Biden’s DOJ moves to seize funds from Russian oligarch’s California music studio sale

According to the DOJ, the complaint "alleges that the proceeds, which are beneficially owned by Russian oligarch Oleg Deripaska, are the proceeds of sanctions violations." Deripaska was indicted on sanctions violations in 2022 and has remained at large. "Deripaska was sanctioned for his support of the Russian government and for his activity in the Russian energy sector," the press release stated. Deripaska is the founder of a Russian industrial group called Basic Element that has interests in energy, aluminum as well as agriculture, per Forbes, and has a net worth of $2.7 billion.

The Russian oligarch was sanctioned in 2018, and the indictment charged Deripaska as well as associates Olga Shriki and Natalia Mikhaylovna Bardakova with violations of the sanctions. A press release from the DOJ states that "Deripaska [allegedly] paid Shriki to provide various services for his benefit in the United States. These services included the sale of a music studio in Burbank, California."

The DOJ said that Shriki ran the studio between 2013 and 2018, and that in 2019, she sold the studio for over $3 million. "Beginning in July 2019, the Ocean Studios account received approximately $69,000 of transfers from Shriki’s" Global Consulting Services LLC account, "which in turn was funded by overseas accounts tied to Deripaska," the DOJ noted.

The oligarch acquired the music studio around 2008 with several transactions through multiple shell companies and then allegedly conspired with Shriki and Bardakova in order to make millions more off the studio.

“As the allegations in the complaint once again demonstrate, those who have illicitly accumulated great wealth in support of lawlessness and international chaos invariably turn to the safety and stability of the United States’ rule of law principles in order to preserve their ill-gotten gains. It is predictable, hypocritical, and illegal," Co-Director Michael Khoo of Task Force KleptoCapture said of the situation. "We are nearly three years into Russia’s unprovoked further invasion of Ukraine, but today’s actions show that Task Force KleptoCapture remains vigilant and fully engaged in its mission to protect the American financial system against the abuses of criminal actors."

Acting Special Agent in Charge from the FBI James E. Dennehy commented, "As alleged, Oleg Deripaska, an OFAC Specially Designated National, through a series of companies and associates attempted to earn over $3 million in proceeds from the sale of a California-based music studio."

He added, “Today’s forfeiture filing shows the FBI’s commitment to stopping individuals from obfuscating their activities to violate sanctions. The FBI will continue to enforce the national security laws of the United States and will ensure any violation of these laws and sanctions is punished accordingly.”