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British man is arrested in Spain and charged with trying to help Putin's billionaire oligarch crony hide $90M megayacht Tango from US sanctions

• Richard Masters, 52, was arrested Friday and charged with evading US sanctions
• Masters ran a yacht management company in Palma de Mallorca, Spain
• US officials say he tried to hide Viktor Vekselberg's $90M megayacht, the Tango
• The 255-foot luxury yacht was seized by FBI and Spanish authorities last April

By Keith Griffith For Dailymail.com

Published: 17:27 EDT, 20 January 2023 | Updated: 17:56 EDT, 20 January 2023

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Richard Masters, 52, was arrested on Friday on charges of violating US sanctions laws

A British citizen has been arrested in Spain on US criminal charges alleging that he helped a billionaire Russian oligarch evade sanctions relating to his $90 million megayacht.

Richard Masters, 52, was arrested on Friday by the Spanish Guardia Civil and faces extradition to the US on charges that he tried to hide Viktor Vekselberg's 255-foot luxury yacht , the Tango, from authorities.

An unsealed indictment accuses Masters, who runs a yacht management company, of concocting a phony name, 'the Fanta,' for the Tango in order to hide the yacht's connection to Vekselberg from financial institutions. 

Despite the alleged scheme, the Tango was seized by the FBI last April in Palma de Mallorca, the capital of Spain's Balearic Islands and a playground and tax haven for the ultra-rich. 

Masters faces extradition to the US on charges that he tried to hide sanctioned oligarch Viktor Vekselberg's 255-foot luxury yacht, the Tango (above), from authorities

Vekselberg (right) is a billionaire and close ally of Russian President Vladimir Putin who heads the Moscow-based Renova Group

Also charged in connection with the alleged plot was Vladislav Osipov, 51, a Russian national with dual Swiss citizenship, who remains at large. 

Masters and Osipov are both charged with conspiracy to defraud the United States and to commit offenses against the United States, violating sanctions laws, and money laundering. 

Vekselberg is a billionaire and close ally of Russian President Vladimir Putin who heads the Moscow-based Renova Group, a conglomerate encompassing metals, mining, tech and other assets.

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Since 2018, Vekselberg's assets in the US have been frozen, and US companies are forbidden from doing business with him and his entities, but fresh sanctions targeting his yacht were enacted following Russia's invasion of Ukraine last year.

Masters is the founder and director of Master Yachts, a yacht management company in Palma de Mallorca.

The company's website boasts that it is 'renowned for its highly ethical, no-nonsense and pragmatic approach' and committed to 'transparency and integrity'.

Masters is the founder of Master Yachts, a yacht management company in Palma de Mallorca that claims to be 'renowned for its highly ethical, no-nonsense and pragmatic approach'

A Civil Guard stands by the yacht called Tango in Palma de Mallorca, Spain, Monday April 4, 2022 as FBI agents search and seize the vessel

A U.S. federal agent and two Civil Guards board the yacht called Tango in Palma de Mallorca, Spain, on April 4, 2022

However, US prosecutors allege that after Vekselberg was sanctioned in April 2018, Masters's company took over the management of Tango and conspired to evade US sanctions. 

According to the indictment, Masters cooked up the fake yacht name 'the Fanta'

According to the indictment, Masters cooked up the fake name 'the Fanta' and used various workarounds to avoid sanctions, such as payments in other currencies and through third parties.

As a result, the trappings of Tango, including its satellite television, luxury goods, and teleconferencing software, were all US-origin products and services supplied by US companies, in violation of sanctions laws, prosecutors say.

'Facilitators of sanctions evasion enable the oligarchs supporting Vladimir Putin's regime to flout US law,' said United States Attorney Matthew M. Graves. 

'The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war,' he added.

In investigation was coordinated through a Justice Department task force known as KleptoCapture, aimed at enforcing sweeping sanctions against Russia's oligarchs following the invasion of Ukraine. 

'These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise,' said KleptoCapture Director Andrew Adams.  

The US is seeking Masters' extradition from Spain. It was unclear whether he had an attorney to speak on his behalf. An arrest warrant against Osipov is outstanding. 

Share or comment on this article: British man is charged with hiding Russian megayacht Tango from US sanctions

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Briton arrested after 'hiding Russian yacht by changing its name from Tango to Fanta'

Richard Masters and another man allegedly hid large amounts of cash through a multi-million dollar yacht scheme for an oligarch's benefit.

News reporter @Reemul_B

Wednesday 25 January 2023 11:18, UK

A British man has been arrested after allegedly helping an oligarch with ties to Russian President Vladimir Putin evade sanctions.

Richard Masters, 52, was arrested in Spain on Friday, though his co-accused Vladislav Osipov remains at large.

The pair, charged separately, reportedly helped Russian-Cypriot oligarch Viktor Vekselberg evade US sanctions.

The scheme was allegedly facilitated through Mr Vekselberg's 255ft yacht Tango, which is thought to be worth $90m (£73m).

The US Department of Justice (DoJ) claimed Masters ran a yacht company in Palma de Mallorca and managed Tango after initial sanctions were imposed on Mr Vekselberg in 2018.

Masters allegedly called Mr Vekselberg's yacht "the Fanta" to hide thousands of dollars from banks that would ultimately benefit the oligarch.

It is claimed Masters and Russian-Swiss Osipov masked Mr Vekselberg's involvement with the yacht, with Osipov using shell companies to hide his ownership.

The US Department of Justice (DoJ) said both have been charged with multiple offences: Conspiracy to defraud the US and to commit offences against the US; violating the International Emergency Economic Powers Act (IEEPA); and money laundering.

Mr Vekselberg faced US sanctions in April 2018 following Russia's annexation of Crimea.

Tougher measures were imposed on him in March last year after Mr Putin's invasion of Ukraine .

The UK, Australia and Poland also seized Mr Vekselberg's assets in March, imposing travel bans, with the DoJ seizing Tango in Spain a month after.

US attorney Matthew Graves said: "Facilitators of sanctions evasion enable the oligarchs supporting Vladimir Putin's regime to flout US law.

"The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war."

Andrew Adams, director of the Task Force KleptoCapture department, said Masters had to face the "consequences" of his actions.

He explained that corporations and executives "have a choice" of either fighting against "corruption, sanctions violations, and money laundering" or choosing the path of the accused.

"They can as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud," he added.

"These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise."

Related Topics

• January 22, 2023
• Compliance , News

Russia sanctions: Two indicted, one arrested, in Tango yacht case

Back in April last year, U.S. and Spanish authorities seized the $90 million yacht Tango owned by sanctioned Russian oligarch Viktor Vekselberg. On Friday, indictments were unsealed in the U.S. District Court for the District of Columbia charging two men, Vladislav Osipov, 51, a Russian national, and Richard Masters, 52, a U.K.national,, with facilitating a sanctions evasion and money laundering scheme in relation to the ownership and operation of the Tango.

VIDEO: U.S. and Spanish authorities seize Russian oligarch’s yacht

Masters has been provisionally arrested by Spain’s Guardia Civil and is being held pending extradition proceedings. An arrest warrant against Osipov is outstanding.

According to the indictments, despite U.S. sanctions issued against Vekselberg in April 2018, Osipov and Masters facilitated the operation of Tango through the use of U.S. companies and the U.S. financial system, attempting to obfuscate Vekselberg’s involvement in the vessel. Osipov, an employee of Vekselberg who functioned as a property manager for Tango, is alleged to have designed a complicated ownership structure of shell companies to hide Vekselberg’s ownership of the yacht, despite that Vekselberg designed the yacht, was the sole user, and was the ultimate beneficial owner.

“The indictment alleges that both defendants used a variety of techniques to mask ownership of the Motor Yacht Tango in violation of U.S. law,” said Special Agent in Charge Alvin M. Winston of the FBI Minneapolis Field Office. “Together with the Justice Department’s KleptoCapture Task Force, the FBI will hold accountable those who assist Russian oligarchs in their efforts to hide assets and violate sanctions. We thank our international partners who helped facilitate the arrest of Richard Masters in Spain earlier today.”

As alleged, Masters ran a yacht management company in Palma de Mallorca, Spain. After Vekselberg was sanctioned in April 2018, Masters’s company took over the management of Tango , and conspired with others to evade the U.S. sanctions. According to the indictment, among other things, Masters devised a scheme to use a false name for the yacht, “the Fanta ,” in order to hide from financial institutions that payments in U.S. dollars were ultimately for the benefit of Tango and Vekselberg. As a result of this obfuscation, U.S. financial institutions processed hundreds of thousands of dollars of transactions for Tango that they otherwise would not have permitted had they known of Vekselberg’s involvement. Additionally, these payments and Vekselberg’s involvement were not reported to the Department of the Treasury.

WORK AROUNDS TO AVOID SANCTIONS

Further, according to the indictment, Osipov and Masters advised and enabled Tango employees to continue to do business with numerous U.S. companies, using various workarounds to avoid sanctions, such as payments in other currencies and through third parties.

“As a result of these schemes, the working mechanisms of Tango , to include its internet, technology, weather forecasting and computing systems, as well as the trappings of Tango , including its satellite television, luxury goods, and teleconferencing software, were all U.S.-origin products and services supplied by U.S. companies, for the benefit of Vekselberg,” says the Department of Justice. “The efforts of these facilitators permitted Tango to continue to operate as a luxury yacht with the full array of services and luxury goods available to it, supported by hundreds of thousands of dollars of illegally-obtained U.S. services and U.S. financial transactions, and all for the benefit of Vekselberg.”

“Today’s indictments and the arrest executed by Spanish law enforcement demonstrate the FBI’s continued focus on tracking down and holding accountable those who assist sanctioned Russian oligarchs,” said FBI Deputy Director Paul Abbate. “The FBI, along with our international partners, will continue to aggressively investigate and pursue anyone who facilitates the corrupt practices of others, placing our institutions at risk.”

“The Department of Justice has been clear. Corporations and executives have a choice: they can participate in the global effort to uproot corruption, sanctions violations, and money laundering, and enjoy the benefits of prompt and fulsome cooperation; or they can, as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud,” said Director Andrew Adams of Task Force KleptoCapture. “These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise.”

Masters indictment

Osipov indictment

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Brit arrested in Spain for allegedly helping Putin’s oligarch hide 255-foot yacht Tango - by renaming it Fanta

Richard masters, 52, was arrested by the spanish guardia civil on friday, though his russian-swiss co-accused vladislav osipov remains at large, article bookmarked.

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A British man has been arrested in Spain for extradition to the US for allegedly helping an oligarch with close ties to Russian President Vladimir Putin evade sanctions.

The US Department of Justice (DoJ) said in a statement that Richard Masters , 52, was arrested by the Spanish Guardia Civil last Friday, though his Russian- Swiss co-accused Vladislav Osipov remains at large.

The pair are charged separately, in indictments unsealed in the US District Court in the District of Columbia , with facilitating a scheme for oligarch Viktor Vekselberg connected to his 90-million-dollar (£73 million), 255-foot yacht Tango.

Mr Masters is alleged to have devised a scheme that involved calling the yacht “the Fanta” to hide from banks the hundreds of thousands of pounds in payments in US currency that were ultimately to Mr Vekselberg’s benefit.

The DoJ said the pair are charged with conspiracy to defraud the US and to commit offences against the US, violating the International Emergency Economic Powers Act (IEEPA), and money laundering.

The US imposed sanctions against Mr Vekselberg in April 2018 following Russia’s annexation of Crimea , with Washington strengthening the measures in March 2022 following Mr Putin’s invasion of Ukraine.

The UK, Australia and Poland also joined Washington in March in seizing Mr Vekselberg’s assets and imposing travel bans, with the DoJ the next month seizing Tango in Spain.

The department alleges Mr Masters ran a yacht company in Palma de Mallorca, Spain, which he used to manage Tango after initial sanctions were imposed in 2018.

It is claimed Mr Masters and Mr Osipov used US firms and the American financial system to mask Mr Vekselberg’s involvement with the vessel, with Mr Osipov using a complex structure of shell companies to hide ownership.

US Attorney Matthew Graves said: “Facilitators of sanctions evasion enable the oligarchs supporting Vladimir Putin’s regime to flout US law.

“The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war.”

These men made their decisions, and now face the consequences of a failed attempt to profit through...a sophisticated, transnational criminal enterprise

Director Andrew Adams of department task force KleptoCapture said Mr Masters had to face the “consequences” of his actions.

“The Department of Justice has been clear. Corporations and executives have a choice: They can participate in the global effort to uproot corruption, sanctions violations, and money laundering, and enjoy the benefits of prompt and fulsome cooperation; or they can, as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud,” he said.

“These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise.”

The Americans’ international partners were thanked for apprehending Masters.

FBI special agent in charge Alvin Winston said: “The FBI will hold accountable those who assist Russian oligarchs in their efforts to hide assets and violate sanctions. We thank our international partners who helped facilitate the arrest of Richard Masters in Spain earlier today.”

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News | World

Briton arrested in Spain for allegedly helping oligarch evade sanctions

A British man has been arrested in Spain for extradition to the US for allegedly helping an oligarch with close ties to Russian President Vladimir Putin evade sanctions.

The US Department of Justice (DoJ) said in a statement that Richard Masters , 52, was arrested by the Spanish Guardia Civil last Friday, though his Russian-Swiss co-accused Vladislav Osipov remains at large.

The pair are charged separately, in indictments unsealed in the US District Court in the District of Columbia, with facilitating a scheme for oligarch Viktor Vekselberg connected to his 90-million-dollar (£73 million), 255-foot yacht Tango.

The DoJ said the pair are charged with conspiracy to defraud the US and to commit offences against the US, violating the International Emergency Economic Powers Act (IEEPA), and money laundering.

The US imposed sanctions against Mr Vekselberg in April 2018 following Russia’s annexation of Crimea, with Washington strengthening the measures in March 2022 following Mr Putin’s invasion of Ukraine.

The UK, Australia and Poland also joined Washington in March in seizing Mr Vekselberg’s assets and imposing travel bans, with the DoJ the next month seizing Tango in Spain.

The department alleges Mr Masters ran a yacht company in Palma de Mallorca, Spain, which he used to manage Tango after initial sanctions were imposed in 2018.

It is claimed Mr Masters and Mr Osipov used US firms and the American financial system to mask Mr Vekselberg’s involvement with the vessel, with Mr Osipov using a complex structure of shell companies to hide ownership.

Mr Masters is alleged to have devised a scheme that involved calling the yacht “the Fanta” to hide from banks the hundreds of thousands of pounds in payments in US currency that were ultimately to Mr Vekselberg’s benefit.

US Attorney Matthew Graves said: “Facilitators of sanctions evasion enable the oligarchs supporting Vladimir Putin’s regime to flout US law.

“The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war.”

Director Andrew Adams of department task force KleptoCapture said Mr Masters had to face the “consequences” of his actions.

“The Department of Justice has been clear. Corporations and executives have a choice: They can participate in the global effort to uproot corruption, sanctions violations, and money laundering, and enjoy the benefits of prompt and fulsome cooperation; or they can, as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud,” he said.

“These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise.”

The Americans’ international partners were thanked for apprehending Masters.

FBI special agent in charge Alvin Winston said: “The FBI will hold accountable those who assist Russian oligarchs in their efforts to hide assets and violate sanctions. We thank our international partners who helped facilitate the arrest of Richard Masters in Spain earlier today.”

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Bank fraud charges announced in connection to Russian-owned superyacht Tango

The United States Department of Justice has announced five new counts of bank fraud against Russian national Vladislav Osipov, in addition to charges previously lodged concerning the ownership and operation of the 77.7-metre Tango . Sanctions were placed against the alleged owner of the yacht, Russian businessman Viktor Vekselberg, by the United States (US) in April 2018.

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The Department of Justice charged 2 men over helping to conceal Russian oligarch Viktor Vekselberg's ownership of a $90 million superyacht

• Richard Masters and Vladislav Osipov were charged by the Department of Justice for sanctions evasion.
• The US has accused the pair of trying to conceal a sanctioned oligarch's ownership of a superyacht.
• Masters, 52, used a fake name for Viktor Vekselberg's "Tango," calling it the "Fanta," per DoJ.

The Department of Justice has accused two men of trying to conceal a Russian oligarch's ownership of a 255-foot superyacht, according to a statement issued on Friday.

They're accused of helping longtime Putin ally Viktor Vekselberg, who was sanctioned by the US in 2018 over alleged election interference, to evade sanctions.

Prosecutors said Vladislav Osipov and Richard Masters had facilitated the operation of Vekselberg's $90 million yacht that was seized by Spanish authorities  last April. 

Masters, a 52-year-old UK national, was arrested in Spain on Friday, following an extradition request from the US.

An arrest warrant has also been issued for 51-year-old Osipov, a dual Russian/Swiss national who is a former employee of Vekselberg.

Both have been charged separately with conspiracy to defraud the US and to commit offenses against the US, violating the International Emergency Economic Powers Act, and money laundering. 

Related stories

Osipov designed a "complicated ownership structure of shell companies" to mask Vekselberg's ownership of the boat, called "Tango," according to the DoJ . Meanwhile, Masters' company in Palma de Mallorca, Spain, took over management of the yacht and conspired to evade sanctions imposed Vekselberg.

Masters even devised a fake name for Vekselberg's "Tango" — calling it the "Fanta." Both are the names of sodas sold in the UK.

Osipov and Masters allowed the "Tango" to continue operating "as a luxury yacht with the full array of services and luxury goods available to it," the DoJ said in its statement . The yacht's operation was "supported by hundreds of thousands of dollars of illegally-obtained US services and US financial transactions, and all for the benefit of Vekselberg."

Representatives of Osipov and Masters could not be contacted for comment, Reuters reported .

FBI deputy director Paul Abbate said: "Today's indictments and the arrest executed by Spanish law enforcement demonstrate the FBI's continued focus on tracking down and holding accountable those who assist sanctioned Russian oligarchs." 

Matthew Graves, US Attorney for the District of Columbia, said: "The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefiting those supporting an illegal war." 

Homeland Security agent Ivan Arvelo added : "The message is clear: Putin's cronies will find no succor in their riches and those that illegally enable such lifestyles will be called to justice."

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Arrest and Criminal Charges Against British and Russian Businessmen for Facilitating Sanctions Evasion of Russian Oligarch’s $90 Million Yacht

Yacht Previously Seized and One Arrest Today by Spain at Request of United States

            WASHINGTON – Two businessmen - Vladislav Osipov, 51, a dual Russian and Swiss national, and Richard Masters, 52, a United Kingdom national, are charged in separate indictments, unsealed today in U.S. District Court in the District of Columbia, with facilitating a sanctions evasion and money laundering scheme in relation to the ownership and operation of the Motor Yacht (M/Y) Tango (International Maritime Organization number 1010703), a $90 million, 255-foot luxury yacht owned by sanctioned Russian oligarch Viktor Vekselberg. The defendants are charged with conspiracy to defraud the United States and to commit offenses against the United States, violating the International Emergency Economic Powers Act (IEEPA), and money laundering. The United States requested that the Kingdom of Spain provisionally arrest Masters for purposes of extradition. The arrest was executed by the Spanish Guardia Civil today. An arrest warrant against Osipov is outstanding.

            The charges were announced by United States Attorney Matthew M. Graves, Director Andrew Adams of Task Force KleptoCapture, FBI Special Agent in Charge Alvin M. Winston Sr. of the Minneapolis Field Office, and Homeland Security Investigations Special Agent in Charge Ivan J. Arvelo of HSI’s New York Field Office.

            According to the indictment, despite U.S. sanctions issued against Vekselberg in April 2018, Osipov and Masters facilitated the operation of Tango through the use of U.S. companies and the U.S. financial system, attempting to obfuscate Vekselberg’s involvement in the vessel. Osipov, an employee of Vekselberg who functioned as a property manager for Tango, designed a complicated ownership structure of shell companies to hide Vekselberg’s ownership of the yacht, despite that Vekselberg designed the yacht, was the sole user, and was the ultimate beneficial owner.

            Masters ran a yacht management company in Palma de Mallorca, Spain. After Vekselberg was sanctioned in April 2018, Masters’s company allegedly took over the management of Tango and conspired with others to evade the U.S. sanctions. According to the indictment, among other things, Masters devised a scheme to use a false name for the yacht, “the Fanta,” in order to hide from financial institutions that payments in U.S. dollars were ultimately for the benefit of Tango and Vekselberg. As a result of this obfuscation, U.S. financial institutions processed hundreds of thousands of dollars of transactions for Tango that they otherwise would not have permitted had they known of Vekselberg’s involvement in the financial transaction. Further, these payments and Vekselberg’s involvement therein were not reported to the Department of the Treasury.

            Additionally, according to the indictment, Osipov and Masters advised and enabled Tango employees to continue to do business with numerous U.S. companies, using various workarounds to avoid sanctions, such as payments in other currencies and through third parties. As a result of these schemes, the working mechanisms of Tango, to include its internet, technology, weather forecasting, and computing systems, as well as the trappings of Tango, including its satellite television, luxury goods, and teleconferencing software, were all U.S.-origin products and services supplied by U.S. companies, for the benefit of Vekselberg. The efforts of these facilitators permitted Tango to continue to operate as a luxury yacht with the full array of services and luxury goods available to it, supported by hundreds of thousands of dollars of illegally-obtained U.S. services and U.S. financial transactions, and all for the benefit of Vekselberg.

            “Facilitators of sanctions evasion enable the oligarchs supporting Vladimir Putin’s regime to flout U.S. law,” said U.S. Attorney Graves. “The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war.” 

            “The Department of Justice has been clear. Corporations and executives have a choice: they can participate in the global effort to uproot corruption, sanctions violations, and money laundering, and enjoy the benefits of prompt and fulsome cooperation; or they can, as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud,” said Director Adams of Task Force KleptoCapture. “These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise.”

            “The indictment alleges that both defendants used a variety of techniques to mask ownership of the Motor Yacht Tango in violation of U.S. law,” said FBI Special Agent in Charge Winston. “Together with the Justice Department’s KleptoCapture Task Force, the FBI will hold accountable those who assist Russian Oligarchs in their efforts to hide assets and violate sanctions. We thank our international partners who helped facilitate the arrest of Richard Masters in Spain earlier today."

            “Russian oligarchs are the product of an ecosystem of corruption that abuses rule-of-law- based monetary structures to enrich themselves with luxury trappings and lifestyles.” said HSI Special Agent in Charge Arvelo. “Today’s actions have demonstrated our commitment to hold those that conduct illicit transactions on behalf of the oligarchs accountable.”

            On April 4, 2022, Spanish law enforcement executed a Spanish court order freezing Tango. The Spanish acted following a request from the Department of Justice that it assist with the execution of a seizure warrant, issued in March 2022 by the  U.S. District Court for the District of Columbia, which alleged that Tango was subject to forfeiture based on violations of U.S. bank fraud, money laundering, and sanctions statutes.

            The case is being investigated by the FBI’s Minneapolis Field Office. Valuable assistance has been provided by the Homeland Security Investigation’s New York Field Office and the Spanish Guardia Civil - Jefatura de Informacion - Unidad Central Especial Numero III (UCE-III).  The case is being prosecuted by Assistant U.S. Attorney Karen P. Seifert, with valuable assistance provided by Assistant U.S. Attorneys Rajbir Datta and Maeghan Mikorski, Paralegals Brian Rickers and Jorge Casillas, and Legal Assistant Jessica McCormick, all of the United States Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided significant assistance in working with the Spanish authorities throughout this matter.

            The case has been coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and under the leadership of the Office of the Deputy Attorney General, the task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.

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Breaking news, how monogrammed bathrobes led us to put a $1m bounty on russian yacht manager’s head.

You can’t cover up the truth — not even in a luxury robe.

The US government is offering a reward of up to $1 million for a businessman who allegedly helped a Russian oligarch’s yacht circumvent sanctions — until the scheme was revealed by an order for monogrammed bathrobes.

Swiss-based businessman Vladislav Osipov, 52, is wanted on charges including bank fraud, money laundering and conspiracy for his role as a high-level employee of billionaire Viktor Vekselberg, the Justice Department announced last month .

A few months after Vekselberg was sanctioned by the US government in April 2018, Osipov allegedly instructed a boat management firm in Spain to disguise his $90 million yacht, Tango, by referring to it as the Fanta, the federal indictment stated.

At Osipov’s instruction, yacht employees used the false name to buy thousands of dollars worth of goods and services that were processed by US companies and financial institutions that would otherwise have refused to do business with a sanctioned buyer, the document alleged.

In addition to navigation software, leather magazine holders and web services, the management company running the Tango shelled out over $180,000 to a US internet provider, the feds said.

But a smoking gun appeared on Sept. 3, 2020, with the purchase of $2,600 monogrammed luxury robes — that gave away the Fanta’s real name, Tango.

The company ordered a second set of robes the following year, which contained explicit instructions that the ship should be referred to as Fanta on the invoice, even though the robes themselves bore a different name, the indictment read.

The Tango was seized in the Mediterranean by the FBI and Spanish authorities shortly after Russia invaded Ukraine in February 2022, the Washington Post reported.

Osipov was initially indicted last year, documents showed. The owner of the Spanish management company, Richard Masters, was charged with conspiracy to defraud the US and violating federal sanctions, the Washington Post added .

As of late February, the Justice Department is offering up to $1 million for information leading to Osipov’s arrest.

The Swiss-based former Russian citizen may be in Herrliberg, Switzerland; Majorca, Spain; or Moscow, the feds warned.

The charges against Osipov are indicative of the government’s increased interest in expanding the reach of sanctions against Russian interests by targeting Western associates, the Washington Post suggested.

Just last month, the Justice Department announced charges against two stateside “facilitators” who supposedly helped Russian bank head Andrey Kostin conceal his ownership of a $12 million Aspen, Colo., property, the outlet noted.

The threat of criminal charges, the Washington Post said, is more concerning to Russians living and working in the West than the slew of Treasury Department sanctions.

“What you have seen through today’s public announcements are our efforts at really targeting the facilitators who possess the requisite skill set, access, connections that allow the Russian war machine [and] the Russian elites to continually have access to Western services and Western goods,” David Lim, co-director of the Justice Department’s KleptoCapture task force, said last month.

“It seems to me they have gone through a comprehensive list of the oligarchs, and you can debate whether or not it’s had a meaningful impact on the Russian war effort,” Thad McBride, an international trade partner at the law firm Bass Berry & Sims, told the Washington Post.

“Because they’re getting smarter about who’s who, they’re finding other people who play meaningful roles in these transactions, even though they’re not showing up in the headlines.”

Vekselberg, 66, has previously complained that he is unfairly targeted by US sanctions simply because he is Russian, wealthy, and connected with President Vladimir Putin, the newspaper said.

According to the documents, Osipov also helped Vekselberg use the shadow entities to circumvent the Treasury Department’s 50 percent ownership rule, which makes it illegal to do business with a firm if the sanctioned owner controls over 50 percent of the company.

Osipov’s attorney, Barry J. Pollack, argued that the Tango was not more than 50% owned by Vekselberg, and that the government’s application of the federal sanctions in this case was “unconstitutional.”

“The government points to no precedent that supports its extraordinary interpretation and cites no authority that allows the traditional rules of statutory construction to be turned on their head,” Pollack wrote in the opposition filing.

Pollack also insisted that his client is not a fugitive because he never engaged in illegal activity on US soil and never lived there.

Pollack did not immediately return The Post’s request for a comment.

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Briton arrested after ‘hiding’ Russian superyacht by changing name from Tango to Fanta

Friday, January 27th, 2023

Written by: Marine Industry News

A British man has been arrested, after allegedly helping an oligarch to hide his ownership of seized superyacht Tango — by renaming it Fanta .

Richard Masters, 52, was arrested by the Civil Guard in Madrid, Spain, on Friday (20 January 2023). Masters is accused of helping Viktor Vekselberg — a billionaire Russian-Cypriot businessman with ties to Putin — to hide transactions related to his 78-metre superyacht Tango , worth an estimated $90m (£73m), from authorities.

Masters has reportedly been released by Spanish authorities — without his passport — while an extradition agreement is confirmed.

Quick update: the yacht captain who was arrested for helping Viktor Vekselberg evade sanctions involving his yacht TANGO has been released by Spanish authorities. The court took his passport and he has to check in every two weeks while they work out extradition #YachtWatch 1/ https://t.co/UUVSeZTiLS — Alex Finley so Funley (@alexzfinley) January 24, 2023

Another man, Russian national Vladislav Osipov, has also been accused of the same crime but remains at large.

The US initially imposed sanctions on Vekselberg, the founder of a Russian energy conglomerate, in 2018, after Russia’s annexation of Crimea. After the 2022 invasion of Ukraine, the Biden administration signed a new order seizing Vekselberg’s Airbus A319-115 jet and the motoryacht Tango .

The US Department of Justice (DoJ) claims Masters had been managing Tango through a yacht company based in Palma de Mallorca.

It’s claimed that Masters used a false name for the yacht, “the Fanta “, to mask payments in dollars that were for the benefit of the vessel, to hide the transactions from financial institutions and prevent them from being blocked. This allowed Vekselberg to continue using the vessel.

The US Department of Justice confirmed Masters and Osipov are charged with : Conspiracy to defraud the US and to commit offences against the US; violating the International Emergency Economic Powers Act (IEEPA); and money laundering.

Spain’s Guardia Civil police force said a British national had been arrested at Madrid’s Barajas airport, following a joint operation with the Homeland Security Investigation and the FBI.

“The arrested British citizen is the owner and administrator of a trading company based in Mallorca that offers maintenance and administrative services to boats,” the Guardia Civil said in a statement.

“Among his clients is a Russian citizen who has been prohibited from operating in US markets and with US financial businesses. The yacht in question was used by the aforementioned Russian citizen and his family.”

It’s reported that Masters may have earned up to €800,000 (£707,000) for protecting Tango .

Yacht: Tango Owner: Viktor Vekselberg (billionaire businessman) Worth: $120m Last known location: Palma de Mallorca, Spain https://t.co/8SvIyXj9M0 https://t.co/i2zq24QIiA #YachtWatch #OligarchWatch pic.twitter.com/liate2Bh1p — Klaas de Vries (@Klaasdevries01) March 7, 2022

Andrew Adams, the director of the Department of Justice’s department KleptoCapture taskforce, says Masters is about to face the consequences of his attempt to profit through crime.

“Corporations and executives have a choice,” he says. “They can participate in the global effort to uproot corruption, sanctions violations and money laundering, and enjoy the benefits of prompt and fulsome cooperation; or they can, as Osipov and Masters are alleged to have done, attempt to shield themselves and their clients behind a veil of fraud.

“These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise.”

Earlier this month, MIN reported that a yacht owned by sanctioned Uzbek oligarch Alisher Usmanov had disappeared from its dock in the central Adriatic after an apparent heist.

The 35-metre Sunseeker 115 Irina VU, which had been dry-docked at a marina in Betina as part of western sanctions on Usmanov, was removed and sailed away to Turkey under cover of darkness, only to be replaced by an identical luxury ship to avoid any suspicion.

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Briton accused in Russian oligarch yacht case is released on conditions

FBI, Homeland Security and Guardia Civil after search of the yacht in Palma last April. | Alejandro Sepúlveda

Richard Masters , the 52-year-old Briton who lives in Santa Maria and is accused of fraud by the FBI in connection with the seizure of the superyacht Tango , owned by a Russian oligarch , has been released by the Audiencia Nacional high court in Madrid.

Related news

British Mallorca resident arrested, accused of helping Russian oligarch hide yacht

His passport has been withdrawn and he must appear before the judicial authority every fortnight.

The US authorities had asked the court for his immediate extradition , but the judge, Alejandro Abascal, has not granted this. The prosecutor in the case requested that he be ordered to prison because he considered there was a risk of flight. However, the judge didn't accept this either, so around 2pm on Saturday his release was decreed.

• Audiencia Nacional
• Briton arrested
• Russian oligarch
• Spain courts
• Tango superyacht

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By SuperyachtNews 09 Feb 2023

The case of Masters vs USA

Further details have emerged concerning the indictment of richard masters….

Richard Masters, a well-known industry figure, has been indicted by a grand jury in the United States of America on charges of conspiracy to defraud the country and to commit offences against it. The indictment accuses Masters of facilitating the operation of the 77m  Tango , which is owned by a sanctioned Russian national and head of a Russian conglomerate. It is worth noting that the owner of the vessel was sanctioned by the US government in 2018, four years prior to the official invasion of Ukraine. In a far from modest attempt to hide the vessel, the management company re-named the yacht 'Fanta', a more expensive version of the orange-flavoured fizzy drink 'Tango' which is manufactured in Great Britain.

According to the indictment letter, Masters and others used shell corporations and intermediaries to obfuscate the ownership of Tango and its connection to U.S. dollar transactions and U.S. businesses. The accused individuals are alleged to have made false statements to U.S. banks processing U.S. dollar transactions for Tango and to have used third-party intermediaries to make U.S. dollar payments for Tango under false names and false terms.

The indictment states that the Masters and others enabled the Russian national to evade OFAC's regulations and reporting requirements, which meant that U.S. financial institutions were processing transactions for Tango, and allowing U.S. companies to provide goods and services to the sanctioned individual and his asset. According to the indictment, the yacht continued to operate with the full array of services and luxury goods available to it, supported by hundreds of thousands of dollars of illegally-obtained U.S. services and U.S. financial transactions.

On or about the following dates, an individual who has been given the name 'Co-Conspirator 2', on behalf of Tango, paid invoices to an American Internet Service Provider, with many of the payments referencing "Fanta". In a recent press release, the following invoices were highlighted.

Despite the designation and increased scrutiny from US financial institutions, the owner of the vessel and his agents used shell companies, intermediaries, and false information to conceal the true ownership of Tango. Shell corporations have been widely used by businesses and individuals for various purposes, including tax planning, asset protection, and, in some cases, to evade sanctions. 

In this case, emails and other documents reveal the intricate web of shell corporations and wire transfers that co-conspirators used to hide the ownership and control the vessel. One co-conspirator even sent an email suggesting that the owners 'indirect' interest in ‘Entity 2’ (a Panamanian foundation) could be used to evade sanctions. Another co-conspirator represented that the ownership structure of Tango had changed to a shell corporation, ‘Entity 5’ (a Russian corporation), which was allegedly owned by a Russian national.

The indictment of Richard Masters serves as a cautionary tale for individuals and businesses operating in the U.S. and around the world. As well as being accused of conspiracy to defraud the United States, Masters has also been accused of money laundering, as a result of the intense investigation

On or about December 22, 2020, one of the Co-Conspirators wired $39,340 to a five­ star water villa resort in the Maldives for the benefit of Tango guests, including the sanctioned individual. The bank reference used the name of another Co-Conspirator as opposed to referencing Tango, which transited through a U.S. correspondent bank. In a recent press release, the following has been indicated as proof of Money Laundering, in violation of Title 18, United States Code, Section 1956(a)(2)(A))

The use of shell corporations and wire transfers was not limited to hiding ownership. The co-conspirators also used false names for Tango in business transactions, instructing staff and crew to use the term "Fanta" instead of Tango. An email from a co-conspirator to a UK insurance company instructed that there should be "no mention of 'Tango'" and that the reference should read "Fanta".

The abuse of shell corporations for illegal purposes is a concerning issue. It highlights the need for better regulation and enforcement to prevent such abuses and to hold accountable those who engage in such activities. Additionally, the use of false names and wire transfers adds another layer of complexity and secrecy that makes it difficult to detect and trace illegal activities.

While shell corporations can be useful for legitimate purposes, their potential for abuse highlights the importance of increased scrutiny and regulation. The use of false names and wire transfers further complicates the problem and highlights the need for a comprehensive approach to address this issue. It is crucial for law enforcement agencies, regulators, and businesses to work together to detect and prevent the illegal use of shell corporations and to promote transparency and accountability in the business world.

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The curious case of masters vs usa.

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British man 'hid' Russian billionaire's £72million megayacht by changing its name from 'Tango' to 'Fanta'

Us officials said they would not allow the country to be manipulated in order to benefit 'those supporting an illegal war'.

Daisy Phillipson

A British man has been charged with hiding a Russian oligarch’s $90million (£72million) megayacht from US sanctions.

According to the US Department of Justice, UK businessman Richard Masters, 52, was arrested by the Spanish Guardia Civil on Friday (20 January).

He and Russian-Swiss national Vladislav Osipov, 51, have been charged in separate unsealed indictments with conspiracy to defraud and to commit offences against the US , violating the International Emergency Economic Powers Act (IEEPA).

They have also been charged with money laundering in relation to the 255-foot luxury yacht named 'Tango', owned by Russian millionaire Viktor Vekselberg.

The justice department went on to detail the alleged offences of Masters, who runs a yacht management company in Palma de Mallorca, Spain.

Since Vekselberg was sanctioned in April 2018, the Brit is accused of giving the boat the fake name of 'Fanta' in a bid to hide the fact that US money was ultimately contributing to Tango and its real owner.

Both Osipov and Masters are alleged to have enabled the employees of the motor yacht to continue doing business with numerous American companies supplying services such as its internet connection, weather forecasting and computer systems and luxury goods.

Ultimately, American institutions ended up processing hundreds of thousands of dollars in transactions that would not have been permitted had they known the true identity of the yacht and its owner.

US Attorney for the District of Columbia, Matthew Graves, said in a statement that those involved in evading sanctions were able to support ' Vladimir Putin’s regime to flout US law' amid Russia's ongoing attack on Ukraine.

"The United States will not allow its financial institutions and persons to be manipulated or defrauded for the purposes of benefitting those supporting an illegal war," he said.

Ivan Arvelo, SAC of the Homeland Security Investigations New York Field Office, added: "Russian oligarchs are the product of an ecosystem of corruption that abuses rule-of-law-based monetary structures to enrich themselves with the luxury trappings and lifestyles that everyday people only dream of.

"All the while as thousands of Ukrainians are homeless due to Russia’s unlawful invasion.

"As stewards of the American financial system, HSI will not stand idly by as US dollars are used by oligarch criminal networks to operate and maintain these high value symbols of corruption."

He continued: "Last year, working with our partners at the Justice Department and FBI, we removed the yacht Tango from an oligarch’s portfolio and with today’s actions we have followed through on our promise of accountability to those that conduct illicit financial transactions on behalf of the oligarchs.

"The message is clear: Putin’s cronies will find no succor in their riches and those that illegally enable such lifestyles will be called to justice."

Adding to this, SOC of the FBI Minneapolis Field Office, Alvin Winston, stated: "The indictment alleges that both defendants used a variety of techniques to mask ownership of the Motor Yacht Tango in violation of US law .

"Together with the Justice Department’s KleptoCapture Task Force, the FBI will hold accountable those who assist Russian Oligarchs in their efforts to hide assets and violate sanctions.

"We thank our international partners who helped facilitate the arrest of Richard Masters in Spain earlier today."

The FBI is investigating the case and an arrest warrant against Osipov is still outstanding.

Topics:  Russia , Ukraine , Crime , World News , Vladimir Putin , Money

Daisy graduated from Kingston University with a degree in Magazine Journalism, writing a thesis on the move from print to digital publishing. Continuing this theme, she has written for a range of online publications including Digital Spy and Little White Lies, with a particular passion for TV and film. Contact her on [email protected]

@ DaisyWebb77

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The MY Tango inquiry: Lessons to be learnt

The industry was rocked recently by the news that Richard Masters and Vladislav Osipov were charged with allegedly aiding sanctioned Russian billionaire, Viktor Vekselberg. The US Department of Justice claims the pair ran a money laundering scheme and tried to hide the ultimate beneficial owner (UBO) of the superyacht  MY Tango  through a string of shell companies.

“ What this case really shows us is that we, as an industry, need to be incredibly careful whom we work with,”  James Jaffa, partner and founder, Jaffa & Co tells Superyacht Investor (SYI).  “People need to be 100% sure where the true source of wealth lies.”

It is worth stressing that an indictment is merely an allegation and Masters, the founder of yacht manager Masters Yachts, should be presumed innocent. He is a highly regarded and popular member of the yachting community.

The 255ft (78m) yacht was seized in Mallorca, Spain at the request of the US on April 4th 2022. Its owner, Vekselberg was sanctioned by the US in April 2018, as part of a package of sanctions against Russia after its alleged interference in the 2016 US presidential election and other  “malign activity”.  The sanctions freeze the billionaire’s assets held under US jurisdiction and prevent American companies from doing business with him.

The FBI claims that Masters operated  Tango  using US companies and financial systems, in an attempt to hide the UBO. Masters was arrested by Spanish authorities on Friday, January 20th. A warrant for the arrest of Osipov has also been issued. The case has been led by the FBI and the US Justice Department’s KleptoCapture Task Force, aimed at enforcing US sanctions abroad.

Paul Abbate, deputy director, FBI said on January 20th: “ Today’s indictments and the arrest executed by Spanish law enforcement demonstrate the FBI’s continued focus on tracking down and holding accountable those who assist sanctioned Russian oligarchs.” 

The US government says that Masters took over the management of the vessel and conspired with Osipov and others to evade the US sanctions.

“I’m not surprised at all when I hear of allegations like this,”  one industry source tells SYI.  “You hear stories all the time about people continuing to work with Russians that have been sanctioned.”

Other industry leaders felt differently. “ I was pretty shocked when I heard the news if I am honest,”  says a British lawyer.  “The situation could be down to anything, but it seems there   may have simply made an error of judgement.”

US authorities also allege that Masters changed the vessel’s name to  Fanta  to hide payments in US dollars linked to  Tango . US institutions are said to have processed hundreds of thousands of dollars for the Russian oligarch as a result, giving US authorities grounds to arrest the British national.

Another industry source tells us: “ You can’t just disregard sanctions. You could perhaps argue that an individual might ignore them, risking everything, because the owner is an important client and brings in a lot of business. But you simply can’t just ignore them because of that or because you disagree with them.”

There could be an argument for disregarding the sanctions if an individual operated solely within countries like Turkey or the United Arab Emirates, adds our source. “ But not if you are a British gent working in Spain. That is just crazy. And there are extradition treaties that  [the US]  will use if they have to.”

Masters potentially faces extradition to the US. One industry source tells SYI these are familiar waters.  “Remember the trade for Brittney Griner and the Russian arms dealer? When you break US laws, they will find you. And they will extradite you.”  The arms dealer, Viktor Bour, was arrested by US authorities in Thailand on terrorism charges in 2008.

David Hernandez, partner, Vedder Price, is happy to speak on the record.

“ These sanctions are real and need to be taken very seriously. People who don’t, get caught. Period. That’s a fact,”  he tells us. “ You can’t just hide millions of dollars worth of assets and expect to get away with it.”

So, what lessons can the industry learn from the case?  “Simply put, it is not worth the risk. Why risk everything for a $100,000 commission?”  says Hernandez.  “Is it worth losing your liberty? Your reputation? No, of course not.”

With the charges for Masters and Osipov potentially leading to a lengthy prison sentence if found guilty, it is a stark reminder that the industry has to take great care in choosing with whom it does business.

“ What we have to take away from this, no matter what the outcome, is that we, as an industry, must take incredible care with understanding who our clients really are,”  says Jaffa .

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Brit charged with helping Putin's pal hide Tango yacht by changing name to Fanta

Richard Masters is charged with money laundering and fraud over allegations he and Vladislav Osipov helped oligarch Viktor Vekselberg hide from sanctions through his £73m luxury yacht

• 09:55, 30 Jan 2023

A Brit has been charged in the US over claims he helped a tycoon pal of Putin's change the name of a £73m yacht to avoid US sanctions.

Richard Masters was arrested on Friday in Spain and is accused alongside Vladislav Osipov, who currently remains at large.

Both allegedly helped Russian-Cypriot oligarch Viktor Vekselberg by hatching a money-laundering plot which would help him evade US sanctions imposed back in 2018.

The alleged scheme is said to centre around Mr Vekselberg's $90m, 255ft luxury yacht named Tango, with Masters managing the boat in Mallorca.

The tycoon, who is a known associate of warlord Vladimir Putin , is a founder of Russian energy conglomerate Renova Group, with an estimated fortune of $5.4bn.

According to US documents, Mr Vekselberg's yacht was seized in April last year and claimed shell companies were used to hide his ownership.

After being imposed with sanctions by the country in April 2018, the billionaire, and those working for him, are accused of making payments through US banks to help with the yacht's upkeep and mooring fees, including for a plush holiday at a luxury Maldives resort in December 2020.

Separate US documents meanwhile claim Masters ran a company in Mallorca managing the yacht, and allege he changed the boat's name from "The Tango" to "The Fanta" in order to hide hundreds of thousands of dollars from the banks to help the billionaire.

Masters, 52, and Osipov are both charged with various offences, including conspiracy to defraud the US and to commit offences against the US, violating the International Emergency Economic Powers Act (IEEPA) and money laundering.

Spain's Guardia Civil police confirmed on Friday that a British man was arrested at Madrid airport as part of a joint operation with the FBI and Homeland Security Investigation.

US officials meanwhile issued a warning to Putin's cronies claiming they would no longer be able to hide behind their riches, describing oligarchs such as Mr Vekselberg as a "product of an ecosystem of corruption".

Director Andrew Adams of Task Force KleptoCapture said of Masters and Osipov: "These men made their decisions, and now face the consequences of a failed attempt to profit through, rather than standing against, a sophisticated, transnational criminal enterprise."

Ivan Arvelo, from Homeland Security, said: "Russian oligarchs are the product of an ecosystem of corruption that abuses rule-of-law-based monetary structures to enrich themselves with the luxury trappings and lifestyles that everyday people only dream of – all the while as thousands of Ukrainians are homeless due to Russia ’s unlawful invasion."

He added: "The message is clear: Putin’s cronies will find no succor in their riches and those that illegally enable such lifestyles will be called to justice."

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