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Freezing Order: A True Story of Money Laundering, Murder, and Surviving Vladimir Putin's Wrath

Nonfiction | Autobiography / Memoir | Adult | Published in 2022

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Themes

The Corruption and Criminality of the Russian Government

The Russian government, under Putin, is a criminal organization, completely at one with organized crime. Tracing the money trail of the crime that Magnitsky exposed and for which he was murdered, Bill Browder’s team and other investigators not only linked Putin to the proceeds of the stolen money but uncovered other crimes. The scale of criminality and money laundering is staggering, and a small Russian elite benefits. Money is stolen via fraud, and then the dirty Russian money is laundered through transit countries and invested in the West, where corrupt officials and criminals spend excessive money on luxuries. As in any criminal organization, the Russian officials will do anything to protect their wealth, including murder. Given the power of the state, those threatening this wealth can be imprisoned, and crimes are easily covered up.

Because Browder had no tolerance for the fraudulent practices of Russian businesses and exposed them in the international media, Putin expelled him from Russia in 2005. Later, Browder’s hedge fund’s offices and those of his attorney were raided. Taking the company’s seals and certificates, the Russian authorities stole the hedge fund’s companies and used them to fraudulently obtain a $230 million tax refund. The government then filed bogus charges against one of Browder’s colleagues, who was in London. Browder filed a criminal complaint against the corrupt Interior Ministers who had raided his offices, and the Russian government responded by filing charges against Browder—and assigning one of those corrupt officers to investigate the case. When Browder’s Russian attorney, Magnitsky, uncovered the fraudulent tax payment and reported it, he was arrested, imprisoned, and eventually murdered.

Browder’s team set out to follow the stolen money. In so doing, Browder demonstrated the enrichment of a Russian official in the tax office, Stepanov, as well as the lavish gains of the corrupt officials in the Interior Ministry. Ultimately, he traced some of the stolen tax refund to Roldugin, Putin’s close friend. Putin couldn’t have his own name on investments and therefore had his trusted friend put his name on Putin’s fortunes. Browder estimates Putin’s fortune to be in the billions. Some of the money landed in New York City and was owned by a Russian company, Prevezon, which was owned by the son of a major Russian official. The connections between the companies laundering the money and the government were incestuous. The owner of a bank and major criminal boss, Klyuev, routinely had his crimes covered up by the Russian government. Klyuev even spoke on behalf of the Russian government at a meeting of OSCE PA. That, to Browder, was proof that the Russian government and organized crime were one and the same.

Taking on such a criminal enterprise involves danger. To protect their ill-gotten gains, Russian officials are willing to resort to any means, include sullying reputations with disinformation, making false arrests, and perpetrating murder. Browder argues that Magnitsky laws, which prevent such criminals from accessing their assets, threaten what they most value, their wealth in the West. As a result, the Russian government will do anything to prevent that legislation.

The High Price of Dissent in Russia and Beyond

Browder is motivated to make the Russian criminals pay a price because his friend, Magnitsky, was murdered. For exposing a crime and therefore highlighting the corruption of the Russian government, Magnitsky paid the ultimate price. He wasn’t the only one to pay this price for taking on Putin’s criminal government. Other friends of Browder’s were killed in Russia and, even more distressingly, assassinated abroad. Those advocating for the Magnitsky Act were additionally subjected to harassment and threats. Those involved in the fight for justice in the Magnitsky case paid an enormous psychological toll.

In addition to Magnitsky himself, Browder recounts the assassination of Nemtsov and the attempted assassinations of Kara-Murza and Gorokhov. These three individuals were bravely carried the fight for justice into Russia itself. Nemtsov was a legendary Russian opposition leader who lent his full support to the quest for Magnitsky laws. He was assassinated near the Kremlin after giving an interview about a planned anti-Putin demonstration. The crime was covered up and blamed on others, but Browder had no doubt that Putin ordered the execution. Kara-Murza, a close friend and associate of Nemtsov’s, was dedicated to passing Magnitsky laws and spoke at a memorial in Washington, DC, in honor of his friend. After returning to Russia to continue his work against Putin despite severe official harassment, Kara-Murza was poisoned. He came close to death but was saved by Russian doctors with integrity. Likewise, Gorokhov—the Magnitsky family’s attorney who gained access to Magnitsky’s file, got the information to the US Attorney in New York, and later testified—was almost assassinated in Russia as well. He too recovered but had lasting damage to his eyes. Such murders silence not only the victims but others who become too afraid to speak up against the regime. The Russian government threatened those in the West working against their interests as well. When Perepilichnyy gave evidence against the Stepanovs in the Swiss case, assassins poisoned him in France. Perepilichnyy died as a result. That reach of the Russian crime bosses and authorities terrified Browder and others working against their interests.

In addition to murder, the Russian government used public relations campaigns with disinformation to sully the reputations of those working on Magnitsky laws—and used the state to bring bogus charges against such individuals. Browder was charged and convicted in absentia twice by the Russian government. Even the deceased Magnitsky was charged, and his wife was harassed by authorities. For Browder, such criminal charges caused fear whenever he crossed international borders. He never knew if an administrative error could land him in Russian hands. One time, the Russians successfully used Interpol to have Browder arrested in Madrid. Although the situation was resolved, Browder remained uneasy crossing borders and had to deal with delays and embarrassment due to bogus Russian filings.

The constant exposure to such dangers caused severe stress for those fighting against Putin. At one time, Browder was told to vary his routines because his life was threatened. It took a toll on his family and all the families of those fighting against Putin. Browder recounts one incident in Colorado when men approached his children who went inside. The men came to the door and knocked while his wife and children stayed hidden and terrified. However, Browder notes the value in all these sacrifices. At time of this book’s publication, 37 countries had passed Magnitsky laws, and the Russian criminals had at least sustained some economic damages. Magnitsky saved other lives, and he and other heroes can never be forgotten.

Western Choice—to Abet or Fight the Russian Government’s Crimes

Browder argues that sympathetic and/or greedy Westerners enable Putin’s crimes. The proceeds of crimes originate in Russia, flow through transit countries, and land in the Western countries, such as Switzerland and the US. The fortunes of Russian oligarchs and corrupt officials are therefore invested in democratic countries. For this reason, a united front and strict enforcement of Magnitsky laws had a substantial and negative impact on these criminals. Nevertheless, such a united front exists because Putin has secured the support of some Westerners. Browder considers these individuals at times even more loathsome than the Russian criminals because Putin’s Western supporters can choose to fight for justice, to fight for injustice, or to not get involved.

In the legal fight to use money laundering statutes to freeze Prevezon’s assets in New York City, Russian authorities were represented by John Moscow and Mark Cymrot—both of whom were Americans and worked for the prestigious law firm of BakerHostetler. Prevezon’s head was the son of a Russian official and benefited from the proceeds of the $230 million tax fraud scheme. Browder found Moscow’s involvement particularly egregious because that attorney had previously represented Browder in the Magnitsky case. Moscow had inside knowledge as a result. When Browder repeatedly tried to get Moscow and his firm removed from the case because of this conflict of interest, the law firm didn’t act ethically but instead played hard ball on behalf of its Russian clients. At times, Russian lawyers clearly called the shots, such as when they alleged a conspiracy between Browder and the US government, and American attorneys did their bidding.

The Russian government enlisted Americans and Westerners in its battle against Magnitsky Acts. Simpson, another American, was employed by the Russians as a public relations specialist. Able to get favorable coverage for the Russians in The New York Times, he planted disinformation to muddy the waters and reduce support for Browder and Magnitsky laws. His reward, like those of BakerHostetler attorneys, was money. US Representative Dana Rohrabacher traveled to Moscow and subsequently did all he could do to defeat the Global Magnitsky Act. He initially got the bill removed from the House Foreign Affairs Committee, invited every member of the House to a Russian propaganda film, and tried to remove Magnitsky’s name from the law. President Trump, who spoke favorably of Putin, initially expressed support for the idea of swapping Browder for Russians indicted in the US for election interference. When Putin made the deal even more outrageous by requesting US government officials, the White House was silent. It took a bipartisan resolution in the Senate to condemn the offer.

In Europe, several countries have pro-Putin factions. In Hungary, such a faction controls the government. While this isn’t the case in France, the National Front, led by Marine Le Pen, garners a sizeable vote and is pro-Putin. Those willing to jettison democratic values and human rights for the sake of money and power in the West are despicable in Browder’s view. They enable Putin to enrich himself and Russian criminals, and Putin therefore does everything possible to exploit this division in the West. When the actions of such enablers are contrasted with those working within and outside Russia to hold Putin accountable at risk to their lives, the behavior of Western enablers is all the more contemptible.

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