Report on criminal offences filed by the Prakken D’Oliveira, a human rights lawyers firm, on behalf of the international human rights NGO Avaaz.
Avaaz suspects a number of legal and natural entities in gross violations in Kazakhstan, such as laundering of substantial amount of money that was embezzled in Kazakhstan. There are indications that through a number of entities, such as Bayrock Group LLC, Tevfik Arif and Leila Khrapunov, at least USD 1,480,000 were laundered in the Netherlands.
The text of the document has been extracted automatically and may contain errors.
### Text extracted from: https://tbcarchives.org/wp-content/uploads/AvaazComplaint-5.pdf
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LINNAEUSSTRAAT!2!=A,!1092!CK!!AMSTERDAM!
TELEPHONE!+31(0)20=3446200!|!FAX!+31(0)20=3446201!
E=MAIL:!info@prakkendoliveira.nl!|!www.prakkendoliveira.nl!
!”#$%&”!”‘()*$+!
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!
IJdok!163!
1013!MM!Amsterdam!
!
(
Avaaz(|(Filing(of(a(report(against(the(Khrapunov(fraud(
(
(
*,-.(/01(23410,5(((
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!
Amsterdam,!
22!October!2018!
Our!reference! D20180891/BVS/bvs!
!
!
MARQ!WIJNGAARDEN!
FLIP!SCHÜLLER!
PROF.!LIESBETH!ZEGVELD!
MARIEKE!VAN!EIK!
WIL!EIKELBOOM!
DR!CHANNA!SAMKALDEN!
TAMARA!BURUMA!
MICHIEL!PESTMAN!
PROF.!GÖRAN!SLUITER!
BRECHTJE!VOSSENBERG!
!
DR!HANA!VAN!OOIJEN!
JO=ANNE!NIJLAND!
!
LISA=MARIE!KOMP!
!
BARBARA!VAN!STRAATEN!
TOM!DE!BOER!
!
FREDERIEKE!DÖLLE!
!
ELLES!TEN!VERGERT!
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!
!
!
ADVISORS(
PROF.!HANS!ULRICH!JESSURUN!D’OLIVEIRA!
!
PROF.!TIES!PRAKKEN!
(
PROF.!BRITTA!BÖHLER!
Concerning:(
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+VTS!
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I! hereby! file! a! report! on! criminal! offences! committed! in! the! Netherlands! on! behalf! of! my! client,! a!
civic!movement!that!goes!under!the!name!of!Avaaz1.!!
!
This!report!is!targeted!at!a!number!of!legal!and!natural!entities!who!are!suspected!of!being!guilty!of!
laundering! substantial! amounts! of! money! that! was! embezzled! in! Kazakhstan.! This! report! is! mainly,!
but! expressly! not! exclusively! targeted! at! Bayrock! B.V.! and! KazBay! B.V.,! both! of! whom! are! legal!
entities!established!in!the!Netherlands,!Helvetic!Capital!S.A.,!a!legal!entity!registered!in!Switzerland,!
as! well! as! the! owners,! directors! and! ultimately! the! stakeholders! of! these! legal! entities,! including!
Bayrock!Group!LLC,!Tevfik!Arif!and!Leila!Khrapunov,!among!other!entities.!The!Bayrock!Group!LLC!is!a!
legal!entity!registered!in!the!United!States.!
!
Avaaz! suspects! that! the! abovementioned! legal! and! natural! entities! have! committed! said! criminal!
offences,! whether! or! not! in! organised! form,! and! these! offences! will! be! discussed! in! detail! below.!
Avaaz! believes! this! organisation! also! included! legal! and! natural! entities! which! have! facilitated! the!
money!laundering,!including!Bracewell!&!Giuliani!LLP,!a!law!firm!operating!from!the!United!States.!
!
There!are!indications!that!the!abovementioned!legal!and!natural!entities!have!laundered!at!least!USD!
1,480,000!in!the!Netherlands,!whether!or!not!in!organised!form,!via!said!KazBay!B.V.,!a!Dutch!link!in!
an!international!money!laundering!network.!As!stated,!this!money!originated!from!crimes!committed!
in! Kazakhstan.! An! amount! of! up! to! USD! 6! billion! is! purportedly! involved! in! this! fraud! case.! The!
suspected! aim! of! the! acts! committed! in! the! Netherlands,! among! other! countries,! was! the!
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
1!Avaaz!is!established!in!the!United!States,!but!for!this!case!Avaaz!chooses!domicile!at!my!office;!see!further.!
!
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PRAKKEN!D’OLIVEIRA!HUMAN!RIGHTS!LAWYERS!COÖPERATIEF!U.A.!REGISTERED!WITH!THE!AMSTERDAM!CHAMBER!OF!COMMERCE!UNDER!NO!63477645!
ANY!LIABILITY!SHALL!BE!LIMITED!TO!THE!AMOUNT!WHICH!IS!PAID!UNDER!THE!FIRM’S!PROFESSIONAL!LIABILITY!POLICY!IN!THE!MATTER!CONCERNED!
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D20180891!
19!October!2018,!page!2!
concealment!of!the!criminal!nature!or!origin!of!the!revenues!of!these!crimes.!As!explained!in!detail!
below,! investigations! in! this! case! have! uncovered! a! large! number! of! money! laundering! indicators,!
such! as! the! concealment! of! the! ultimate! stakeholders,! an! abundance! of! jurisdictions! and! shell!
companies!involved,!involvement!of!politically!prominent!individuals!(including!the!aforementioned!
Leila! Khrapunov)! and! involvement! of! former! criminals.! This! fraud! case! has! prompted! criminal!
investigations!in!various!countries.!
!
Given!the!major!social!significance!of!effective!and!adequate!investigation!and!prosecution!of!money!
laundering! offences,! the! client! requests! you! to! also! launch! a! criminal! investigation! in! the!
Netherlands.!The!client!believes!that!this!very!case!may!serve!as!an!example!of!the!facilitating!role!
played!by!the!Netherlands!in!the!international!money!laundering!network.!I!will!explain!the!reasons!
in!more!detail!below.!
!
!
1. AVAAZ(
Avaaz! is! an! international! civic! movement! founded! in! 2007,! with! over! 48! million! members! in! 194!
countries.2!Avaaz!has!approximately!290,000!members!in!the!Netherlands.!The!movement!conducts!
worldwide! campaigns! on! important! subjects! of! general! interest.! The! members! of! the! movement!
personally!determine!the!subjects!on!which!they!want!to!conduct!campaigns,!and!they!are!assisted!
by!a!team!of!over!a!hundred!staff!members,!which!operates!in!16!languages!and!is!spread!across!23!
countries.!
!
The!aim!of!Avaaz!is!to!amplify!the!voice!of!citizens!everywhere!in!the!world!in!worldwide!decision=
making!processes,!and!it!hopes!to!bridge!the!gap!between!the!world!that!exists!and!the!world!that!
people!everywhere!wish!for.!The!campaigns!by!Avaaz!do!not!originate!from!any!particular!ideology,!
nor!are!they!targeted!at!specific!subjects!or!regions.!Avaaz!organises!meetings!and!media!campaigns!
in! order! to! spread! information! on! subjects,! is! involved! in! fund=raising,! helps! members! to! establish!
contacts! with! policymakers,! exerts! direct! political! influence! on! decision=makers,! and! takes! legal!
action! where! necessary! in! order! to! achieve! its! objectives.! These! objectives! vary! from! the!
environment!to!human!rights,!and!from!countering!misinformation!to!addressing!corruption.!
!
The! fight! against! corruption! is! one! of! the! key! objectives! of! the! members! of! Avaaz.! For! example,!
members! of! Avaaz! have! conducted! a! campaign! in! Brazil! for! the! so=called! law! of! ‘Ficha! Limpa’,! the!
clean!record!act,!which!makes!politicians!with!a!conviction!for!fraud!ineligible!to!compete!for!public!
office.!And!together!with!Gordon!Brown,!the!former!Prime!Minister!of!the!United!Kingdom,!Avaaz!is!
committed!to!the!worldwide!abolition!of!tax!havens,!including!for!members!of!the!Group!of!20.!The!
campaigns! against! corruption! and! money! laundering! are! among! the! most! successful! priorities! of!
Avaaz.!!
!
It! is! in! this! context! that! this! report! should! be! read,! where! Avaaz! wishes! to! emphasise! that! money!
laundering,!as!you!know,!is!not!a!crime!without!victims.!This!also!applies!to!the!facts!on!which!this!
report!is!based.!
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2!https://avaaz.org/page/nl/about/.!!
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D20180891!
2. HOW(THIS(REPORT(CAME(ABOUT(
19!October!2018,!page!3!
This!report!came!about!on!the!basis!of!a!wide!range!of!sources.!Various!journalistic! inquiry!groups!
have! carried! out! investigations! for! many! years! into! the! criminal! organisation! and! the! worldwide!
money!laundering!network.!In!addition,!this!report!builds!on!information!from!court!documents!from!
various!jurisdictions.!Anonymous!sources!were!not!used!in!the!preparation!of!this!report,!but!there!
were! conversations! with! journalists! who,! in! some! cases,! have! had! to! use! such! sources! in! their!
investigations.!!
!
In!2017,!the!television!programme!Zembla!produced!two!documentaries!that!are!closely!related!to!
the!criminal!offences!described!in!this!report.!The!report!is!partially!based!on!the!work!of!Zembla.3!
Zembla! has! published! the! results! of! the! investigation! on! the! website! of! the! programme! under! the!
title!‘File(1(KazBay(B.V.’.!!
!
This! report! only! covers! part! of! a! far! more! extensive! money! laundering! network.! Avaaz! is! still!
investigating!this!network,!in!close!cooperation!with!said!media!and!inquiry!groups.!In!the!long!term,!
this!investigation!could!lead!to!a!supplement!to!this!report!because!there!is!a!well=founded!suspicion!
that!even!more!funds!originating!from!Kazakhstan!have!been!laundered!in!the!Netherlands.!
!
!
3. BACKGROUND(
This!report!is!related!to!a!complex!global!network!of!illegal!money!flows!that!are!linked!to!what!is!
considered!to!be!one!of!the!biggest!fraud!cases!ever.!It!will!be!explained!in!more!detail!below!how!
some!of!these!money!flows!ultimately!ended!up!in!the!Netherlands,!and!how!Dutch!service!providers!
helped!to!cover!up!the!money!laundering!acts.!
!
In!a!nutshell,!the!money!laundering!network!started!in!Kazakhstan,!where!a!figure!of!up!to!USD!10!
billion!was!purportedly!embezzled.!This!money!was!subsequently!circulated!by!two!Kazakh!oligarch!
families!via!a!worldwide!network!of!shell!companies.!A!number!of!these!companies!were!established!
in!the!Netherlands.!The!money!was!subsequently!invested!in!real!estate!projects!in!the!United!States!
and!Europe,!after!which!it!was!paid!out!as!‘profits’!via!–!once!again!–!a!network!of!shell!companies.4!
Once!again,!Dutch!companies!were!used!here.!As!will!be!explained!in!more!detail!below,!at!least!two!
Dutch!companies!–!KazBay!B.V.!and!Bayrock!B.V.!–!played!a!key!role!here.!
!
In!the!meantime,!the!fraud!has!resulted!in!a!number!of!lawsuits!in!Kazakhstan5,!London!(“High(Court(
Case”,(Appendices(1a,(1b(and(1c),!Paris6,!Los!Angeles!(“California(Complaint”,!Appendix(2)!and!New!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
3!See!the!website!of!Zembla:!’The!Dubious!Friends!of!Donald!Trump:!The!Russians’,!File1!KazBay!B.V.!and!File!3:!
The!Billion!Dollar!Fraud:!https://zembla.bnnvara.nl/nieuws/the=dubious=friends=of=donald=trump=the=russians;!
https://zembla.bnnvara.nl/nieuws/the=controversial=friends=of=donald=trump=part=iii=the=billion=dollar=fraud;!
and!also:!https://zembla.bnnvara.nl/nieuws/trump=business=partner=accused=of=involvement=in=dutch=based=
money=laundering=scheme!(hereinafter!to!be!referred!to!as!“Zembla(Documentaries”)!Incidentally,!one!of!the!
suspects!in!the!fraud!case,!Iliyas!Khrapunov!has!attempted!–!in!vain!–!to!have!the!Zembla!broadcast!banned:!
ECLI:NL:RBMNE:2017:5135!
4!See,!for!example,!the!aforementioned!Zembla!documentaries.!See!also:!The!Diplomat!18!July!2018,!‘The!Case!
of! the! Khrapunovs’,! https://thediplomat.com/2018/07/the=case=of=the=khrapunovs/;! or! Financial! Times! 19!
October!2016,!‘Dirty!Money:!Trump!and!the!Kazakh!connection’,!https://www.ft.com/content/33285dfa=9231=
11e6=8df8=d3778b55a923!!
5!https://www.rferl.org/a/former=almaty=mayor=wife=convicted=and=sentenced=in=absentia/29531776.html!!
6!https://apnews.com/7aac8255fda84d09990a6e3bae7b1825!!
!
D20180891!
19!October!2018,!page!4!
York!(“SDNY(Case”,!Appendices(3a!and!3b).!Some!of!these!cases!are!still!running.!The!client!hopes!to!
extend!the!investigation!to!the!Netherlands!with!this!report.!
!
!
4. THE(CRIMINAL(ORIGIN(OF(THE(FUNDS:(FRAUD(IN(KAZAKHSTAN(
This!report!is!related!to!two!major!fraud!cases!that!occurred!in!Kazakhstan!approximately!a!decade!
ago.!!
!
In!2009,!accountancy!firm!PricewaterhouseCoopers!discovered!a!gap!of!approximately!USD!10!billion!
during!an!audit!of!BTA!Bank!(the!largest!bank!in!Kazakhstan).!This!makes!it!the!largest!fraud!case!in!
the!history!of!the!country.!Around!about!the!same!time,!another!fraud!case!came!to!light!in!Almaty,!
the! largest! town! of! Kazakhstan,! where! approximately! USD! 300! million! purportedly! disappeared.!
Suspicions!in!respect!of!these!fraud!cases!soon!pointed!in!the!direction!of!two!prominent!residents!
of! Kazakhstan:! Viktor! Khrapunov! and! Mukhtar! Ablyazov.! Both! fraud! cases! may! have! come! about!
independently! from! each! other.! However,! there! are! strong! indications! that! the! revenues! of! these!
crimes!were!probably!mixed!via!a!complex!money!laundering!network,!and!there!was!a!great!deal!of!
mutual! overlap! in! terms! of! the! companies! and! natural! entities! involved.! Khrapunov! and! Albyazov!
appear!to!have!engaged!in!an!intensive!collaboration!in!the!laundering!of!their!criminal!assets.7!
!
Not!only!did!Ablyazov!and!Khrapunov!have!substantial!business!contacts,!but!they!also!had!a!close!
personal!bond:!Khrapunov’s!son,!Iliyas!Khrapunov,!is!married!to!Ablyazov’s!daughter.8!
!
Viktor(Khrapunov(
Khrapunov! was! the! mayor! of! Almaty! from! 1997! until! 2004.! There! is! a! strong! suspicion! that! he!
embezzled!said!USD!300!million!during!his!term!as!a!mayor,!together!with!his!wife!Leila!Khrapunov!
and! his! son! Iliyas! Khrapunov.! This! money! therefore! did! not! belong! to! Khrapunov! but! to! the! town.!
Khrapunov!is!purported!to!have!ingeniously!used!the!wave!of!privatisation!in!the!country!in!order!to!
seize!control!of!former!public!works!and!companies.!Thus,!many!of!these!businesses!came!into!the!
possession!of!Khrapunov!or!his!wife.!Following!acquisition,!the!businesses!were!sold!on!the!private!
market,!for!a!multiple!of!the!price!at!which!he!or!his!wife!had!acquired!them.9!It!is!estimated!that!
Khrapunov!and!his!family!members!managed!to!secure!at!least!eighty!items!of!immovable!property!
in!this!way,!with!the!help!of!at!least!as!many!empty!legal!entities.!
!
In!2007,!Khrapunov!fled!to!Switzerland,!with!his!family,!with!a!large!number!of!lawsuits!following!in!
his!wake.!!
!
For! example,! Almaty! is! trying! to! reclaim! part! of! the! embezzled! funds! through! the! court,! via! court!
proceedings!in!the!United!States,!among!other!means.10!In!October!of!this!year,!Khrapunov!and!his!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
7! See,! for! example,! the! Zembla! Documentaries! (footnote! 3)! or! The! Diplomat! 18! July! 2018,! ‘The! Case! of! the!
Khrapunovs’,!https://thediplomat.com/2018/07/the=case=of=the=khrapunovs/!!
8! See,! for! example,! ‘Declaration! of! Nicolas! Bourg! in! City! of! Almaty! and! BTA! Bank! v! Mukhtar! Ablyazov,! Viktor!
Khrapunov,!Ilyas!Khrapunov!and!Triadou!SPV!S.A.’,!District!Court!of!Southern!District!of!New!York,!15!Civ.!5345!
(AJN)! (SN),! available! via:! https://www.scribd.com/document/354277312/Bourg=Declaration=5=2=16=Almaty=
Case!
9! Appendix! 2,! California! Complaint,! par.! 25=26.! See! also! The( Diplomat! 18! July! 2018,! ‘The! Case! of! the!
Khrapunovs’,!https://thediplomat.com/2018/07/the=case=of=the=khrapunovs/!!
10!Appendix!2,!California!Complaint.!
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D20180891!
19!October!2018,!page!5!
wife! were! convicted! of! corruption! by! a! court! in! Kazakhstan,! by! default11.! At! the! request! of!
Kazakhstan,! the! Swiss! authorities! seized! the! properties! of! the! Khrapunovs! in! Switzerland,! and! the!
Swiss!launched!an!independent!criminal!investigation!in!parallel.12!
!
Mukhtar(Ablyazov(
Between! 2005! and! 2009,! Ablyazov! was! president! of! the! BTA! Bank,! which! is! established! in! Almaty.!
During! this! period,! he! is! purported! to! have! embezzled! astronomical! sums! of! money.! According! to!
estimates,!an!amount!of!at!least!USD!six!billion!is!involved.!This!embezzlement!occurred!via!a!system!
of!loans!to!shell!companies,!of!which!Ablyazov!proved!to!be!the!ultimate!stakeholder.!The!loans!were!
subsequently!never!repaid.13!!
!
The! fraud! cases! described! above! have! resulted! in! more! lawsuits,! not! only! in! Kazakhstan! and! the!
United!States,!but!also!in!England!and!France.!A!number!of!these!lawsuits!are!still!running.!
!
In!2012,!a!British!High!Court!issued!a!worldwide!freezing!order!against!Ablyazov!in!connection!with!
this!fraud!for!a!total!of!USD!4.9!billion.!This!is!one!of!the!proceedings!that!are!still!running.14!In!the!
related! proceedings,! the! High! Court! recently! decided! that! Ablyazov! and! Iliyas! Khrapunov! had!
conspired!to!prevent!the!assets!from!actually!being!frozen!(Appendix(4).15!!
!
!
5. THE(MONEY(LAUNDERING(NETWORK:(KAZBAY(B.V.(
Ablyazov! and! Khrapunov! have! jointly! laundered! both! embezzlements! and! the! revenues! resulting!
from! them! via! a! worldwide! money! laundering! network.! The! various! shell! companies,! money!
laundering!investments!and!money!flows!are!purported!to!have!been!intermingled!and!continually!
exchanged.16!
!
An!essential!element!of!the!money!laundering!process!was!the!choice!of!the!ultimate!destination!of!
the! monies,! where! the! revenues! of! the! embezzlement! could! be! invested! in! order! to! generate!
apparently!legitimate!revenues.!Ablyazov!and!Khrapunov!initially!invested!a!large!proportion!of!the!
embezzled! money! in! Switzerland.! However,! when! the! Swiss! authorities! threatened! to! launch! a!
criminal!investigation!around!2010,!the!two!men!relocated!their!investments,!to!the!United!States!in!
particular.! This! step! was! probably! inspired! by! the! consideration! that! Kazakhstan! did! not! have! an!
extradition!and!mutual!legal!assistance!treaty!with!the!United!States!at!the!time.17!
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
11!Both!suspects!have!now!been!convicted!in!absentia!of!these!frauds!in!Kazakhstan,!Ablyazov!was!sentenced!
to!20!years!in!prison!in!June!2017,!while!Khrapunov!was!sentenced!to!17!years!in!prison!on!8!October!2018;!
https://www.rferl.org/a/former=almaty=mayor=wife=convicted=and=sentenced=in=absentia/29531776.html!!
12!
family/!!
13!Appendix!2,!California!Complaint,!par.!30!
14!Appendix!1a,!JCS(BTA(Bank(v(Mukhtar(Ablyazov(and(Iliyas(Khrapunov,!High!Court!of!Justice,!Queen’s!Bench!
Division,! Commercial! Court,! Amended! Particulars! of! Claim! 25! September! 2017.! See! also! JSC( BTA( Bank( v(
Ablyazov![2015]!UKSC!64,!par!2,!via!https://www.supremecourt.uk/cases/docs/uksc=2013=0203=judgment.pdf.!
BTA!Bank!has!published!a!list!of!companies!in!which!Ablyazov!had!a!(direct!or!indirect)!interest.!In!total,!more!
than!800!companies!are!involved.!The!list!can!be!found!via!http://bta.kz/files/AssetslistnewBTAsite.pdf!!
15! JSC( BTA( Bank( (Respondent)( v( Khrapunov( (Appellant),! UK! Supreme! Court! 21! March! 2018,! [2018]! UKSC! 19,!
Judgment!
16!Appendix!4.!JSC(BTA(Bank((Respondent)(v(Khrapunov((Appellant),!UK!Supreme!Court!21!March!2018,![2018]!
UKSC!19,!Judgment,!par.!4.!!
17!Appendix!2,!California!Complaint,!par!3.!
https://astanatimes.com/2018/03/switzerland=conducts=investigation=against=former=almaty=mayor=and=
!
D20180891!
19!October!2018,!page!6!
Ablyazov!and!Khrapunov!invested!large!sums!in!real!estate,!including!several!projects!in!the!United!
States.18!
(
The!Netherlands!played!a!crucial!role!in!this!network.!Not!as!a!final!destination,!such!as!in!the!United!
States,! but! as! an! intermediate! station.! The! origin! of! the! money! that! was! embezzled! in! Kazakhstan!
was!concealed!via!Dutch!companies,!as!a!result!of!which!it!could!be!invested!‘laundered’!elsewhere!
in!the!world!or!returned!to!Kazakhstan.19!!
!
One! of! these! Dutch! intermediate! stations! was! KazBay! B.V.! (Appendix( 5)20! KazBay! B.V.! was! the!
subsidiary!from!a!relationship!between!two!other!legal!entities:!the!Dutch!private!company!Bayrock!
B.V.!(Appendix(6)21!and!the!Swiss!company!Helvetic!Capital!S.A.22!This!Dutch!legal!entity!also!features!
prominently!in!one!of!the!Zembla!documentaries.23!The!diagram!in!Appendix(7!provides!an!overview!
of! the! Dutch! branch! of! the! money! laundering! network! and! the! related! Ablyazov/Khrapunov!
companies.!
!
The! Dutch! company! Bayrock! B.V.! is! part! of! the! Bayrock! Group! LLC24,! which! is! established! in! the!
United! States.! Bayrock! Group! LLC! is! frequently! linked! to! the! Khrapunovs! in! the! media,! who! have!
purportedly!invested!money!in!the!company.25!In!addition,!a!former!director!of!the!Bayrock!Group!
LLC! (Jodi! Kriss)! has! accused! the! company! of! fraud! and! participation! in! a! criminal! organisation!
(Appendix( 9)! in! a! court! case! in! the! United! States.26! According! to! Kriss,! the! ultimate! stakeholders!
behind! the! Bayrock! Group! LLC! –! and! therefore! behind! the! companies! controlled! by! the! Bayrock!
Group!including!Bayrock!B.V.!–!are!business!partners!Tevfik!Arif27,!Felix!Sater!and!Julius!Schwartz.28!
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
18! Appendix! 2,! California! Complaint,! par.! 4;! and! Appendix! 3b,! SDNY! Case,! p.! 22! and! further! (“The( AbluazovG
Khrapunov(Group(Conspires(to(Transfer(and(Hide(Illicit(Funds(in(the(United(States”).!!
19!See,!for!example,!the!Zembla!documentaries!
20!Extract!of!the!Chamber!of!Commerce,!deed!of!incorporation!and!trade!history.!
21!Extract!of!the!Chamber!of!Commerce;!the!Dutch!Bayrock!B.V.!forms!part!of!the!Bayrock!Group!LLC,!which!is!
established!in!the!United!States.!
22!Appendix!5,!deed!of!incorporation!of!KazBay!B.V.!
23!See:!https://zembla.bnnvara.nl/nieuws/de=omstreden=vrienden=van=donald=trump=de=russen!!
24! Bayrock! Group! LLC! is! a! US! real! estate! company! that! invests! in! luxury! projects! all! over! the! world.! See,! for!
example! https://assets.documentcloud.org/documents/3117892/Bayrock=Presentation.pdf.! See! Appendix( 8!
for!an!overview!diagram!of!part!of!the!Bayrock!Group.!
25!See,!for!example,!OCCRP,!‘Steppe!to!Soho:!How!Millions!Linked!to!Kazakhstan!Mega=Fraud!Case!Ended!up!in!
Trump!Property’,!available!via:!https://www.occrp.org/en/investigations/8248=steppe=to=soho=how=millions=
linked=to=kazakhstan=mega=fraud=case=ended=up=in=trump=property!Tom!Burgis!in!the!Financial!Times,!19!
October!2016,!“Dirty!money:!Trump!and!the!Kazakh!connection.!FT!probe!finds!evidence!a!Trump!venture!has!
links!to!alleged!laundering!network”,!https://www.ft.com/content/33285dfa=9231=11e6=8df8=d3778b55a923;!
Khrapunov!and!Bayrock!Group!LLC!purportedly!jointly!invested!in!a!luxurious!apartment!project!with!a!view!of!
Lake!Geneva,!to!which!end!the!Swiss!company!Swiss!Capital!IB!SA!is!purported!to!have!been!set!up!in!2008.!
26!Appendix!9,!Verified!Complaint,!Jody!Kriss!and!Michael!Ejekan,!United!States!District!Court!Southern!District!
of!NY,!Case!1:10=cv=03959=LGS=FM,!available!via:!https://zembla.bnnvara.nl/data/files/3081555708.pdf!
27! See! Appendix! 10,! for! example,! for! more! background! information! on! Arif;! ! see,! for! example,! Bloomberg! 21!
June!
L.! O’Brien,!
Shady!
https://www.bloomberg.com/view/articles/2017=06=21/trump=russia=and=those=shadowy=sater=deals=at=
bayrock(
28!Appendix!9,!Verified!Complaint!Jody!Kriss!and!Michael!Ejekan,!United!States!District!Court!Southern!District!
of!NY,!Case!1:10=cv=03959=LGS=FM,!par.!3.!
Partnership’,!
Business!
Timothy!
‘Trump,!
Russia!
2017,!
and!
a!
!
D20180891!
19!October!2018,!page!7!
Leila!Khrapunov,!Khrapunov’s!wife,!was!the!ultimate!stakeholder!of!Helvetic!Capital!S.A.!This!fact!was!
not!evident!from!the!official!documents!but!came!to!light!via!an!investigation!by!journalists!involved!
in!the!case!(Appendix(10).29!!
!
Upon! incorporation,! the! Dutch! office! ATC! Trust! B.V.! provided! two! managing! directors! for! KazBay!
B.V.:!Hendrik!Justus!Wirix!and!Ronald!Arendsen.30!The!US!law!firm!Bracewell!&!Giuliani!LLP!was!also!
involved! in! the! incorporation,! acting! for! Helvetic! Capital! S.A.! at! the! time! of! the! incorporation! of!
KazBay!B.V.31!!
!
Bayrock!B.V.!and!Helvetic!Capital!S.A.!entered!into!an!agreement!in!early!September!2007.!In!this!so=
called! ‘Capital! Contribution! Agreement’,! they! agreed! to! jointly! invest! almost! USD! 1.5! million! in!
KazBay!B.V.!(Appendix(11).!Shortly!afterwards,!on!24!September!2007,!Bayrock!Group!LLC!paid!half!
of!the!amount!(USD!740,000)!to!Bayrock!B.V.,!which!subsequently!transferred!the!amount!to!KazBay!
B.V.! on! 25! September! 2007! (Appendix( 12).! Bank! statements! show! that! the! companies! used! the!
Dutch! branch! of! Deutsche! Bank! here.32! Helvetic! Capital! S.A.! also! transferred! the! money! to! KazBay!
B.V.!(Appendix(13).33!
!
What!is!furthermore!striking!about!the!Dutch!KazBay!transaction!is!the!timing.!!Indeed,!it!was!during!
the! period! of! the! incorporation! of! KazBay! B.V.! that! Mukhtar! Ablyazov,! as! president! of! BTA! Bank,!
arranged!a!loan!transaction,!where!BTA!Bank!took!out!USD!6.8!billion!worth!of!loans!with!the!Dutch!
subsidiary!TuranAlem!Finance!B.V.!(Appendices(14a,(14b(and(14c).!34!At!the!same!time,!bonds!were!
issued!by!BTA!Bank!and!TuranAlem!Finance!B.V.!The!background!and!timing!of!this!transaction!is!also!
unclear.35! Given! the! substantial! overlap! in! companies! and! individuals! involved! in! the! Ablyazov! and!
Khrapunov!fraud,!and!considering!the!timing!of!both!transactions,!it!is!justified!to!wonder!whether!
both!transactions!were!linked!to!each!other.!
(
(
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
29!Appendix!10,!e=mail!on!ultimate!stakeholder!of!Helvetic!Capital!S.A.!and!Bayrock!Group!LLC,!originating!from!
the!Zembla!Documentaries!(https://zembla.bnnvara.nl/data/files/2033471528.pdf).!See!also:!
http://www.moneyhouse.ch/en/p/leila=khrapunova;!see!for!other!registrations:!
https://www.easymonitoring.ch/handelsregister/devol=sa=952481!
30!See!appendix!5,!company!profile!of!KazBay!B.V.!
31!Appendix!10,!e=mail!on!ultimate!stakeholder!of!Helvetic!Capital!S.A.!
32!This!is!striking!because!Deutsche!Bank!was!previously!fined!for!participation!in!money!laundering!by!Russian!
oligarchs:!https://www.volkskrant.nl/economie/deutsche=bank=weer=beboet=nu=om=witwassen~b3269b95/;!
and!https://www.rtlnieuws.nl/algemeen/economie/artikel/1143226/deutsche=bank=onderzoekt=witwassen=
rusland;!Deutsche!Bank!still!does!not!seem!to!have!its!affairs!in!order:!
https://www.nu.nl/geldzaken/5477912/deutsche=bank=moet=van=toezichthouder=meer=doen=witwassen.html.!!
33!See!appendix!13,!due!diligence!investigation!into!KayBaz!B.V.!by!FL!Group.!
34!Annual!report!TuranAlem!Finance!B.V.!2007.!It!becomes!evident!from!court!documents!that!BTA!Bank!had!at!
least! two! Dutch! subsidiaries,! in! which! it! had! an! interest! of! at! least! 50%:! TuranAlem! Finance! B.V.! and! Temir!
Capital!B.V.!(both!registered!at!Schouwburgplein!30=34,!3012!CL,!PO!box!21153,!3001!AD!in!Rotterdam).!See,!
for!example,!‘Verified!petition!for!recognition!of!foreign!main!proceeding!and!request!for!related!relief’,!United!
via:!
available!
States!
http://southbaylawfirm.com/wp=content/uploads/2010/02/jsc=bta=bank.pdf;! and! an! overview! of!
the!
investments!of!BTA!Bank!as!of!1!June!2018,!via:!http://bta.kz/en/investor/fininfo/aquisition/.!For!the!raising!of!
capital! by! Temir! Capital! B.V.! see! https://www.moodys.com/research/Moodys=assigns=B1=rating=to=Temir=
Capital=BV=senior=notes==PR_122320!!
35! Moreover,!
http://old.kase.kz/en/bonds/show/BTASe6!and!http://cbonds.com/organisations/emitent/527!!
interest! payments! on! these! bonds! were! soon! ceased,! resulting!
in! a! restructuring,!
Southern! District!
Bankruptcy!
of! New!
footnote!
Court!
York,!
1,!
!
D20180891!
19!October!2018,!page!8!
6. UNCLEAR(DESTINATION(OF(THE(FUNDS:(MINING(ACTIVITIES(IN(KAZAKHSTAN?(
It!is!not!clear!what!happened!to!the!deposited!funds.!According!to!KazBay,!the!money!was!invested!
in! mining! activities! in! Kazakhstan,! but! evidence! for! this! is! lacking! and! those! involved! with! BayRock!
were!unable!to!produce!it,!not!even!after!repeated!requests!by!one!of!the!investors!in!the!group.36!
!
The!suspicion!that!KazBay!B.V.!was!founded!for!money!laundering!is!confirmed!by!the!fact!that!those!
involved! apparently! considered! it! to! be! important! to! conceal! the! identity! of! the! ultimate!
stakeholders!behind!the!companies!involved.!For!example,!annual!reports!and!extracts!only!specify!
the!names!of!directors!of!trust!offices!–!not!the!names!of!shareholders!or!persons!who!actually!work!
for!the!companies,!nor!overviews!of!real!economic!activities.37!!
!
Nor! does! it! become! evident! from! the! official! documents! that! Viktor! Khrapunov’s! wife,! Leila!
Khrapunov,! was! the! ultimate! stakeholder! of! one! of! the! two! ‘parent! companies’! of! KazBay! B.V.,! as!
noted! above,! but! this! follows! from! e=mail! correspondence! between! those! involved! that! came! to!
light.! The! names! of! prominent! stakeholders! in! the! Bayrock! Group! LLC! also! appear! to! have! been!
systematically!omitted!from!the!documents.38!!
!
!
7. CRIMINAL(OFFENCES:(MONEY(LAUNDERING(
Avaaz!believes!the!suspicion!of!money!laundering!is!twofold!and!affects!both!aforementioned!parent!
companies!of!KazBay!B.V.!
!
First! of! all,! there! is! serious! suspicion! with! regard! to! participation! by! Helvetic! Capital! S.A.! in! KazBay!
B.V.!because!there!are!good!reasons!to!suspect!that!Leila!Khrapunov!was!the!ultimate(stakeholder!of!
the!Swiss!legal!entity.!It!should!be!noted!here!that!said!Leila!Khrapunov!was!frequently!linked!to!the!
fraud! committed! by! her! husband! in! the! past,! mainly! through! her! role! as! managing! director! in!
countless! shell! companies! which! were! purportedly! used! by! her! husband! in! the! fraudulent!
privatisations!in!Almaty.!!
!
It!can!be!concluded!from!the!documents!presented!in!the!US!lawsuit!filed!by!the!town!of!Almaty!that!
Leila!was!involved!in!the!set=up!and!directing!of!legal!entities!who,!in!the!same!ways!as!KazBay!B.V.,!
seem!to!have!been!used!mainly!as!a!money!laundering!vehicle.39!It!can!be!concluded!from!criminal!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
36! Appendix! 13:! when! a! business! partner! of! Bayrock,! FL! Group,! requests! evidence! of! these! investments! in!
Kazakhstan,!it!appears!that!Bayrock!is!unable!to!account!for!the!investment;!see!Appendices!XX,!e=mails!to!FL!
Group.!In!preparation!of!its!broadcast,! Zembla!asked!the!Bayrock!Group!to!provide!a!response.!Bayrock!said!
that!the!investment!was!unsuccessful!and!that!the!structure!was!dissolved.!
37! The! trade! register! records! of! Bayrock! B.V.! Staff! show! that! staff! members! of! a! Dutch! trust! office! acted! as!
directors!for!a!certain!period!of!time:!Hendrikus!Justus!Wirix!and!Ronald!Arendsen.!They!were!staff!members!of!
the!trust!office!ATC!Trust!B.V;!Appendix!6,!trade!register!records.!
38!Appendix!9:!Verified!Complaint!Jody!Kriss!and!Michael!Ejekan,!United!States!District!Court!Southern!District!
of!NY,!Case!1:10=cv=03959=LGS=FM,!par.!493.!It!becomes!evident!from!the!Chamber!of!Commerce!documents!
from!Appendix!7!that!Julius!Schwartz!is!also!mentioned!in!the!Dutch!Bayrock!B.V.,!while!names!such!as!Felix!
Sater!or!Tevfik!Arif!are!not!mentioned!(while!they!are!directors!of!the!Bayrock!Group,!just!like!Julius!Schwartz).!
39!Appendix!2,!Complaint!California,!par.!25,!29,!31!and!further.!
!
D20180891!
19!October!2018,!page!9!
investigations!in!other!jurisdictions!that!Leila!Khrapunov!was!personally!involved!in!the!widespread!
fraudulent!activities!of!her!husband.40!
!
All! this! creates! reasonable! suspicion! that! Helvetic! Capital! S.A.! belonged! to! one! of! the! empty! shells!
used!by!the!Khrapunov!family!to!try!to!conceal!the!revenues!from!the!Kazakh!fraud.!The!investment!
of!USD!740,000!in!KazBay!B.V.!by!Helvetic!Capital!S.A!therefore!originates!from!crime,!which!makes!
this!transfer!an!act!of!money!laundering.!
!
In! addition,! the! suspicion! of! money! laundering! equally! applies! to! the! other! ‘parent! company’! of!
KazBay!B.V.:!Bayrock!B.V.!!
!
The!Bayrock!Group!LLC!has!a!dubious!reputation,!as!noted!above,!and!there!are!indications!that!the!
company! is! involved! in! suspect! business! transactions41.! It! invests! in! real! estate,! where! it! seems! to!
frequently! and! sometimes! conspicuously! use! a! complex! company! structure! that! appears! to! be!
geared! towards! tax! evasion.! Moreover,! the! Bayrock! Group! LLC! conceals! the! identity! of! parties! or!
stakeholders! involved,! of! whom! at! least! one! has! a! criminal! record.42! It! will! not! come! as! a! surprise!
that!the!company!is!linked!to!large=scale!fraud.43!!
!
However,!apart!from!the!above,!the!Dutch!company!Bayrock!B.V.!has!a!criminal!law!problem!in!this!
case.!!
!
There!are!at!least!two!agreements!from!which!it!can!be!concluded!that!Bayrock!B.V.!entered!into!a!
business! relationship! with! Helvetic! Capital! S.A.44! It! becomes! evident! from! e=mails! that! Ronald!
Arendsen,!one!of!the!directors!of!Bayrock!B.V.,!was!informed!by!a!lawyer!of!Bracewell!&!Giuliani!LLP!
that! Leila! Khrapunov! was! the! ultimate! stakeholder! of! Helvetic! Capital! S.A.! 45! Nevertheless,! Bayrock!
B.V.! decided! to! go! into! business! with! Helvetic! Capital! S.A.! and! to! jointly! found! KazBay! B.V.! Thus,!
Bayrock!B.V.!actively!participated!in!the!set=up!of!a!structure!that!was!purportedly!used!to!launder!
the! revenues! from! the! Khrapunov! fraud.! This! makes! Bayrock! B.V.! a! potential! abettor! to! money!
laundering.!!
!
!
8. KAZBAY(B.V.:(MONEY(LAUNDERING(FEATURES(
A! conviction! for! money! laundering! does! not! require! the! predicate! offence! to! be! proved.! The!
indictment! does! not! have! to! specify! by! whom,! when! and! where! the! predicate! offence! was!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
40!In!November!2012,!the!Swiss!judicial!authorities!seized!the!assets!and!possessions!of!the!Khrapunov!family,!
including! assets! with! the! Swiss! banks! Sarasin! &! Co.! Ltd.,! Credit! Suisse! and! Schroeder! &! Co;! see! Appendix! 2,!
California!Complaint,!par.!38.!!
41!Financial(Times!19!October!2016,!‘Dirty!Money:!Trump!and!the!Kazakh!connection’,!
https://www.ft.com/content/33285dfa=9231=11e6=8df8=d3778b55a923;!Bloomberg!21!June!2017,!‘Trump,!
Russia!and!a!Shady!Business!Partnership’,!Timothy!L.!O’Brien,!
https://www.bloomberg.com/view/articles/2017=06=21/trump=russia=and=those=shadowy=sater=deals=at=
bayrock!
42! It! concerns! Bayrock! director! Felix! Sater:! https://zembla.bnnvara.nl/nieuws/nederlandse=brievenbusfirmas=
spelen=sleutelrol=in=transacties=miljardenfraudeur;! and! https://zembla.bnnvara.nl/nieuws/de=onderste=steen=
boven=zembla=werkt=in=dossier=trump=samen=met=buitenlandse=media!!
43!Appendix!9,!Verified!Complaint!Jody!Kriss!and!Michael!Ejekan,!United!States!District!Court!Southern!District!
of!NY,!Case!1:10=cv=03959=LGS=FM(
44! Appendix! 12,! The! Capital! Contribution! Agreement! and! a! Fee! Sharing! Agreement;! Appendix( 15.( See! also(
Appendix(16,(e=mail!correspondence!between!Marc!Gillieron!(director!of!Helvetic)!and!Bracewell!&!Giuliani!LLP!
45!Appendix!10,!E=mail!from!Bracewell!&!Giuliani!LLP!to!Ron!Anderson.!
!
D20180891!
19!October!2018,!page!10!
committed.! It! only! has! to! determine! that! the! object! originates! from! a! certain! crime.! It! is! even!
assumed!in!case!law!that!it!is!sufficient!if!it!is!not!clear!what!crime!was!committed,!but!if!it!can!be!
determined! that! it! ‘cannot! be! anything! other! than! that’! the! object! originates! from! a! crime.! In! the!
event!of!such!a!suspicion!of!money!laundering,!the!suspect!may!be!requested!to!provide!a!statement!
on! the! origin! of! the! money.! The! facts! and/or! circumstances! demand! an! explanation,! as! is! also! the!
case!here.46!The!statement!on!the!origin!of!the!object!should!be!specific,!more!or!less!verifiable!and!
must!not!be!highly!unlikely!in!advance.47!
!
There!are!clear!indications!that!KazBay!B.V.!acted!as!a!shell!company!that!was!founded!with!the!sole!
aim!of!facilitating!the!money!laundering!process!and!concealing!the!actual!origin!of!the!Kazakh!fraud!
cases.!There!are!various!indicators!that!demand!an!explanation!and!require!further!investigation!to!
uncover!the!fraud.!In!summary:!
!
• KazBay!B.V.!was!founded!by!means!of!two!substantial!investments!occurring!over!a!short!period!
of!time,!and!it!seems!nothing!was!done!with!them!in!the!ensuing!period;!
• Those!involved!concealed!the!identity!of!the!ultimate!beneficiaries!behind!the!companies;!
• The!directors!Wirix!and!Arendsen!are!employed!by!trust!offices;!
• The! companies! involved! (including! Bayrock! B.V.! and! Helvetic! S.A.)! refused! or! were! unable! to!
provide!third!parties!with!an!insight!into!the!destination!of!the!funds!invested!in!KazBay!B.V.;!!
• Politically! prominent! persons! were! involved! in! the! transactions,! including! Khrapunov’s! wife,!
•
•
whose!involvement!was!concealed;!
In!addition,!the!involvement!of!persons!with!a!criminal!record!was!deliberately!concealed!for!the!
outside!world48;!
Some!of!the!companies!involved!were!established!in!countries!that!are!known!to!be!tax!havens,!
such!as!Switzerland!and!the!British!Virgin!Islands;!
• Distinct!economic!activities!seem!to!have!been!non=existent!in!the!companies!involved;!
• Any!investments!by!the!companies!involved!were!typical!money!laundering!destinations!such!as!
real!estate;!
• Moreover,!almost!all!of!the!companies!that!seem!to!have!served!as!a!money!laundering!vehicle!
had!a!limited!lifespan.!
!
The! recent! ING! affair! shows! once! again! that,! if! the! indicators! specified! above! occur! systematically,!
without! these! indicators! being! reported! on,! this! could! result! in! a! widespread! money! laundering!
network!and!facilitators!who!turn!a!blind!eye.49!!
!
!
9. CRIMINAL(OFFENCES:(THE(CRIMINAL(ORGANISATION(
The! abovementioned! overlap! between! companies,! directors! and! shareholders! raises! many!
questions.! The! agreements! that! underlie! KazBay! B.V.! show! that! there! was! a! close! cooperation!
between! KazBay! B.V.,! Bayrock! B.V.! and! Helvetic! Capital! S.A.! This! cooperation! seems! to! have! been!
coordinated!and!geared!towards!a!specific!objective!to!the!extent!where!it!is!justified!to!speak!of!a!
criminal!organisation!in!criminal!law!terms.!
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
46!EHRM!8!February!1996!(Murray).!!
47!The!Court!of!Justice!in!The!Hague,!12!March!2008,!LJN!BC6500!and!HR!13!July!2010,!NJ!2010,!456!and!HR!19!
December!2014,!ECLI:NL:HR:2014:3687.!
48!Including!Felix!Sater.!
49!Press!release!by!the!Netherlands!Public!Prosecution!Service!on!the!occasion!of!a!settlement!with!ING!Bank!
N.V..:!https://www.om.nl/@103953/ing=betaalt=775/!
!
D20180891!
19!October!2018,!page!11!
As!noted!in!the!introduction,!this!organisation!should!be!understood!to!also!include!legal!and!natural!
entities!who!facilitated!the!laundering,!including!Bracewell!&!Giuliani!LLP,!the!US!law!firm.!The!role!
of!the!Dutch!trust!office!ATC!Corporate!Services!(Netherlands)!B.V.!raises!questions!as!well.!After!all,!
the!trust!office!had!the!obligation!to!conduct!a!thorough!investigation!into!the!companies!for!whom!
and!on!behalf!of!whom!it!acted.!This!does!not!seem!to!have!happened!here.!The!question!therefore!
arises!as!to!what!is!the!reason!for!this!lax!attitude!and!how!it!should!be!explained.!!
!
The! suspected! aim! of! this! organisation! was! to! launder! the! revenues! of! the! Kazakh! fraud! cases.!
Insofar!as!the!Dutch!part!is!concerned,!this!mainly!concerned!the!concealment!of!the!origin!of!the!
monies.! At! any! rate,! the! criminal! organisation! consists! of! the! abovementioned! legal! entities.!
However,! Avaaz! cannot! rid! itself! of! the! impression! that! even! larger! links! have! existed,! from!
Kazakhstan! to! the! United! States,! which! in! themselves! form! criminal! organisations! in! which! KazBay!
B.V.,!Bayrock!B.V.!and!Helvetic!Capital!S.A.!have!participated!on!an!individual!basis.!
!
!
10. THE(POSSIBLE(SUSPECTS(
The! possible! suspects! in! this! case! are,! as! noted! above,! in! any! event,! Bayrock! B.V,! KazBay! B.V.! and!
Helvetic! Capital! S.A.,! as! well! as! the! directors! and! ultimate! stakeholders! of! these! legal! entities,!
including!Bayrock!Group!LLC,!Tevfik!Arif!and!Leila!Khrapunova,!among!other!entities.!The!companies!
KazBay! B.V.! and! Bayrock! B.V.! no! longer! exist.! The! report! therefore! expressly! covers! the! ultimate!
stakeholders!behind!these!companies.!
!
The!role!of!Bracewell!&!Giuliani!LLP!merits!further!attention!here.!Although!the!office!is!established!
in!the!United!States!(New!York),!it!looks!as!though!the!office!made!the!incorporation!of!KazBay!B.V.!
possible,!and!has!thereby!facilitated!the!laundering!of!funds!from!Kazakhstan!to!the!Netherlands.!
!
Incidentally,! the! involvement! of! Bracewell! &! Giuliani! in! this! case! seems! to! extend! beyond! just! the!
incorporation!of!KazBay!B.V.!The!office!has!been!active!in!Kazakhstan!since!1997;! there! have! been!
contacts!between!Bracewell!&!Giuliani!and!Khrapunov!and!Ablyzov!over!a!prolonged!period!of!time.!
!
In! this! context,! it! is! important! to! note! that,! as! of! 1! June! 2003,! regulations! for! the! prevention! of!
money! laundering! and! the! financing! of! terrorism! also! apply! to! lawyers! that! provide! services! in! the!
Netherlands.50!This!means!that!Bracewell!&!Giuliani!LLP,!involved!as!a!law!firm!in!the!incorporation!
of!Dutch!companies,!had!the!legal!duty!to!identify!the!client!and!to!report!any!unusual!performed!or!
intended! transactions! within! the! framework! of! its! service! provision.! On! the! basis! of! the! Economic!
Offences!Act,!non=compliance!with!identification!and!notification!obligations!also!comes!down!to!an!
economic!offence!under!act!for!the!prevention!of!money!laundering!and!financing!of!terrorism.!!
(
(
11. MENS(REA!
It! logically! follows! from! this! that! the! possible! suspects! mentioned! above! were! aware! of! the! true!
nature!of!and!underlying!interests!in!the!money!laundering!construction!described!in!this!report.!
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
50! As! of! 1! June! 2003,! the! Identification! (Financial! Services)! Act! and! the! Unusual! Transactions! Notification! Act!
apply!to!the!legal!profession.!On!1!August!2008,!these!acts!were!replaced!with!the!act!for!the!prevention!of!
money!laundering!and!financing!of!terrorism!(Dutch!abbreviation:!Wwft).!
!
D20180891!
19!October!2018,!page!12!
Even! it! is! not! possible! to! speak! of! the! unconditional! intention! of! money! laundering,! the! suspicion!
seems!justified!that!the!natural!and!legal!entities!involved!have!consciously!accepted!the!reasonable!
chance,! or! should! have! had! the! reasonable! suspicion! that! KazBay! B.V.! was! no! more! than! a!
construction! to! launder! criminal! money.! Natural! entities! may! be! expected! to! carry! out! proper!
research!into!the!companies!with!which!they!do!business!and!the!agreements!they!enter!into!to!this!
end,!certainly!if!it!concerns!companies!which!have!as!many!money!laundering!features!or!indicators!
as!KazBay!B.V.!!
!
Furthermore,! with! regard! to! criminality! in! accordance! with! article! 140! of! the! Dutch! Criminal! Code,!
those!involved!do!not!necessarily!have!to!have!had!any!form!of!intent!in!terms!of!the!specific!crimes!
envisioned!by!the!organisation,!nor!do!they!necessarily!have!to!have!had!knowledge!of!any!specific!
crime.!!
!
In! short,! this! case! revolves! around! the! issue! that! everything! points! to! the! fact! that! the! above=
mentioned! possible! suspects! knew,! at! some! point,! or! should! have! known,! that! the! organisation! to!
which! they! belonged! had! the! intention! of! or! was! involved! in! money! laundering.51! Incidentally,! the!
committing!of!crimes!does!not!necessarily!have!to!have!been!the!final!objective!of!the!organisation!
to!which!the!suspects!in!this!case!belonged.!!
!
From! the! attached! documents,! including! e=mail! correspondence! between! the! parties! involved,! it!
becomes! evident! that! KazBay! B.V.,! Bayrock! B.V! as! well! as! Helvetic! Capital! S.A.! had! knowledge! or!
should! have! had! knowledge! of! the! crimes! that! were! purportedly! committed! by! the! criminal!
organisation,!and!that!these!entities!nonetheless!continued!to!contribute!to!the!achievement!of!the!
objectives!of!this!organisation.!
!
!
12. THE(SPECIAL(ROLE(OF(THE(‘PROFESSIONAL(FACILITATORS’((
The! so=called! ‘professional! facilitators’! merit! special! attention! here,! also! in! terms! of! criminal!
prosecution.! In! any! event,! this! includes! Bracewell! &! Giuliani! LLP,! but! the! other! service! providers!
involved!in!the!incorporation!and!money!laundering!acts!of!KazBay!B.V.!should!be!recognised!as!well.!!
!
Money! laundering! structures,! such! as! those! described! above,! are! simply! not! possible! without! the!
help!of!professional!parties:!lawyers,!trust!offices!and!bankers,!who!do!not!comply!with!their!legal!
obligations! to! prevent! money! laundering! and! the! financing! of! terrorism,! by! failing! to! carry! out! a!
thorough!client!investigation!and!omitting!to!report!unusual!transactions.!It!is!striking!here!that!the!
name! of! one! Dutch! trust! office! surfaced! with! some! regularity! in! the! investigation! conducted:! ATC!
Corporate!Services!(Netherlands)!B.V.!52,!to!which!the!Dutch!managing!directors!of!Bayrock!B.V,!Henk!
Wirix!and!Ronald!Arendsen,!were!affiliated.!
!
!
13. NECESSITY(FOR(CRIMINAL(PROSECUTION(
(
Avaaz!insists!on!criminal!prosecution!considering!the!major!social!importance!of!this!case.!!
!
This!Kazakh!fraud!case!illustrates!like!no!other!that!the!Netherlands!still!plays!a!major!role!as!a!transit!
country! for! revenues! that! are! embezzled! in! emerging! economies! or! which! are! simply! stolen,! after!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
51!HR!18!November!1997,!NJ1998/225.!!
52! According! to! Bloomberg,! ATC! Corporate! Services! is! (currently)! part! of! Intertrust! Group! Holding! S.A.:!
https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=8125718!!
!
D20180891!
19!October!2018,!page!13!
which! they! are! laundered! in! the! West.! The! Netherlands! very! often! acts! as! an! intermediate! station!
and! transfer! country! in! these! cases,! as! is! shown! by! this! case,! and! therefore! plays! an! essential! role!
within! the! global! money! laundering! system.! Criminal! prosecution! is! the! only! way! to! remove! the!
Netherlands! as! a! link! in! the! criminal! chain.! Laundering! criminal! money! is! a! form! of! subversive!
criminality! that! poses! a! threat! to! the! integrity! of! financial! and! economic! traffic.53!Moreover,! the!
government!states!that!countering!money!laundering!is!a!priority!because!it!is!of!great!importance!
for!effectively!opposing!all!manner!of!other!forms!of!serious!crime.!The!concealment!of!the!criminal!
origins!of!the!proceeds!of!crime!enables!the!perpetrators!of!these!crimes!to!stay!outside!the!reach!of!
the!investigation!authorities!and!to!enjoy!their!accumulated!assets!without!being!disturbed.54!!
!
The!recent!social!commotion!following!the!announcement!of!the!money!laundering!scandal!at!ING!
confirms! once! again! the! public! call! for! official! and! judicial! accountability! of! any! party! involved! in!
money!laundering.!Not!only!does!this!apply!to!banks!and!financial!service!providers,!such!as!ING,!but!
also! to! other! professional! ‘enablers’,! such! as! trust! offices,! which! facilitate! money! laundering! with!
their!actions.!Without!businesses!such!as!ATC!Corporate!Services,!the!Netherlands!would!soon!lose!
its!appeal!for!money!launderers.!
!
Moreover,!prosecution!in!the!Netherlands!is!in!line!with!attempts!made!elsewhere!in!the!world!to!
call!to!account!those!responsible!for!the!Kazakh!fraud!cases!specified!in!this!report.!Detection!in!the!
Netherlands! could! support! these! international! initiatives! and,! conversely,! the! Netherlands! could!
benefit!from!the!results!of!legal!proceedings!abroad,!for!example!in!New!York,!California,!the!United!
Kingdom!and!Switzerland.!
!
!
14. CONCLUSION(
Based! on! the! requests! above,! and! on! behalf! of! Avaaz,! we! request! you! to! initiate! a! criminal!
investigation! into! the! facts! specified! in! this! report! as! well! as! into! the! persons! who! appear! to! be!
responsible!for!this.!Avaaz!is!more!than!willing!to!explain!this!report!in!more!detail.!!
!
With!kind!regards,!
Barbara!van!Straaten!
!
!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
53!Guideline!of!the!Netherlands!Public!Prosecution!Service!for!the!criminal!procedure!in!the!case!of!money!
laundering!(2015R052),!Dutch!Government!Gazette!2015,!5392.!!
54!Press!release!by!the!Netherlands!Public!Prosecution!Service!on!the!occasion!of!a!settlement!with!ING!Bank!
N.V.:!https://www.om.nl/@103953/ing=betaalt=775/!!