Month: September 2022

The Justice Department announced today the unsealing of an indictment charging a U.S. citizen and three citizens of the Russian Federation with violating new U.S. sanctions imposed earlier this year in response to Russia’s unprovoked military invasion of Ukraine.

According to court documents, Oleg Vladimirovich Deripaska, aka Oleg Mukhamedshin, 52; and Natalia Mikhaylovna Bardakova, aka Natalya Mikhaylovna Bardakova, 45, both citizens of the Russian Federation (Russia), and Olga Shriki, 42, a New Jersey resident and naturalized U.S. citizen, are charged with conspiring to violate U.S. sanctions imposed on Deripaska and one of Deripaska’s corporate entities, Basic Element Limited (Basic Element). Shriki is further charged with obstruction of justice based on her alleged deletion of electronic records relating to her participation in Deripaska’s sanctions evasion scheme following receipt of a grand jury subpoena requiring the production of those records. Bardakova is charged with one count with making false statements to agents of the FBI. Additionally, Ekaterina Olegovna Voronina, aka Ekaterina Lobanova, 33, is charged with making false statements to agents of the U.S. Department of Homeland Security at the time of Voronina’s attempted entry into the United States for the purpose of giving birth to Deripaska’s child. Shriki was arrested this morning.

“In the wake of Russia’s unjust and unprovoked invasion of Ukraine, I promised the American people that the Justice Department would work to hold accountable those who break our laws and threaten our national security. Today’s charges demonstrate we are keeping that promise,” said Attorney General Merrick B. Garland. “The Justice Department will not stop working to identify, find, and bring to justice those who evade U.S. sanctions in order to enable the Russian regime.”

“As today’s charges reveal, while serving the Russian state and energy sector, Oleg Deripaska sought to circumvent U.S. sanctions through lies and deceit to cash in on and benefit from the American way of life,” said Deputy Attorney General Lisa O. Monaco. “But shell companies and webs of lies will not shield Deripaska and his cronies from American law enforcement, nor will they protect others who support the Putin regime. The Department of Justice remains dedicated to the global fight against those who aid and abet the Russian war machine.”

According to court documents, Deripaska, the owner and controller of Basic Element, a private investment and management company for Deripaska’s various business interests, was subjected to economic sanctions on April 6, 2018. On that day, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Deripaska as a Specially Designated National (SDN), in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to the national security and foreign policy of the United States (the OFAC Sanctions). In designating Deripaska, OFAC explained that Deripaska was sanctioned for having acted or purported to act for or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation, as well as for operating in the energy sector of the Russian Federation economy.

“Today’s indictment reflects the FBI’s commitment to use all of the tools at our disposal to aggressively pursue those who attempt to evade the United States’ economic countermeasures against the Russian government,” said FBI Director Christopher Wray. “We will continue to aggressively prosecute those who violate measures imposed to protect the national security and foreign policy of the United States, especially in this time of Russia’s unprovoked aggression toward Ukraine.”

“The indictment unsealed today signals the United States’ ongoing support for the people of Ukraine in the face of continued Russian belligerence,” said U.S. Attorney Damian Williams for the Southern District of New York. “The enforcement of sanctions is a vital tool wielded by this Office and our law enforcement partners as we seek to deter Russian aggression, and today’s indictment should be taken as a warning that, try as they might, individuals violating these sanctions will be held accountable.” 

Following his designation by OFAC, Deripaska conspired with others to evade and to violate those sanctions in various ways and over the course of several years. Deripaska, through the corporate entity Gracetown Inc., illegally utilized the U.S. financial system to maintain and retain three luxury properties in the United States (the U.S. Properties), and further employed Olga Shriki and Natalia Mikhaylovna Bardakova to utilize U.S. financial institutions to provide hundreds of thousands of dollars’ worth of services for his benefit in the United States. For example, in or about 2019, Shriki facilitated for Deripaska’s benefit the sale of a music studio in California for over $3 million. Deripaska had owned the studio through a series of corporate shell companies that obscured his actual ownership. Following the sale of the studio, Shriki attempted to expatriate over $3 million in proceeds through one such shell company, Ocean Studios California LLC, to a Russia-based account belonging to another Deripaska company.

Bardakova – largely based in Russia – directed Shriki to engage in particular illegal transactions on Deripaska’s behalf. These instructions included directing Shriki to obtain U.S. goods and technology for Deripaska. Moreover, between in or about May 2018 and in or about 2020, Bardakova instructed Shriki to purchase and send flower and gift deliveries on behalf of Deripaska to Deripaska’s social contacts in the United States and Canada. The deliveries included, among others, Easter gift deliveries to a U.S. television host, two flower deliveries to a then-former Canadian Parliament member, and two flower deliveries in 2020 to Voronina while she was in the United States in 2020 to give birth to Deripaska’s child.      

Then, in or about 2020, Shriki and Bardakova helped Deripaska’s girlfriend, Voronina, travel from Russia to the United States, so she could give birth to Deripaska’s and Voronina’s child in the United States. Despite Deripaska’s ongoing support for the Russian regime, he funded hundreds of thousands of dollars of transactions so that his child would take advantage of the U.S. health care system and U.S. birthright citizenship. Despite Deripaska’s ongoing support for the Russian regime, Deripaska distrusted the safety of the Russian hospital system. As alleged, Shriki orchestrated the payment of approximately $300,000 worth of U.S. medical care, housing, childcare, and other logistics to support Voronina to give birth in the United States, which resulted in the child receiving U.S. citizenship. As part of this scheme, Deripaska counseled Voronina on obtaining a U.S. visa, including by telling her to be “careful” ahead of an interview by U.S. immigration authorities. Voronina thereafter applied for and obtained a U.S. visa for a purported 10-day tourism visit without disclosing her intent to travel and stay in the United States for approximately six months to give birth to Deripaska’s child. Following the birth, Shriki, Bardakova, and Voronina conspired to conceal the name of the child’s true father, Deripaska, going so far as to change, slightly, the spelling of the child’s last name.

Later, in or about 2022, Shriki and Bardakova attempted to facilitate Voronina’s return to the United States to give birth to Deripaska’s and Voronina’s second child. This second attempt included Bardakova and Voronina’s attempt to use false statements to conceal Deripaska’s funding and secure Voronina’s entry into the United States – an attempt that was thwarted, and Voronina was denied entry and returned immediately to Istanbul, through which she had flown from Russia to the United States.

Deripaska, Bardakova and Shriki, are charged with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison. Shriki is further charged in one count of destruction of records, which carries a maximum sentence of 20 years in prison. Bardakova and Voronina are each further charged with one count of making false statements to federal agents, which carries a maximum sentence of five years in prison. The indictment also provides notice of the United States’ intention to forfeit from Deripaska the proceeds of his offense, including the U.S. Properties and the proceeds from the sale of the music studio. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI New York Field Office and Counterintelligence Division are investigating the case, with valuable assistance provided by the Department of Homeland Security and the Justice Department’s National Security Division, Counterintelligence and Export Control Section.

Assistant U.S. Attorneys Anden Chow and Vladislav Vainberg are prosecuting the case.

On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

            WASHINGTON – A former senior manager for the Washington Metropolitan Area Transit Authority (WMATA) pleaded guilty today to carrying out a scheme in which he and others manipulated the agency’s procurement process in favor of a company that was paid more than $1.3 million for items and services over a period of more than nine years.

            Scottie Borders, 61, of Arlington, Virginia, pleaded guilty in the U.S. District Court for the District of Columbia to conspiracy to commit wire fraud. The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, Borders faces a likely range of 33 to 41 months in prison, a fine of up to $150,000, and restitution.  The Honorable Christopher R. Cooper scheduled sentencing for Jan. 19, 2023.

            The announcement was made by U.S. Attorney Matthew Graves, Acting Washington Metropolitan Area Transit Authority Inspector General Rene Febles, and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.

            According to the statement of offense submitted to the Court and admitted by Borders, Borders worked full-time as a Senior Program Manager for WMATA. In this capacity, he was involved in the selection, award, and administration of WMATA contracts with various vendors, contractors, and suppliers.

            The charge involves payments to a firm identified in the court documents as “Company 1.” This company, based in Millville, New Jersey, was a producer and supplier of traffic signs and safety products to various individuals, entities, and government agencies, including WMATA. As detailed in court documents, from approximately January 2011 through September 2020, in the District of Columbia, and elsewhere, Borders and others engaged in a scheme to unlawfully enrich themselves by securing the selection, award, and administration of contracts, bids, and purchase agreements between “Company 1” and WMATA for various traffic signs and safety products based on materially false representations made to WMATA, via wire, concerning the nature of the contracts, bids, and purchase agreements involving “Company 1” and others. 

           Borders was the primary point of contact for all business conducted between WMATA and “Company 1.”  He abused his position at WMATA, and his understanding of the contracting and procurement process, to manipulate bids for items and services in favor of the company by using materially false and fraudulent representations made to WMATA via wire by Borders and his co-conspirators.

            For example, Borders and his co-conspirators falsified price quotes and bids on behalf of companies that either did not submit bids to do business with WMATA or did not know that their information was being used in connection with specific WMATA bids. Borders also provided individuals at “Company 1” with information about potential competitors’ bids.  The purported quotes and fraudulent bid proposals were made up to ensure that the company secured the lucrative WMATA purchase orders and contracts at issue.  Additionally, Borders added unnecessary items to purchase orders that he submitted to WMATA on behalf of the company.

            Ultimately, WMATA paid “Company 1” for such invoices and orders secured and submitted through Borders.  Borders also procured purchase orders on behalf of WMATA, for equipment from the company that Borders knew was unnecessary, substandard, and/or never actually provided to WMATA. 

            During the relevant period, WMATA paid the company more than $1.3 million for various services and items, including poles, decals, bus stop signs, flags, and tools.  In exchange for facilitating these fraudulent bids and orders on behalf of WMATA, Borders was provided with items of value, including NFL tickets, by individuals affiliated with the company.

            This investigation was conducted by the FBI’s Washington Field Office and the Washington Metropolitan Area Transit Authority, Office of Inspector General. The prosecution is being handled by Assistant U.S. Attorney Anne P. McNamara of the U.S. Attorney’s Office for the District of Columbia.

Earlier today, in federal court in Central Islip, a criminal complaint was unsealed charging Christopher Moscinski with violating the Freedom of Access to Clinic Entrances Act (the “FACE Act”) for blocking access to a Planned Parenthood of Greater New York health center in Hempstead, New York that provides reproductive health services.  Moscinski was arrested today and will make his initial court appearance this afternoon before United States Magistrate Judge Steven I. Locke.

Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charge.

“The defendant attempted to prevent women from accessing their legal right to vital reproductive and pregnancy services,” stated United States Attorney Peace.  “This Office will enforce federal law to protect clinics and staff that provide reproductive health services while safeguarding the rights of their patients.  I commend the local police, firefighters and bystanders who came to the health center’s aid to ensure that it could continue serving the community.”

“As alleged, the defendant made repeated attempts to disrupt and deny access to a Planned Parenthood facility in violation of the FACE act.  These attempts interfered with the community’s ability to seek reproductive and pregnancy health services, and today’s action should serve as a reminder of the FBI’s commitment to protecting the civil rights of all,” stated FBI Assistant Director-in-Charge Driscoll.

As alleged in the complaint, at 6:22 a.m. on July 7, 2022, Moscinski, a Franciscan friar, arrived at the health center wearing civilian garb.  He fastened several padlocks and bicycle locks to the gated entrance of the health center, rendering the entrance impassable.  Some of the locks had glue poured into them.  After police and fire department personnel arrived at the health center and cut the padlocks, Moscinski returned to the scene wearing a religious robe, and laid his body in front of the gate, blocking vehicles from entering the health center’s parking lot until he was arrested by officers from the Hempstead Police Department.    

The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.

In 1994, Congress passed the FACE Act in response to an increase in violence toward patients and providers of reproductive health services.  The FACE Act prohibits violent, threatening, damaging and obstructive conduct intended to injure, intimidate or interfere with an individual’s right to seek, obtain or provide reproductive health services.  First-time convictions of the FACE Act are misdemeanor violations punishable by up to one year in federal prison.  Subsequent convictions are a felony.

Suspected violations of the FACE Act can be reported to the FBI by calling 1-800-225-5324 (1-800-CALL-FBI) or by visiting tips.fbi.gov.  If you or someone you know is in danger, call 911.

The government’s case is being handled by the Office’s General Crimes and Civil Rights Sections.  Assistant United States Attorneys Sophia Suarez and Lauren Bowman are prosecuting the case.

The Defendant:

CHRISTOPHER MOSCINSKI (also known as “Fr. Fidelis Moscinski”)
Age:  52
Bronx, New York

E.D.N.Y. Docket No. 22-CR-1052 (SIL)