence of Russian General Prosecution officers are searching the office of the Dutch affiliate of YUKOS --YUKOS Finance V.B. (This company controls all foreign assets of YUKOS.) When the information came closer to the evening about "General Prosecution and Interior Ministry officers went to the addresses of the money laundering suspects," it became clear that all the previous actions were not accidental. And it was true - later on the General prosecution office published on its Web site some details. It said the operation was conducted "within a frame of criminal case investigation about the legalization of the money, which was acquired in an illegal way by employees of YUKOS together with other individuals." According to the General Prosecution, the searches and expropriations of the materials were also done in Zhukovka as well as in the law firm ALM Feldmans, in Investment Bank "Trust", in National Bank "Trust" and in YUKOS -FBC.

According to the investigation, during 200-2003 "some managers and employees of YUKOS stole and legalized about $7 billion by transferring the funds overseas." "The attorneys and representatives of various business structures and banks" were participating in grand theft. The investigation revealed the schemes, "developed for hiding the profits from the sale of the oil and further legalization of the money by paying dividends to fake companies, which are registered in several foreign countries."

Let's remind, that in the spring of this year, right before the sentencing of Khodorkovsky and Lebedev, the General Prosecution office announced about its intention to bring up new charges in "money laundering, which is amounted to billions of rubles" (the exact amount is still not named.) The case was brought up in December of 2004, but the information about the case appeared only in January. However, the Prosecution Office did not charge Khodorkovsky and Lebedev -- it was waiting for the sentencing. The lawyers stated that "prosecution does not want Mikhail Khodorkovsky out of jail no matter what the sentencing would be." Khodorkovsky through his attorney said: “Do the authors of new charges understand the danger of these accusations for our country? The prosecution’s attempt to call dividends payout to the YUKOS stock holders (there are tens of thousands Russian and foreign citizens, foundations, organizations among the stockholders) as money laundry operation makes the consequences to be on unpredictable scale."

Routine Work

Press Secretary of YUKOS in London Clair Davidson confirmed that the searches were conducted not only in Russia, but also in office of YUKOS Finance BV in Netherlands, and also in "law firms, which in the past worked for YUKOS." "The reason for the visit of the officers’ from the Main Investigation Department at Ministry of Justice of Netherlands would be explained to the management of the YUKOS," the official statement says. "The representatives of Russian authorities, who have a right of consultative voice, were not allowed into the offices of YUKOS Finance BV." The same document says that "Despite our efforts to improve our relationship with RF authorities to find a way out of the situation, we became again a subject for inadequate actions and the series of the groundless attacks."

According to Kommersant, one of the of the mentioned law firms was ALM Feldmans, which had a power of attorney to represent some off-shore companies in Moscow, whose accounts were used for YUKOS' money transfers. However, in the law firm the Kommersant was told that "nobody came" and they did not see anybody. However, it is known that last year the prosecution office was regularly calling several employees from ALM Feldmans, trying to get their confessions that they worked under direct order of Khodorkovsky and his close aids. As a result the General Prosecution even charged the lawyer from the company Elena Agranovskaya with theft of fund entrusted to her, money laundry and tax evasion.

The press service of investment bank "Trust" and national bank "Trust" admitted the fact of yesterday searches as well as ongoing investigation their cooperation with YUKOS. However, the banks' representatives said "the work goes as normal and the situation is calm." The representatives of both Trusts mentioned that they already got used to such actions and they became routine in someway: "We already keep one room especially for the investigators. They come, sit there and work." One of the employees pointed out that "such special actions are going on in several other credit organizations in Moscow."

Kommersant was able to find out that the investigation representatives came yesterday, for instance, to the bank Russian Credit. As press service of Russian Credit answered: "the investigation was concerned with one of the former top-managers, who used to work in the bank about 10 years ago for a short period f time and did not make any executive decisions." However, the bank refused to name this top manager, as well as to answer if the investigators visit was connected to the General Prosecution's actions toward YUKOS.

That's how it all began

A Kommersant correspondent contacted attorney Anton Drel yesterday only after eight o'clock. "I could not get to my office all day," the lawyer complained. "I was sitting in the car and was trying to stay warm. I even got cold waiting. It was like some kind of deja vu: the same things were going on in 2003."

Let's remind that everything started two years ago from the sudden searches. Back then Drel could not get into his office for several hours. He could not get any explanation from the authorities either. "Now, just like in that time, I still don't understand who is looking for what in there. There were no search warrants showed to me. Nobody talks to me. I don't understand what they expropriate there at all. In my office there are several hundred volumes of Mikhail Khodorkovsky and Platon Lebedev cases, which contain no secrets for anybody. I have also the watch and wedding band of Platon Lebedev, who gave them to me for temporary storage. They already took everything they could during the multiple previous searches." On the Kommersant's question about the searches are connected with new charges against his clients, the attorney answered: "As one movie hero said once 'it is hard to understand the logic of unprofessional'. Actually, Mikhail Khodorkovsky in his speech in the Moscow City Court said that he wouldn't be surprised if the prosecution will come up with any ridiculous charges against him, even if he would be accused in setting the Manege on fire."

(Kommersant, 10.6.2005)