Quite the story - doing business in Russia

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Chilling story about an American opening a legal office in Russia and then the mafia comes. From Foreign Policy:
Russia's Crime of the Century
If there remains any pretense that justice and rule of law exist in Moscow today, that notion should now be counted as pure fantasy. The case of Sergei Magnitsky -- a senior partner at my law firm who was imprisoned, tortured, and murdered after his efforts to shed light on a massive governmental fraud by Interior Ministry officials stealing subsidiaries of my client's company, the Hermitage Fund, and the $230 million of taxes they had paid -- has illuminated the cruelty and criminality of Russian legal enforcement. And new evidence released last week on YouTube as part of the broad campaign seeking justice for Sergei, goes even further -- exposing the blatant theft, impunity, and ill-gotten gains of senior Russian tax officials who were complicit in the fraud and subsequent murder of my colleague.

The very bureaucrats -- government tax officials on modest salaries in Moscow Tax Office 28 -- exposed by Sergei three years ago of perpetrating the massive fraud stashed millions of dollars in overseas bank accounts, created offshore companies, and purchased luxury villas in Dubai, Montenegro, and Moscow. Worse still, the Kremlin and Russian President Dmitry Medvedev, in particular, have refused -- out of embarrassment, inability, culpability, or incompetence -- to review and prosecute what is now overwhelming evidence of this clear crime.

When I opened my law firm, Firestone Duncan, in Moscow in 1993, I was aware of the dangers of doing business in Russia. The stories about "mafia" groups of tracksuited thugs extorting businesses were well known to me. What I never expected was that the Russian mafia would merge with the government; its members are now the same officials who are supposed to be protecting the public.
Makes sense in a twisted sort of way. Once the big corporations start to get greedy, they are no longer operating under capitalism, they are operating under corporatism and anything goes including buying out the ruling class. See Imelt/Obama/GE IRS taxes for a domestic example...

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This page contains a single entry by DaveH published on May 12, 2011 7:40 PM.

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