2014-04-30 DOJ SDNY press_release 122 KB 8,578 chars

Two Defendants Sentenced For Participating In Racketeering Conspiracy With Russian-American Organized Crime Enterprise Operating International Sportsbook That Laundered Over $100 Million

Caption: United States v. Alimzhan Tokhtakhounov, et al.

summary

Anatoly Golubchik and Vadim Trincher were each sentenced to five years in prison and ordered to forfeit over $20 million for their roles in laundering $100 million in proceeds from an illegal international sportsbook operated by a Russian-American organized crime enterprise protected by fugitive 'Thief-in-Law' Alimzhan Tokhtakhounov.

paragraph

Anatoly Golubchik and Vadim Trincher were sentenced to five years in prison each for conspiring to commit racketeering as members of the Taiwanchik-Trincher Organization, an illegal sportsbook that laundered approximately $100 million in gambling proceeds between 2006 and 2012. Of this amount, $50 million was transferred from Cyprus-based shell companies into the United States, where it was invested in real estate and hedge funds or further laundered through additional entities. Both defendants pleaded guilty to racketeering conspiracy and were ordered to forfeit more than $20 million in cash, investments, and real property, as part of a broader case involving 33 defendants, 28 of whom pled guilty and collectively forfeited over $68 million.

narrative

Anatoly Golubchik and Vadim Trincher were each sentenced to five years in prison and ordered to forfeit over $20 million in assets for their roles in the Taiwanchik-Trincher Organization, a Russian-American organized crime enterprise that operated a high-stakes illegal sportsbook targeting Russian and Ukrainian oligarchs. Between 2006 and April 2012, the enterprise laundered approximately $100 million in gambling proceeds, routing $50 million through shell companies in Cyprus before transferring it to the United States, where it was invested in hedge funds and real estate or further concealed via additional shell entities. The organization operated under the protection of Alimzhan Tokhtakhounov, a fugitive 'Thief-in-Law' who received at least $12 million in payments between December 2011 and February 2013 to resolve disputes with threats of violence or economic harm. The case, part of a sweeping 33-defendant indictment filed in April 2013, charged racketeering, money laundering, extortion, and gambling offenses, and was investigated by the FBI, NYPD, and IRS. As of April 2014, 28 defendants had pled guilty, agreeing to forfeit over $68 million collectively, while two others entered deferred prosecution agreements. Golubchik and Trincher, both U.S.-based participants, booked millions in bets and facilitated the laundering process, making them key figures in the enterprise’s financial operations. Tokhtakhounov remains a fugitive and is also under indictment for his alleged role in bribing officials during the 2002 Winter Olympics.

Enriched metadata

Scheme: racketeering (100%)
Court: Southern District of New York
Outcome: pleaded
Victim loss: $100,000,000

Classified racketeering(confidence 100%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Dollar amounts 6

$100.00M $100 Million $100M–$1B
$100.00M $100 million $100M–$1B
$68.00M $68 million $10M–$100M
$50.00M $50 million $10M–$100M
$20.00M $20 million $10M–$100M
$12.00M $12 million $10M–$100M

Entities 5

person Alimzhan Tokhtakhounov
person Anatoly Golubchik
person Preet Bharara
scheme_term racketeering conspiracy, money laundering, extortion, gambling offenses
person Vadim Trincher

Triples 13

Anatoly Golubchik sentenced to five years in prison
Vadim Trincher sentenced to five years in prison
Anatoly Golubchik ordered to forfeit more than $20 million in cash, investments, and real property
Vadim Trincher ordered to forfeit more than $20 million in cash, investments, and real property
Anatoly Golubchik charged with racketeering conspiracy, money laundering, extortion, gambling offenses
Vadim Trincher charged with racketeering conspiracy, money laundering, extortion, gambling offenses
Taiwanchik-Trincher Organization laundered approximately $100 million between 2006 and April 2012
Taiwanchik-Trincher Organization sent from Cyprus to United States approximately $50 million
Alimzhan Tokhtakhounov paid at least approximately $12 million between December 2011 and February 2013
Preet Bharara announced sentencing of Anatoly Golubchik and Vadim Trincher
U.S. District Judge Jesse M. Furman sentenced Anatoly Golubchik and Vadim Trincher
Anatoly Golubchik and Vadim Trincher participated in racketeering conspiracy with Russian-American organized crime enterprise
Russian-American organized crime enterprise operated international sportsbook that laundered over $100 million

View original DOJ press releasejustice.gov

Extracted body text (8,578c)

Press Release Two Defendants Sentenced For Participating In Racketeering Conspiracy With Russian-American Organized Crime Enterprise Operating International Sportsbook That Laundered Over $100 Million Wednesday, April 30, 2014 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Preet Bharara, the United States Attorney for the Southern District of New York, announced that ANATOLY GOLUBCHIK and was sentenced yesterday in Manhattan federal court to five years in prison and VADIM TRINCHER was also sentenced today to five years in prison for participating in a racketeering conspiracy in connection with their roles as members of a Russian-American organized crime enterprise. GOLUBCHIK and TRINCHER were also each ordered to forfeit more than $20 million in cash, investments, and real property. They were charged in April 2013 along with 32 other alleged members and associates of two Russian-American organized crime enterprises in an indictment that included racketeering, money laundering, extortion, and various gambling offenses. GOLUBCHIK and TRINCHER were sentenced by U.S. District Judge Jesse M. Furman. Manhattan U.S. Attorney Preet Bharara said: “The sentences meted out to Anatoly Golubchik and Vadim Trincher are just and appropriate penalties for the roles the defendants played in this far-reaching, Russian-American organized crime ring. I’d like to thank the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service for their tireless efforts in working to ensure that the members of this underground enterprise were held to account for their crimes.” According to the Indictment, other documents filed in Manhattan federal court, and statements made at various proceedings in this case, including today’s sentencing: The Taiwanchik-Trincher Organization (the “Organization”) was a criminal enterprise with strong ties to Russia and Ukraine. The enterprise operated a high-stakes, illegal sports gambling business out of New York City that catered primarily to Russian oligarchs living in Ukraine and Russia. GOLUBCHIK and TRINCHER were U.S.-based participants in the enterprise. GOLUBCHIK and TRINCHER booked sports bets that reached into the millions of dollars and laundered the proceeds of the Organization’s international sportsbook. Between 2006 and April 2012, the enterprise laundered approximately $100 million in proceeds from their gambling operation in Russia and Ukraine through shell companies and bank accounts in Cyprus; and of this $100 million, approximately $50 million was subsequently sent from Cyprus into the United States. Once the money had been transferred to the United States, it was either laundered through additional shell companies or invested in legitimate investments, such as hedge funds and real estate. The Taiwanchik-Trincher Organization operated under the protection of Alimzhan Tokhtakhounov, who is known as a “Vor,” a term translated as “Thief-in-Law,” that refers to a member of a select group of high-level criminals from the former Soviet Union. Tokhtakhounov used his status as a Vor to resolve disputes with clients of the high-stakes illegal gambling operation with implicit and sometimes explicit threats of violence and economic harm. Between December 2011 and February 2013, Tokhtakhounov was paid at least approximately $12 million for his services by the Taiwanchik-Trincher Organization. Tokhtakhounov is also under indictment in the Southern District of New York for his alleged involvement in bribing officials at the 2002 Winter Olympics held in Salt Lake City, Utah. Tokhtakhounov is a fugitive and is still being sought. Twenty-eight defendants in this case have pled guilty, and two have entered into deferred prosecution agreements. The defendants who have pled to date have agreed to forfeit, in total, more than $68 million. The following defendants have pled guilty, and have been sentenced or await sentencing: Bryan Zuriff pled guilty to gambling charges on July 26, 2013, and was sentenced on November 25, 2013. William Barbalat pled guilty to gambling charges on August 14, 2013, and was sentenced on December 16, 2013. Kirill Rapoport pled guilty to gambling charges on August 16, 2013, and was sentenced on December 19, 2014. Edwin Ting and Justin Smith pled guilty to gambling charges on September 4, 2013, and were sentenced on January 21, 2014, and January 6, 2014, respectively. Dmitry Druzhinsky and David Aaron pled guilty to gambling charges on October 4, 2013, and were sentenced on April 18, 2014, and February 14, 2014, respectively. Alexander Zaverukha pled guilty to gambling charges on October 10, 2013, and is scheduled to be sentenced on May 1, 2014. Nicholas Hirsch pled guilty to conspiring to commit wire fraud on October 16, 2013, and was sentenced on February 25, 2014. Anatoly Shteyngrob pled guilty to conspiring to commit money laundering on October 17, 2013, and is scheduled to be sentenced on June 10, 2014. Yugeshwar Rajkumar pled guilty to gambling charges on October 18, 2013, and was sentenced on March 25, 2014. Stan Greenberg pled guilty to conspiring to commit racketeering on October 22, 2013, and is scheduled to be sentenced on May 2, 2014. Arthur Azen pled guilty to conspiring to commit money laundering and conspiring to collect extensions of credit by extortionate means on November 5, 2013, and was sentenced on April 9, 2014. Hillel Nahmad pled guilty to gambling charges on November 12, 2013, and was sentenced on April 30, 2014. Vadim Trincher pled guilty to conspiring to commit racketeering on November 14, 2013, and was sentenced on April 30, 2014. Eugene Trincher pled guilty to gambling charges on November 14, 2013, and is scheduled to be sentenced on June 9, 2014. Anatoly Golubchik pled guilty to conspiring to commit racketeering on November 15, 2013, and was sentenced on April 29, 2014. Illya Trincher pled guilty to gambling charges on November 15, 2013, and is scheduled to be sentenced on May 8, 2014. Ronald Uy pled guilty to structuring financial transactions on November 25, 2013, and was sentenced on March 27, 2014. Moshe Oratz pled guilty to gambling charges on December 3, 2013, and was sentenced on April 9, 2014. Michael Sall pled guilty to interstate travel in aid of an unlawful activity (illegal gambling) and Jonathan Hirsch pled guilty to gambling charges on December 4, 2013. Sall was sentenced on April 18, 2014, and Hirsch is scheduled to be sentenced on May 9, 2014. Noah Siegel pled guilty to gambling charges on December 5, 2013, and was sentenced on April 10, 2014. Molly Bloom pled guilty to gambling charges on December 12, 2013, and is scheduled to be sentenced on May 2, 2014. Alexander Katchaloff pled guilty to gambling charges on January 16, 2014, and is scheduled to be sentenced on May 20, 2014. Donald McCalmont, John Jarekci, a/k/a “John Hanson,” and Abraham Mosseri pled guilty to making a fraudulent tax statement, to failing to file a tax return, and causing a financial institution to participate in a lottery related matter, respectively, on January 24, 2014, and are scheduled to be sentenced on May 29, 2014, May 28, 2014, and May 21, 2014, respectively. William Edler and Peter Feldman entered into deferred prosecution agreements on April 11, 2014. Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Internal Revenue Service. The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Harris M. Fischman, Joshua A. Naftalis, Peter J. Skinner, and Kristy J. Greenberg of the Violent and Organized Crime Unit are in charge of the prosecution. Assistant U.S. Attorney Alexander Wilson of the Office’s Money Laundering and Asset Forfeiture Unit is responsible for the forfeiture aspects of the case. Updated May 13, 2015 Component USAO - New York, Southern Press Release Number: 14-129

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