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Defendant Also Helped Oligarch Illegally Transfer a $10M U.S. Investment to Business Associate
WASHINGTON — A superseding indictment was unsealed today charging Alexey Komov, 53, of Russia, with conspiracy and violations of U.S. sanctions arising from his assistance to sanctioned Russian oligarch Konstantin Malofeyev, who was previously charged with sanctions violations in April 2022.
As alleged, Komov conspired with Malofeyev to recruit and employ an American citizen, Jack Hanick, who worked for Malofeyev in launching and operating a television network in Russia. Komov also conspired with Malofeyev, Hanick, and others to illegally transfer a $10 million investment that Malofeyev had made in a U.S. bank to a business associate in Greece, in violation of the sanctions blocking Malofeyev’s assets from being transferred.
“The indictment alleges Alexey Komov played an essential role in a multi-faceted scheme to violate and evade U.S. sanctions imposed on a significant financier of Russian aggression in Ukraine,” said Co-Director Menno Goedman of Task Force KleptoCapture. “Task Force KleptoCapture will continue to disrupt schemes perpetrated by Komov and other sanction evaders, whenever and wherever they may hide.”
“As alleged, Alexey Komov facilitated the efforts of Konstantin Malofeyev — an oligarch closely tied to Russian aggression in Ukraine who has been determined by the Department of Treasury’s Office of Foreign Assets Control (OFAC) to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine — to flout U.S. sanctions,” said U.S. Attorney Damian Williams for the Southern District of New York. “The unsealing today of the indictment against Komov is yet another reminder that this office will continue to hold those accountable that seek to undermine the United States’ national security goals.”
In 2014, the president issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the president blocked all property and interest in property that came within the United States or the possession or control of any U.S. person, of individuals determined by the Secretary of the Treasury to be responsible for or complicit in, or who engaged in, actions or policies that threatened the peace, security, stability, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide financial, material, or technological support for, or goods and services to, individuals or entities engaging in such activities. Executive Order 13660, along with certain regulations issued pursuant to it (the Ukraine-Related Sanctions Regulations) prohibits, among other things, making or receiving any funds, goods, or services by, to, from, or for the benefit of any person whose property and interests in property are blocked.
On Dec. 19, 2014, OFAC designated Malofeyev as a Specially Designated National (SDN) pursuant to Executive Order 13660. OFAC’s designation of Malofeyev explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk.
As alleged in the indictment, beginning in at least 2012, Komov assisted Malofeyev in recruiting and hiring a U.S. citizen named Jack Hanick to work on a new Russian cable television news network that Malofeyev was creating. As part of Komov’s recruitment of Hanick, Komov travelled to Manhattan to meet with Hanick and subsequently introduced Hanick to Malofeyev in Russia. With Komov’s knowledge, Malofeyev negotiated directly with Hanick regarding Hanick’s salary, payment for Hanick’s housing in Moscow, and Hanick’s Russian work visa. Malofeyev paid Hanick through two separate Russian entities through the end of 2018.
After OFAC designated Malofeyev as a SDN in December 2014, Malofeyev continued to employ Hanick on the Russian TV Network, with Komov’s assistance and input, and in violation of the Ukraine-Related Sanctions Regulations. For example, prior to the launch of the Russian TV Network on the air in Russia in April 2015, Komov wrote an email to Malofeyev, Hanick, and another employee, referencing their prior discussion with Malofeyev earlier that day and instructing Hanick to create two types of programs and allocate staff. Komov further wrote, “Hopefully Konstantin will be providing general direction and guidance for both projects. Looking forward to our long-term co-operation on those exciting endeavors!” In turn, Hanick requested Komov to serve as a moderator for the first broadcast, writing “KM [i.e. Malofeyev] and I agree that we need you on this the first show on [the Russian TV Network]!!!”
With Komov’s participation, Malofeyev also employed Hanick to assist Malofeyev in transferring a shell company that Malofeyev owned to a Greek associate of Malofeyev. In 2014, Malofeyev, assisted by Komov, had used the shell company to make a $10 million investment in a Texas-based bank holding company. Komov helped set up the deal, emailing a Texas-based attorney (Individiual-1), “I plan to come to the US with two of my close friends Konstantin Malofeev [sic] and [another individual] on Feb 4-9, 2014 . . . I’d like the three of us to meet with you to discuss our cooperation, and also joint investment projects (please propose attractive investment opportunities with reliable partners for $50-100 mln participation from our side)”. On or about March 25, 2014, Komov wrote to Individual-I, “Konstantin has confirmed today that he goes ahead with the 10 mln investment in the bank project.”
Beginning in or about March 2015, with Komov’s assistance, Malofeyev began making plans to transfer ownership of the shell company to the Greek Business Associate, in violation of the Ukraine-Related Sanctions Regulations. On or about March 4, 2015, Komov wrote to Individual-1, “I need to discuss with you several things: previous investment in the bank project (we want to consider selling it)”. On or about March 17, 2015, Komov wrote to Individual-1 about the Texas Bank Interest, in part, “We want to keep it where it is now, only the owner from our side changes.” Consistent with that plan, in or about May 2015, Malofeyev’s attorney drafted a sale and purchase agreement that purported to transfer the shell company to the Greek Business Associate in exchange for one U.S. dollar. In June 2015 Malofeyev had Hanick physically transport a copy of Malofeyev’s certificate of shares in the Texas Bank from Moscow to Athens to be given to the Greek Business Associate. Malofeyev signed the sale and purchase agreement in June 2015, but the agreement was fraudulently backdated to July 2014 to make it appear that the transfer had taken place prior to the imposition of U.S. sanctions. Malofeyev’s attorney then falsely represented to the Texas Bank that the transfer had taken place in July 2014, even though Malofeyev and his attorney well knew that the transfer of the shell company was executed in June 2015.
The United States seized and forfeited approximately $5.4 million in the property traceable to Malofeyev’s Texas Bank investment, which had been converted by the Texas Bank in 2016 to cash held in a blocked U.S. bank account. In February 2023, the U.S. Attorney General authorized a transfer of these forfeited funds to the State Department to support Ukrainian veterans.
Malofeyev and Komov are believed to be in Russia and remains at large. Komov is charged with one count of violating the International Emergency Economic Powers Act and one count of conspiring to do the same, each of which carry a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with assistance from the Justice Department’s Office of International Affairs.
Assistant U.S. Attorneys Vladislav Vainberg, Thane Rehn, and Jessica Greenwood for the Southern District of New York and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Section are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the Task Force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Updated December 12, 2024
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