U.S. Convicts High-Ranking United Nations Official of Money Laundering Conspiracy

From PR/US Newswire:

A jury in Manhattan federal court convicted Vladimir Kuznetsov of conspiring to commit money laundering, U.S. Attorney Michael J. Garcia for the Southern District of New York announced today. The jury returned a guilty verdict after less than one hour of deliberation. Prior to his arrest in September 2005, Kuznetsov served as chairman of the Advisory Committee on Administrative and Budgetary Questions at the U.N. and was the highest-ranking Russian diplomat at the U.N.

The evidence at trial proved that from 2000 through June 2005, Kuznetsov laundered over $300,000 in criminal proceeds obtained by a co-conspirator, Alexander Yakovlev, who served as a procurement officer at the U.N. The funds laundered by Kuznetsov were the proceeds of a fraudulent scheme perpetrated by Yakovlev. Specifically, in 2000, Yakovlev established an off-shore company, Moxyco Ltd. (Moxyco), to facilitate the illicit and secret payment of money to him by, among others, foreign companies seeking assistance in securing contracts to provide goods and services to the U.N. From 2000 to June 2005, Yakovlev accepted over one $1 million dollars generated by this criminal scheme.

In 2000, Yakovlev informed Kuznetsov of the scheme. Rather than report Yakovlev's conduct to law enforcement authorities or the U.N., Kuznetsov agreed that Yakovlev would transfer a share of the proceeds to Kuznetsov for his own benefit. To facilitate and hide the transfer of criminal proceeds to Kuznetsov from Yakovlev's off-shore Moxyco bank account, Kuznetsov established his own off-shore company, Nikal Ltd. Kuznetsov also opened a bank account in the name of Nikal Ltd. at Antigua Overseas Bank Limited, the same bank at which Yakovlev had previously opened the Moxyco account. Thereafter, from 2000 to June 2005, Yakovlev transferred over $300,000 in criminal proceeds to Kuznetsov.

Kuznetsov remains on house arrest pending his sentencing, currently scheduled for June 25, 2007. Kuznetsov faces a maximum sentence of 20 years in prison.

U.S. Attorney Garcia praised the investigative efforts of the FBI and thanked the U.S. Department of State and the U.S. Mission to the U.N. for their assistance. In addition, U.S. Attorney Garcia thanked the U.N. Office of Legal Affairs and Office of Investigative Oversight Services for their cooperation, assistance and efforts in the prosecution.

Assistant U.S. Attorneys Stephen Miller and Jacob Buchdahl are prosecuting this case.