BEVERLY HILLS—The U.S. Department of Justice and the U.S. Attorney’s Office of New York announced the arrest of Russian Intelligence agent and Ukrainian lawmaker, Andrii Derkach, 55, on December 7. Derkach was charged with fraud and money laundering in connection with the purchase and use of a luxury Beverly Hills real estate.

Photo Credit, Ukraine World, Andrii Derbach

According to the press release, the defendant was sanctioned in 2020 for attempting to interfere in the U.S. Presidential election. A seven-count indictment was unsealed in Brooklyn, New York charging Derkach with conspiracy to violate the International Emergency Economic Powers Act (IEEPA), bank fraud conspiracy, and money laundering conspiracy, in addition to four counts of money laundering in connection with the purchase and maintenance of two condominiums.

His purchase of the Beverly Hills properties was a violation of the new U.S. Sanctions imposed in early 2022.

U.S. Attorney for Eastern District of New York, Breon Pearce, Assistant Director in Charge, Michael J. Driscoll, Federal Bureau of Investigations Assistant Director in Charge, and Andrew Adams, Director of the Kleptocapture announced the charges.

“The conduct of this Kremlin asset, who was sanctioned for trying to poison our democracy has shown he is ready, willing, and capable of exploiting our banking system in order to advance his illicit goals. The U.S. will not be a safe haven where criminals, oligarchs, or sanctioned entities can hide their ill-gotten gains or influence or influence our elections. This office together with our law enforcement partners will use every tool available to prosecute those who evade sanctions and abuse the U.S. financial system, and we will identify, freeze, criminal proceeds, wherever and whenever possible,” said Pearce.

Driscoll, referring to Derkach as a “Kremlin-backed Ukrainian politician,” and “was sanctioned for his efforts to influence the 2020 U.S. Presidential election on behalf of the Russian Intelligence Services.” 

Derkach was a co-conspirator that hid the interest earned from U.S. financial institutions. with the scheme that began in 2013.

Anna from Kyiv, Ukraine posted a connection between Derkach, and Russian arms dealer Victor Bout recently traded for WNBA star Brittney Griner.