Former Yukos Oil Officer Alleges Cyber Spying And Email Hacking
TOPSHOT - A picture taken on October 17, 2016 shows an employee walking behind a glass wall with ... More machine coding symbols at the headquarters of Internet security giant Kaspersky in Moscow. (Photo by Kirill KUDRYAVTSEV / AFP) / TO GO WITH AFP STORY BY Thibault MARCHAND (Photo by KIRILL KUDRYAVTSEV/AFP via Getty Images)
Lawyers may now using a new and powerful weapon against their opponents: cyber spying and email hacking. One of the most famous cases involves the former corporate secretary of Yukos Oil, who is now accusing a British intelligence agency of paying more than $400,000 to some Indian hackers to influence a jury verdict.
This case is exhibit one, where prominent individuals claim their nemeses are hacking them to win in court. These allegations undermine U.S. citizens' trust in the judicial system, which is already being scrutinized by those who believe the White House operates above the law.
Daniel Feldman's role beginning in 2003 was to safeguard Yukos' shareholders. In its heyday, Yukos produced around 20% of Russia's oil. But guess what? President Putin had its CEO, Mikhail Khodorkovsky, arrested on some trumped-up charges. Khodorkovsky was a billionaire who funded opposition parties in Russia and spoke out against corruption. The Kremlin responded by cracking down on political opposition.
State-led economic and political changes led to Yukos's downfall. However, the allegations of cyber attacks are alarming and could potentially distort law and order. They come at a time when those in power snub their noses at judicial orders. Witness the recent arrest, deportation, and imprisonment of some without due process and fair trials. If cyber criminals try to rig legal cases by hacking their opponents' emails, it could severely undermine the legal arena.
The background: Feldman recently filed a legal motion in New York's federal court that accuses Vantage Intelligence of hiring an Israeli man, Aviram Azari, to find hackers from 2016 to 2018 to read Feldman's emails. Feldman said in his motion that federal prosecutors gave him this information.
Vantage's clients, which are based all over the world, alleged that Feldman had breached his fiduciary obligations. The jury's verdict? $5, although Feldman lost his license to practice law for a year.
Now, Feldman wants the judgement tossed in light of what he said are new revelations. The case gets even more curious because Vantage appointed Eric Prince to its board. He is the founder of a private military contractor, Blackwater, a controversial mercenary group. To be clear, Feldman does not name Prince in his lawsuit. But I got phone call asking me to explore this relationship this further. They ended the conversation when I asked if they could provide formal ties among Prince, Yukos, and Vantage. I have sent a message to Vantage asking it to weigh in on this matter.
But Feldman is quoted in the Times of Israel as saying that his main way to communicate with his lawyers had been through emails. "It belies common sense that it did not create an unfair advantage for the plaintiffs."
The story adds that the Justice Department and the Israeli, Azari, are declining to comment. Azari's friend speaks for him, saying he has served his time and has nothing to contribute, which readers may construe in multiple ways; one is that he is too scared to speak the truth.
MOSCOW, RUSSIAN FEDERATION: Imprisoned former head of Yukos oil company, Mikhail Khodorkovsky (L) ... More and head of the MENATEP group Platon Lebedev (R) stand in the defendant's box during their trial in the court in Moscow, 04 April 2005. Prosecutors requested a 10-year jail sentence for Khodorkovsky, and he faces the prospect of seeing his personal fortune confiscated and the company he built broken apart. AFP PHOTO / TATYANA MAKEYEVA (Photo credit should read TATYANA MAKEYEVA/AFP via Getty Images)
The news service Reuters investigated how litigants used spying to prevail in critical court cases in 2022 and 2023, confirming that it is a significant problem. It found 35 legal cases where Indian hackers tried to steal passwords to get dirt and documents from the opposition.
When the Soviet Union collapsed in 1991, Russia set out to evolve from a state-run economic system to a capitalistic one. That involved privatizing its prized state-run enterprises in the 1990s. Enter the age of the oligarchs, who acquired massive wealth and control over the energy sector. Yukos is a case in point.
Mikhail Khodorkovsky and Vladimir Putin clashed in the early 2000s, a time when the country's elite coalesced around Putin. During this period, the Russian president reinforced the government's control over the energy sector.
Khodorkovsky opposed this shift and proposed that his company sell certain assets to Exxon Mobil and Chevron. His stance against corruption and his opposition to Putin's policies made him a marked man. As a result, the Kremlin sought to dismantle his influence, which culminated in his imprisonment. This was part of a broader strategy by the Russian government, which included using criminal charges, tax laws, and quashing dissent to eliminate resistance.
Yukos ceased operations in 2007. However, an international court in The Hague ordered Russia to pay $50 billion in damages, saying it unlawfully seized its assets. This case is still causing a stir in international law, with people discussing expropriation and investor rights—issues that the Russian elite relegated to afterthoughts to protect political concerns. It chilled foreign investment in Russia.
If Feldman proves his case in court, what does this say about the American judicial system? Does it imply that cheating pays, and America's courts may become a model of those used in totalitarian states? At a minimum, it raises serious concerns about legal integrity and the sanctity attorney-client privileges.
The Feldman case may potentially demonstrate the intersection between cyber crime and legal proceedings, particularly in energy-related international disputes. Red flags abound, which reveal the frailty in digital channels and how potentially desperate parties may seek to take advantage of that. It's all about winning—not the legal process, undercutting the American form of government even further.
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