Mr. Speaker, while there has been much talk about Russia's interference in last year's election, there has been much less focus on another serious matter that deserves attention on Capitol Hill. I am referring to Russia's attempt to…
Mr. Speaker, while there has been much talk about Russia's interference in last year's election, there has been much less focus on another serious matter that deserves attention on Capitol Hill. I am referring to Russia's attempt to manipulate the U.S. judicial system to pursue their corrupt goals and persecute victims of the Kremlin on U.S. soil. I include in the Record a recent piece written by Atlantic Council Russia scholar, Anders Aslund, which calls attention to this growing problem. I was especially troubled to learn that the courts of my home state of New York have been targeted as venues for this manipulation of justice. We must remain vigilant in the face of these efforts to corrupt our democratic institutions. Just as any intrusion into the U.S. electoral system must be met with proactive measures to safeguard our voting process, the exploitation of our courts by Russia and others demands a robust response as well. I plan to work with my staff to explore this issue further and would urge my colleagues on both sides of the aisle to do the same.
[From the Hill, May 25, 2018]
Bolster the U.S. Judiciary's Defense Against Putin's Kleptocracy
(By Anders Aslund)
United States citizens are outraged about the Kremlin's
incursion into the U.S. electoral system, but that is
unfortunately just the tip of the iceberg. Russia is also
trying to hijack the U.S. judiciary for corrupt purposes,
expropriation and political repression, which has received
little attention.
Unlawful seizure of private assets and private companies by
the Kremlin has been the norm since Vladimir Putin became
president in 2000. Russia's law enforcement agencies and
courts are regularly used for the enrichment of the ruling
elite.
Annual State Department and Freedom House reports
underscore that the Russian judicial system lacks
independence from the country's powerful executive branch.
The Sergei Magnitsky case is the best-known example of the
Russian state's co-opting of the courts to support its
kleptocracy. A cabal of Russian tax and law enforcement
officers conspired to defraud Russian taxpayers of $230
million, the largest tax fraud in Russian history, by
targeting Bill Browder's company, Hermitage Capital.
When Magnitsky, Browder's tax attorney, discovered the
fraud and notified authorities, Hermitage and Magnitsky were
charged with their own fraud. Magnitsky was then arrested and
died in pre-trial detention at the age of 37.
Since then, Russian authorities have repeatedly called on
Interpol to disseminate red notices to harass Browder and
other victims. Interpol, which is meant to facilitate cross-
border coordination among law enforcement agencies, is
susceptible to abuse as it passes on requests and notices
from states without much scrutiny.
Russia misuses Interpol's red notices to gain the support
of international law enforcement agencies, including U.S. law
enforcement, in pursuing political dissidents and victims of
corporate raiding.
Russian legal authorities also abuse the U.S. court system
by exploiting U.S. federal discovery laws. Under these laws,
a foreign party can use the U.S. federal courts to compel
discovery from any person under U.S. jurisdiction.
The Russian authorities used this law repeatedly against
Yukos and its affiliates, after confiscating the oil giant
from Mikhail Khodorkovsky and other shareholders.
More recently, agents of the Russian state have engaged in
two federal court cases in New York: a 2016 attempt to loot
the assets of Janna Bullock and her real estate investment
firm RIGroup, and a 2018 effort to plunder the personal
property of banker Sergei Leontiv, a former shareholder of
Probusinessbank.
The Russian state is using the discovery process to extract
information to further criminal charges and extortion schemes
against individuals who fled to the U.S. seeking the
protection, safety and rule of law now being undermined.
The Russian government and its associates have developed
similar strategies to use federal and state courts to
recognize and validate bogus decisions from Russian courts,
exploit the U.S. Bankruptcy Code on behalf of sham creditors
aligned with the Russian state and enforce illegitimate
claims and orders issued by corrupt Russian judges.
Although U.S. judges are permitted to consider evidence
questioning the legitimacy of a foreign judicial decision,
they are rightly hesitant to speculate on whether another
country upholds the rule of law.
Such a determination requires significant analysis beyond
the scope and ability of most courts and therefore leaves the
U.S. judiciary ill-equipped to defend itself against Russian
incursion.
The U.S. is slowly beginning to fight back against Russian
intrusion into our courts. In 2017, the United States
sanctioned two Russian private-sector lawyers, Yulia Mayorova
and Andrei Pavlov, who repeatedly represented Russian
government agencies in the United States.
After passage by Congress of the ``Global Magnitsky Human
Rights Accountability Act,'' the U.S. sanctioned Artem
Chaika, the son of Russia's prosecutor general, who used his
father's position to extort bribes and win contracts for
himself and his cronies, while driving out competition.
More needs to be done to keep Russian lawlessness abroad at
bay. The House and Senate judiciary committees should
investigate the hacking of U.S. courts and hold hearings to
examine the threat they pose, with an eye toward developing
legislation that will help block future attacks.
The Department of Justice and the State Department should
consider establishing a joint task force to coordinate with
U.S. courts, where victims of abuse by corrupt governments
could submit their evidence.
The State Department already produces annual reports that
opine on the state of foreign judiciaries, which can be put
to good use to protect the integrity of U.S. courts.