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`EXHIBIT F
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`Exhibit 50
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`Part 1
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`Case 1:14-mc-00551-ESH-AK Document 4-13 Fiied 05l22/14 Page 28 0f 30
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`EXHIBIT 22
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`Case 1:13-cv-06326-TPG Document 422~16 Filed 11/18/15 Page 3 of 30
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`Case 1:14-mc-00551-ESI-IwAK Document 4-15 Filed 05122114 Page 3 of 30
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`Translation from Russian into English
`l‘Iepenon c pyccaoro nastier ira anrnut’rcimii flSBIIt.
`
`IN THE NAME OF THE RUSSIAN FEDERATION
`
`Moscow
`
`July 11, 2013
`
`Tverslroy district court of Moscow composed of:
`the Presiding judge - judge Alisov I.B., under secretaries Fomieheva EM. and Kvelcveslciri
`L.Z., with the participation of:
`the public procecutors — prosecutor of the Prosecution Office of Moscow Reznichenlto MN.
`and assistant of Tversloy inter-district prosecutor of Moscow Slobodin 3A.,
`the representatives ofthe aggrieved party Mostovoy KM. and Gerasimova A.A.,
`the advocates —
`lawyers Gerasirnov N.V., Goncharova K.A., Boiko V.I., submitting the
`certificates Nst 8923, 7946 and 6867, the warrants N'st 288, 265 and 699, respectively,
`having examined in open court a criminal case against
`WilliamIl‘elix Bi'owde'r, who was born on April 23, 1964 in New Jersey, USA, “British?
`attracts living 2-3 Golden Square, Grafton House, Floor 3, London, WlF 9 HA United
`Kingdom , not registered on the territory of the Russian Federation,
`
`accused of committing two crimes under Paragraphs "a" and ” h" of Pan 2 of Art. 199 ofthe
`Criminal Code the Russian Federation (the Federal Law as amended from 03.12.2003 N9
`162- F3) , and maelstrom 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 N9 162— FZ),
`
`res olved:
`Bsowder committed tar-r evasion from Werganizations by including vvitthsgly false
`informatiomtmtaxtreturns; 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 "Hermitage
`Capital Management Limited” (hereinafter — the Representative Office), registered at the address:
`Board room 1, Butyrskiy Shaft, Moscow, but actually located at the address : 9, Dmitrovsltiy Lane,
`Moscow, heuregqtiated with Magnitsky-SL., 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 "Erasmus Duncan Limited" in Moscow (
`herehtafier - the Branch of the Company) , registered at the address : Building 2, 5, Dieg‘tiarnyy
`Lane, Moscow, but actually located at the address: Building 2, 13, Staropimeoovslciy Lane, Moscow,
`acting in the interests ofthe mentioned Representative Office, and withgnidenfified-persons on the
`joint commission of actions aimed at tax evasicn from the organizations—taxpayers, by including
`wittingly false infonnationtto tax returns; using the laws of the Russian Federation on concessionary
`taxation, namely, that the Law of the Russian Federation from 2112.1991 Na 2116—1 “On income
`taxes of enterprises 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 ofnot 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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`local government, in the amount of not more than 5 %; in accordance with Paragraph 2 of Article 6
`cf the same Law, a benefit for this tax is provided in the form ofreducing rates of income tax paid to
`the federal budget by 50 % , i.e. at the amormt of 5.5% of thedaxablemaforle'hfiffirisesland‘
`organizationsifrdisabledmeople nthko-up’at-leasttsoi'hr‘cfthe total number ofemployees.
`
`With these purposes, WWEEVEIWWIaf-dfithfi‘l’fiifiefaccordiug to which he found
`somelunicieriiifiedsperscmifltmfil‘lo‘me‘dgelm tthe‘ifi el :1 refMilligfiir amounting, stock
`market and the relevant legislation of the Russian Federation. After that, in 119981'the unidentified
`persons established, inciorporated and registered in the tax accounting the LLC "DalniayaStep" INN
`0814099824 and the LLC "Sampavluvestmeufs" INN 0814103679 located: Room 15, 301, Lenina
`Street, City of Elista, Republic of Kalmykia, Russian Federation, which are tax— and foepayers
`obliged to calculate and pay the legally established tunes and fees within the time specified in
`Paragraph 2 of Art. 15 of the Federal Law flora 21.11.1996 N9 129- F2. "On Accounting" and
`Paragraph 3 of Article 8 of the Law of the Russian Federation from 27.12.1991 Na 2116-1 “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, Woodprilrlflg-QOOZP'
`
`The Resolution N9 2 of the sole participant of the LLC "Dalniaya Step” on June 8, 1998 and
`the Resolution No 2 of the sole participant of the LLC "Saturn Investments " on June 8, 1998
`appointed BrowderitheaDireetor General-of each company since June 9, 1998, as well as the sole
`executive body of each company.
`
`In accordance with Art. 6 of the Federal Law of 21.11.1996 N9 1329 F21 "0n Accounting",
`Browder was responsible for the timely provision of complete and accurate accounts, for tax
`payments in corpora, 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, Broader together with Magnitskiy and unidentified persons
`negotiated an evasion of legally established .taxcs and fees.by.including wittingly false information
`to tax returns on the application of tax benefits in accordance with the above-mentioned legal texts.
`
`Furthermore, Magnitsldy, who was not unofficial employee 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 Kahnykia, ofthe 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 connnission of the crime, provided
`the execution of initial and accounting documents with fiase'information about the employment oii
`disabled people in the Companiessie. 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, found
`somre'sidchts-of'Elifia—fiitfivare of’thetriminaliplansmntl the final result, such as Vaukayev 8.5.,
`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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`concentrfor'thefictitious-employment«in-tirevIsIJGJEatfifir‘tfiVEEfit’lefit's" rihd attracted other disabled
`people.
`
`In accordance with the gained agreement, Magnitskiy and unidentified persons have
`deVElb'pe‘ds-labor'conh'actsnand-stitfifillistsiof-t-he» LLGJ'Dalniaya Step" and the LLC "Saturn
`Investments", according to which tl'teva‘lzerage-numberofctheaernployed disabled people was not less
`thanhalfiflfrthc total-numbe'r’of (irreverence Gompanies.
`
`After dratBiowder,Magnitsl<iy and unidentified persons, wittingly aware that no work will
`bmlierforgrpd bylhgrdjsabledpeople! without creating jobsltes for tirem, organized with the help of
`Vankayev S.S.,Tsedieyev V.N., Biaticiev V.A. the signing of the labor contracts about hiring for
`positions in analytical departments the disabled employees Mikuliayeva LS. and Bukayev A513. to
`the LLC "Dalniaya Step", and the disabled employees Byatltiyeva V.A., Bukayeva O.B., Badykov
`E.Y.
`, Sunryanov V3]. to the LLC "Saturn Investments", each of whom had a permanent jobsite,
`started new employment records , allegedly confirming their employment to the Companies and
`organized their signing by unidentified persons, organized the signing ofthe 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 Milmliayeva LS. and Bukayev A.E.,
`Byatkiyeva V.A., Bukayeva O.E., 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 0.13., Badykov E.Y., Sumyanov V.V., including those confirming their disability,
`labor contracts and staff lists of the Company at the direction and rurder the guidance of Magnitskiy
`were used personally by him as Well. as by unidentified persons to establish and keep the amounting,
`tax reporting, and to justify the use of the reduced rate of incOnte 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 "Saturn Investments",
`in the same period and place
`negotiated to participate in the actions aimed at tax evasion from the organizations-taxpayers, by
`including wittingly false information to tax returns, using the laws of the Russian Federation and the
`Rupublic of Kalrnykia on concessionary taxation, namely, that the Law of the Russian Federation
`from 27.12.1991 Ne 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 "/0; the income tax is paid to
`the local budgets according to the rates established by the representative bodies of the local
`govennnent, 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 oftaxpayers up to the amount of the tax that shall be paid to their budgets;
`Article 3 of the Law of the Republic of Kalmylda N9 12-113 from 12.03.1999 “On tax
`benefits to enterprises investing in the economy of the Republic of Kalnryltia" (as amended from
`18.01.2001) provides with the benefit in the form of full examption from income tax payable to the
`budget of the Republic of Kairnykia (at the rate of 19%) companies declared those which invest in
`the economy of the Republic of Kalmylcia and relevant to the investment criteria, and the
`representative bodies of lecal government of the Republic of Kahnykia can set similar benefits in
`terms of payments paid to local budgets:
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`According to Article 2 of this Law of the Republic of Kslniyltia, companies engaged in the
`investment to the economy of the Republic are,
`in particular, profit and non-profit organizations
`established in accordance with the laws of the Russian Federation on the territory of the Republic
`alter the enactment of the Low, 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
`Kalmylda, under the Ministiy of Investment Policy of the Republic of Kalinykin (hereinafter the
`Ministry); the investment of enterprises to the economy of the Republic of Kaltnykie satisfy the
`criteria of the Ministry;
`the Resolution N2 7 of Elistn City Council from 25.01.2001 "On tax benefits to companies
`investing in the economy of the Republic of Kslmylrie", provides with the benefit in the form of full
`exemption from income tax payable to the budget of the city ofElists (at the rate of 5% );
`Orders of the ll/iinistry N9. 3wRP/SMflS from 15.03.1999 and Ns4m1pfSMt’20 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 l to the Order from 11031999, one of which
`was the investment project “Establishment and further development of the business center within
`ATOOS "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 requitcrnent was in the range of 120,000,000 US. 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
`implementation of the investment contract and the additional investment agreement defining the
`subsequent total investment. amount; procedure, amount and terms of inVestmcut payments; mutual
`rights and obligations of the 01’SC "Kfilmykskly business-center" and similar organizations.
`Acting for these purposes, knowing for sure that the organizations would lose the right to
`benefits Under Part 1 of Art, 3 of the Law of the Republic of Kaimykia N2 12-113 from 12.03.1999
`"On tax benefits to companies investing in the economy of the Republic of Kslmykia”, in case of
`unconformity to the investment criteria, for the purpose of income tax evasion,
`they sent the
`application to the Ministry on August 1?, 1999 to register the LLC "Daluiays Step" and the LLC
`"Settun Inveshnents" as companies that invest in the economy of the Republic of Kalniykia,
`On August 18, 1999 by the payment orders Ne 63 and Ne 65 to the bank account
`N90702810800000000265 of the OJSC opened in the Commercial Bank "National Clearing Bani: “,
`they have made investment payments in the amount of 1,000 rubles each, accepting (taking) the
`offer of the OJSC "Kalmykskiy business-center" issued on March 19, 1999, which does not contain
`the essential terms of the contract for the investment in the project "Establishment and further
`development of the business center wittfin the administrative territorial unit with special status "City
`Chess“ (hereinafier ATOOS "City Chess“).
`On June 15, 2000 on the basis of these doctunents, the LLC "Dalninyn Step" and the LLC
`"Saturn hivestinents" are put to the register of companies that invest in the economy of the Republic
`ofKalmykis by the Ministry, under the numbers B—00303 and B-00330, respectively.
`Futthennore, being able to exploit the benefits of income tax, subicct to the Fulfillment of
`statutory obligations and compliance with the criteria of investment, Browder, Magnitskiy and
`unidentified persons in violation of the abcvc~menticned legal tents in the period did not make any
`investments in the construction and development of the business center or sign additional investrnent
`agreements from August 18, l999 to March 29,2002, as aresult neither the LLC "Dslnieya Step" nor
`the LLC "Saturn Investments” did not meet all the criteria. claimed by the Ministry for the enterprises
`registered as investors.
`w
`Taking advantage of the conditions created by them for tax eyesion in relation of
`the profits gained from the activity of the LLC “Delniayn Step" and the LLC “Salami
`Investments", in pursuance of the common criminal intent and acting in accordance with o
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`the average
`previous concert on tax evasion, knowing wittingiy that during the year 2001,
`ntnnber 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 Kabnyhta and
`do not meet all the criteria of investment, Magnitsldy, 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 lecated Building 2,
`3, Staropimenovskiy lane, from i Ianuary, 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 Levies of the Russian Federation No. 62 dd. June the 15111, 2000) )«that is an
`accounting document that is the basis for caiculation and payment of taxes and fees of
`"Dal’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 total
`%“, 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 amonnt paid to the budget of the
`Republic of Kalrnyicia), introdttcad tax rate 0% instead of 19% and the calculated due and
`payable tax amount 0 rubles instead of 205 657 820 rubles, having defeated profit taxes to be
`paid to the budget of Republic of Kalmykia (regional budget) in the amount of 205 657 320
`rubles; into the paragraph "a" “to the budgets of regions, cities and districts in the cities, teams,
`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 of54 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 ‘fDal'nyuie Step”, LLC in the amount of 59
`532 527 ;Iubles instead of 378 8.43 352 rubies, 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"
`(max No. 9 to the regulations of Ministry for Taxes and Leiden of the Russian Federation No.
`62 dd. lune 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 639 100 639 rubles, as well as false facts: into the
`information field 6 "profit tax rate ~ in total Va", 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 rubies 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, regime and the cities of Moscow and St. Petersburg, autonomous
`entitles" (the amount paid to the budget of the Republic of Kairnykia), introduced tax rate 0%
`instead of 19% and the calculated due and payable tat-t amount 0 rubles instead of 130 929 121
`rubles, having defeated profit taxes to be paid to the budget of Republic ofKalmykia (regional
`budget) in the amount of 130 929 121 rubles; into the paragraph "a" "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 241 185 224 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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`After which Magnitslry, having known about falsity of inl‘onnation introduced to these
`tax bills in the area of application of relief for the payment of profit tax by societies organized
`the tax bills to be signed by unidentified accomplices on behalf of the Director General of
`"Distant steppe", LLC and “Saturn investments", LLC Browdcr and tax bills to be given to the
`inspection oi" Ministry for Taxes and Levies of the Russian Federation in Elista city ofRepublic
`of Kalmykia on the 29th ofMarch, 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 clear up, however, From examined submission of accused and his defence lawyers at
`judicial sitting followa that Browder docs 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 "Hermitage Capital Management“, to which law
`enforcement officials are accessorial according to the opinion of defence.
`
`Judicial examination of criminal case concerning Magnitsky is perfonned in
`compliance with legal proposition of decree of Constitutional Court of the Russian Federation
`No. 1641 dd. 14.07.20l i.
`It is follows from examined evidences of Magnitsity 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 cl'RF 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 fiinds stealing fact finding,
`which belonged to part of firms n "Roland" LLC, “Mahaon” LLC and "Parfenion" LLC. In the
`course of providing this assistance, he (Magnitslcy 8L.) knew about possible involvaentent in the
`stealing of the listed companies of officials ofMinistry of the 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 Duncan" was
`performed. During the searches, officials of Ministry of the Interior confiscated documents and
`presSes of ((Reiand» LLC, «Mahaon» LLC and <<Parfeniors>, LLCt Further, the ofiiciais of
`Ministry of the Interior of Russia and other persons using these documents had rebooited the
`listed above companies in assumed names, they are - Markelova VA, , Hlebnilsova VG. and
`Kcrcchkina VN. The last, with the participation of the officials of Ministry of the Interior of
`Russia had fabricated documents on rettun from the budget funds in the amount of 5.4 billion
`rubles paid in taxes by the companies "Roland,"
`"lvlahaon" and "Parfenion". When he
`(Magnjtsky 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 (Magnitsiry BL.) 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'nynia
`Step'”, LLC and «S atom hivcstrnents", LLC; he did not organize this crime, did not receive any
`instructions and requests from Browder and others to develop a plan to perform a crime; he was
`not related .0 registration““[1 and n bringing on charge "Dal'nyaia Step' ”, LLC and “Saturn
`investments", LLC, did not carry out acute] administration and management of the activity of
`listed juridical persons; “Dal‘nyaia Step'“, LLC and "Saturn irwestments", 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 Brcwder had issued orders about hire which
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`Case 1:13-cv-06326-WHP Document 731-6 Filed 06/02/17 Page 10 of 31
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`Case 1:13-cv-O6326—WHP Document 731-6 Filed 06/02/17 Page 10 of 31
`Case 1:13—cv-06326—TPG Document 422—16 Filed 11/18/15 Page 9 of 30
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`Case 1:14-mC-00553-ESH—AK Document 4~15 Filed 051’22114 Page 9 01‘30
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`each employee was read and understood. The applications about the work in the societies for the
`disabled was the main piece of work ware 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 «Sattun 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 floccunts 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 Kalmylcia and, if necessary, to prepare reports; he did
`not organize the signing of work books and other documents on behalf of Browder by
`mildentified 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;
`«Satan: inveshncnts”, LLC and “Dal’nyaia Step”, LLC corresponded to all the requirements,
`presented to companies illVesting in the economy of the Republic of Kulmykia, the societies
`received corresponding certificates and have been entered in the register of companies which
`invested in the Republic of Kalmykia; he did not send an application conceming registration of
`“Dal‘nyaia Step“, LLC and “Saturn investments", LLC as investing organisations, as well as did
`not send payment orders No. 63 and 65; the rogistt'ation 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 "tux calculation (to): 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
`inveshnents", LLC and “Dal’nyaia 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.
`
`The witness Esipov LV. gave testimony in the court that in 1995-} 996 he and Magnitslcy 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 client 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 Browder 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. After 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 Magnitslcy not far from his
`new apartment in Polarovlca St.
`in Moscow. During the meeting Magnitsky told him about
`conducting active work in the Kclntylda 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 rubies to the republic budget.
`W