A New York lawyer admitted in court that he illegally helped Russian oligarch Viktor Vekselberg, who is under sanctions, manage six elite properties.
Lawyer Robert Wise pleaded guilty yesterday to one count of conspiracy to commit international money laundering. The hearing was presided over by US District Judge Mary Kay Viskocil, and the case was heard under a plea agreement with the prosecutor’s office. Wise admitted to facilitating $3.8 million in taxes and insurance premiums for homes in New York and elsewhere in favor of Vekselberg.
Wise was hired to manage the property by Viktor Voronchenko, Vekselberg’s childhood friend. Voronchenko was charged in February with participating in a scheme to pay more than $4 million to maintain four of the oligarch’s properties and attempt to sell two of them. Later that month, the US proceeded to seize six $75 million luxury properties in New York and Florida linked to Vekselberg.
Property subject to forfeiture includes a nine-bedroom, 11-bath home at 19 Duck Pond Lane in Southampton, Long Island.
And a 4,000-square-foot, four-bedroom Manhattan skyscraper apartment at 515 Park Avenue, which was last valued at $14.6 million.
Wise told the judge that he began working with real estate for Voronchenko in 2005 or 2006, and in 2008 began representing Medallion, which Vekselberg actually owned, paying bills including property taxes, maintenance and repairs. He said he continued to make payments on behalf of the organization until 2022, even after learning that Vekselberg was sanctioned in 2018.
Wise wasn’t sure if Vekselberg was still the beneficiary of the property, but decided not to raise the issue. “I understand that by continuing to pay taxes on these properties, despite the high likelihood that they belong to Vekselberg, I tacitly agreed to use foreign funds to violate US sanctions,” Wise explained.
The U.S. Department of Justice Task Force KleptoCapture is using a range of new and covert tactics to identify and prosecute companies and individuals hiding assets of sanctioned wealthy Russians. The head of the task force said they are looking for new ways to limit sanctions evasion, focusing on foreign investment advisors, hedge funds, law firms and investment management companies that could previously avoid scrutiny.
Earlier this month, the US and UK announced sanctions against key advisers to Russian billionaires Roman Abramovich and Alisher Usmanov, accused of hiding assets.
Although Wise faced up to five years in prison (if found guilty in court), he agreed to federal rules that require him to serve 46 to 57 months behind bars. He is to be sentenced on November 6th.
US v. Voronchenko, 23-cr-73, is heard by the US District Court, Southern District of New York.
