Top Official Of Russian Gas Company Novatek Arrested In U.

A top manager of Russian natural gas producer Novatek has been arrested in the United States on tax evasion charges related to offshore bank accounts allegedly holding tens of millions of dollars.
The U.S. Department of Justice said on September 23 that Mark Gyetvay was arrested after a federal grand jury in Florida indicted him the day before.
Novatek is Russia's biggest independent producer of natural gas. Gyetvay has served as the face of the company to Western investors and is listed as deputy chairman of the company’s management board at the company’s website.
Gyetvay is accused of defrauding the United States by concealing his ownership of offshore assets and by failing to pay taxes on millions of dollars of income. As part of his compensation package as Novatek’s chief financial officer from 2003 to 2014, Gyetvay allegedly received stock options or other stock-based compensation. Beginning in 2005, Gyetvay allegedly opened the first of two Swiss bank accounts to hold these assets, the Justice Department said. The accounts at one point had a total value of more than $93 million. “Over a period of several years, Gyetvay allegedly took steps to conceal his ownership and control over the foreign accounts and associated assets, such as removing himself and making his then-wife, a Russian citizen, the beneficial owner of the accounts,” the Justice Department said. The department’s news release did not identify Gyetvay’s wife. It said Gyetvay, who worked as a certified public accountant (CPA) in the United States and Russia, holds both U.S. and Russian passports. Despite being a CPA, Gyetvay allegedly did not file his U.S. tax returns on time, did not file all required forms for foreign bank accounts, and some of the tax returns he did file allegedly were false, the Justice Department said.

Novatek did not respond to RFE/RL’s e-mail requesting comment. The Justice Department said Gyetvay was scheduled to appear in court on September 23. Reuters reported that he did not return its calls seeking comment.
If convicted, he faces decades in prison on charges of wire fraud, tax evasion, assisting in preparing a false tax return, and failure to file a tax return. The United States is one of the few countries that requires its citizens to file and pay taxes on their worldwide income even if they live and earn their money abroad or spend the entire year outside the U.S. This means that high-earning Americans working overseas often must file and pay taxes in both the U.S. and their country of residence. The U.S. has a progressive tax rate that tops off at 37 percent for single filers earning more than $518,400. President Joe Biden has proposed doubling the size of the Internal Revenue Service (IRS), by hiring nearly 87,000 new workers over the next decade as part of a plan to catch tax cheats. The case against Gyetvay is similar to a case filed last year against Russia-born billionaire Oleg Tinkoff, who was charged with failure to pay taxes on wealth earned abroad. Tinkoff pocketed a vast fortune when he sold shares in TCS Group Holdings, a digital financial services company operating in Russia, in 2013. Tinkoff lived for a period of time in the United States and acquired a passport, obligating him to pay U.S. taxes. Tinkoff gave up his U.S. passport in 2013 but still owed an “exit tax” that applies when people give up their American citizenship.

With reporting by Reuters

Radio Free Europe

RFE/RL journalists report the news in 22 countries where a free press is banned by the government or not fully established, including Iran, Afghanistan, Pakistan, and Russia.

https://www.rferl.org/

Related news
The Inside Story: Afghanistan's Addiction Crisis

The Inside Story: Afghanistan's Addiction Crisis

This week on The Inside Story: Drug addiction in the world’s leading opium producer. See and hear from Afghans in cities and in remote mountain villages about how they are caught up in a vicious cycle of drug use and abuse. A gritty perspective fr...

La Palma lava consumes businesses & homes as it advances into village.

La Palma lava consumes businesses & homes as it advances into village.

The remorseless advance of lava from La Palma’s Cumbre Vieja volcano was clear to see in video from Wednesday showing the flow advancing down a street in the village of La Laguna, where it consumed a gas station, a supermarket and several homes. F...

Hear former CNN reporter’s plea to Facebook after winning Nobel Prize.

Hear former CNN reporter’s plea to Facebook after winning Nobel Prize.

Former CNN journalist and Rappler CEO Maria Ressa speaks with CNN's Becky Anderson after Ressa and Russian journalist Dmitry Muratov won the Nobel Peace Prize for their longstanding efforts to safeguard freedom of expression in the Philippines and...

Biden's handlers won't let him hold tough press conferences: Joe Concha.

Biden's handlers won't let him hold tough press conferences: Joe Concha.

Fox News contributor Joe Concha reacts to Politico calling Biden out for not giving interviews Subscribe to Fox News! Watch more Fox News Video: Watch Fox News Channel Live: FOX News Channel (FNC) is a 24-hour all-encompassing news service deliver...

Virologist who helped develop Johnson and Johnson COVID-19 vaccine on mixing doses.

Virologist who helped develop Johnson and Johnson COVID-19 vaccine on mixing doses.

The Centers for Disease Control and Prevention will review the Food and Drug Administrations's decision to approve booster shots for the Moderna and Johnson and Johnson vaccines, which would allow more than 15 million Americans to get a booster sh...

Searching for the Lost Graves of Canada’s Indigenous Children - NYT News.

Searching for the Lost Graves of Canada’s Indigenous Children - NYT News.

For more than a century, Indigenous children in Canada were forced to attend residential schools, where many endured abuse. Thousands were never seen again and survivors were long ignored. We followed a team of archaeologists who came to the Musko...

5 176