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`Exhibit 50
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`Part 1
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`EXHIBIT 22
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`BrowderDepo0001408
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`Moscow
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`Translation from Russian into English
`llepeson c pyccsoro }l3IaIK1i na aarnuiicknh sssnt
`
`July 11,2013
`
`Tverskoy district court of Moscow composed of:
`the Presiding judge - judge Alisov 1.13., under secretaries Fomicheva EM. and Kvekveskiri
`L.Z., with the participation of:
`tl1e public prosecutors — prosecutor of the Prosecution Office of Moscow Reznichenlco M.V.
`and assistant of Tversloy inter-district prosecutor of Moscow Slobodin S.A.,
`the representatives ofthe aggrieved party Mostovoy K.V. and Gerasimova A.A.,
`
`the advocates - lawyers Gerasimov N.V., Goncharova K.A., Bciko V.I., submitting the
`certificates N2N2 8923, 7946 and 6867, the warrants NQNQ 288, 265 and 699, respectively,
`having examined in open court a criminal case against
`
`Vltillitfm:Ilelix*B1=ovi"iié1‘, who was born on April 23, 1964 in New Jersey, USA, afidtitislli
`dawn living 2-3 Golden Square, Grafion House, Floor 3, London, W1F 9 HA United
`Kingdom , not registered on the territory of the Russian Federation,
`
`accused of committing two crimes under Paragraphs "a" and " b" of Part 2 of Art. 199 of the
`Criminal Code the Russian Federation (the Federal Law as amended from 08.12.2003 N9
`162- F2.) , and dlllfi'g‘Ii\i.tsJt_i«y.i,S_$_I_:r.1 accused of committing two crimes under Parts 3 and 5 of
`Art. 33 and Paragraphs "a" and " b" of Part 2 of Art. 199 of the Criminal Code of the Russian
`Federation (in the version of the Federal Law from 08.12.2003 N2 162- F2),
`
`resolved:
`Bnevi.:der;committed tax<e;r.asi'o'1t' from Emiorganizations by ififeludhigfiriflingly false:
`1B£f{D11?_i1ai1§I_n1t0:‘[a}{1T61Ii1111S‘f by a group of persons by previous concert, on a large scale, in the
`following circumstances.
`
`So, being the Head of the Moscow Representative Office of the Company "Elermitage
`Capital Management Limited" (hereinafter r the Representative Office), registered at the address:
`Board room 1, Butyrskiy Shaft, Moscow, but actually located at the address : 9, Dmitrovskiy Lane,
`Moscow, he_4,negc_tiated with Magnitsle3?£StL., in respect of whom the individual decision to dismiss
`the criminal case on the basis of Paragraph 4 of Article 24 of the Code of Criminal Procedure of the
`Russian Federation, who operated in the field of general audit and provided services for accounting
`and tax accounting to the customers of the branch of "figestone Duncan Limited" in Moscow (
`hereinafter - the Branch of the Company) , registered at the address : Building 2, 5, Diegtiarnyy
`Lane, Moscow, but actually located at the address: Building 2, 13, Staropimenovslciy Lane, Moscow,
`acting in the interests of the mentioned Representative Office, and vtl.i!§l_mr,1§1,<;1_es,1_itj._l'ie=<_1ypers_r)_r_1_s on the
`joint commission of actions aimed at tax evasion from the organizations-taxpayers, by including
`wi ,'
`y_false;infonnation-tq.taJCretuinsg using the laws ofthe Russian Federation on concessionary
`taxation, namely, that the Law of the Russian Federation from 27.12.1991 N2 2116—1 “On income
`tasestufienterprises and organizations” (as amended from 09.05.2001), the rate of income tax paid to
`the federal budget, is set at 11 %; the income tax is paid to the budgets of the constituent territories
`ofthe Russian Federation according to the rates established by the legislative (representative) bodies
`of constituent territories of the Russian Federation, in the amount of not more than 19 %; the income
`tax is paid to the local budgets according to the rates established by the representative bodies of the
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`BrowderDepo0001409
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`local government, in the amount of not more than 5 ‘/n; in accordance with Paragraph 2 of Article 6
`of the same Law, a benefit for this tax is provided in the form of reducing rates of income tax paid to
`the federal budget by 50 % , i.e. at the amount of 5.5% of the£%MeTmM fise§m'd
`o:;gm_igatiprt_s;i§1e§isabl'edujaetaple siTr‘at1<ea§1btal11eas.ts5l0t%*.’ofitheitotal‘-riiimberlofemployees.
`
`.5: 1iiiilE)‘l’i‘tlfi§%‘l‘ifife';'acccrdirig to which he found
`With these purposes,
`~
`.
`.—
`.r-
`
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`§’é‘-!i’m'th‘e‘lfi’é1E|¥Hf¥E.'6€6i1‘fi"ti'rTg;'TEt"'ac‘ébitfitih‘g, stock
`so%‘milfit1'1fi'etl£j3‘€=§t)'1i§'Fvt'=i‘tl1
`'
`market and the relevant legislation of the Russian Federation. After that, in 1§9&‘,’the unidentified
`persons established, incioiporated and registered in the tax accounting the LLC "]1a!t1iaya"-Step" INN
`0814099824 and the LLC "Sawvin-vestrt1”d’fifs" INN 0814103679 located: Room 15, 301, Lenina
`Street, City of Elista, Republic of Kalmykia, Russian Federation, which are tax- and feepayers
`obliged to calculate and pay the legally established taxes and fees within the time specified in
`Paragraph 2 of Art. 15 of the Federal Law from 21.11.1996 N9 129 FZ "On Accounting" and
`Paragraph 3 of Article 8 of the Law of the Russian Federation from 27.12.1991 M 2116-] “On
`income taxes of enterprises and organizations”, according to the annual accounts within ten days
`from the date fixed for the submission of accounting reports for the past year - within 90 days from
`the end of the year, in this case, Ifltvfihpri-1112092002?‘
`
`The Resolution No 2 of the sole participant of the LLC "Dalniaya Step" on June 8, 1998 and
`the Resolution Na 2 of the sole participant of the LLC "Saturn Invesnnents " on June 8, 1998
`appointed _1§_nsmde'rIfltc1i3.irectoI*Elenera1-of each company since June 9, 1998, as weli as the sole
`executive body of each company.
`
`In accordance with Art. 6 of the Federal Law of21.I1.1996 N9 129- F2. "On Accounting",
`Browder was responsible for the timely provision of complete and accurate accounts, for tax
`payments in corpore, for law compliance during financial and business transactions, as well as
`reporting of the tax declaration and other documents necessary for tax control to the tax authority,
`the reporting of which is mandatory in accordance with the legislation of the Russian Federation on
`taxes and fees; according to the Charters he had the powers to fulfill
`the current management of the
`Companies; to act without a power of attorney on behalf of the Companies, to represent its interests
`and make deals; to dispose of the Company's property, including money on the Company's bank
`accounts; to issue orders for the appointments of the Company's employees, their transfer and
`dismissal, to issue orders and to give instructions obligatory for all employees of the Companies.
`
`In violation of Art. 57 of the Constitution of the Russian Federation, Articles 3 and 23 of the
`Tax Code of the Russian Federation, Bfuwtier‘-together"'with Magnitskiy and unidentified persons
`negotiated ’an‘evasicn- ofilegallygestablished.taxes_;and fees;hyj.neludingn.vjttingly vfalse inforrnation
`to tax returns on the application of tax benefits in accordance with the abovementioned legal texts.
`
`Furthermore, Mtrgnitskiy, whpvwas nota'anrofiicia1.erfiployee of the LLC "Dalniaya Step" and
`the LLC "Saturn Investments", acting in pursuance of the common goal of tax evasion, during the
`period from the beginning of 1997 to March 29, 2002, being aware that these Companies are
`incorporated in the Republic of Kalrnykia, of the nature of their business activity, of its membership
`and working people, organized the accounting management of the Companies by unidentified
`persons, supervised their activities, as well as contributing to the commission of the crime, provided
`the execution of initial and accounting documents with fiseiififorrnation about the employment. of
`dis__gl-_3_l.ed_ people in the‘ Companies;i.e. the documents that serve as bases for the preparation of tax
`returns, and with the intention to create the appearance of compliance with the above—mentioned
`legal texts on taxation, both personally and by giving instructions to unidentified accomplices, fiiund
`sGPfie'rési"d’fiils‘5'f"E‘li §t!1’i1'ii’eitv‘ar“e'6f*th‘€'e1iminat~plansIve.nd the final result, such as Vankayev S.S.,
`Tsedieyev V.N., the Chairman of the Association of Veterans of the war in Afghanistan and
`personally acquainted with a lot of disabled people, Biatkiev V.A., who personally gave their
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`BrowderDepo00O141o
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`consent-for-the-fictititinsfemp1oymentdn'-m?h "%d attracted other disabled
`people.
`
`In accordance with the gained agreement, Magnitskiy and unidentified persons have
`defilfifiedfllahdrwcfihhactsa-an7al|=t§"fi1‘3fllists'lta'ii-itvlae-nIc]!.G—_3l3)alniar,Ia Step" and the LLC "Saturn
`Investments", according to which tirefiaverageunumbemofadheternpleyed disabled-people wasnot less
`tlighalfi» g_f;t_he;tota]gnumbef56f e"r"ii”f3lE"}7E"é'%'t'~th'?e'7@i')'1‘t'1'pa"rties.
`
`Afler tliatflfiorivder,-1l\,{I§:tgnitsE}7Ta11d-unidentified ~persons,«.witting1y aware that no work will
`bgn1g;fQm_igg;bx:th_egfisa_b1e_dspecific! without creating jobsites for them, organized with the help of
`Vankayev S.S., Tsedieyev V.N., Biatkiev V.A. the signing of the labor contracts about hiring for
`positions in analytical departments the disabled employees Mikuliayeva LS. and Bukayev A.E. to
`the LLC "Dalniaya Step", and the disabled employees Byatkiyeva V.A., Bukayeva O.E., Badykov
`E.Y.
`, Sumyanov V.V. to the LLC "Saturn Investments", each of whom had a permanent jobsile,
`started new employment records , allegedly confirming their employment to the Companies and
`organized their signing by Luiiclentified persons, organized the signing of the labor contracts and staff
`lists, on one hand on behalf of the Director General of the Companies Browder and on the other
`hand by the disabled people Mikuliayeva I.S. and Bukayev A.E.,
`Byatkiyeva V.A., Bukayeva O.I3., Badykov E.Y. , Surnyanov V.V.
`
`Thus, the staff of each Company consisted of the Director General Browder and disabled
`employees of the analytical department of this Company, who practically didn't perform their work
`duties.
`
`Then, copies of personal documents of Mikuliayeva LS. and Bukayev A.E., Byatkiyeva
`V.A., Bukayeva 0.E., Badykov E.Y., Sumyanov V.V., including those confin-ning their disability,
`labor contracts and staff lists of the Company at the direction and under the guidance of Magnitskiy
`were used personally by him as well as by unidentified persons to establish and keep the accounting,
`tax reporting, and to justify the use of the reduced rate of income tax paid to the federal budget, in
`relation to the LLC "Dalniaya Step", as well as to the LLC "Saturn Investments".
`
`In addition, Browder and Magnitsky, who directed the activities of unidentified persons
`concerning the accounting and tax records and the preparation and filing of tax returns of the LLC
`"Dalniaya Step", as well as to the LLC "Satum Investments",
`in the same period and place
`negotiated to participate in the actions aimed at tax evasion from the organizations—taxp-ayers, by
`including wittingly false information to tax returns, using the laws of the Russian Federation and the
`Rupublic of Kalrnylcia on concessionary taxation, namely, that the Law of the Russian Federation
`from 27.12.1991 N9 2116-1 “On income taxes of enterprises and organizations” (as amended from
`09.05.2001); the income tax is paid to the budgets of the constituent territories of the Russian
`Federation according to the rates established by the legislative (representative) bodies of constituent
`territories of the Russian Federation, in the amount of not more than 19 %; the income tax is paid to
`the local budgets according to the rates established by the representative bodies of the local
`government, in the amount of not more than 5 %; Paragraph 9 of Art. 6 of the Law provides the
`representative bodies of local government with the right to establish additional tax benefits for
`certain categories of ‘taxpayers up to the amount of the tax that shall be paid to their budgets;
`Article 3 of the Law of the Republic of Kalrnykia N2 I2—II~3 from 12.03.1999 “On tax
`benefits to enterprises investing in the economy of the Republic of Kalrnykia" (as amended from
`18.01.2001) provides with the benefit in the form of full exemption from income tax payable to the
`budget of the Republic of Kalrnykia {at the rate of 19%) companies declared those which invest in
`the economy of the Republic of Kalmykia and relevant
`to the investment criteria, and the
`representative bodies of local government of the Republic of Kalrnykia can set similar benefits in
`terms of payments paid to local budgets;
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`B:owderDepoOtJ01411
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`According to Article 2 of this Law of the Republic of Kalmykia, companies engaged in the
`investment to the economy of the Republic are,
`in particular, profit and nonprofit organizations
`established in accordance with the laws of the Russian Federation on the territory of the Republic
`after the enactment of the Law, regardless of the place of origin of the capital, including those
`involving foreign individuals and legal entities that are not subsurface users on the territory of the
`Republic; registered as a company engaged in the investment in the economy of the Republic of
`Kalmykia, under the Ministry of Investment Policy of the Republic of Kahnykia (hereinafier the
`Ministry); the investment of enterprises to the economy of the Republic of Kalmylcia satisfy the
`criteria of the Ministry;
`the Resolution N2 7 of Elista City Council from 25.01.2001 "011 tax benefits to companies
`investing in the economy of the Republic of Kalmykia", provides with the benefit in the form of full
`exemption from income tax payable to the budget of the city of Elista (at the rate of 5% );
`Orders of the Ministry N9 3—RP/SM/15 from 15.03.1999 and Ns4~rp./SMi20 from 20.04.1999
`establish that the enterprises are considered investors subject to the invesing in investment projects,
`according to the list and volumes specified in Annex i to the Order from 15.03.1999, one of which
`was the investment project "Establishment and further development of the business center within
`ATDOS "City Chess", providing for its development and for the establishment within its territorial
`boundaries of business center with the aim to involve Russian and foreign investors to the Republic;
`the total investment requirement was in the range of 120,000,000 U.S. dollars, which at the rate of
`the Russian ruble on 15.03.1999 amounted to the sum of 2,774,400,000 rubles;
`the form of
`cooperation, giving the grounds for the use of tax benefit for the full exemption from income tax in
`the regional and local budgets to the organizations that accepted the specified offer, provided the
`transfer of funds in the amount of not less than 1000 rubles, as well as the celebration and the
`implernentation of the investment contract and the additional investment agreement defining the
`subsequent total investment. amount; procedure, amount and terms of investment payments; mutual
`rights and obligations of the OJ SC "Kalrnyksiciy business-center" and similar organizations.
`Acting for these purposes, knowing for sure that the o1'gan1'zations would lose the right to
`benefits under Part 1 of Art. 3 of the Law of the Republic of Kalmykia N-2 12-II-3 from 12.03.1999
`"On tax benefits to companies investing in the economy of the Republic of Kalmykia", in case of
`unconformity to the investment criteria, for the purpose of income tax evasion, they sent the
`application to the Ministry on August 17, I999 to register the LLC "Dalniaya Step" and the LLC
`"Saturn Investments" as companies that invest in the economy of the Republic of Kalrnykia.
`On August 18, 1999 by the payment orders N2 63 and N9 65 to the bank account
`N90702810800000000265 of the OJSC opened in the Commercial Bank "National Clearing Bank ",
`they have made investment payments in the amount of 1,000 rubles each, accepting (taking) the
`offer of the OJSC "Ka1myl~:skiy business-centc1"' issued on March 19, 1999, which does not contain
`the essentiai terms of the contract for the investment in the project “Establishment and further
`development of the business center within the administrative territorial unit with special status "City
`Chess" (hereinafter ATOOS "City Chess").
`On June 15, 2000 on the basis of these documents, the LLC "Dalniaya Step" and the LLC
`"Saturn Investments" are put to the register of companies that invest in the economy of the Republic
`of Kalmykia by the Ministry, under the numbers B-00303 and B4303 30, respectively.
`Furthennore, being able to exploit the benefits of income tax, subject to the fulfillment of
`statutory obligations and compliance with the criteria of investment, Browder, Magnitskiy and
`unidentified persons in violation of the above—rnenticned legal texts in the period did not make any
`investments in the construction and development of the business center or sign additional investment
`agreements from August 18, 1999 to March 29,2002, as a result neither the LLC "Da.lniaya Step" nor
`the LLC "Saturn Investments" did not meet all the criteria defined by the Ministry for the enterprises
`registered as investors.
`—
`Taking advantage of the conditions created by them for tax evasion in relation of
`the profits gained from the activity of the LLC "Dahiiaya Step" and the LLC "Saturn
`Investments", in pursuance of the common criminal intent and acting in accordance with a
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`BrowderDepoD001412
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`previous concert on tax evasion, knowing willingly that during the year 2001, the average
`number of disabled people in the LLC "Dalniaya Step" and the LLC "Saturn Investments" was
`less than 50%, the Companies do not invest in the economy of the Republic of Kahnykia and
`do not meet all the criteria of investment, Magnitskiy, who actually directed the activities and
`acted the Chief Accountant of the LLC "Dalniaya Step" and the LLC "Saturn Investments",
`being in the office of the branch of "Firestone Duncan Limited" in Moscow located Building 2,
`3, Staropimenovskiy lane, from 1 January, 2001 to 29 March, 2002 together with unidentified
`partners, with the knowledge of Browder, concluded the following: "Tax calculation (tax bill)
`on the basis of actual value profit for the year 2000" (annex No. 9 to the regulations of Ministry
`for Taxes and Lcvics of the Russian Federation No. 62 dd. June the 15th, 2000) )-that is an
`accounting document that is the basis for calculation and payment of taxes and fees of
`"Dai’nyaia Step”, LLC, in which records about profits tax base are introduced in the amount of
`1 082 409 577 rubles; as well as false facts: into the information field 6 "profit tax rate - in totai
`96", including paragraph "a" of the field "federal budget" (the amount paid to the budget of
`Russian Federation) introduced a rate of 5.5% instead of 11% and calculated the tax to pay in
`the amount of 59 532 527 rubles instead of 119 065 053 rubles, having defeated profit taxes to
`be paid to the federal budget in the amount of 59 532 526 rubles; into the paragraph "6" "into
`the budgets of the republics within Russian Federation, budget of areas, regions and the cities
`of Moscow and St. Petersburg, autonomous entities" (the amount paid to the budget of the
`Republic of Kaltnykia), introduced tax rate 0% instead of 19% and the calculated due and
`payable tax amount 0 rubles instead of 205 657 320 rubles, having defeated profit taxes to be
`paid to the budget of Republic of Kalrnykia (regional budget) in the amount of 205 657 820
`rubles; into the paragraph "is" "to the budgets of regions, cities and districts in the cities, towns,
`rural settlements "(the amount paid to the budget of the municipality), introduced a rate 0%
`instead of 5%, calculated due and payable tax amount 0 instead of S4 120 479 rubles, having
`defeated profit taxes to be paid to the budget of Elista (local budget) in the amount of 54 120
`479 rubles, that is, calculated the profit tax to pay to "Dal'nyaia Step”, LLC in the amount of 59
`532 527 rubles instead of 378 843 352 rubles, having defeated profit taxes to be paid in the
`amount of 319 310 825 rubles, that is in especially big amount;
`-
`"Tax calculation (tax bill) on the basis of actual value profit for the year 2001"
`(annex No. 9 to the regulations of Ministry for Taxes and Levies of the Russian Federation No.
`62 dd. June the 15th, 2000)—that is an accounting document that is the basis for calculation and
`payment of taxes and fees of "Saturn investments", LLC, in which records about profits tax
`base are introduced in the amount of 689 100 639 rubles; as well as false facts: into the
`information field 6 "profit tax rate - in total "/6", including paragraph "a" of the field "federal
`budget" (the amount paid to the budget of Russian Federation) introduced a rate of 5.5%
`instead of 11% and calculated the tax to pay in the amount of 37900535 rubles instead of 75
`801 070 rubles, having defeated profit taxes to be paid to the federal budget in the amount of 37
`900 535 rubles;
`into the paragraph "6" "into the budgets of the republics within Russian
`Federation, budget of areas, regions and the cities of Moscow and St. Petersburg, autonomous
`entities" (the amount paid to the budget of the Republic of Kairnykia), introduced tax rate 0%
`instead of 19% and the calculated due and payable tax amount 0 rubles instead of 130 929 121
`rubles, having defeated profit taxes to be paid to the budget of Republic ofI<1almykta (regional
`budget) in the amount of 130 929 121 rubles; into the paragraph "3" "to the budgets of regions,
`cities and districts in the cities, towns, rural settlements "(the amount paid to the budget of the
`municipality), introduced a rate 0% instead of 5%, calculated due and payable tax amount 0
`instead of 34 455 032 rubles, having defeated profit taxes to be paid to the budget of Elista
`(local budget) in the amount of 34 455 032 rubles, that is, calculated the profit tax to pay to
`"Saturn investments", LLC in the amount of 37 900 535 rubles instead of 24} 185 224 rubles,
`having defeated profit taxes to be paid in the amount of 203 284 689 rubles, that is in especially
`big amount.
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`BrowderDepo0001413
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`After which Magnitsky, having known about falsity of information introduced to these
`tax bills in the area of application of relief for the payment of profit tax by societies organized
`t}1e tax bills to be signed by unidentified accomplices on behalf of the Director General of
`"Distant steppe", LLC and "Saturn investments", LLC Browder and tax bills to be given to the
`inspection ofMinistry for Taxes and Levies ofthe Russian Federation in Elista city ofRepublic
`
`ofKalrnykiaonthe29thofMarch,2002.
`
`As the judicial examination of the criminal case against Mr Browder is performed in
`the order of items 4 and 5 of article 247 of the RF Cr.P.C. his attitude towards the charge was
`not ciear up, however, from examined submission of accused and his defence lawyers at
`judicial sitting follows that Browder does not acknowledge his guilt in alleged to him crime, the
`present criminal case does not contain any evidences of illegal acts; criminal procedure is
`essentially a tool of pressure on him and Magnitsky, in connection with their position to the
`stealing of assets of organizations related to "Hennitagc Capital Management", to which law
`enforcement officials are accessorial according to the opinion of defence.
`
`Judicial examination of criminal case concerning Magnitsky is performed in
`compliance with legal proposition of decree of Constitutional Court of the Russian Federation
`No. 16-II dd. 14.07.20} I.
`It is follows from examined evidences of Magnitsky at judicial sitting that he did not
`acknowledge his guilt in alleged to him actions and when final charge was brought he explained
`that criminal procedure against him was rather directed not to achieve aims, improved with the
`article 6 ofRF Cr.P.C. than it was a retaliatory measure with the aim to punish for help which he
`(Magnitsky S.L.)rendered to his client and which concerned money fimds stealing fact finding,
`which belonged to part of firms « "Roland" LLC, "Mahaon" LLC and "Paifenion“ LLC. In the
`course of providing this assistance, he (Magnitsky S.L.) knew about possible involvement in the
`stealing ofthe listed companies of officials ofMinistry ofthe Interior of Russia, and also that the
`stolen companies were later used by lawbreakers to steal from the State Treasury of taxation in
`the amount of $ 5.4 billion. rubles, previously paid by these Companies at the time when they
`were controlled by his client. So in 2007, the institution of criminal proceedings was organized
`on the basis of pointless facts, then the house-check of the office of "Firestone Duncen" was
`performed. During the searches, officiais of Ministry of the interior confiscated documents and
`presses of «Roland» LLC, «Mahaon» LLC and «Parfenion», LLC. Further, the ofiicials of
`Ministry of the Interior of Russia and other persons using these documents had rebooked the
`listed above companies in assumed names, they are - Markelova V.A. , Hlebnikova V.G. and
`Kurochkina VN. The last, with the participation of the officials of Ministry of the Interior of
`Russia had fabricated documents on return from the budget funds in the amount of 5.4 billion
`rubles paid in taxes by the companies "Roland,"
`"lvlahaon" a11d "Parfenicn". When he
`(Magnitsky S.L.) knew about listed above stealing, he gave evidences concerning involvement
`to this crime of the officials of Ministry of the Interior to the investigator of investigation
`Committee in RF public prosecution office. That is why, the present criminal proceedings
`against him (Magnitsky S.L.) is the revenge for giving pointed evidences.
`In addition, Magnitsky explained that he had not negotiated neither with Browder, nor
`any other persons about joint actions aimed at tax evasion of corporate taxpayers ~"Dal'nyaia
`Step”, LLC and «Saturn investments", LLC; he did not organize this crime, did not receive any
`instructions and requests flom Browder and others to develop a plan to perform a crime; he was
`not related .0 registration“ and a bringing on charge "Dal'nyaia Step‘ ", LLC and "Saturn
`investments", LLC, did not carry out actual administration and management of the activity of
`iisted juridical persons; "Dal'nyaia Step‘", LLC and "Saturn investments", LLC legally took the
`advantage of the discount on payment of income tax for a year, because in these societies more
`than 50% of persons with disabilities worked, who had been hired in accordance with the
`requirements of the present legislation— an employment contract was signed with each disabled
`person, the Director of the societies pointed out by Browder had issued orders about hire which
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`each employee was read and understood. The applications about the work in the societies for the
`disabled was the main place of work were received, that was reflected in the employment
`contracts; the notes about employment were made in the given by disabled persons labor books,
`and to individuals who had provided information that, prior to employment in "Dal‘nyaia Step”,
`LLC and «Saturn investments", LLC they had no seniority, new employment books were made;
`persons with disabilities were hired as employees of analytical departments for work at home
`that did not require creation of new working places; persons with disabilities received under the
`employment contract salaries distributed to bank accounts given by the disabled; workers with
`disabilities performed the work, which fully met the employer, their work was to monitor the
`changes in the legislation of Republic of Kalmykia and, if necessary, to prepare reports; he did
`not organize the signing of work books and other documents on behalf of Browder by
`unidentified persons and did not use the copies of personal documents of disabled workers,
`including confirming the disability, employment contracts and staffing for the establishment and
`maintenance of accounting, tax reporting and substantiation of lowering income tax rates;
`«Saturn investments", LLC and "Dafnyaia Step”, LLC corresponded to all the requirements,
`presented to companies investing in the economy of the Republic of Kalmykia, the societies
`received corresponding certificates and have been entered in the register of companies which
`invested inthe Republic of Kalmykia; he did not send an appiication concerning registration of
`"Dal'nyaia Step“, LLC and "Saturn investments", LLC as investing organizations, as well as did
`not send payment orders No. 63 and 65; the registration of the listed companies in the Ministry
`of Investment Policy of the Republic of Kalmykia corresponds to all the requirements of the
`legislation necessary for the legitimate use of the relief by taxpayers; he did not composed or
`introduced any false facts into "tax calculation (tax bill) on the basis of actual value profit for the
`year 2001" neither with knowledge of Browder nor with others of his own initiative. "Saturn
`investments", LLC and "Dafnyaia Step”, LLC did not organize the signing of tax bills of the
`listed societies by anyone on behalf of Browdcr and their representation to the tax office on
`March the 29th, 2002 .
`However, the guilt of Browder in performing given in the descriptive part crimes of
`presentjudgement is proved with the following evidences.
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`The witness Esipov I.V. gave testimony in the court that in 1995-1996 he and Magnitsky worked
`for company "Firestone Duncan",
`the activity of which involved providing auditing,
`legal
`services, accounting, as well as advice in different economic and legal issues. Approximately in
`the second half of 1996 Browder W.F. became a ciient of the company, he was interested in
`registering a big number of Russian citizens as Russian legal entities and representatives of
`foreign companies at the territory of the Russian Federation, paying chartered capital and
`submitting accounting and tax reporting. The bills for the Firestone Duncan company were
`referred to Browcler and paid by the Hermitage Capital company. All accounting and tax
`reporting of the organizations established in behalf of Browder was submitted to tax authorities
`through the Firestone Duncan company. Aficr his discharge from Firestone Duncan the
`responsibility for providing foreign as well as Russian clients with auditing services was taken
`by Magnitsky. Witness testified that approximately in 2002 he met Magnitsky not far fiorn his
`new apartment in Pokrovka St.
`in Moscow. During the meeting Magnitsky told him about
`conducting active work in the Kalmykia Republic, where very convenient and profitable tax
`benefits are provided at formal use of disabled people employment and where substantial tax
`benefits can be received for paying 1000 rubles to the republic budget.
`Witness Ponomarev K.A. testified in court that he knew Magnitsky from studying at G.V.
`Plelchanov Russian Academy of Economics. Later they began to work together, including in
`Firestone Duncan. The witness can characterize him as a highly qualified expert who knows the
`legislation on taxes and auditing very well, so his job in the company was in fact heading the
`audit department responsible for organization of accounting for clients and audit reporting.
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