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Austin resident with ties to Russia arrested
An Austin resident was arrested on Thursday because of suspected ties to a sanctioned Russian oligarch. This comes as we approach the two-year anniversary of Russia's invasion of Ukraine.
AUSTIN, Texas - A Russian national was arrested in Austin on Thursday for alleged business dealings with a sanctioned Russian oligarch, according to an unsealed indictment.
Vadim Wolfson, previously Vadim Belyaev, was taken into custody at one of two properties he owns in Austin, according to public records. He is currently a legal, permanent resident of the U.S.
Court documents state Wolfson founded Bank Otkritie, formerly one of the largest privately-held banks in Russia, and left Russia around 2018.
According to the indictment, Wolfson and other defendants were involved financially with Andrey Kostin, CEO of VTB, a Russian state-owned bank.
Because of his connection to the bank, Kostin was sanctioned by the U.S. in 2018, according to the documents, and designated a Specially Designated National (SDN) by the U.S. Department of Treasury’s Office of Foreign Assets Control.
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Once an individual is designated an SDN, "there are significant restrictions on the SDN’s ability to transact in the United States or with U.S. persons," and vice versa.
According to the indictment, before and after Kostin was sanctioned, he utilized shell companies to own and control assets worth tens of millions of dollars, ultimately violating the International Emergency Economic Powers Act or IEEPA.
Wolfson's alleged involvement was related to Kostin’s home in Aspen, Colorado. The indictment states Wolfson made $12 million on the sale of the home which he wired to Kostin.
Wolfson and one other defendant were arrested on Thursday as part of a nationwide crackdown by the Department of Justice just days ahead of the second anniversary of the invasion of Ukraine.
Attorney General Merrick Garland announced "significant enforcement actions" in five separate federal cases against "sanctioned oligarchs and facilitator networks supporting the Russian regime" on Thursday.
"In the Southern District of New York, we have charged the president and chairman of one of Russia's largest state-owned banks and co-conspirators with sanctions, violations and money laundering," said Garland, referring to Kostin, Wolfson and other unnamed defendants.
"These actions represent just a fraction of the work the Justice Department's Task Force KleptoCapture has been engaged in for the past two years. During that time, we have seized, restrained, or sought the forfeiture of nearly $700 million in assets of sanctioned oligarchs and other enablers of the Russian regime," said Garland. "We are more committed than ever to cutting off the flow of illegal funds that are fueling Putin's war, and to holding accountable those who continue to enable it."
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Wolfson is charged with one count of conspiracy to violate IEEPA and two counts of violating IEEPA. Each carries a maximum sentence of 20 years in prison.
Wolfson’s attorney was not listed.
According to the DOJ, Kostin remains at large and is believed to be in Russia.
On Friday, Pres. Biden announced an additional 500 sanctions against Russia for its "repression, human rights abuses, and aggression against Ukraine."
"The U.S. government has designated over four thousand entities and individuals in response to Russia's war on Ukraine over the past two years - the strongest set of sanctions ever imposed on a major economy," said White House Press Secretary Karine Jean-Pierre on Friday. "We will continue to take actions to ensure Mr. Putin pays and a steeper price for his aggression abroad and the repression at home."