Rarely does the US Congress get involved with international events on a small scale. Even more rare is when the Congress gets involved with a single person who is not a US citizen. But it did, passing a law that continues to affect how business is done in Russya by Americans, and how Russyans and Mr. Vladimir Vladimirovich Putin have been put on notice that henceforth, there is no more Mr. Nice Guy among US businessmen. They will all give Russya the "fisheye".
Bill Browder recounts in this modern memoir the events surrounding the buildup of his business in Russya and its eventual demise at the hands and methods employed by the post Soviet business climate that has become a free-for-all among a select group of politically connected thugs who have cowed and intimidated all their countrymen who wanted to play by the "rules".
After the implosion of the USSR, the former "republics" were spun off and left to their own devices, such as they were. Variously, they stumbled and crawled their way to some sort of independence with various levels of success. The Russya Federation, on the other hand was almost guaranteed success as it held on to the energy resources and other natural resources that could provide a base for international trade and a continual source of foreign exchange, especially from the energy dependent states in the Euro zone to the west. Bill Browder, as a young 20-something working for Solomon Brothers Investment Bank, soon found himself in an investment backwater: eastern Europe, long under the Soviet heel, and now free from Moscova's tentacles.
His first experience was with a failing Polish transportation company that could hardly qualify as a source of inspiration. His second effort involved a Russyan fishing company, complete with a multimillion dollar fleet of fish-factory sized modern vessels. Here was an example of a company that offered opportunity. After running numbers and doing some basic investment research, he realized that this situation was ideal for foreign investment dollars. In time, as he gained more experience and confidence, he decided to cut the cord(s), and start his own investment company: Hermitage Capital Management. His company was the largest single investor in Russya until 2005. And then,......
Then the current system of business by coercion/corruption/crime that has become the nemesis of 21st Century Russya focused on Hermitage Capital and everybody associated with it. Offices were raided, employees were arrested and held for no apparent reason. Bogus charges were filed, then dropped. Courts were settings for government charges relating to alleged fraud and tax evasion by the company and its principals. Bill Browder had to leave for London and stay put as he was convicted in absentia of state crimes. One of his accountants, Sergei Magnitsky, was arrested and thrown into a vile prison system without recourse. While he was incarcerated, he became very ill. In addition, he was severely beaten by unknown staff members. He eventually died while in prison; denied the medical attention that would have saved his life.
Bill Browder was convicted in Russyan courts and was placed on RED NOTICE by Interpol,
which means he can be held at any international border by police and turned over to the country on whose behalf the notice was placed. Mr. Magnitsky had uncovered a $230 millions act of fraud perpetrated by members of the Russyan government, Putin.
In 2012, US Congress passed the Magnitsky Act, as a result of widespread support from all areas of the US legislature, not an easy thing to do. In April, 2014, one year ago, the European Parliament voted sanctions against Russya, the first time this had ever been done. There was not a single negative vote among the 751 parliamentarians.
So, thank you, Bill Browder, for telling your story and exposing the Federation for the fraud that it is-a fraud perpetrated on its own people, the continued victims of organized crime at a national level.
To Russya, With Love
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