United States v. Prevezon Holdings, Ltd.; Prevezon Alexander, LLC; Prevezon Soho USA, LLC; Prevezon Seven USA, LLC; Prevezon Pine USA, LLC; Prevezon 1711 USA, LLC, et al., S.D.N.Y. (Sept. 10, 2013)

Prevezon Holdings, Ltd. and affiliates laundered $230 million from a Russian tax-evasion scheme through Manhattan real estate purchases, settling for $5.9 million in 2017.

The U.S. Department of Justice filed a civil-forfeiture complaint against Prevezon Holdings, Ltd. and its U.S. affiliates, alleging they laundered $230 million in proceeds from a Russian tax-evasion scheme. The complaint identified several Manhattan properties, including units at 250 East 49th St., 127 Seventh Ave., and 20 Pine St., as assets subject to seizure. Prevezon settled the case in 2017, agreeing to pay a $5.9 million civil penalty.

The U.S. Department of Justice filed a civil-forfeiture complaint against Prevezon Holdings, Ltd. and its U.S. affiliates, including Prevezon Alexander, LLC and multiple entities owning properties at 20 Pine Street and 127 Seventh Avenue in Manhattan. The complaint alleged that these companies were used to launder $230 million in proceeds from a Russian tax-evasion scheme, which involved fraudulent tax refund claims by Russian officials and was linked to the death of whistleblower Sergei Magnitsky. The scheme, uncovered in 2007, funneled funds through a network of shell entities to purchase high-value Manhattan real estate. Prevezon Holdings, controlled by Russian nationals linked to the fraud, was accused of concealing the illicit origin of funds through complex corporate structures. In 2017, Prevezon settled the case without admitting guilt, agreeing to pay a $5.9 million civil penalty and forfeit real estate assets to resolve the case. No criminal charges were filed against the company. The settlement marked one of the largest civil forfeiture actions tied to a Russian tax fraud scheme.