Friday, 22 August 2014
Last updated 12 hours ago
Jul 24 2008 | 9:54am ET
A U.S. hedge fund says fraudsters used three of its former investment companies to steal US$230 million from Russian tax authorities.
Hermitage Capital Management, once Russia’s largest foreign investor, is best known for having manager William Browder banned from the country in 2005 after criticizing corporate governance. Now, it is filing criminal complaints, alleging that documents seized from its offices and lawyers by Russia’s interior ministry in February 2007 to fake losses at three companies owned by Hermitage and HSBC, which is backing Hermitage’s legal actions, the Financial Times reports.
The alleged perpetrators re-registered the ownership of the companies, effectively stealing them, and then using the faked losses to claim tax rebates. The fraudsters collected 5.4 billion Russian rubles (US$231.4 million) from the tax authority on claimed losses of 23 billion rubles (US$985.7 million).
The hedge fund did not lose very much due to “the falsification of evidence in court proceedings and manipulation of data,” because it had already sold off their assets.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note