Hermitage Capital

Substance of the case

10:1 "Most assuredly, I say to you, he who does not enter the sheepfold by the door, but climbs up some other way, the same is a thief and a robber."

The combined Hermitage Capital criminal case is a military conflict representing the ongoing hybrid war against Russia carried out under the guise of various predominantly economic and information methods. The sanctions imposed on Russia due to Magnitsky's death - are part of this war. At the moment, the case represents the combined litigation of the BOOST vs. The Vanguard Group. The form of the Hermitage Capital case is the invasion of the territory of Russia transnational organized crime group presumably managed by the US, UK, and Germany, which together executed a series of aggravated crimes to take control over Russia's state-owned and the major private assets, and disposed of cash and ownership rights with the associated tax burden outside of Russia. The visible form of the Hermitage Capital Case is the "corruption," "money laundering," and the death of Sergey Magnitsky.

According to Wikipedia, "The Hermitage Capital Management case is a case of embezzlement of 5.4 billion rubles from the Russian budget in 2007, which is considered the largest one-time embezzlement of funds from the state budget of Russia in history. The first to discover this crime were employees of Firestone Duncan, which served the legal interests of the investment fund Hermitage Capital Management, among whom were Eduard Khairetdinov, Vladimir Pastukhov, Jamison Firestone, and Sergei Magnitsky. They initiated an investigation into the embezzlement of budgetary funds, within which the list of participants in the crime, now known as the Magnitsky list, became obvious. This list includes 60 employees of various Russian executive authorities, most of whom still serve in various ministries and departments of the Russian Federation. On November 24, 2008, Sergei Magnitsky was arrested on charges of helping the head of Hermitage Capital Management, William Browder, evade taxes. After 11 months of pre-trial detention, Sergei died in the hospital of Detention Center No. 1 in Moscow. The initiator of his arrest and the investigator in his case were employees of the Ministry of Internal Affairs of the Russian Federation who participated in the embezzlement investigated by Sergei and his colleagues."

This description is neither complete nor truthful, and the substance of the case is different. Sergey Magnitsky's death directly connects to the story about the illegal disposal of ownership rights for Russia's assets started at the beginning of the 20th century and reached its apogee after the 90s of the last century. Russian assets were acquired by the current "oligarchs" guided by foreign beneficiaries - IMF and the US's investment funds through intermediaries - for whose benefit they acted with money stolen from the Russian budget. The second way to gain control over Russian enterprises was privatization. The new "owners" - the current Russian "forbeses," suddenly overnight became so incredibly sophisticated in complex financial and legal schemes and assets management to pull off such a complex cross-border series of mega-deals. Also, they became richer than Croesus getting enough cash to buy all these assets. Being guided by the USA and IMF, these "entrepreneurs" illegally captured the operational control over the cash flow of the Russian state-owned enterprises. Next, they withdrew funds from it through various schemes - direct cashing out, reinsurance, cross loans, purchases of bronze bills, and other "securities" of no value. Finally, at cost of the withdrawn money previously misappropriated from enterprises, the "oligarchs" bought shares and property of these enterprises. These assets, however, were registered already in their name. None of the Russian oligarchs - including very erroneously victimized Mickhail Khodorkovsky - has acquired their assets with money received legally and the origin of which he can confirm. Nobody of Russian "oligarchs" can prove the origination of their money. That is money stolen from the Russian budget or money stolen from the enterprises themselves, which are then cynically redeemed for this stolen money. In particular, in this way the control over the assets of RAO UES and the Russian energy industry was transferred from the Russian Federation to the such "respected" "philanthropists" as Viktor Vekselberg, Mikhail Prokhorov, Vladimir Avetisyan, and others - the Vanguard Group, BlackRock, Prosperity, and their affiliates including nominees.

Next, the title for assets obtained by "oligarchs" was transferred to the various companies registered in foreign jurisdictions: Delaware, California, New York, BVI, Cyprus, Panama, Luxembourg, Liechtenstein, Cayman Islands, Belize, Gibraltar, Switzerland, and some others. Among assets illegally transferred their title to the name of foreign "somebodies" were Sberbank (to the US), former Soviet Oil Companies later named Russneft (to the UK), and many others. The majority of these "Russian oligarchs" are only nominal shareholders - "murzilki" who own nothing, and the companies are owned and managed by the US's investment funds. All that "murzilki" really have - right to use yacht and house, and again in the foreign jurisdiction. Of their own, they can only have hemorrhoids. Their "employers" - the US's investment funds - perfectly framed them with this "yacht and house deal" staying behind the scheme transferred to them their responsibility for a series of aggravated crimes in the form of embezzlement fraud from the budget of the Russian Federation and many private companies and individuals. As payment for this job, murzilki had permission to use a yacht and house. To use, because of the ownership again in the trusts where they are murzilki who own nothing. Also, probably as an anual bonus (with the one "n"), they participate in Forbes listing that everybody knows how much money they stole from Russia's budget and the pockets of Russia's population.

Thus, the ratings of the well-being of the Russian "oligarchs" are based on the sum of money stolen from the Russian budget under the leadership of the United States, Great Britain, and the EU in the 90s. These countries finally got the property right to these assets with the associated tax burden. In their jurisdiction, the proprietory rights were transferred as part of this process. The process of property ownership rights deprivation against Russia through seizing Russian property and associated financial income did not begin yesterday or even in the 90s. That started in the First World War. After that, the same countries organized in a weakened Russia the revolution of the 1917th. Besides the murder of the Emperor's family, this gained the awful fame through the Red Terror - when the legal owners of the property and assets of the Russian Empire, including those who had legal rights to succeed the power in Russia after Romanov's murder, they were either killed by a monstrous cruel death and, if they remained alive, they were deprived of absolutely all rights, including property rights. Immediately after the revolution, the ownership of key Russian assets was transferred to British, German, and American jurisdictions. This entire chain of complex and interrelated processes, crimes, and the motivation of criminals that commanded these bloody mergers and acquisitions activity, will be described in sufficient detail further.

As a part of this mass fraud and property theft process, from 1991 to 2000, through the Deutsche Bank, UFG, and Hermitage Capital fund in the Russian Federation, shares of Russian state companies and state enterprises were illegally acquired, the ownership of which was transferred to foreign companies, including state-owned funds. The scheme of the illegal disposal of ownership for the Russian companies for the benefit of foreigners was developed by Ilya Scherbovich, according to his announcement: https://ru.wikipedia.org/wiki/Щербович,_Илья_Викторович. This scheme was organized by the UFG fund owned by Mikhail Mishustin who from 2008 to 2010 ran the UFG. Scherbovich next founded the UCP fund, both Mishustin and Scherbovich were not prosecuted for this scheme, even though in mass media, Mishustin was named as a part of the Cardin list group. However, Mishustin was not included in the Cardin list, running out the most resource-consuming business captures through the blackmail using the Federal Tax Service. That utterly proves his involvement in these crimes as a part of this organized group continuing to execute his "duties." During this period, in Russia were executed the largest captures of Russian businesses and killed Sergey Magnitsky. At this time, the head of the FNS was Mikhail Mokretsov, and the FNS was under the control of Serdukov, former head of the Federal Tax Service who lately avoided prosecution for the Rosoboronexport criminal case. We assume, that this prosecution is directly connected with the Magnitsky case. Due to lack of evidence, he was not sentenced and escaped criminal liability. Nor was his guilt proven in the Magnitsky case. During Serdukov's time, he completed the military reform. That resulted in a significant decrease in the Russian army headcount, mainly due to the reduction of the command staff. There was a corruption scandal during the sale of the military's property. Russia lost many important defense technologies and was involved in the import of military technics and weapons. The two largest imported objects - Mistrals - were frozen, so sanctions were used as an excuse to weak the Russian defense and steal Russia's money spent on this expensive useless acquisition. War medicine was eliminated. Other actions executed during this time significantly worsened the military potential of Russia and its defense which we observe now in the Ukraine conflict. That confirms the link between the Magnitskiy's case and the Cardin list and the military nature of these crimes, as people closely involved in the series of the illegal captures of Russia's property and assets were also closely involved in the weakening of its military segment and security.

Subsequently, in 2010 Mishustin went to work in the Federal Tax Service, and his partner Ilya Shcherbovich headed the UCP fund. Employees of the Federal Tax Service of the Russian Federation, the Hermitage Capital, international auditing, and law firms took part in the scheme of tax evasion, corruption, and money laundering. Since Serdukov's appointment in 2004, Federal Tax Service started to play the key role in hostile takeovers representing the official reason to capture business as a result of criminal prosecution which was based on the enormous tax claims sized at a sum sufficient to begin the criminal prosecution against beneficiary owners of the business which is targeted by raiders. This process was continued by Mokretsov - FTS interim, and Mishustin, Serdukov's successor. During the Mokretsov time, the tax questions were resolved by Serdukov informally, so he still kept his informal control over the Federal Tax Service. The raider activity of the Federal Security Service exactly coincided with the appointment of Serdyukov as Minister of Defense. So in parallel two working streams worked destroying the economy and military segments of the Russian Federation - the Federal Tax Service which supported the illegal capture of Russia's private businesses, and the Ministry of Defense which weakened the military sector. So the criminal case of Rosoboronexport is not a corruption case, and the nature of that is not economic criminal activity.

Serdukov's and Mishustin's transition to work in the Federal Tax Service came at a time when the Russian Federation had already lost control over the largest state-owned enterprises and illegal captures of the largest Russian private companies to the benefit of the foreign beneficiaries. Federal Tax Service led this process. After Mishustin's transfer to work in the Federal Tax Service of the Russian Federation, the Federal Tax Service became the main mechanism for capturing the largest Russian private enterprises. In addition to the sham tax claims, Federal Tax Service worked as a tool for falsification and illegal capture of property rights through malicious usage of state-owned electronic registers as well. For this, the criminals created a distinguished mechanism - the so-called system. The core function of the "system" was to ensure the containment of scouts - Russian nominal shareholders by analog with Sequoia US fund, who, unlike Murzilki, had a brain and did business. Hence, the scouts started their business anyway for the money of the same kind having criminal origin. So the "system" was necessary to control the cash flows - black cash and money smuggling and to control scouts so that in the absence of standard documents that would compromise the entire scheme, using the mechanism of fear and punishment.

The system was financed by withdrawals - black cash, which was received in the form of withdrawals from the business, captured by the raiders (the maximum possible cash was received from the acquired companies to finance the OPS). The son of Serdukov has participated in the scheme of documents input into the electronic systems of the Federal Tax Service, and the Mishustin was named as a beneficiary of the core IT systems for information exchange with the Federal Tax Service (e.g., Taxcom). This activity of the Federal Tax Service, instead of tax collection to ensure the state budget revenue, and vice versa led to the huge state budget losses due to the non-receipt of the taxes from the companies captured by raiders and further destroyed. Their assets sold out at black cash, and the Federal Tax Service hid the result of the crimes by liquidating the captured companies through the falsification of the EGRUL data, sham court judgments, falsification of the Tax State Registers, and falsification of tax debt data.

In addition to cash, "gratitude" to "system's employees" was expressed in the form of the transfer of ownership or life-long use of various property, businesses (the described above "yacht, house, and hemorrhoids" deal), shares in companies, as well as the issuance of obviously bad loans - deliberately bad loans, which could always become very repayable, if someone had to be taken hard by the balls, even if the loans were issued on "gentleman's agreements" that without return.

The system included officials of various levels from the Federal Tax Service of the Russian Federation, the FSPP of the Russian Federation, the Investigative Committee of the Russian Federation, the Ministry of Internal Affairs of the Russian Federation, the Prosecutor General's Office, the Federal Security Service of Russia, judges of various levels, as well as Alfa-Bank and related banks. The members of the scheme marked the documents circulating inside of the law enforcement agencies, which were a part of the "system," by marking them through distinguished signatures - they signed such documents with one letter, greek alfa. So that was easy to recognize the documents circulating thereupon specific "system" criminal litigations on behalf of the "system" - through signatures of the "system" members on such documents consisting of one letter "alfa." In addition to this special tagging of documents with alfa signature, to avoid wiretapping and surveillance, the criminals used billboards to exchange messages about impending crimes. By substance, the advertising messages were correspondence between members of the organized criminal group which controlled, among other assets, almost 100% of the total advertising. The meaning of such advertising slogans and text, by analogy with the "fish" language of pickpockets, was clear only to the members of the criminal group. In front of the nose of the entire population, criminals wrote each other 3x6 meters messages in giant letters, about committed and planned crimes, including murders, and terrorism, and no one noticed this - e.g., on the billboards, they were messages about the murder of Natalya Filyova (S7), Ukraine war, and related stop of international payment systems as a part of that (Visa), and others. The system was kept on paranoid fear and ruthlessly disposed of bystanders, or those who wanted to get out of the system. These people usually died of strange "natural deaths," committed suicide under strange circumstances, were "closed" to prison on any charges, or they ended up in psychiatric hospitals as "suddenly" crazy. The death of Magnitsky is a very bright example of that.

These individuals jointly implemented the mechanism for fraudulent capturing shares in companies. That worked as follows: against the beneficiary of the company with the help of falsification of evidence and documents, the criminals fabricated a criminal case or made forged financial claims, after which company's equity stake was illegally seized in favor of the raiders. The Federal Tax Service falsified data from the Unified State Register of Legal Entities by rewriting companies' shares to the third parties - raiders, and the FSSP worked in pairs at the Federal Tax Service of the Russian Federation falsifying documents of enforcement proceedings.

Raiders were often not content with shares in the company because they needed cash for the maintenance of the "system" with its corruption ground base. Raiders took everything to the last nail using fake documents. Numerous criminal cases were initiated against accomplices of Browder and Mishustin, but many escaped criminal liability, including due to the lack of sufficient evidence of their guilt. Also, real customers and organizers of criminal activity were not held accountable.

As part of the investigation of the Hermitage Capital case, one of the key witnesses of the guilt of Browder, Mishustin, Mokretsov, Serdukov, and other participants in the scheme, Sergei Magnitsky, was killed in the pre-trial detention center of the Matrosskaya Tishina prison. However, in addition to him, three more main witnesses were also killed - Oktay Gasanov, Sergei Korobeinikov, and Sergei Kurochkin. However, interestingly, the deaths of these three are not mentioned anywhere, as if they did not exist. Neither Senator Benjamin Cardin nor William Browder is bothered at all. That looks like these three deaths suit them, but they disagree with the fourth. In addition to financing the system to arrogate private property and continue to plunder state assets, the system financed terrorist acts to discriminate against the authorities in the Russian Federation, increase social tension, and overthrow the existing government. Terrorist acts were used to change power in the regions to help "set up" objectionable governors or heads of law enforcement agencies, as an excuse to nominate their own "system" people. Terrorism also made it possible to achieve its economic goals - to depreciate the value of Russian enterprises, put them into a crisis and distress mode, and then buy them up for next to nothing or go bankrupt. The main customers and leaders of the scheme to illegitimately seize control of Russian private and state enterprises were government officials from the United States, Great Britain, China, and the EU, as well as officials from the largest banks, investment funds, and federal treasuries of these states. The terrorist acts were organized by them not only in Russia. Read the Miscellaneous section on our website. These persons were included in the management bodies of the illicitly seized companies to control the withdrawal of property and assets, and the transfer of ownership of the property of the Russian Federation to foreign jurisdictions. As a result, almost the entire economy and industry of the Russian Federation were under the control of foreign states. Not only the ownership of almost all the property of the Russian Federation but also the tax burden associated with this was transferred to foreign jurisdictions, which is why the budget of the Russian Federation did not receive colossal amounts of cash.

The raiders also plundered, ruined, and destroyed companies that could not be controlled. The property of the illegally captured companies was arrogated and sold for black cash, which further smuggled and financed the "system." The damage caused to the budget of the Russian Federation in connection with the raider captures and ruining of companies is approximately more than 20x to the annual revenue of the ruined business. That is, when an entity with annual revenue of $1 billion in 2008-2010 went bankrupt, the Russian budget received less than $20 billion in tax revenues from the date of the bankruptcy to the current moment. The fraudulent forcible seizure of property in the Russian Federation was part of the plan of the United States and Great Britain, which failed to restore the fundamentally unhealthy economies after WWII. During the Second World War, both states were able to revive their bankrupt industrial companies with the help of military orders. However, the United States was not able to meet its obligations under either the Jamaica Accords or the Bretton Woods Accords, since the US dollar was never parity against gold, and to save its economy, the United States launched a printing press, which dispersed inflation since the amount of money in circulation - the US dollar - was not backed by real assets. The US needed real assets to save its dollar, and they found the source of real assets to decrease the US's inflation and to extract such necessary cash - and Russia was one out of many other states, just take a look at the ICIJ materials, who else is in the list. The transfer of ownership of foreign assets in US-controlled jurisdictions and transactions through the US banking system for a long period allowed the US to maintain the dollar at a given level. After the 2008 crisis, the position of the US and the dollar as a reserve currency became desperate. To gain control at no cost over the largest Russian assets - private companies - the "Magnitsky law" was organized with a further man-made crisis in Ukraine in 2012, which made it possible in 2014 to impose the first package of sanctions on the Russian Federation, as well as to inject from 2013 to 2015 through the US-controlled banks in the Russian Federation more than 1 trillion US dollars of cash to collapse the ruble and the price of oil. Thus, devalued Russian assets and debt should have made it possible to consolidate almost all of the Russian property abroad. For eight years, these states financed the massacre in Ukraine and used this, as well as the murder of Magnitsky, which they had previously organized, to hide a witness to their criminal activities, as a pretext for imposing sanctions against the Russian Federation, the purpose of which was to maintain their unviable economies (USA, UK, EU) and a market asset value bubble (USA, China). In addition, Russia is a sparsely populated country with a small army, as the largest owner of unique natural resources, without which neither the United States, China, nor the EU can exist and produce their "unique technological products" - and these are rare earth metals, long-fiber cellulose, and others like them, was of interest as in the opinion of these "powers" as an easily accessible target for aggressive capture, due to which and the destruction of the population of which it was easy to gain access to vast territories and natural resources.

To commit crimes of seizure of property and illicit enrichment, this group of persons organized a digital document management system in the largest state registers, which allows making any uncontrolled changes that entails a real loss of rights to real assets by the owners. The introduction of the "digital workflow" mechanism did not allow owners of assets and owners of data to control the content of these records, their reliability, availability, and adequacy, and the process of administration and management of digital state registers eliminated paper workflow - real paper documents, hard copies, confirming the ownership of real assets. This system was supplemented by the so-called "digitalization of the FMS databases" and data on the population contained in the PFR databases and other electronic registers related to the personal data of a citizen (banks, PFR, FTS, GIUDD, registry offices) - this "digital system" generates almost 100% of invalid passports and personal documents that at any time made it possible to challenge and recognize as invalid almost any transactions made by citizens with such documents. In reality, this led to the fact that people paid for property with their own money, however, assets with a real value were not registered on them. The ownership rights for real assets were recorded in the name of non-existing people. Also, the assets may have invalid attributes - especially property and the addresses of this property. No surprise that the state-maintained address classificatory is also administered by the Federal Tax Service. Firstly, the owners had invalid personal documents, and secondly, false data was also entered into the property ownership databases. In this regard, no records in the state electronic registers, neither personal documents, nor documents on the right of ownership corresponded to a real person in the state of the Russian Federation. This was used by scammers, raiders, insurance companies, and banks. Banks issued fraudulent loans, knowing pretty well the problems in registering rights and the invalidity of personal documents, and taking advantage of inconsistencies in the databases and low legal literacy of the population, they took property from people, including collateral, using fake documents, without having any real legal rights to levy foreclosure on this property. The mechanism of the "system" allowed banks to do this, which had previously tested this method of taking property on business raiding. Thus, control over the property of smaller businesses came under the control of banks, and the capitalization of banks was deliberately reduced to almost zero to seize control over banks at any time for next to nothing and thereby gain access to the rest of the real sector of the economy and the property of the population. As a result of the mass inconsistency of databases, there are no real static figures and information even on the real population of the Russian Federation, not to mention the real financial and economic indicators of the Russian economy and the activities of its real sector. Russia itself was used as the only source of cash, which can be withdrawn without hindrance, and the structure of the economy was forcibly changed towards a rental model dependent on imports.

After the raider capture of enterprises, the competitive companies producing real products and services demanded by the market were destroyed, factories were closed, instead shopping centres and residential complexes were built in their place. With the destruction of factories and enterprises, the population lost their jobs and lived off loans that they took at fantastic rates from banks belonging to the raiders, and spent on buying goods, services, and apartments from the same raiders at the same fantastic prices.

As a result, a rental model of the economy was formed in the Russian Federation, the real sector was completely cannibalized by banks, and all enterprises, except for raw materials - primarily manufacturing enterprises, were either destroyed, bankrupt, or in a completely deplorable state. In this regard, simultaneously with the destruction of the Russian economy, which was expressed in the transfer of the right to own assets and the associated tax burden to jurisdictions controlled by the United States, Great Britain, the EU, and China, a policy of genocide was also pursued against the population of Russia.

It was expressed in the destabilization of the moral state of the population of the Russian Federation, the destruction of basic spiritual and moral attitudes, the incitement of hatred and enmity towards the authorities and the government, the incitement of racial or ethnic hatred, the inculcation of the correctness of fraudulent ethics and criminal activity as the correct way to make money, the destruction of the family institute, promotion of early easy sex, support for the birth of children with severe abnormalities and mutations, support and promotion of homosexuality as a norm of relationships and physiology, addictions cultivating. The use of alcohol, tobacco, and drugs was actively promoted. A network for the production and sale of these substances was developed.

In addition, through a network of so-called perinatal centers and maternity hospitals, actions were carried out to massively harm the health of Russian women, which caused infertility, and prevented the birth of healthy children. Also, to children during childbirth or in the first days after childbirth, externally invisible organic mechanical damage was carried out to affect the brain and provoke brain hypoxia and related pathologies, including developmental delay, and mental retardation. The health care system was reorganized in such a way that it became completely inaccessible to the population under the CHI policy, and paid services were not provided with the declared goals - the purpose of their provision was not to preserve but to destroy the health of the Russian population. The final stage in the fight against the Russian population was to be the coronavirus and the subsequent mass vaccination with vaccines that had not passed clinical trials and were dangerous to the health of the population.

This was supposed to weaken the economy of the Russian Federation, physically destroy part of the population, and in combination with the military operation planned by the United States and Great Britain against Russia in Ukraine - that is, a full-scale military invasion of the territory of the Russian Federation with the help of Ukrainian citizens and inciting hatred between fraternal peoples - destroy the economy and statehood of Russia. For this, an information war was planned with the help of social networks. Social networks were supposed to take the Russians to the streets with the help of fake news inspired by them the idea of ​​discriminating against the reputation of the authorities, and the government, and inciting hatred for the legitimate administration of the state.

That is a non-exhaustive list of criminal activities carried out by the same group of individuals who committed the rest of the crimes for which claims are on BOOST's toxic assets balance sheet. These claims give us the right to vindicate the stolen assets and get the complete losses indemnification for all toxic assets where we are claimant, victim, successor, or holder of such rights. Now we address the consolidated claim containing all subcases to the Vanguard Group.

The description of this case is not exhaustive and will be supplemented and detailed later. This information is provided on the BOOST website for informational purposes only.

10:1 "Yet they will by no means follow a stranger, but will flee from him, for they do not know the voice of strangers."

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