Alexander Yakovlev and Vladimir Kuznetsov / United Nations Oil-for-Food Programme

Jurisdiction of Origin : 
Position of Public Officials/Persons (Years in Office): 
United Nations Oil-for-Food Programme unit chief (Yakovlev, 1985-2005); United Nations budget advisory committee member (2000-2003) and chair (2004-2005) (Kuznetsov)
Jurisdiction of Recovery Effort / Asset Location: 
Jurisidction of Asset Recovery - Description: 
Undertaking Recovery Effort, Location of Recovery Effort
Recovery Start (Year): 
2005
Recovery End (Year): 
Ongoing
UNCAC Offenses Implicated: 
Money laundering Implicated?: 
Yes
Status of Asset Recovery : 
Completed
Assets Not Yet Returned/Judgment (USD) - Current : 
[$900,000 held in Liechtenstein bank accounts forfeited in Mr. Yakovlev's case]
Disposition of Criminal Case(s): 

On December 22, 2010, Mr. Yakovlev was sentenced to two years' supervised release. (Source: US v. Yakovlev, Case No. 1:05-cr-00819-DAB (S.D.N.Y.), Judgment in a Criminal Case, filed on December 22, 2010.) His sentence followed a guilty plea on August 8, 2005 on three counts: conspiracy to commit wire fraud, wire fraud and conspiracy to commit money laundering. (Source: Id.) Mr. Kuznetsov was sentenced, on October 12, 2007, to 51 months' imprisonment and two years' supervised release. (Source: U.S. v. Kuznetsov, Case No. 1:05-cr-00916-DAB (S.D.N.Y.), Judgment filed in a criminal case, filed October 19, 2007.)

Summary: 

Former United Nations officials Vladimir Kuznetsov and Alexander Yakovlev were charged with corruption and money laundering in U.S. federal court for their respective roles in the United Nations Oil-for-Food Programme case. Mr. Kuznetsov was convicted of one count of money laundering following a jury trial in the U.S. District Court for Southern District of New York and ordered to pay a criminal fine of $73,671. He satisfied this judgment on November 18, 2008. His co-conspirator Alexander Yakovlev pleaded guilty in 2005 to three counts of wire fraud and money laundering. As part of his plea agreement, Mr. Yakovlev had agreed to forfeit $900,000 held in bank accounts in Liechtenstein. On December 22, 2010, the federal court for the Southern District of New York ordered the following accounts forfeited to the U.S. (pending any assertions of third-party claims): (1) Liechtensteinische Landesbank AG and LLB Treuhand AG, 9490 Vaduz, Accounts numbered 208.63898 and 213.042.67, in the name of Alexander Yakovlev or Olga Yakoleva; and (2) LLB AG and LLB Treuhand AG, 9490 Vaduz, Accounts numbered 212.440.51 and 213.036.32 in the name of Angelus Finance Ltd, for which Alexander Yakovlev is the financial beneficiary. On February 10, 2011, the court ented a Satisfaction of Forfeiture Money Judgment, noting that the accounts had been forfeited by the Principality of Liechtenstein. (Sources: U.S. v. Kuznetsov, Case No. 1:05-cr-00916-DAB (S.D.N.Y.), Judgment filed in a criminal case, filed October 19, 2007; U.S. v. Yakovlev, Case No. 1:05-cr-00819-DAB (S.D.N.Y.), Consent Order of Forfeiture filed on December 22, 2010; Satisfaction of Forfeiture Money Judgment, filed February 10, 2011.)

Contributing Factors in Asset Recovery: 
In announcing Mr. Yakovlev's plea, Mr. David N. Kelley, then-United States Attorney for the Southern District of New York "praised the investigative efforts of the Federal Bureau of Investigation. In addition, Mr. KELLEY thanked the United Nations Office of Investigative Oversight Services for its assistance in the investigation." (Source: United States Attorney for the Southern District of New York, Press Release, "Former U.N. Procurement Officer Pleads Guilty to Federal Charges Arising from His Receipt of Hundreds of Thousands of Dollars from Foreign Companies Doing Business with the U.N.," August 8, 2005.); United Nations sharing of information with United States Attorney's Office for the Southern District of New York and UN waiver of immunity for Mr. Yakovlev (Source: Opening statement by UN Chief of Staff Mark Malloch-Brown at a press conference on the Oil-for-Food programme (8 August 2005).
Agreement / Arrangement re: Returned Assets?: 
Ongoing
Agreement / Arrangment re: Returned Assets (Explanation): 
NA
Intl Cooperation Mechanism: MLAT/Letter of Request: 
No
Basis for Intl Cooperation Mechanism: 
NA
Investigating Agency (JO): 
Independent Inquiry Committee into the United Nations Oil-for-Food Programme; UN Office of Investigative Oversight Services
ProsecAuth/Civil Atty (JO): 
Attorney Daniel Gitner, Counsel for the United Nations (in Yakovlev matter) (Source: U.S. v. Yakovlev, Case No. 1:05-cr-00819-DAB (S.D.N.Y.), Order to reschedule sentencing, filed on October 27, 2010.)
Courts Involved (JO): 
NA
Investigative Agency (JAR): 
Federal Bureau of Investigation, UN Independent Inquiry Committee into the United Nations Oil-for-Food Programme
ProsecAuth/Civil Atty (JAR): 
U.S. Attorney for the Southern District of New York
Courts Involved (JAR): 
U.S. District Court for the Southern District of New York
Sources : 

U.S. v. Yakovlev, Case No. 1:05-cr-00819-DAB, Consent Order of Forfeiture filed on December 22, 2010, Judgment in a Criminal Case, filed on December 22, 2010 and Satisfaction of Forfeiture Money Judgment, filed February 10, 2011. See also, United Nations Independent Inquiry Committee into the United Nations Oil-for-Food Programme, Third Interim Report: The Conduct of Benon Sevan, The Conduct of Alexander Yakovlev, at http://www.iic-offp.org/documents/Third%20Interim%20Report.pdf. U.S. v. Kuznetsov, Case No. 1:05-cr-00916-DAB (S.D.N.Y.), Judgment filed in a criminal case, October 19, 2007; United States Attorney for the Southern District of New York Press Release, "Former U.N. Procurement Officer Pleads Guilty to Federal Charges arising from His Receipt of Hundreds of Thousands of Dollars from Foreign Companies Doing Business with the U.N.," August 8, 2005, accessed at http://www.justice.gov/usao/nys/pressreleases/August05/yakovlevpleapr.pdf.