21-4-2024 (SINGAPORE) A Russian man has been charged in the United States for his alleged involvement in a money laundering conspiracy aimed at funding Russia’s military invasion of Ukraine, using over $65 million (S$88 million) to purchase gold bullion held in Singapore.
According to court documents, 42-year-old Feliks Medvedev was charged on April 11, 2023, with one count of operating an unlicensed money transmitting business and 39 counts of money laundering. On February 22, he pleaded guilty to the charges, admitting to running an unlicensed money transmitting business in the US and moving over $150 million in illicit funds through more than 1,300 transactions.
Notably, over $65 million of these illicit funds were used to purchase gold bullion from the Singapore Precious Metals Exchange (SGPMX), a private trading and storage company headquartered in the city-state. The bullion is stored at Le Freeport, a secured logistics hub in Changi North Crescent.
While SGPMX declined to provide details due to privacy laws, a spokesperson stated that the company “adheres to the highest standards of checks and due diligence” and is bound by strict confidentiality clauses and data protection regulations.
The US Attorney’s Office for the Northern District of Georgia revealed that Medvedev resided in Georgia, where he had registered eight companies used to illegally transmit the illicit funds. These companies allegedly did not incur typical business expenses or maintain employees, with most of the funds originating from multiple overseas companies before being transferred to other foreign entities.
Two other Russians, Alexey Chubarov, 42, and Lev Solyannikov, 31, along with a business consulting firm in Moscow, were alleged to have conspired with Medvedev in the transfer of these funds and the laundering of the illegal proceeds. Chubarov and Solyannikov, identified as experts in international structuring, were charged on February 13 with conspiracy, operating an unlicensed money transmitting business, and 39 counts of money laundering.
US Attorney General Merrick B. Garland stated that the illicit funds were intended to fuel Russia’s invasion of Ukraine, and the Justice Department remains committed to “cutting off the flow of illegal funds” supporting Putin’s war.
The prosecution of Medvedev, Chubarov, Solyannikov, and the Moscow-based firm is part of the efforts undertaken by Task Force KleptoCapture, a US Department of Justice unit formed in March 2022 to enforce sanctions on Russian oligarchs in response to the invasion of Ukraine.
Medvedev is expected to be sentenced on May 7, as the US authorities continue their crackdown on individuals and entities alleged to be enabling the Kremlin’s aggression against Ukraine.
