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54 pages 1 hour read

Bill Browder

Freezing Order: A True Story of Money Laundering, Murder, and Surviving Vladimir Putin's Wrath

Nonfiction | Autobiography / Memoir | Adult | Published in 2022

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Key Figures

Bill Browder (the Author)

As the author, Bill Browder narrates this nonfictional account of his quest for justice in the aftermath of the murder of Sergei Magnitsky. Browder ran the Hermitage Hedge Fund in Russia, which was the world’s best-performing fund in 1997. To protect his clients’ investments, he used the media to expose the corruption of Russian companies with ties to the state. As a result, Putin expelled Browder from Russia in 2005. By this time, Browder had amassed millions of dollars legally via his investments in Russia. Later, the Russian government raided his company’s offices and those of his attorneys and stole documents that were used to fraudulently transfer ownership of the Hermitage Fund’s companies. Magnitsky, Browder’s attorney in Moscow, discovered that these companies then stole $230 million in the form of a Russian tax refund—the exact amount of taxes that Browder paid when the fund was shut down in Russia. The Russian government then retaliated against Magnitsky, arresting him and murdering him in custody.

This book tells the story of Browder’s efforts to get justice for Magnitsky. He seeks to use current laws on money laundering and to create new laws—named after Magnitsky—to freeze the assets of human rights violators and ban them from obtaining visas (38). Browder played a central role in lobbying for these laws, testifying before legislative bodies and contacting sources in the media to shine a light on the story. He published his first book, Red Notice, to expose this story. In addition, he led the charge to pressure prosecutors to apply current laws against money laundering to Magnitsky’s murderers. Given the willingness of Putin and the Russian government to imprison and kill political opponents, Browder experienced the pain of loss when those who helped him were assassinated, and he coped with the fear of being detained at international borders or being targeted by assassins in the West. Browder weaves these personal experiences, along with glimpses of his family life, into his story. His determination brought about Magnitsky laws in many countries and freezing orders for the assets of those who perpetrated the crimes against his friend.

Browder is perfectly positioned to write this book, which is almost a journalistic account of his firsthand experiences. His education and professional experience gave him the skills and knowledge to write the book. With an MBA from Stanford University, Browder went into finance and ran a hedge fund. Therefore, he understands how money laundering works and can explain it well. Browder has been the recipient of numerous awards, including the Aspen Institute’s Henry Crown Leadership Award for high standards, honor, and integrity, the Coalition for Integrity’s Integrity Award, and other human rights awards.

Sergei Magnitsky

The legal representative of Browder and his company in Russia, Sergei Magnitsky uncovered the theft of Browder’s companies and their subsequent use to defraud the Russian treasury of $230 million. When Magnitsky reported this to the Russian authorities—who were corrupt and party to the fraudulent scheme—he was arrested and held in prison for almost a year. According to Russian law, Magnitsky would have had to have been released or tried at the end of 365 days. Instead, days shy of that deadline, he was beaten to death in prison by Russian authorities. They couldn’t risk a trial given that the case against Magnitsky was completely bogus. The Russian government didn’t let Magnitsky rest in peace either. In an unprecedented move, they charged him posthumously and they tried to sully his name.

Browder considered Magnitsky a friend who was working on his behalf. News of his death devastated Browder. That injustice motivated him to seek laws that would freeze the assets of human rights violators and prevent them from traveling—laws that would enshrine Magnitsky’s name so that his sacrifice wouldn’t be forgotten. Throughout the book, Browder attributes his motivation and his emotions at times to Magnitsky’s murder. He compares and contrasts the peaceful death of his elderly mother with Magnitsky’s brutal murder alone in a cell. Browder refuses to let the world forget what Putin and the Russian government did to his friend.

Vadim Kleiner

A member of Browder’s team, Vadim Kleiner played an instrumental role in tracing the stolen money from its origins in Russia, through shell companies, to its destination in the West. Kleiner becomes a sophisticated forensic investigator of the money laundering done by those who stole the $230 million and had Magnitsky murdered. His research was critical to the case against Prevezon in New York. Kleiner worked tirelessly for weeks to give the prosecutor all the information that he requested. A close friend of Browder’s, Kleiner was a staunch advocate for Magnitsky laws. His role conveys a sense of the technical knowledge and voluminous research necessary to bring money launderers to justice.

Vladimir Putin

The authoritarian leader of Russia, Vladimir Putin is central to Browder’s story. Putin targeted dissidents and those advocating for Magnitsky Acts through assassination, harassment, or both because he was the beneficiary of the corruption and money laundering, from which he gained billions of dollars. When it was discovered that Putin placed his monies with a trusted friend, cellist Roldugin, Browder’s team traced some of the $230 million directly to Putin. He vehemently opposed Magnitsky laws because they jeopardized his fortune. Willing to use any means to stop these laws from passing and memorialize Magnitsky, Putin was ruthless in his campaign against their advocates. He had the Russian government charge and try Browder in absentia on serious charges. Later, he suggested that President Trump trade Browder for those Russians charged with election interference. Browder encountered problems crossing international boundaries because the Russian government, under Putin’s orders, placed criminal notices on Browder via Interpol. In one instance, Browder was taken into custody in Madrid and feared extradition to Russia. Browder avoided this but argues that Putin is at the heart of Magnitsky’s murder.

John Moscow

Known as an aggressive prosecutor, John Moscow served in the New York District Attorney’s office for over 30 years before going into private practice. Browder met with Moscow and provided him with the full chronology of the Russian fraud. Excited about the evidence, Moscow agreed to represent Browder. However, he lost interest in the case when he became involved in a major American case. Later, Moscow switched sides and represented the Russian government in the criminal case against Prevezon. Astounded, Browder tried to get Moscow removed because of a conflict of interest. Moscow’s firm, the prestigious BakerHostetler, defended Moscow’s involvement in the case and dismissed Browder’s claims. The firm undoubtedly made a great deal of money from representing Russians. Browder then hired attorneys and spent enormous time and effort trying to get Moscow removed from the case. He was concerned that Moscow had already passed information along to the Russians. After many failed attempts, Browder ultimately succeeded in removing Moscow. However, to Browder, Moscow exemplified an American enabler of Putin and his crimes. He found that more loathsome than the actions of the Russians.

Dmitry Klyuev

In Kleiner’s research of the money trail, Dmitry Klyuev’s name kept appearing. The Russian authorities had repeatedly gotten him out of trouble, blaming his crimes on others. In several cases, those others were murdered. When Kleiner asked his confidential source about Klyuev, he was met with silence and then told that it was dangerous to utter his name. Klyuev, the owner of a bank, was a major crime boss and was greatly feared. In addition, he was deeply connected to the Russian government. In fact, when the OSCE PA was ready to vote on a resolution to encourage member countries to pass Magnitsky Acts, Klyuev arranged a meeting with the head of that organization. As Browder explains, the Russian government had to request that meeting. Browder uses Klyuev’s role in such politics to demonstrate the merger of the Russian government and organized crime. As it turned out, Klyuev couldn’t prevent the OSCE PA from passing the Magnitsky resolution. At the OSCE PA meeting in Monaco, Browder held an event and aired a video about Klyuev’s crimes.

Natalia Veselnitskaya

Heading the legal team for Prevezon, Veselnitskaya was actually working on behalf of the Russian government. She was aggressive in her legal tactics defending Prevezon and seeking to gain information from Browder. On several occasions, Browder literally ran from those trying to serve him a subpoena. Browder wanted to avoid a subpoena at all costs, fearing that the Russian government would compel him to name his informants, who would then be targeted. Veselnitskaya’s dual role as advocate for Prevezon and the Russian government demonstrates Browder’s point that the Russian government and criminal organizations aren’t just connected but are one and the same. Veselnitskaya actively campaigned against Magnitsky laws as well. She made several appearances at key events, one time sitting next to US Congressional staffer Kyle Parker, who drafted the US Magnitsky Act. Browder noted the irony of that. Veselnitskaya was one of many Russian criminals who, to Browder’s frustration, escaped consequences. She was later indicted in the US for failing to disclose that she represented the Russian government, but she remains safely ensconced in Russia.

Boris Nemtsov

A legendary leader of the Russian opposition, Boris Nemtsov listened to Browder’s presentation about Magnitsky Laws at the Finrosforum and was impressed. He gave his full support to Browder’s cause because he understood that threatening the wealth of Russian officials was a surefire way to punish them. Nemtsov returned to Russia after the human rights conference and continued his anti-Putin campaign there despite constant harassment from officials. In 2015, Nemtsov was assassinated following an interview he gave about an anti-Putin demonstration. While he was walking past Red Square, a snow plow pulled in front of him and his girlfriend, and “an assassin jumped from a darkened stairway on the side of the bridge and shot Boris six times” (137). Nemtsov’s murder allows Browder to emphasize the danger that dissidents face in Russia. The Russian government covered up this crime, claiming unconvincingly that security cameras weren’t working. Because of a significant public outcry for justice, the Russian government blamed the killing on five Chechens. Browder argues that Nemtsov was assassinated on Putin’s order and cites the subsequent coverup and use of scapegoats as the modus operandi of the Russian government.

Thomas Griesa

The 83-year-old judge initially assigned to the Prevezon case in New York, Thomas Griesa wasn’t up to the task. At the first hearing in which Browder’s attorneys attempted to remove Moscow from the case because of a conflict of interest, Griesa failed to grasp the connection between Browder, Prevezon, and Moscow. The judge hadn’t read the written filings ahead of time. As a result, he ruled against Browder and allowed Moscow to stay on the case. Additionally, he approved Prevezon’s subpoena of Browder, which compelled him to turn over information. Browder feared that if he complied with the subpoena, the Russians would gain access to his informants in Russia, thus putting them in danger. Astute legal advice helped Browder avoid that outcome. The subpoena was so broad that Browder dumped a great deal of information onto Prevezon, most of which was publicly available. When Prevezon’s attorneys went back to Griesa for a more focused subpoena, the judge’s lack of understanding worked in Browder’s favor. Griesa caused Browder much frustration but was ultimately removed from the case. This tale exposes the risks of a court case even when the legal arguments and facts are on one’s side.

Dana Rohrabacher

A Republican US Representative from California, Dana Rohrabacher was an ardent opponent of the Magnitsky Act. He traveled to Moscow and met privately with Russian officials prior to the House Foreign Relation Committee’s hearing on the Global Magnitsky Act. Initially, Rohrabacher succeeded in getting the Act pulled from the House Committee’s agenda. Using the media, Browder got the chair of the Committee to put it back on the agenda. Rohrabacher sent invitations to every House member to attend a Russian documentary that provided false information and attacked Magnitsky and Browder. None came, however. He even tried to get the name Magnitsky removed from the Global Magnitsky Act. While none of these efforts came to fruition, Browder discusses Rohrabacher’s role as an example of an American representative using a position of power to “assist the Russian government in their cover-up of a political murder” (209). At this time, neither US party had many Putin sympathizers. However, more were in some European countries, and their numbers in the US grew with Donald Trump’s election in 2016. The fight for justice, argues Browder, takes place in democratic countries as well. Rohrabacher lost his race for reelection in 2018.

Vladimir Kara-Murza

A close friend of Nemtsov’s, Vladimir Kara-Murza spoke passionately about Nemtsov at a memorial at the US Capitol. He noted that Nemtsov was uncorruptible and was killed as a result. Kara-Murza campaigned for Magnitsky laws to get justice for his friend. After he bravely returned to Moscow to carry on the anti-Putin work that he’d done with Nemtsov, he was poisoned and almost died. Browder details how efforts to identify what substance poisoned him were unsuccessful. However, he also highlights how good Russians, in this case a physician, saved Kara-Murza’s life. Browder’s fight is with corrupt Russians who victimize honest Russians.

Vladen Stepanov

The husband of the Russian tax official who approved the fraudulent $230 million tax refund, Vladen Stepanov received $11 million from the crime. The money was placed in a Swiss account. Thanks to a whistleblower who wanted the corrupt Stepanovs out of power, the money laundering trail was traced. Browder filed a complaint with the Swiss and finally got their attention via his persistence. The Swiss froze Stepanov’s funds. It was significant for Browder because it was the first freezing order associated with the Magnitsky case. His efforts were being rewarded.

Glenn Simpson

A darling of the US press, Glenn Simpson blocked some of Browder’s efforts to get favorable stories published. The media didn’t want to offend Simpson because they relied on him for information when stories about Trump’s connections with Russia became prominent. In effect, Simpson sold his public relations efforts to the Russians because he was hired by Veselnitskaya to smear Browder and Magnitsky. Simpson succeeded in getting a negative story about Browder published in The New York Times. Browder suspected Simpson of planting false information in the dossier about Trump and the Russians in order to discredit the whole thing. He was yet another Westerner who had sold out.

The Russian Interior Ministry

Led by Artem Kuznetsov, the Russian Interior Ministry was working with organized crime and utterly corrupt. It raided the offices of the Hermitage Fund and used the company’s seals and certificates to change ownership and effectively steal companies. When Browder filed complaints about the corruption of Kuznetsov and his colleague in the Ministry, Pavel Karpov, the Russian government filed a criminal case against Browder and assigned Karpov as the investigator. The Ministry had a history of working to cover up Klyuev’s crimes. Because of the corruption at the very top of this Ministry, there was no way to get justice in Russia. Browder’s only choice was to pass laws in the West to make these criminals face some justice.

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