Russian Billionaire Mikhail Fridman Probe Dropped by UK

In the wake of a dramatic raid on the London home of Russian billionaire Mikhail Fridman and his arrest in December last year, the National Crime Agency in the UK dropped a part of its investigation into him.

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There is no longer any investigation by the NCA of Fridman on suspicion of defrauding the UK Home Office and perjuring, according to a person who has been familiar with the decision. The people who asked not to be identified because the matter is private said that a money laundering investigation is still underway as well as that the legal basis of the search warrant is being disputed.

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As the NCA pointed out in a statement in December, over 50 officers descended upon Fridman’s £155 million ($81.1 million) north London mansion and arrested him. In the statement, it did not identify Fridman by name, but said the NCA had seized "digital devices and a significant quantity of cash" from the 58 year old businessman. The NCA and Fridman declined to comment on whether the 35 year old man had been arrested on suspicion of money laundering and obstruction after he was seen leaving the house with a bag containing thousands of pounds of cash.

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There has been a lot of discussion about the NCA's Combating Kleptocracy Cell's decision to drop two of the three lines of investigation into Fridman. In December, the NCA's Combating Kleptocracy Cell emphasized the raid on social media by posting a statement and a picture of officers in the tycoon's house. It has been widely reported that Fridman was on a video call with business partners in Moscow when the raid took place. A person familiar with the process said that Fridman was arrested.

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In the banking, oil and retail fields, Fridman has amassed billions of dollars of wealth, which has set him up as one of Russia’s most influential businessmen. In 2013, he and his partners earned $14 billion from the sale of TNK-BP to Rosneft, a state-controlled oil company. He then moved to the UK where he founded a private equity firm that focused on investing in international businesses. As soon as Russia invaded Ukraine, Fridman and his partners were sanctioned by the UK and the European Union, freezing their assets for a period of almost a month. There have been no sanctions imposed against him by the US since he has remained in London living under restrictions.

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As previously reported by Trade Algo, Fridman and the status of the investigation have been identified.

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Earlier this month, the National Crime Agency arrested a third man at his home in West London for offences which included money laundering and conspiracy to commit fraud. All three, however, were released on bail.