In a shocking revelation, it has come to light that a Russian national, Feliks Medvedev, 42, residing in Georgia, USA, orchestrated a money laundering conspiracy worth over US$150 million. The scheme, designed to fund the Russian military’s invasion of Ukraine, involved the gold purchase of more than US$65 million from Singapore Precious Metals Exchange (SGPMX), a renowned precious metals dealer.
Feliks Medvedev
SGPMX, a privately run trading and storage company headquartered in Singapore, provides clients with the opportunity to trade in actual gold on an online global exchange. The gold bullions were stored at Le Freeport, a highly secured logistics hub in Changi North Crescent. Despite the stringent security measures, Medvedev managed to execute his illicit scheme.
Medvedev was charged in the United States with one count of operating an unlicensed money transmitting business and 39 counts of money laundering. He pleaded guilty to the charges, admitting to running an unlicensed money transmitting business in the US and moving illicit funds in more than 1,300 transactions.
A significant portion of these funds, totaling more than US$65 million, was utilized for gold purchase from SGPMX. The details of the transactions were kept confidential due to privacy laws, according to SGPMX.
Modus Operandi of Gold Purchase for Laundering
However, investigations revealed that Medvedev operated eight companies registered in Georgia, USA, which were used to illegally transmit the illicit funds. These companies did not incur typical business expenses or maintain employees. Instead, they served as conduits for the illegal funds, which mostly originated from overseas companies before being transferred to other foreign entities.
Two other Russians, Alexey Chubarov, 42, and Lev Solyannikov, 31, along with a business consulting firm in Moscow, were implicated in the conspiracy. Chubarov and Solyannikov, who worked for the KSK Group, allegedly informed Medvedev about incoming fund transfers and directed him on subsequent transfers, including the purchase of gold bullion from SGPMX.
Chubarov, identified as an expert on international structuring, and the KSK Group were charged with conspiracy, operating an unlicensed money transmitting business, and 39 counts of money laundering for their roles in Medvedev’s scheme.
The case is being vigorously investigated by the Federal Bureau of Investigation (FBI). In a significant move, Chubarov and the KSK Group were added to America’s specially designated nationals list of sanctioned entities.
The actions against Medvedev, Chubarov, Solyannikov, and the KSK Group are part of the concerted efforts of Task Force KleptoCapture, a unit formed by the US Department of Justice in March 2022. Task Force KleptoCapture aims to enforce sanctions on Russian oligarchs in response to the Russian invasion of Ukraine.
Since its inception, Task Force KleptoCapture has restrained, seized, and obtained judgments to forfeit nearly US$700 million in assets from Russian enablers. Additionally, more than 70 individuals have been charged for violating international sanctions and export controls levied against Russia.
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Taskforce KleptoCapture – What is it ? Why you should know about it ?
US Deputy Attorney-General Lisa Monaco emphasized the Justice Department’s commitment to targeting criminal actors and activities supporting Vladimir Putin, his associates, and the illegal war in Ukraine. She reaffirmed the resolve of the United States to hold accountable those who enable Russia’s aggression and expressed solidarity with the people of Ukraine in their struggle.
Task Force KleptoCapture’s actions serve as a testament to the relentless pursuit of justice and accountability in unraveling the money trail behind Russia’s invasion of Ukraine. As the conflict continues, the United States, along with its international partners, remains steadfast in its determination to confront and dismantle the networks that enable such aggression and destabilization.
