Sunday, November 22, 2009

Hermitage Capital: Update - Death of a Lawyer

Back in October I wrote a post on FDI into Russia & Hermitage Capital, where I discussed the risks foreigners faced when investing in Russia. I also put forth the stranger-than-fiction story of Hermitage Capital and the systematic harassment that fund has faced in Russia.

The tale has taken another grim turn, only further exposing the Russian non-judiciary, the corrupt police force, and the void that exists where the Rule of Law should. Last week Sergei Magnitsky died whilst incarcerated at Moscow's Matrosskaya Tishina prison. Magnitsky was a key figure and instrumental in uncovering the largest ever tax repayment fraud in Russia.

Magnitsky refused to leave Russia, despite the strong encouragement of Hermitage management and his colleagues. As he had committed no crime, he maintained he had no reason to run; implicitly he put is faith in the non-judiciary. His choice killed him almost a year later.

The Telegraph has the story here. Here's a sample:

. . ."He said: 'I have nothing to fear. I have done nothing wrong. I haven't even signed any documents. What have I got to be scared of?'" said Mr Browder. "He was the hero who uncovered the fraud.". . . .

. . .In an emotional outpouring at his final public appearance before his death, Mr Magnitsky accused the authorities of turning his trial into a sham, complaining he was denied his most basic human rights. . . .

. . ."Magnitsky did not die by chance. He died because corrupt Interior Ministry officers killed him. They knowingly imprisoned an innocent man, destroyed his health and denied him access to medical treatment. . . .

. . .In court, after being held for much of the day in what Mr Magnitsky described as "a cage similar to the cages used to keep wild animals", the prosecution served late new evidence to the judge as it sought again to extend his detention. . . .

. . .His cell floor was sometimes flooded with sewage, the toilet was simply an open hole in the corner of the room, the squeak of rats kept him awake at night, he was rarely allowed to shower and was for a long time denied any visits by his wife, sons aged 17 and eight, or mother.

"Isolation from the outside world exceeds all reasonable limits," he wrote.



Sergei Magnitsky

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