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    Created the largest bank in Russia by age of 25 before defecting to the United States in 1992 and starting from scratch.

"Lawsuit charges DOJ collusion with Russian Mafia"

The Washington Weekly

November 3, 1997

A $100 million lawsuit filed in federal court today charges the Department of Justice with collusion with the Russian Mafia. The lawsuit alleges perjury, fraud, torture, and witness tampering by named officers of the U.S. government on behalf of the Russian Mafia.

The lawsuit stems from the case of Alexandre Konanykhine, a Russian banker who blew the whistle on a grand KGB scheme to smuggle hundreds of millions of dollars out of the Soviet Union at the time of its collapse. The loot is still stashed in foreignbanks, some in Switzerland, and former KGB officers and Communist Party officials are protecting the secret through their new positions in the Russian Mafia and in the corrupt government of Russia.

After whistleblower Konanykhine was kidnapped by the Russian Mafia, he escaped to the United States where he thought himself protected by the legal system. Words cannot describe the horror he and his wife went through when they discovered that FBI and INS agents worked on behalf of former KGB officers in the Russian Mafia to have him returned through extralegal means to Russia. Both the FBI and the INS are part of the Justice Department.

Mr. Konanykhine fought the deportation in court, and after a long legal battle against the Justice Department he was released from custody last July. During the case, reported in the August 25 and September 1 issues of the Washington Weekly, the horrible and illegal methods employed by the U.S. government against Mr. Konanykhine and his wife were revealed. Presiding judge T.S. Ellis, III, found the evidence "disturbing." So much so, that on August 26 he ordered the Justice Department's Office of Professional Responsibility to investigate official wrongdoing.

Justice Department investigations of itself are notorious for finding "no credible evidence" of wrongdoing by government officials, so a more successful venue may be a lawsuit filed today in federal court by Alexandre Konanykhine.

Mr. Konanykhine charges officers of the Washington District Office of the INS, including District Director William Carroll, Assistant District Director James Goldman and District Counsel Eloise Rosas with conspiracy with one Lt. Colonel Volevodz of the Russian Military Procuracy to commit illegal extradition of him and his wife to Russia on behalf of the Russian Mafia.

Said officials are alleged to have conducted the following illegal acts:

  1. perjury;
  2. fraud on the Court;
  3. fraud upon the United States;
  4. conspiracy to defraud the United States;
  5. giving conflicting testimony on separate occasions as to the same matter;
  6. conspiracy to kill, maim, or injure persons in a foreign country;
  7. torture (as defined in 18 U.S.C. Sec. 2340);
  8. combination to injure other in their reputation, business or profession;
  9. tampering with witnesses;
  10. retaliating against witnesses;
  11. attempt to commit murder;
  12. deprivation of civil rights under color of law, including the false arrest and imprisonment;
  13. search and seizure without warrant;
  14. false publications;
  15. disclosure of confidential information;
  16. breach of the confidentiality provisions of 8 U.S.C. Sec. 552a(b).


The conspiracy is not limited to these named officials of the Clinton administration, however. During the court hearing in July, a witness recounted that Eloise Rosas had told him that "the INS got instructions from the top to cooperate with this case."

How high is "the top" and what motive does the Clinton administration have to cooperate with the Russian Mafia and former KGB officers? Could it be part of a quid pro quo involving Clinton campaign contributions from criminal individuals such as Grigory Loutchansky?

Alexandre Konanykhine explains that the stakes are on an entirely different scale. "It's not about how much Russians gave to the Democrats, it's about how much the Democrats gave to Russians. Billions have been spent to keep Yeltsin in the Kremlin - it now precludes the discussion of whether Yeltsin has built a Mafiocracy instead of a Democracy," he tells the Washington Weekly. "Big corporations which benefit from business in Russia want stability there even if it means stability of a criminal government."

Second, Konanykhine sees himself as a pawn in the globalization efforts of the FBI. "Director Freeh wants to make the FBI a global organization with presence in each and every country, and the overhyped success of the close and productive friendship with the corrupt Russian government is the linchpin for this globalization of FBI," he says.

Third, Konanykhine sees a failure of the Clinton administration and the mainstream media to recognize the villains. "Some officials still sincerely believe that Russia is a newborn democracy and that the KGB successor agencies are now the best friends of the US government. (An) excusable mistake if you recall that Gorbachev, Perestroika, Democracy, the crushed Berlin Wall, etc. was praised everywhere, but the story of the Russian Criminal Revolution of 92-93 has never made its way to the international Press."


Lest anyone should believe that the Konanykhine case is just one of those famous Clinton administration "bureaucratic snafus," Mr. Konanykhine points to the parallel case of Jouri Nesterov, a legal U.S. resident since 1994, who is now fighting a similar deportation to Russia.

Mr. Nesterov claims that he played a small part in a secret and politically explosive scheme by the Russian military to sell sophisticated arms to China, and that most of the proceeds, including his promised fee, were pocketed by high-level officials and allied Russian Mobsters. Those people, he says, now want him back -- to silence him.

And again, incredibly, the Clinton administration is helping Russian Mobsters masquerading as government officials to silence Nesterov.Published in the Nov. 3, 1997 issue of The Washington Weekly

Copyright 1997 The Washington Weekly

Russian Mafia
Russian Immigrant
Russian Banker

More News...

Washington Post:
Konanykhin, one of the first Russian millionaires after the fall of the commies, left in 1992 and was granted asylum here in 1999. He's built a very successful Web advertising business in New York City. He had been chosen "New York Businessman of the Year." "As such, you will be honored and presented with your award," NRCC chairman Thomas M. Reynolds (R-N.Y.) said, at a "special ceremony" April 1. " President Bush and Governor Arnold Schwarzenegger are our special invited guests.
Alex Konanykhin controlled Russia's largest commercial bank in the 1990s
Wall Street Journal:
Mr. Konanykhin was a whiz-kid physics student who became a pioneering Russian capitalist in early 1990s, building a banking and investment empire valued at an estimated $300 million all by his mid-20s. He was a member of President Boris Yeltsin's inner circle.
The Sun:
Alex Konanykhin fled Russia in 1992 and won asylum in the US after the collapse of the Soviet Union. The entrepreneur had set up 100 different companies in Russia and had an estimated net worth of $300million by the time he was 25. He is regarded as one of the first Russian millionaires after the fall of the Iron Curtain. One of the newly open country's leading lights, he even met with US President George HW Bush in 1991 on a joint visit with Russian leader Boris Yeltsin. However, he was then kidnapped in 1992 while visiting Budapest and all of his business assets were seized in Russia. … Being hunted by the Russian state, Konanykhin won asylum in the US in 1997 and set up a new life - but the shadow of the Kremlin continued to loom over him.He went on to rebuild a business empire and set up multimillion dollar firms such as TransparentBusiness in the US.
The Deal:
... a New York-based software startup called TransparentBusiness Inc. has drawn backing from Fortune 500 executives through a relatively new type of securities offering called 506(c) as part of an effort to raise $10 million this year ... Alex Konanykhin, CEO of TransparentBusiness, said he decided to reach out directly to accredited investors by purchasing ads in financial publications. One particularly bold ad includes the figure, 90,000%, with a question mark next to it. Konanykhin said the ad speaks to the large market opportunity for his company's software, which helps governments eliminate fraud by verifying billable hours charged by outside contractors. ... One of the investors, Ken Arredondo, told The Deal he invested in TransparentBusiness and agreed to serve on its board of directors because of the company's strong management team and the huge market opportunity to increase transparency of outsourced contracts worldwide. He believes in the company's product and said it's unique. "It's a Saas-based, easy-to-use tool," he said. "There are a lot of technology players out there that are a lot bigger, but none of them have what they have. There will be competition, but they have the product now. They have first-mover advantage."
The Baltimore Sun:
Business whiz kid.
Russian Bill Gates.
The Times:
By the time he was 25 he was one of the most important figures in post-Communist Russia. But in 1992, while on a business trip to Hungary, Alex Konanykhine was kidnapped.
The New York Times:
The Federal Bureau of Investigation notified Konanykhin that Russian organized crime figures had paid to have him killed.
Los Angeles Daily Journal:
Representing himself through much of the process, Konanykhin managed to convince an immigration judge of an alleged INS and KGB conspiracy and cover-up. Following the court's admonishment, the INS agreed to drop all charges and also pay $100,000..The judge also ordered an investigation of the Justice Department. In separate actions, Konanykhine subsequently won multimillion dollar libel judgments against two Russian newspapers. A $100 million lawsuit against the Justice Department is pending, alleging perjury, fraud, torture and witness tampering by U.S government officers on behalf of the Russian Mafia.
Profit Magazine:
Imagine you are a teenage physics genius who quickly amasses a $300 million empire of real estate and banking ventures, has dozens of cars, six hundred employees, several mansions and two hundred bodyguards—but you are nonetheless kidnapped by those you trusted, threatened with torture and death, and have your entire empire stolen from you one dark night in Budapest. You escape with your life by racing through Eastern-block countries and flying to New York on stashed-away passports—only to have the KGB and Russian Mafia hell-bent on your hide and the U.S. government jailing you and conspiring to serve you up into their clutches. All this before your 29th birthday. Sound like a Tom Clancy thriller? No. . . just a slice in the life of Alexander Konanykhine.