The Department of Justice (DOJ) has taken legal action to seize $3.4 million generated from the sale of a music studio in Burbank, California, allegedly linked to Russian oligarch Oleg Deripaska.
The DOJ claims these funds are tied to violations of U.S. sanctions imposed on Deripaska for his connections to the Russian government and energy sector.
In a statement, the DOJ explained, “The proceeds, which are beneficially owned by Russian oligarch Oleg Deripaska, are the result of sanctions violations.” Deripaska was sanctioned in 2018 and later indicted in 2022 for allegedly circumventing those restrictions.
Known as the founder of Russian industrial giant Basic Element, Deripaska has business interests spanning aluminum, energy, and agriculture, with an estimated net worth of $2.7 billion, according to Forbes.
The indictment against Deripaska includes charges against two associates, Olga Shriki and Natalia Mikhaylovna Bardakova, for their roles in alleged sanctions violations.
The DOJ asserts that Deripaska paid Shriki to manage various operations in the U.S., including the sale of the Burbank music studio.
Shriki reportedly managed the studio, known as Ocean Studios, between 2013 and 2018. She sold it in 2019 for over $3 million, with the DOJ alleging that the funds were funneled through accounts linked to Deripaska.
According to court documents, approximately $69,000 was transferred from Shriki’s Global Consulting Services LLC account, which was funded by overseas accounts associated with Deripaska.
The DOJ also claims that Deripaska acquired the studio in 2008 through a complex network of shell companies and conspired with Shriki and Bardakova to profit from its sale while evading sanctions.
Michael Khoo, Co-Director of the DOJ’s Task Force KleptoCapture, criticized the actions of Deripaska and his associates. “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,” he stated. “It is predictable, hypocritical, and illegal.”
James E. Dennehy, Acting Special Agent in Charge for the FBI, emphasized the bureau’s commitment to enforcing sanctions laws. “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,” Dennehy said.
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.”
The DOJ’s actions are part of its broader effort to counter illicit activities linked to Russian oligarchs, particularly in light of Russia’s ongoing invasion of Ukraine. Task Force KleptoCapture, launched to address abuses by foreign actors exploiting the U.S. financial system, continues to target individuals and entities attempting to evade sanctions.
This case underscores the DOJ’s focus on enforcing sanctions laws and preserving the integrity of the American financial system.