Ocnus.Net
Brazil Case Raises the Stakes for Berezovsky
By Anatoly Medetsky, Moscow Times 16/7/07
Jul 16, 2007 - 10:40:00 AM
The
warrant piles more pressure on Berezovsky, whose trial in absentia on fraud
charges began in Moscow last week. Russian prosecutors have also accused him of
fomenting a coup.
Berezovsky,
who denies wrong doing, on Friday dismissed the Brazilian warrant as "an
extension of the Kremlin's politicized campaign" against him.
If sent to
face trial in Brazil, Berezovsky could be in danger of being handed over to
Russia. Britain and Brazil signed an extradition treaty in 1997, and a
Russian-Brazilian extradition treaty came into force in January.
A
Brazilian federal judge, Fausto Martin de Sanctis, in Sao Paulo on Thursday
ruled to freeze the football club's bank accounts and said he would ask for an
Interpol arrest warrant for Berezovsky and two other suspects, including Kia
Joorabchian, a one-time business associate of Berezovsky's who briefly owned
Kommersant in 1999.
Brazilian
authorities have accused Berezovsky of laundering money by bankrolling the
management group Media Sports Investment, or MSI, which bought control of
Corinthians in 2004. Joorabchian ran MSI, registered on the British Virgin Islands,
until August, but Brazilian authorities believe that Berezovsky provided the
funding.
"MSI
belongs and has always belonged to the accused, Boris Berezovsky,"
Brazilian court documents claim, the Financial Times reported Friday. The
documents were based on taped telephone conversations over the past 18 months,
the newspaper said.
MSI and
Corinthians, which also faces accusations of match fixing dating back to the
2004 to 2005 football season, denied the charges Thursday and said they obeyed
all laws, Reuters reported. Berezovsky last year denied he had any links to
MSI.
Two or
three European countries would follow Brazil's lead in the near future, a
Moscow source said, Interfax reported. The Brazilian warrant was the result of
joint work by several countries to fight organized crime, the source said.
"The
arrest warrant for Berezovsky that was issued by the Brazilian court is just
the first step," the source said. "A number of other countries, which
have complaints about the entrepreneur, will take similar measures in the near
future."
The latest
allegations against Berezovsky led Russian television newscasts Friday, with
extensive reports in afternoon and evening bulletins.
Apart from
a statement denouncing the "Brazilian story" as "an extension of
the Kremlin's politicized campaign" against him, Berezovsky did not
respond to requests for further comment passed to his London office on Friday.
Berezovsky's
associate Alex Goldfarb said he believed the charges would have been impossible
without the involvement of Russian prosecutors.
The
prosecutors had apparently told their Brazilian counterparts that Berezovsky
made his money in Russia fraudulently, thus prompting the belief that anything
Berezovsky's spent money on should be regarded as an attempt at money
laundering, Goldfarb said.
"Berezovsky
is not a criminal, but a political and personal foe of [President Vladimir]
Putin," Goldfarb said by telephone Friday from New York. "President
Putin uses his government's resources to get Berezovsky in every country."
Berezovsky's
lawyer in Moscow, Andrei Borovkov, downplayed the impact of the Brazilian
arrest warrant. "Britain will hardly extradite Berezovsky to Brazil because
he is protected by his status as a political refugee," he said by
telephone Friday. "I think this is all in the area of theory."
Berezovsky's
longtime business partner Badri Patarkatsishvili told Britain's Observer
newspaper in August that they had "a wonderful football club in Brazil:
Corinthians. We have invested in the Brazil team with Boris Berezovsky."
Despite
denying links to MSI, Berezovsky offered to invest $50 million in the
construction of a new stadium for Corinthians in 2005. Brazilian prosecutors
questioned Berezovsky at a Sao Paulo airport for several hours in May 2006 in
connection with their investigation into MSI. Four months later, he said he had
no interest in football assets.
MSI
acquired control of Corinthians under a 10-year deal that gave the company 51
percent of the club's profits in return for paying off its debts and investing
in new players. After MSI spent millions of dollars on the club, Sao Paolo
prosecutors opened an inquiry into the origin of the money.
"Who
would invest this much money in a soccer team that has been in the red for
years? And why?" prosecutor Jose Reinaldo Guimaraes Carneiro said when he
started his investigation in February 2005, The Associated Press reported.
Later that
year, Carneiro said the inquiry was looking into possible involvement by
Berezovsky in money laundering. "There is enough circumstantial evidence
indicating that the MSI-Corinthians partnership is being used for the
laundering of money, most of which was received from Boris Berezovsky, who is
wanted for crimes committed against the Russian financial system,"
Carneiro said in the summary of a 15-page report released after the
investigation, the AP said.
Joorabchian,
an Iranian-born British citizen who bought Kommersant in July 1999 before ceding
it to Berezovsky a month later, has said he quit MSI in August 2006.
The timing
of the Brazilian warrant could hardly come at a worse time for Berezovsky.
Apart from the Russian cases against him, fresh allegations about links with
Joorabchian could receive huge publicity, as Joorabchian's name has been
splashed across the sports pages of British newspapers in recent days in
connection with the controversial transfer of former Corinthians player Carlos
Tevez from London club West Ham to Manchester United.
Last
summer Joorabchian brokered the transfer of Tevez and fellow Argentine
international Javier Mascherano from Corinthians to West Ham. The deal, which
saw MSI retain the rights to the players, was eventually deemed be in breach of
English Premier League rules and led to West Ham being fined
£5.5 million ($11.2
million).
Now
Joorabchian, acting as Tevez's agent, is attempting to complete the player's
transfer to league champion Manchester United, despite objections from the
Premier League over the player's registration.
Berezovsky
has previously acknowledged how potent an issue football can be in Britain, and
has said he advised former associate Roman Abramovich against buying Chelsea
Football Club in 2003.
"Football
in England is an immense social and political tool," Berezovsky said in an
interview last September.
Source: Ocnus.net 2007