The Magnitsky Myth & Other Keys

to the Geopolitical Hoax of the Century – Page 5


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Criminal Case Number 153123


Before the Magnitsky myth is the reality.


   In the 1990s, along with the arrival of legitimate operators, predatory capitalists invaded the former Union of Soviet Socialist Republics (USSR 1922 - 1991) on missions pecuniary, political, and/or a mixture of both – “carpet-baggers from the West” in the words of David Cornwell (best known as novelist John le Carré). Among them one William Felix Browder, New Jersey, USA-born (23.04.1964) – a con-man who’d worked for the crooked UK+ ‘press baron’ Robert Maxwell until the 1991 death of the “Bouncing Czech” off his super-yacht, Lady Ghislaine.


   (Maxwell purchased the Lady Ghislaine from the Emad Khashoggi family. Emad’s uncle, Saudi arms-dealer Adnan Khashoggi, earned notoriety globally via his association with BCCI – the corrupt Bank of Credit and Commerce International known colloquially as the “Bank of Crooks and Criminals Intl.” Adnan made news in Canada in the 1980s when he endeavoured to cheat creditors by moving assets through Vancouver Stock Exhange-listed+ shell companies.)


   In the wake of this curious death-at-sea in 1991, ex-Maxwell employee Bill Browder came under the “like gold” wings of a dubious mentor, the Lebanese-Brazilian banker Edmond J. Safra (mis-spelled as Edmund Saffra in the "black book" of convicted, notorious, sex-offender Jeffrey Epstein). Safra’s Republic National Bank of New York‘s associated with a number of dodgy Canadian stock deals of the 1980s and ’90s – among them: the fraudulent crustacean-trap-to-cellular-privacy share promotion, Cycomm International Inc. (chronicled on earlier pages here); and a mid-‘90s mining stock play of Albert Applegath, (the huckster behind New Cinch Uranium Ltd. – Canada’s most notorious “salting” or false assaying scandal until gold-fraud Bre-X came along) – more on that deal should time allow. And, not to be left out, Safra’s RNBoNY served as Corporate Advisor to Bre-X Minerals Ltd. – the greatest fake-assay swindle in stock market history (cratering in 1997).


   As detailed in previous pages on "J'Accuse News" site, for Browder's it's "like winning the lottery" when Edmond Safra (who died, under bizarre circumstances, from smoke-asphyxiation) and French-Israeli “diamond tycoon” Beny Steinmetz, (mired more recently in a massive bribery and money-laundering controversy in Guinea), bank-rolled an operation in Moscow, Hermitage Capital, with him up-front as CEO. Hermitage launched in 1996. (Following Safra’s mysterious 1999 demise RNBoNY’s sale to HSBC was completed partnering the latter with Browder’s Hermitage team in Russia and offshore, incl. domestic "offshore", locations.)


   Encamped in Moscow, in a particularly callous, as well as lucrative scheme, Hermitage group companies for which Bill Browder served as General Director, and Sergei Magnitsky (alt. spellings Sergey, Magnitskiy) acted as Chief Accountant, for years 'employed' disabled people eg. a victim of the Chernobyl nuclear disaster cleanup, an Afghan war veteran, and one challenged with a genetic disease and mental retardation claiming them to be expert financial analysts ie. essentially props in a multi-million-dollar tax-fraud. Court found that Browder, Magnitsky and team were "wittingly aware that no work will be performed by the disabled people" and carried out their scheme "without creating jobsites for them". Browder was responsible for filing these sham companies' tax returns which he duly signed.


Browder Sha'ashou Kalmykia liquidation 84 Browder Sha'ashou Kalmykia liquidation 85 Browder Sha'ashou Kalmykia liquidation 86 Browder Sha'ashou Kalmykia liquidation 87
Browder Sha'ashou Kalmykia liquidation 88 Browder Sha'ashou Kalmykia liquidation 89 Browder Sha'ashou Kalmykia liquidation 90 Browder Sha'ashou Kalmykia liquidation 91


   After scamming economically-distressed, Kalmykia, (a pastoral Republic situated in the southwest corner of the Russian Federation), by promising-and-not-delivering on a business centre and by falsifying employment records/status etc., and ripping off Russia’s federal government for tax revenues, domestic “offshore” companies structured by accountant Sergei Magnitsky for General Director Bill Browder and co. wound up bankrupt, transferred for liquidation to Jakir Daniel Sha'ashoua (numerous spelling variants incl. Yakir, Shashoua, Shashua – and in the fictional book, “Red Notice”, published under Browder’s name, he’s called Ariel Bouzada).


   Sha'ashoua, "an Israeli ex-Mossad agent", (according to Browder's ghostwriter), provided "security" services to Edmond Safra's Republic National Bank of New York. Sha’ashoua’s Visao Risk Management Group (VRMG) opened shop in Moscow in 1995 – the prior year to Hermitage’s launch.


   With millions of dollars in taxes still unpaid by these entities, Bill Browder's questioned in the US Southern District of New York's Prevezon case by lawyer Mark Cymrot click on the above thumbnails to see each page of SDNY court transcript. (For more damning testimony from this examination day, April 15, 2015, click here for the full transcript.) In convicting Bill Browder of large-scale tax-evasion, Moscow’s Tverskoy District Court made a concise assessment that well describes his game: "The court rejected the arguments of Browder's innocence because they are contradicted by the evidence, the court recognized valid and laid the basis for the verdict."


The first, (which is followed by a second), of Hermitage's various illegal schemes for which Bill Browder’s criminally-convicted reveals via corporate, police and court+ records filed in the USA (incl. Prevezon case) and Russia+ (incl. Dalnaya Step, Saturn Investments case) the well-documented m.o. and history that is concealed by those anxious to perpetuate the Magnitsky myth. It's most-plainly known as Criminal Case Number 153123.


   Born (08.04.72) in Odessa, Ukrainian SSR, Sergei Leonidovich Magnitsky graduated in 1993 from the Plekhanov Russian University of Economics "specializing in finance and credit". He went to work in Moscow at Firestone Duncan, a firm offering tax accounting and legal services operated by American Jamison "Jamie" Reid Firestone and others (see info on earlier pages of "J'Accuse News" as to FD's ownership, history etc.).


    At Firestone Duncan the young tax accountant Magnitsky's put to work on Hermitage files. Commencing in the 1990s, for years Magnitsky followed instructions and/or requests of Bill Browder and team. Employment and court records document that Magnitsky was employed from 1995 as an accountant and certified as a qualified auditor (in 1998) up until his 2008 arrest in connection with Hermitage-related tax evasion schemes. Manager of FD's Audit & Tax Dept. (from December 1995 - Dec. 2000) was Artem Uskov (today a London, UK-based "wealth manager").


    In 1998, Hermitage players incorporated and registered in the city of Elista, in the autonomous Republic of Kalmykia, Russian Federation a pair of limited liability corporations – LLC Dalnaya Step (alt. spellings incl. Dalniaya Steppe + Dalnyaya Step/pe) and LLC Saturn Investments. As of June 9, 1998 Bill Browder was appointed General Director of, both, Saturn and Dalnaya (in English - Distant Step or Steppe). On August 17, 1999 Dalnaya and Saturn filed paperwork to register as companies that invest in Kalmykia including a promise to develop the "Kalmytskiy Business-Center" "within the administrative territorial unit with special status 'City Chess'." (City Chess, aka Chess City, located to the east of Elista, is a complex devoted to the game of chess. It's the controversial pet project of Kirsan Nikolayevich Ilyumzhinov, Head of the Republic from 1993 - 2010.)


   The "staff of each company consisted of the Director General Browder and disabled employees of the analytical department". Sergei Magnitsky acted as Chief Accountant of Dalnaya and Saturn working from offices of Firestone Duncan. Magnitsky visited Elista in-person on a number of occasions and, witnesses testified, he advised Kalmykians what to tell the authorities should questions be raised about their fictitious employment arrangements. (By 2003/4 authorities uncovered the fraudulent scheme of Browder, Magnitsky et al and the Hermitage team was in the process of trying to cover its tracks.)



   “Offshore People”. Stark. Poetic. The 2010 documentary introduces us to exploited victims of Hermitage enterprise in Kalmykia – for which Bill Browder, American-turned-British agent of deception, is criminally-convicted.



Meet "Offshore People": The Documentary. Coming soon in English translation.


    In a pattern familiar to those of us who study such scams here in the West, the corporate facades of Browder and Magnitsky+ received generous tax concessions for promising to help build the economy of the impoverished region. But they never delivered the promised contribution to Kalmykia's needy economy. There was no physical operation employing a raft of expert financial analysts+ as claimed in tax and other government filings. Instead, the great tax benefits obtained illegally through Saturn and Dalnaya charades were applied against monies/profits, channelled through the Kalmykian-registered entities from other financial schemes such as share-trading of Hermitage and its trustee HSBC (Guernsey) via holding co.s in "offshore" Cyprus.


   Corporate, financial and other records filed in court+ show that, during the material period while the Kalmykian shells were under the control of Bill Browder/Hermitage and before they're unplugged and transferred to "fixer" Jakir Daniel Sha'ashoua for liquidaton from August 18, 1999 through to March 29, 2002 Browder, Magnitsky and co. "did not make any investments in the construction and development of the business center" (and no further agreements were entered into as was required vis-a-vis "Kalmytskiy Business-Center").


   As well, during this material period, Dalnaya and Saturn filed false information, staff lists etc. about their employment of disabled further, illegally, gain tremendous federal tax-breaks. (Generous incentives were offered to businesses to maintain a minimum 50% of their staffing through legitimate employment of handicapped persons.) Interviews with those claimed as such workers by the Hermitage entities, and other witnesses, along with documentary records show that these were 'employees' in name only. They did not –  in fact, could not – perform the work underlying the filings of Browder and Magnitsky+. Instead, the Kalmykians received nominal sums – "enough to buy bread" as one "expert analyst": put it –  to be workers only on paper. (The amount's generally in the range of US $15 - $30 per month – a small fraction of the pay unskilled laborers would receive at the time. Actual financial analysts would, naturally, be paid, exponentially, still more.) Their disability records and employment books and related docs were used as props in the multi-million dollar tax fraud executed by Magnitsky, Browder and accomplices+.


    Testifying under oath, Vladimir Nikolaevich Tsedeev (appears also in English translations as: Volodya Tsedieyev, Tsydeev, and Cedeev), Chairman of "Union of Afghan Veterans of the Republic of Kalmykia", explained how this harmful tax-scam unfolded. In 1998/99, Tsedeev testified, initially Firestone Duncan's Uskov contacted him asking him to find disabled people in Republic of Kalmykia for fictitious work ie. they would not do any actual work, and would be paid for use of their names and paperwork. (In fact, a number of disabled Kalmykians used in the Hermitage scheme held real jobs at other locations and such duties they continued performing during the period Browder and Magnitsky's paperwork falsely claimed they're employed by Saturn and Dalnaya. Other handicapped individuals used in the tax-fraud were simply unemployed by any honest definition throughout the material period.)


    Tsedeev next spoke with Sergei Magnitsky about the scheme by phone. Following this, Magnitsky made several visits to Elista (sometimes "there was also Victor that came with him" from Moscow, witnesses testified). Magnitsky met in-person with Tsedeev and Viktor Byatkiev, (a former classmate of Tsedeev's on disability pension - a machine/mechanical engineer by trade who'd be falsely claimed by Saturn Investments as an employee of its "Expert Analysts Division").


    Tsedeev told the court, in testimony corroborated by Byatkiev, Magnitsky was not interested in educational or other such employment qualifications. Nor did Magnitsky care about the specialty, skills etc. of any employees for the Hermitage co.'s Dalnaya Step and Saturn just that they had the disability documents and the requisite working group of disability categorization to enable claims for tax concessions to be submitted. In 2003/4, Tsedeev says, when matters were pursued, (in Arbitration Court and by the tax authorities of Kalmykia), Magnitsky personally called Tsedeev and Byatkiev making clear to them the need to maintain the fiction.


   The companies, prior to bankruptcy and liquidation, failed to invest in the economy as promised and they lied about their employment of disabled people as expert financial analysts. This multifold tax-scam deprived the people of the Republic of Kalmykia and the Russian Federation of much-needed capital and tax revenues. Hermitage companies Dalnaya Step and Saturn Investments wound up bankrupt, transferred to Jakir Daniel Sha'ashou's VRMG for liquidation. The carpet-baggers rolled up their tent and stole out of Elista and Chess City with a fortune in un-earned, illegal, tax benefits. On May 5, 2003 the Arbitration Court of Kalmykia found Saturn owed taxes in arrears of 4.6 million rubles and penalty interest of 487,000 rubles. On December 9, 2005 the Arbitration Court determined Dalnaya Step itself owed 551 million rubles in unpaid taxes. In aggregrate, these Hermitage sham operations defrauded the public / government of some US $19.2 million (based on currency exchange rates at the time).


    And for the human cost, there's much to learn from the experiences recounted by people used as pawns in the dishonest financial games of Bill Browder, Sergei Magnitsky and co. in Kalmykia.


(NB These video-taped police interviews of exploited Kalmykians, viewable below, have been available online in the West since 2009. Their spoken/audio contents have been translated here in Canada – they are still to be transcribed for an English-language audience.)


   E.Y. Badykov = Erni Yurievich Badykov (alt. Erdni, Badokov)


     Erni Badykov's of value to the Hermitage schemers because he's a  "disabled person of group III resulting from an illness contracted during post-accident clean-up on service at Chernobyl Nuclear Power Station". (The Chernobyl nuclear disaster, erupting from an accident at the No. 4 reactor, occurred April 26, 1986 near the city of Pripyat in the north of the Ukrainian SSR.)


    A general laborer, worker, Erni had been unemployed since March 25, 1996 and struggling to survive on disability pension when his friend/relation Viktor Byatkiev told him of his employment as a "guard" at Saturn in Moscow. (Saturn, as noted earlier, would list Byatkiev as an analyst.) No actual work duties were performed, but official paperwork was needed, it was explained to Badykov who provided Byatkiev with his disablement certificate, passport and other documentation that was sought by Hermitage operators in Moscow.


      In his video-taped interview with police, Erni Badykov explains that, in the beginning, he didn't even know he was employed by Saturn. He did no actual work for the company and did not know his job title. The filings made by Saturn Investments list him as an employee of the "Expert Analysts Division". In 2003 - 2004, Badykov's testified, Viktor Byatkiev informed him that Saturn was "restructuring" and returned to him his employment book etc. which included notice of termination of his employment.


    When news of Browder, Magnitsky et al's scam became public in Russia, Erni Badykov was interviewed by the press. Of Saturn Investments' operation he says: “I don’t even know what actually they were doing there. They just had some schemes with money. I don’t know shit. What kind of production or a firm.” The reporter asked: “So you are not a financial analyst at all?” Considering how he's billed in the company's official filings, Badykov good-naturedly scoffed: “Of couse not. I don’t remember anything I learned in school. And after school… I had nothing to do with math.”


Erni Badykov Tape #1




Erni Badykov Tape #2




Erni Badykov Tape #3




Erni Badykov Tape #4




Erni Badykov Tape #5





    A.E. Bukayev = Alexey Erentsenovich Bukayev (alt. Erencenovich Bukaev)


    Born in 1980, Alexey's the younger of two Bukayev brothers enlisted upon the request of Sergei Magnitsky for more disabled people. (His recruiter Victor Byatkiev, the machine engineer falsely claimed by Saturn as a financial analyst in its employ, is friends with the Bukayev boys' parents.) His value to the Hermitage group's scheme Alexey Bukayev's disabled since childhood, suffering from infantile cerebral palsy (a permanent movement+ disorder). Previously categorized as a disabled person of group II, since 2001 Alexey's of group III status.


    Alexey's paperwork was sent to the accountant Magnitsky in Moscow and he's falsely claimed as working for Dalnaya Step (and older brother, Odn, was put on the fictional staff-list of Saturn Investments). In convicting Saturn & Dalnaya General Director Bill Browder for this tax-evasion scheme, years later, the court found the Bukayevs "were doing nothing within these companies, they continued working for their primary employers".


   Dalnaya Step's employment record book shows Alexey Bukayev's employed as an "Analytical department expert" from March 1, 1999 to December 31, 2003. Not only was there no such actual work performed - the dates, too, are fabricated. (Evidence at trial showed "the employment record book was made 'post factum' as the offer to become an employee of this company in name only, had been made well after the date".)


    Alexey testified he and his brother received, from time-to-time, nominal payments over about one-and-a-half years before Byatkiev brought the pair letters of resignation to sign and told them they'd no longer receive any monies. Just as Sergei Magnitsky had instructed, Victor Byatkiev warned the Bukayev brothers they should say they'd done actual work for Dalnaya and Saturn if asked by the authorities+.


    In reality, during the material period, Alexey Bukayev worked a number of jobs – including: as a sales clerk in a bread production plant; as an unskilled laborer in construction company KMK; as an unskilled laborer in private construction; and planting greenery for a municipal enterprise in Elista. Alexey testified he "never made any kind of work" for Dalnaya Step.


Alexey Bukayev Tape #1




Alexey Bukayev Tape #2




Alexey Bukayev Tape #3




Alexey Bukayev Tape #4




Alexey Bukayev Tape #5





    O.E. Bukayev = Odn Erentsenovich Bukayev (alt. Erencenovich Bukaev) 


    Odn Bukayev, (born 12.09.1975), a fictitious employee of Saturn Investments, is older brother to Alexey (a fictitious employee of Dalnaya Step as detailed above). What makes Odn valuable for the scheme of Browder, Magnitsky and co. is his diagnosis: "oligophrenia in the degree of debility". Oligophrenia, aka the Sjogren-Larsson Syndrome, is characterized by three clinical findings: ichtyosis (thickened, scaly, skin); spastic paraplegia (leg spasticity); and mental retardation. Since 2001 Odn's "a disabled person of group III (and post-2005 he's categorized as disabled person of group II).


    Despite such considerable challenges from October 27, 1999 through to 2005, legitimate employment records show, Odn Bukayev worked numerous jobs, as: sauna-worker, house-painter, pargeter (a plasterer), mason, keeper and unskilled laborer for different companies.


   Just as did his brother, Alexey, and other Kalmykians, Odn provided his disablement certificate, passport and other documents for forwarding to Firestone Duncan's Sergei Magnitsky working for Browder's Hermitage team. Saturn Investments employment records submitted to tax authorities listed him as being hired February 1, 1999 as "analytical department expert" and dismissed December 31, 2003 by this Browder group entity in Kalmykia. (As with his brother's company employment record for Dalnaya these are proven to be artificial 'post factum' dates created for admittedly fictitious work. And, just like his brother was told, the instruction acountant/auditor Sergei Magnitsky gave recruiter, and phantom Saturn staffer, Viktor Byatkiev was passed along Odn was informed he should say he's a real employee of Saturn if asked.)


    Sister-in-law of Odn and Alexey Bukayev, D.B. Balzhynimaeva, testified re the brothers: "Both of them are able to perform works concerning physical activities (ie. physical labor)". Along with her in-laws' own testimony, and the documentary evidence, she confirmed that the brothers had never worked for Saturn and Dalnaya and, especially, not in the position of experts in financial analysis.


Odn Bukayev Tape #1




Odn Bukayev Tape #2




Odn Bukayev Tape #3




Odn Bukayev Tape #4




Odn Bukayev Tape #5





V.A. Byatkiev = Viktor Angrikovich Byatkiev (alt. Victor Bitkiev, Byatkiyeva)


     Viktor Byatkiev's individual value to Hermitage is his classification as third group (III) of disability (pension from diseases). In 1999/2000 he's invited by classmate Vladimir Tsedeev to become a "nominal employee" of Saturn Investments. Tsedeev informed Byatkiev "that actually working in this organization is not required".


    Over time, testifies Viktor, FD's Sergei Magnitsky called him to say he'd arrived in Elista. The pair met in a local restaurant and Magnitsky asked Byatkiev to find more people with disabilities for the same 'employment' opportunities – warning that if law enforcement or regulatory agencies made contact the disabled should say they were, in fact, actually working for "Dalnaya Step" and "Saturn". On behalf of Magnitsky, Byatkiev found relatives and (children of) friends to enlist: the Bukayev brothers Alexey & Odn; Erni Badykov; and I.S. Mikulyaeva.


(NB The pattern evidenced by those represented here in video-taped interviews repeats with other falsified/phantom ‘employees’ of the Hermitage co.s in Kalmykia. eg. I.S. Mikulyaeva's claimed in filings by the  Hermitage/Firestone Duncan team to be an employee of Dalnaya Step and a disabled person of group III. Witnesses, however, testified, and Mikulyaeva's official work record shows, she worked only at the Amur Sanan National Library, Republic of Kalmykia, from 30.05.1973 until her death, from illness, on 09.07.2002.)


    Byaktiev gathered the documents requested and sent them to accountant Sergei Magnitsky who, by this time had returned to Moscow from Kalmykia. Magnitsky visited twice more to Elista, contacting Byatkiev on those occasions as the Arbitration Court of the Republic of Kalmykia was probing matters. Finally, the court's told, Magnitsky again phoned Byatkiev this time requesting letters of resignation of the disabled Kalmykians. Viktor Byatkiev obliged Magnitsky once more sending the accountant these statements in the mail.


   Interviewed in 2010's frank and moving documentary “Offshore People”, (coming soon in English translation), Viktor provides insight into the struggle for survival by the handicapped+ in Kalmykia, facing such limited employment, rocketing costs of medicine and other hardships. The film's narrator summarizes: “Victor Bitkiev by profession is a mechanical engineer. But who needs such an engineer with third group (type of incapacity / handicap)? Government exploited him and threw him out. Browder picked up Victor. And exploited him again.”


Viktor Byatkiev Tape #1




Viktor Byatkiev Tape #2




Viktor Byatkiev Tape #3




Viktor Byatkiev Tape #4




Viktor Byatkiev Tape #5



   The government offers tax incentives to stimulate the economy, and aid the people, of a region in need. But, then, characters such as dishonest corporate exec Bill Browder and facilitating accountant Sergei Magnitsky get wind of things, and they corrupt the original intent. They cheat the people they’re pretending to help out of any benefits to come from millions of dollars in tax revenues (and that’s before considering any schemes orchestrated via share-trading etc. of Hermitage and trustee HSBC through Cyprus shells and other vehicles.)


   Instead of putting money into the economy of hard-pressed Kalmykia, instead of aiding people with physical disabilities, injured by war, radiation or disease and facing tough challenges, to find gainful employment and purpose – Criminal Case Number 153123 shows us how they exploited these poor people. They used them as props in a criminal scheme and then discarded them when the scam had outlived its financial+ use to Hermitage.


   Today, we in the West are asked to forget the carpet-baggers' history, to ignore the facts, and, instead, to pretend a self-serving fraud such as Bill Browder cares about global human rights. C’est ridicule!



Saturn Dalnaya Steppe Bill Browder criminal conviction


    Filed in the US Southern District of New York (SDNY) court English-language translation of Judgment of Moscow’s Tverskoy District Court against Bill Browder in connection with the Saturn + Dalnaya Step criminal scheme illuminated, above, on this web-page. NB The criminal case against Sergei Magnitsky, who's mythologized since his tragic death in prison (16.11.2009), was dismissed. On July 11, 2013, Browder's found guilty of large-scale tax evasion ("to the tune of 522 million rubles"). He's sentenced him to nine years in jail and barred from doing business in the Russian Federation for two years. – click on the image above to view/download the full document



Bill Browder Ivan Cherkasov Criminal Verdict - English transcription


    The second criminal scheme of Browder and co.'s to result in conviction –  this time of Bill Browder and Ivan Cherkasov, Hermitage COO. "On December 29, 2017, Moscow’s Tverskoy District Court sentenced Browder to nine years behind bars in absentia, having found him guilty of tax evasion again, this time to the tune of more than 3 billion rubles ($45.3 million) and bankruptcy fraud. His business partner Ivan Cherkasov was handed a similar prison sentence. The court also upheld a lawsuit against Browder and Cherkasov for 4.2 billion rubles ($63.4 million) and barred them from doing business in Russia for three years." click on the page image above to download and read the full Judgment






Under-oath #5 Text-book examination of a person lacking in facts and integrity.

NB For the full transcript of Browder's examination which debunks the myths click on the thumbnail below: 


William F. Browder Videotaped Deposition #1 Transcript




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