Sergei Magnitsky was a Russian lawyer and accountant who blew the whistle on Russian officials who stole $230 million in tax proceeds from the state and laundered it through a web of phantom companies and offshore accounts. When he exposed the crime, Magnitsky was arrested and charged with the very fraud he uncovered. For four months prior to his death in 2009, Magnistky was held at Butyrka detention center where he was denied treatment for pancreatitis and gallstones.
The Swiss authorities last year froze Credit Suisse accounts belonging to a Russian tax official who had approved numerous illegal tax refunds used to bilk the treasury of millions. They have now requested to freeze several more bank accounts containing millions of unspecified currency in connection with the Magnistky investigation, according to reports from Swiss media.
Last month, the anti-money-laundering unit of the Cypriot government opened its own investigation into the Russian tax fraud ring, suspecting that banks in Cyprus may have been used to launder some of the stolen money.
