Putin Ally Denies Knowledge of U.S. Money Laundering Investigation
A commodities firm under investigation by federal prosectors on suspicion of money laundering and improper oil trading said on Thursday that it had no knowledge of the inquiry and called allegations of wrongdoing “baseless and false.”
The investigation, first reported by The Wall Street Journal, centers on the Gunvor Group, a firm formerly controlled by Gennady N. Timchenko, a billionaire Russian businessman with ties to President Vladimir V. Putin of Russia.
On Thursday, Mr. Timchenko issued a separate statement in which he denied any wrongdoing and said he had not received any formal notification of an investigation. The statement further suggested that extreme caution should be exercised in considering the allegations, “particularly given the political climate prevailing in respect of Russian business in the American media.”
A federal law enforcement official, who like others with knowledge of the case spoke on the condition of anonymity because the investigation was ongoing, said on Wednesday that “the Justice Department has launched a money-laundering investigation into Gennady Timchenko as part of its initiative to crack down on overseas corruption. The case is being led by federal prosecutors in Brooklyn and F.B.I. agents in New York.”
A co-founder of Gunvor, Mr. Timchenko sold his share of the company to his Swedish partner in March. The sale took place one day before the White House added several businessmen with ties to Mr. Putin, including Mr. Timchenko, to a list of those facing sanctions over Russia’s incursions into Ukraine.
During the investigation, which began as early as 2011, prosecutors issued subpoenas to American banks, oil trading companies and a Gunvor subsidiary.
In a bond prospectus for investors last year, Gunvor Group said that the subsidiary, Castor Americas, which is located in Houston, was subpoenaed in 2011 by the United States attorney’s office in Brooklyn “for documents relating to Castor’s oil trading activities, among other matters.”
The prospectus said three employees of Castor and one employee of Gunvor had also been served. “Gunvor is not aware of the full scope” of the inquiry, the prospectus added.
A spokesman for the United States attorney in Brooklyn declined to comment Wednesday night. Efforts to reach Mr. Timchenko or his representatives were unsuccessful.
Source: NYT – Putin Ally Denies Knowledge of U.S. Money Laundering Investigation
