The U.S. Department of Justice has filed a civil forfeiture complaint against $3.4 million in proceeds from the sale of a music studio in Burbank, California, linked to Russian oligarch Oleg Deripaska, who is accused of violating U.S. sanctions. The proceeds, which are alleged to have been beneficially owned by Deripaska, are tied to the unlawful sale of the property and constitute illicit earnings from sanctions violations. The Justice Department’s action is part of a broader effort to prevent sanctioned individuals from using the U.S. financial system to conceal or launder illicit funds.
The music studio, previously owned through a series of companies linked to Deripaska, was sold in 2019 for over $3 million, with the proceeds subsequently deposited into an account tied to Deripaska. The U.S. Treasury Department had sanctioned Deripaska in 2018, citing his support for the Russian government and involvement in the Russian energy sector. Since his designation, Deripaska has been prohibited from engaging in business transactions within the United States. However, the Justice Department alleges that he continued to operate through intermediaries, violating these sanctions.
According to court documents, Deripaska, through his associates, attempted to bypass U.S. sanctions by using intermediaries like Olga Shriki, a former employee of one of his companies, to facilitate the sale of the music studio. Shriki is said to have worked on behalf of Deripaska, even after his sanctions were imposed, by overseeing the transaction and managing the assets of the music studio. Shriki and other associates are accused of funneling money from the sale to accounts controlled by Deripaska, in direct violation of U.S. sanctions laws.
The U.S. Attorney for the Southern District of New York, Damian Williams, emphasized that the filing of the forfeiture complaint demonstrates the Department of Justice’s commitment to enforcing sanctions and combating financial networks that facilitate illegal transactions. “This filing exemplifies our office’s commitment to utilizing all available legal remedies to enforce our critical sanctions program,” said Williams.
James E. Dennehy, the FBI’s acting special agent in charge, highlighted that this forfeiture action represents the FBI’s commitment to halting individuals and entities attempting to obscure their activities to evade sanctions. “This forfeiture filing shows the FBI’s commitment to stopping individuals from obfuscating their activities to violate sanctions,” Dennehy said. “The FBI will continue to enforce the national security laws of the United States and ensure any violation of these laws and sanctions is punished accordingly.”
The music studio’s sale, which took place in 2019, was followed by a series of transactions designed to funnel the proceeds back to Russia. Shriki, who had facilitated the studio’s operation for Deripaska, allegedly attempted to transfer the sale’s proceeds to Russia in 2020, but the transaction was blocked by Wells Fargo due to its links to Deripaska. The Justice Department’s complaint seeks to forfeit the blocked $3.4 million, which remains in the Ocean Studios account at Wells Fargo.
The case is also part of an ongoing initiative by the U.S. government, specifically the Task Force KleptoCapture, which was created in response to Russia’s invasion of Ukraine in 2022. Task Force KleptoCapture is dedicated to enforcing sanctions and export restrictions imposed by the U.S. and its allies, aiming to prevent sanctioned Russian oligarchs and their associates from using Western financial systems to evade sanctions. Since its formation, the task force has pursued a wide range of sanctions violations related to Russian elites and their efforts to conceal assets and conduct business.
The civil forfeiture complaint was filed in the Southern District of New York, with Assistant U.S. Attorney Vladislav Vainberg overseeing the litigation. The case also involves significant international cooperation, with the Justice Department’s Office of International Affairs playing a key role in the investigation.
As of now, Deripaska remains at large, and the legal proceedings against him and his associates continue. The U.S. government’s efforts to target and dismantle the financial networks of Russian oligarchs are expected to intensify as sanctions enforcement continues to be a critical element of the broader strategy to pressure the Russian government over its actions in Ukraine.
This forfeiture action reflects the ongoing commitment by U.S. authorities to use all available tools to combat sanctions evasion, protect the U.S. financial system, and hold accountable those linked to activities that undermine U.S. foreign policy and national security interests.
