Red Notice
At 4:00 p.m. I met Natasha and Nikita at the entrance to the Parliament and took them up to the balcony of the plenary hall. Beneath us were the 751 seats of the parliamentarians, laid out in a broad semicircle. As we sat, we put on our headphones and clicked through the channels of the roughly twenty different simultaneous translations in which the Parliament conducts its business.
At 4:30 p.m., Kristiina Ojuland, the Estonian MEP1 who sponsored the Magnitsky resolution, suddenly appeared on the balcony. Breathlessly, she told us that Geoffrey Robertson’s opinion had indeed convinced everybody, and that the vote was going ahead as planned.
Kristiina then disappeared to introduce the resolution. We spotted her in her purple dress among the beehive of parliamentarians below. She stood and began her speech. Like many other speeches I’d heard before, she went through Sergei’s story and the Russian government’s cover-up, but then she did something unexpected. She pointed toward us and said, “Mr. President, we have with us in the visitors’ gallery today the late Sergei Magnitsky’s wife, together with his son and his former boss, Mr. Bill Browder. I am pleased to welcome our guests.”
Then completely unexpectedly, the entire chamber of seven-hundred-odd parliamentarians stood, turned toward us, and erupted in applause. Not polite applause, but real, thunderous applause, which carried on for nearly a minute. I felt a lump in my throat and goose bumps on my arms as I watched tears welling up in Natasha’s eyes.
The vote went through and there wasn’t a single objection in the entire European Parliament. Not one.
Early in this book, I said that the feeling I got from buying a Polish stock that went up ten times was the best thing to ever happen to me in my career. But the feeling I had on that balcony in Brussels with Sergei’s widow and son, as we watched the largest lawmaking body in Europe recognize and condemn the injustices suffered by Sergei and his family, felt orders of magnitude better than any financial success I’ve ever had. If finding a ten bagger in the stock market was a highlight of my life before, there is no feeling as satisfying as getting some measure of justice in a highly unjust world.
* * *
1 Member of the European Parliament.
Acknowledgments
My opponents have engaged in a lot of crazy speculation regarding how I’ve managed to achieve some measure of justice for Sergei Magnitsky. The Russian government has alternately accused me of being a CIA agent, an MI6 spy, a billionaire who has bribed every member of Congress and the European Parliament, and part of a Zionist conspiracy to take over the world. Of course, the truth is much simpler. The reason why this campaign has worked is because anyone with a heart who has heard about Sergei’s ordeal has wanted to help.
A number of people have done so publicly, and writing this book has given me the opportunity to acknowledge many of them. But for every person named in these pages, there are countless others who have gone unnamed but whose tireless work behind the scenes has been crucial to the success of this campaign. I was hoping to use this section as an opportunity to thank all of these people. However, I’ve decided that I do not want to risk exposing anyone else to the intimidation, harassment, and threats from Russia that follow those who publicly support the Magnitsky cause. The time to acknowledge all of those who have contributed will come, but only when the threat of retaliation from Russian organized crime and the Putin regime subsides.
So for now, to every one of you who has given their time and energy to the campaign, I hope you all know how grateful I am for your support. To all the politicians in the United States, Canada, and across Europe; to the men and women at the European Parliament, PACE, and OSCE; to all the lawyers who joined me in this fight for justice, often working pro bono; to the journalists who worked courageously and tirelessly to get the truth out; to the NGOs and individuals from around the world who pushed their governments to act; to the brave Russian activists who continue to risk their lives to fight for the betterment of their country; to my friends and colleagues, whose support has helped me over the years; and to anyone who has been moved by the Magnitsky story and expressed your care in any way you could, please know that I cannot express just how much I cherish the contributions you have made and the hard work you have done. All of it has mattered and has made a difference. None of what this campaign has been able to achieve would have been possible without you.
Finally, and most importantly, I need to thank the true heroes of this story—the Magnitsky family. It was tragedy that brought us together, and while I would give anything to undo what happened to Sergei, I am grateful for your friendship. Your bravery and determination in the face of unspeakable grief is awe-inspiring, and I know that Sergei would be proud of each one of you.
About the Author
© PETER LINDBERGH, PARIS, 2014
Bill Browder, founder and CEO of Hermitage Capital Management, was the largest foreign investor in Russia until 2005. Since 2009, when his lawyer Sergei Magnitsky was murdered in prison after uncovering a $230 million fraud committed by Russian government officials, Browder has been leading a campaign to expose Russia’s endemic corruption and human rights abuses. Before founding Hermitage, Browder was a vice president at Salomon Brothers. He holds a BA in economics from the University of Chicago and an MBA from Stanford Business School.
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Index
A note about the index: The pages referenced in this index refer to the page numbers in the print edition. Clicking on a page number will take you to the ebook location that corresponds to the beginning of that page in the print edition. For a comprehensive list of locations of any word or phrase, use your reading system’s search function.
Abdallah, Ken, 80, 81, 82
Abu Ghraib, 359
adoption ban law, 357–62
Aeroflot, 1, 56, 368
Afghanistan, 356
Air France, 152
al-Assad, Bashar, 357
Alexeyeva, Lyudmila, 376
Alisov, Igor, 365, 369–70
Alitalia, 243
American Chamber of Commerce, Moscow, 144, 145
American Communist Party, 12–14, 26
American Express, 59
Amnesty International, 292
Amsterdam, 371
Anichin, Alexei, 314
Animal House (film), 18
Anselmini, Jean-Pierre, 41
AP, 182
“The Armed Forces of Corporate Governance Abuse,” 144–45
Armenia, 7, 260
Arthur Andersen, 51
Asea Brown Boveri, 92
Ashcroft, John, 306–7
Asian economic crisis (1997), 131–32
asset freezes and visa sanctions, 291, 293–94, 297, 298, 299–309, 327–29, 368, 373, 377
asset stripping, 144, 158–60, 165
Austria, 14, 312
Autosan, 30–39, 57
Azerbaijan, 7
Bahamas, 70
Bain & Company, 19–20, 24
Bangkok, 211
Bannister, Clive, 170
Barnevik, Percy, 92
Baucus, Max, 336
BBC, 50
Beck, Steven, 221, 274, 317, 364
beef importers, 334, 336
Beijing, 211
Belarus, 279
Belton, Catherine, 188, 203
Berezovsky, Boris, 91
Berlin Wall, fall of, 27, 29–30
billionaire psychology, 83
Blair, Tony, 186–89
Blokhin, Vasili Mikhailovich, 279–80
Bloomberg, 126,
187, 194
Boeing, 334, 336
bonds, 132
1998 financial crisis and aftermath, 131–38
Russian market, 132–38
bonuses, 47–48
Borschev, Valery, 287, 376
Boston Consulting Group, 19, 24–25, 41, 155
Browder and, 26–41, 155
Eastern European operations, 26–41
in London, 25, 26–27
Bouzada, Ariel, 121
Bowers, Chris, 5–6, 7, 9
Bowring, Bill, 170, 173
Brandeis University, 14
Brazil, 191
Brenton, Tony, 172–73, 174, 176, 178
Brezhnev, Leonid, 117
British Airways, 56, 180, 270
British Petroleum, 112, 113, 116, 125, 154
Brose, Chris, 307–9
Browder, Bill
anti-corruption campaigns against oligarchs, 115–30, 144–48, 154–69, 181, 192–93
banned from Russia, 11–13, 169, 170–89, 193
begins Hermitage Fund, 76, 77–86, 88, 95–103
birth of, 15
bodyguards of, 127
at Boston Consulting Group, 26–41, 155
British citizenship of, 10
Cardin List and, 298–309
childhood of, 15–17
communist background of, 12–14, 26, 27
congressional testimony on Magnitsky case, 302–5
at Davos, 88–93
death of Magnitsky and, 276–78, 280–88, 327, 372–73, 376
detained at Sheremetyevo Airport, 2–11, 169–70
Elena and, 3–11, 145–54, 161–64, 170, 174–75, 187, 192–96, 209, 225, 269–70, 276–77, 282, 299, 341, 350–51, 355, 367
as a father, 1, 3, 8, 114, 174–75, 206–9, 272, 299, 316, 341–42, 344, 374
Gazprom theft and investigation, 154–62, 192–93
Hermitage lawyers as targets, 237–53, 254–68, 360
Interpol Red Notice for, 367–70, 374
investigation into stolen companies, 201–35, 252–53, 271–72
Karpov’s libel suit against, 344–45, 374
loses Russian visa, 170–89, 193–96
Magnitsky Act and, 305–9, 327–39, 340–50
Magnitsky case, see Magnitsky case
at Maxwell Communications Corporation, 41–51
1998 financial crisis and aftermath, 131–46
in Poland, 27–39
police raids on Hermitage offices, 196–200, 203, 208–10, 216, 228, 230
Potanin vs., 115–30, 134–35
Putin and, 166–69, 175–77, 183–89, 236, 360–70, 375
Russian criminal cases against, 189, 190–200, 201–35, 236–53, 270–72, 323, 343–45, 360, 364–70
Russian raider attack, 213–27
Sabrina and, 84–86, 94–95, 102, 114, 117, 123, 134–37, 139–41, 174
at Salomon Brothers, 52–76, 77
Edmond Safra and, 72–76, 77–88, 93, 94, 98, 100–102, 112, 119–32, 138–39, 142
Sidanco and, 104–30, 134–35
tax-rebate fraud and, 231–37, 252–53, 257, 264, 271–72, 288, 301, 316–26, 328
threats against, 273–74, 314, 351–54, 363–70, 375
trial on tax evasion in abstentia, 364–70
at University of Chicago, 19
at Whiteman School, 15–17
Browder, David, 1, 3, 8, 114, 117, 135–41, 174, 175, 208, 209, 272, 273, 299, 316, 344
Browder, Earl, 12–13, 23–24
as head of American Communist Party, 12–14, 26, 27
Browder, Elena, 3–11, 145–54, 161–64, 170, 174–75, 187, 192–96, 206–9, 225, 269–70, 276–77, 282, 299, 341, 350–51, 355, 367
Browder, Eva, 14–15, 16–17, 135
Browder, Felix, 12, 13–15
Browder, Jessica, 175, 176, 207, 208, 209, 341–42
Browder, Raisa, 12, 13
Browder, Sabrina, 84–86, 94–95, 102, 114, 117, 123, 134–37, 139–41, 174
Browder, Thomas, 15
Browder, Veronica, 207, 209
Browder List, The (Russian TV special), 365
Bruder, Jason, 332–33
Brussels, 376–80
Bryanskih, Victor, 159
Budapest, 53, 88
Bukovsky, Vladimir, 350
Burkle, Ron, 80–81 and n, 82–84
BusinessWeek, 131, 160
Butyrka, 265–68, 276–78, 280
Canada, 340, 357
Cape Town, South Africa, 114–15, 117
Capital Constellation Tower, 312
capitalism, 12, 27, 62, 269
Russian transition to, 59–60, 87
Cardin, Ben, 263, 297, 335 and n, 338
Magnitsky case and, 298–309, 327–29, 341, 346, 353–55
Cardin List, 298–309
Caspian Sea, 226
Catholic Church, 364–65
cell phones, 48
Chaika, Yuri, 262
Chechnya, 288
Cheney, Dick, 306
Cherkasov, Ivan, 183–84, 196, 198, 201–27, 230–35, 252–53, 298
criminal case against, 201–27
Chicago, 9, 15, 17, 19, 24, 70
Chicago Tribune, 343
China, 2–3, 190
Chinese wall, 64
Chirikova, Evgenia, 329
Chubais, Anatoly, 91
Churchill, Winston, 228
CIA, 295, 359
Citibank, 209
Citigroup, 356
Clinton, Bill, 14
Clinton, Hillary, 297, 298, 333
Magnitsky case, 298–301, 304
Cold War, 356
Colorado, 15–17, 18
Committee to Protect Journalists, 303
communism, 26, 92, 96, 97, 269
American, 12–14, 26, 27
fall of, 2–3, 27, 29–30, 40, 59, 158, 291
Congress, US, 290, 302–9, 327–29
Magnitsky Act, 305–9, 327–39, 340–50
Magnitsky case and, 302–5, 327–55
Council of Europe, 261–62
Creditanstalt-Grant, 99
Credit Suisse, 208, 209, 319–26
C-SPAN, 348
Cullison, Alan, 148–49
Cyprus, 312, 320
Czechoslovakia, 27, 40
Velvet Revolution, 27
Daily Mirror, 42
Daily Telegraph, 44, 182, 369
databases, 158–59, 311–12
Davenport, Michael, 256–57
Davos, 88–93, 192–95
Delovoi Vtornik, 252
Department K, 203–5, 207, 227, 257, 258, 322
Depression, 12
derivatives, 66
Detroit, 28
Deutsche Bank, 199
DHL, 237–38
dilutive shares, 115–30, 144–45
Domodedovo Airport, 247–48
Dow Jones, 182
Drexel Burnham Lambert, 21, 52
Dubai, 196, 312, 321, 324
Dudukina, Irina, 283, 327–28
Duncan, Terry, 197
Dvorkovich, Arkady, 177, 180, 195
Eastern Europe, 24, 26, 27, 41
BCG operations in, 26–41
fall of communism, 2–3, 27, 29–30, 40
MCC operations in, 45–46
privatizations, 36–37, 41, 53–54
Salomon operations in, 52–54
See also specific countries
Echo Moscow, 236
Economist, 69
electricity, 69, 165
Elista, 226
Elle magazine, 307
embezzlement, 144
Ernst & Young, 59
Estemirova, Natalia, 303
European Commission, 376
European Parliament, 377–80
Magnitsky resolution, 378–80
European Union (EU), 301
ExxonMobil, 154
fatalism, Russian, 298
Federal Border Service, 194, 195, 242
Federal Securities and Exchang
e Commission (FSEC), 127–29
Federation Council, 340–44
Financial Times, 2, 124–26, 129, 131, 138, 160, 181, 182, 203
Finn, Peter, 180–81
Firestone, Jamison, 197–200, 201, 213, 220, 222, 314, 315, 316–20
Firestone Duncan, 197–200, 202, 233, 237, 254, 258
Fleming, Robert, 78
Flemings, 78–79
Forbes, 2, 6, 80, 182, 340, 358
Foreign Affairs, 147, 148
Formosus, Pope, 365
France, 73, 74, 131, 151–53, 187, 201, 208, 209, 312, 377
Freeland, Chrystia, 124–26, 363–64
front-running, 183–84
FSB, 175, 178, 194, 195, 204–5, 223, 260, 274, 279n, 317, 321–23, 341, 369
Department K, 203–5, 207, 227, 257, 258, 322
Fulton, Philip, 274
Fyodorov, Boris, 90–91
Ganapolsky, Matvei, 236
Gasanov, Oktai, 248–49
Gazprom, 154–62, 165, 181, 192–93
oligarch theft and investigation, 154–62, 192–93
stealing analysis, 155–60
G8 Summit (2006), 186, 187, 188, 203
General Electric, 92
Geneva, 70, 83, 93, 218
Germany, 14
fall of Berlin Wall, 27, 29–30
Nazi, 14, 135, 280, 369
World War II, 280, 369
Ghost Writer, The (movie), 299
Glover, Juleanna, 306–7, 332, 334–36, 353, 354
Goldman Sachs, 19, 42
Golodets, Olga, 358
Great Britain, 1, 11, 52, 312, 314
Border Force, 368
Foreign and Commonwealth Office, 171–72
government, 170–73, 186–89, 261
Magnitsky case and, 261
Greece, 139–40, 312
Greenacres, 80–82
Greene, Sylvia, 42
Gref, German, 175–78
Gregorian calendar, 117
Gremina, Elena, 347
Guantánamo, 359
GUM department store, 67 and n
Gusinsky, Vladimir, 91
Harvard Business School, 354
Harvard University, 20
endowment, 122
Heathrow Airport, 1, 95, 126, 238, 251, 252
hedge funds, 69, 70n. See also Hermitage Fund
Helsinki Commission, 263, 290, 295, 300–301