Russian scheme used NYC buildings to launder $230M: Feds

Preet Bharara
Preet Bharara

A Russian crime organization known as Prevezon Holdings Ltd. used New York buildings to launder funds related to a $230 million tax fraud scheme, federal prosecutors claimed. And now the feds are attempting to seize the properties.

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The U.S. Department of Justice accused the organization of duping several companies out of millions of dollars. Prevezon Holdings used fake lawsuits against the Russia-based Hermitage Fund to generate fake money judgments, then members of the organization posed as Hermitage officials and pretended to claim tax refunds from the judgments, according to a DOJ complaint.

Corrupt Russian government officials are also members of the organization, said Preet Bharara, U.S. Attorney for the Southern District of New York. [Bloomberg News]Mark Maurer