THE CRISIS QUOTES
"...managers of
Inkombank had stolen $1.5 billion in recent months through clever
paper shuffling... employees of [Inkom]bank headquarters in
Moscow have been stealing everything from computers to expensive
doorknobs..." Ralph-Ditter Montag-Girmes,
Inkombank's auditor
"What
was happening [with Inkombank] is that what’s usually is referred to
as ‘looting the bank apart’" Vladimir Dubinin, former
chairman of the Central Bank of Russia.
"...
I thought the Russians were pretty good at economics." Hon.
Kevin T. Duffy, US District Judge
"Russia
is the biggest mafia state in the world, the super power of crime that
is devouring the state from top to bottom." President of Russia
Boris Yeltsin.
"I
am not impressed with all this stuff about the Russian Mafia and this
and that and the other thing." Hon. Kevin T. Duffy,US District
Judge
"Wearing
a black robe does not assure one of getting a direct pipeline to the
Almighty or even a peek at what Platonists would call absolutes or
ideals." Hon. Kevin T. Duffy (speech delivered at the
Law Day Luncheon at Fordham University Law School on May 5, 1995)
"...
the link between the Colombian drug cartels and the Russia mafia is
palpable. The mafia provides weapons and ammunition for the emerging
smaller drug cartels who stepped up to replace the enormous Medehin
and Cally cartels that were destroyed by General Serano's courageous
Colombian national police... but this international enemy, the Russia
mafia, is as deadly a threat as there could be and it comes from
within as well as without their country." Rep. Henry Hyde
(House Foreign Relations Committee Hearings on International Organized
Crime, October 10, 1997)
"Russian
organized crime presents the greatest long-term threat to the security
of the United States... The United States is presented with a
well-organized, well-funded, sophisticated and brutal
conspiracy."
FBI Director Louis Freeh
"Almost
all Russian banks are corrupt." Alexander Gromov, Chief of
Russia's Tax Authority (at the Conference of the Financial Crimes
Enforcement Network (FINCEN)
"The
impact of ROC on the future stability of democratic Russia is the key
threat for the United States... A second serious threat is the
transnational activities of ROC groups which involves the rapid - and
difficult-to-counter - expansion of their illicit operations
internationally." Report of the Center for Strategic and
International Studies on Russian Organized Crime ("CSIS
Report")
"[Russian
organized crime] shaped the post-communist [Russian] banking industry
and now manages or influences it" (CSIS Report)
"Further
complicating the economic experiment in Russia is the systematic
corruption within the financial community ... Banks are central
components of ROC activity both as a primary target for extortion and
as the main vehicle for extensive money laundering. These activities
are initiated on a transnational basis as evidenced by the appearance
of ROC activity in Cyprus, the Caribbean Islands, and other offshore
banking centers the world over." (CSIS Report)
"Organized
crime groups, particularly in Russia, now have an almost chock hold on
the country's vast natural resources, as well as their banks and
media. Russia has been described recently by the press as a
cryptocracy from top to bottom, a semi-criminal state..."
Benjamin Gillman, Chairman of House Foreign Relations Committee (in
the opening statement of the Hearings on International Organized
Crime)
"A
corrupted system of criminal power has been established in Russia and
now poses the main threat to the economy" Grigory Yavlinsky
... a declared candidate for the presidency in the year 2000. (Quoted
by Arnaud de Borchgrave of the Center for Strategic &
International Studies at the Congressional Hearings)
"...
two thirds of the Russian economy is under the sway of organized
crime" CSIS Report
"Italian
organized mafia figures investing money, operating in St. Petersburg
banks." Giovanni de Gennaro, Deputy Director of the Italian
National Police.
"...
the majority of [the Russian/ banks are controlled by organized
crime... alliances between the Colombian drug cartels ... and Russian
organized crime groups ... and particularly some documented in recent
DEA cases between Russian organized crime and South American groups
are growing and... [are] very dangerous" Testimony of FBI
Director Freeh before the House Foreign Relations Committee on October
10, 1997.
"...
he [Inkombank’s chairman] suggested that my throat be cut." Wm.
Donald Redfern, Senior Vice President of Smith Barney Shearson
(Testimony in Inkombank’s proceedings before Judge Duffy.)
"I
have not read the deposition of W.D. Redfern... I have seen Mr.
Redfern. I have no idea who he identified as suggesting that his
throat be cut." Hon. Kevin T. Duffy, US District Judge
"...
corrupt officials supply the crime syndicates with export licenses,
customs clearances, tax exemptions and government contracts ....
Officials of law enforcement and security services provide criminals
with protection from arrest and prosecution." John Deutch,
Director of the Central Intelligence Agency
"Certainly
the lazy judge attacks the fabric of our civilization in a different
way than the corrupt judge -- but, both do damage to it. (Hon.
Kevin T. Duffy, USDJ remarks at the Law Day Luncheon at Fordham
University Law School on May 5, 1995)
"Inkombank's
bosses ... proudly declare that American and Western European
officials are on their payroll. Are they boasting?"
[Inkombank bosses] openly discussed that ... the Federal Judge
custom-tailors his decisions and commentaries in such a way as to cast
aspersions upon Inkombank's opponents, so that they may be used to
thwart investigations which are based upon evidence provided by these
opponents. Oxana Berkounova, Inkomkbank’s former employee
(testimony pursuant to subpoena of the Criminal Investigations Bureau
of the New York State Banking Department.)
"[the
US] current policies towards Russia are not achieving the objectives
we have supported and sought. Rather than economic stability and
democratic progress in Russia, we see an economy close to collapse and
a government and society mired in corruption ... There are disturbing
reports that corrupt or criminal individuals have 'entre' at high
levels in official Moscow -- and that the tremendous amounts of money
being spirited out of Russia by their activities may ultimately serve
nefarious enterprises in the United States and elsewhere..." Benjamin
Gilman, Chairman of the House Foreign Relations Committee
"What
was happening [with Inkombank] is that what’s usually is referred to
as ‘looting the bank apart’" Vladimir Dubinin, former
chairman of the Central Bank of Russia.
"It
has become known to me how the best assets of Inkombank were looted...
These were the machinations of the bank's former management."
Vladimir Alekseyev, the court appointed temporary administrator of
Inkombank
"Robbery
is going on, that's the only way to describe it." Charles
Blitzer, research director of Donaldson, Lufkin & Janrett
(regarding capital flight from Russia to offshore accounts)
"...
a person comes to Inkombank and deposits $1 million, we can ask for
his passport, but that's all. We can't find the source of the money
... whether it's legal or not". Roman Zdrayevsky, former deputy
chairman of Inkombank (in the interview with Global Finance
"Laundering Dirty Money in Russia")
"...
it is an unfortunate fact that much of Russia's ruling class has
created a kleptocracy masquerading as a democracy."
Congressman Christopher Smith (R-NJ)
"Russian
elites have plundered the country's capital and funneled most of the
proceeds offshore" Andrew Ipkendanz, Head of Credit
Swiss/First Boston global emerging markets.
"Inkombank
pulled a swindle, in dealing with Western creditors, to put it
mildly.... for which its management should be held accountable.
Western creditors prepare to initiate criminal prosecution of
Vinogradov, Groshev and others responsible for dissipation of $1,5
billion during the two months... If they flee the country to pursue a
"quite life" abroad they would probably be arrested [in the
West] even faster than here." Ralph-Dieter Montag-Girmes,
managing director of the company ARQ (after conducting audit of
Inkombank.
"...
well, three people might end up going to jail." Hon. Kevin T.
Duffy, (referring to lawyers who are suing Inkombank to recover the
money stolen by its management)
"...
discussing their private relationship with the judge was one of the
favorite pass-time of Inkombank principals. I was present during many
meetings when Inkombank principals discussed in [her] presence and
admitted that throughout these proceedings Inkombank executives and
their lawyers and codefendants Christy & Viener secretly have had
numerous off-record contacts with the judge and essentially
coordinated with the judge their litigation strategy in order to
secure favorable to Inkombank outcome of this case, regardless of the
merits." Anna Tokmakoff, Russian-American Journalist and
writer (testimony in the investigation of Inkombank by the Criminal
Investigations Bureau of the New York State Banking Department).
LEE
HAMILTON (Congressman of Indiana): "Is the criminal activity
in Russia itself so bad that it threatens the political and economic
systems of Russia today? I mean, do they represent a genuine threat to
the reformers in Russia?"
Louis Freeh:
"Yes, President Yeltsin has said that repeatedly as early, as
late as last week. It has been the documented finding of many of the
reform minded politicians and leaders there for several years
now..."
Lee
Hamilton:
"I don't want to put you on the spot but how would you assess
the Russian capability, the Russian Government capability to deal with
this most serious threat in Russia?"
Louis
Freeh:
"I think they are having great difficulty in dealing with it
on a number of levels. First of all, the training and professional
level of the police, particularly in many of the areas outlining the
capital is not sufficient to deal with those problems. The judicial
system and the very laws that are necessary to fight corruption and
organized crime ... are not present in Russia. The training, the pay,
the danger to police officers there are so grave that they are having
extremely difficult time."
"Russian organized crime
groups flush with dollars are forming alliances with Colombian drug
traffickers in the Caribbean, acquiring cocaine for delivery to Europe
and providing weapons to Latin American mafias, according to US,
European and Latin American law enforcement
officials... [offshore banks around the Caribbean] are
useful for laundering of drug money ... linked to banks in Russia that
also are controlled by organized crime." (Washington Post "Russian
Mob, Drug Cartels Joining Forces", September 29, 1997)
Bank of New York
Russian mob scandal
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