Russia Is A Seven: Sergei Magnitsky's Murder Officially Swept Under The Rug

HT: Big E

As long time tilb readers know, we've been following the murder of Russian lawyer Sergei Magnitsky in Russian prison. He basically helped uncover a massive tax fraud/embezzlement by Russian officials only to have the tables turned on him. The officials turned around and charged him with theft, jailed and tortured him then had him murdered in prison. Bill Browder of Hermitage Capital (who was Magnitsky's relevant client in uncovering the original fraud) has spoken out loudly only to have his complaints drowned out by silence.

The NY Times gave the story a few last breaths of life today.

Hermitage Capital's Tribute To Sergei Magnitsky

As we discussed serveral times before, Russia is corrupt and sad outcomes regularly happen. What follows is Bill Browder and Hermitage Capital's tribute to their murdered legal counsel, Sergei Magnitsky. We provide our full sympathy, as he seems like an honest, dedicated, professional patriot.

Tribute to Magnitsky

Hermitage Lawyer Sergei Magnitsky Dies In Russian Jail

Disheartening news for freedom lovers everywhere. Bill Browder's Hermitage Capital Management, which has been unwittingly involved in an enormous sovereign robbery in Russia (see here for a must read/watch on this insanity), is mourning today and we mourn with them. Their legal counsel, Sergei Magnitsky, jailed for his work on behalf of the fund last year on trumped up charges, passed away in Russian custody.

It reminds of Stalinist gulags.

From the WSJ's article (link here):

She provided no further details, saying a release would be issued later. Sergei Magnitsky and his colleagues had accused authorities of denying him necessary medical treatment in prison.

Mr. Magnitsky, a 37-year-old partner at Moscow firm Firestone Duncan, was jailed nearly a year ago on charges of tax evasion related to his work for Hermitage. At a court hearing on extending his detention in September, he complained that he had been denied medical treatment for weeks for serious stomach pancreatic illnesses that he hadn't suffered from before his imprisonment. He also complained of inhumane conditions -- including the absence of toilet, hot water and windows -- at the Butyrskaya jail where he was then being held.

"They held him for 11 months, asking him to fabricate testimony against Hermitage," said Jamison Firestone, managing partner of Firestone Duncan. "The more he refused, the worse his conditions became."

Russia is a 7...

Russia Is A 7

Many years ago, we spoke with a renowned investor in Russian equities, whose name we will keep to ourselves for the time being. At that point (Fall 2003), he announced that on the corporate governance spectrum of 1-10 with 1 being horrible and 10 being great, the US was maybe an 8 and Russia was a 7.

Now, we don't want to say the US is perfect, but the story you'll watch below is of the top competitor of the aforementioned Russian manager - Bill Browder of Hermitage Capital. After years of being an outspoken activist against corrupt corporate governance in Russia, Bill was denied entry to the country without explanation. He subsequently modified Hermitage's investment mandate to be "global ex-Russia."

The shell corporation that he left behind in Russia, which had no assets, was later used by corrupt Russian government officials to steal almost a quarter of a billion dollars. When Browder found this out - after the crime occurred - he blew the whistle and, well, you can watch the video to find out what happened next.

While Russia may not be a 7 on the corporate governance scale, it's a 10 on the places most likely to murder you for public dissent.


[Hat Tip: Max Headroom]