Magnitsky affair: Moldova investigating money laundering scheme linked to Russian tax fraud

GlobalPost
The snow clad grave of Russian lawyer Sergei Magnitsky with his portrait on the tomb at the Preobrazhenskoye cemetery in Moscow.
Andrey Smirnov

Moldova has launched an investigation into a Russian money-laundering scheme linked to a $230 million tax fraud exposed by the late Russian lawyer, Sergei Magnitsky.

Anti-corruption officials were investigating allegations that some of the stolen money was wired through a Moldovan bank, Bloomberg reported Monday.

Magnitsky had accused Russian bureaucrats of defrauding the state of $230 million by setting up “bogus tax refunds,” Reuters reported.

Bloomberg said the case was the biggest tax fraud in Russian history.

Magnitsky died in police custody in 2009 – allegedly beaten to death – sparking a diplomatic dispute between Russia and the United States.

In December, the United States passed the Magnitsky bill, which imposes sanctions on Russian officials guilty of human rights violations.

Moscow retaliated by banning US adoptions of Russian children.

Radio Free Europe reported Austria, Cyprus, Estonia, Latvia, Lithuania and Switzerland were also investigating allegations that local banks were linked to the money-laundering scheme.

More from GlobalPost: Russian tycoons concerned as Magnitsky fallout spreads

#next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; } #next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }
Will you help our nonprofit newsroom today?

Every week, more than 2 million listeners tune into our broadcast and follow our digital coverage like this story, which is available to read for free thanks to charitable contributions from listeners like you. But less than 1% of our audience supports our program directly. From now through the end of the year, every gift will be matched dollar for dollar by a generous donor, which means your gift will help us unlock a $67,000 challenge match.

Will you join our growing list of loyal supporters and double your impact today?