Latest news with #OperationKleptoCapture
CBS News
5 days ago
- Business
- CBS News
U.S. to auction seized Russian yacht worth hundreds of millions
Bidding will soon begin on one of the world's largest yachts, seized three years ago by U.S. authorities who say it was owned by a sanctioned Russian billionaire. The 348-foot Amadea was seized in Fiji in 2022 by the Justice Department. The agency said U.S. dollars and financial institutions were used to pay for maintenance on the luxury vessel, despite sanctions against its purported owner, gold mining billionaire Suleiman Kerimov. Florida contractors National Maritime Services and Fraser Yachts will administer the auction of the seized vessel, worth more than $300 million. But not just anyone can submit a sealed bid for the Sept. 10 drawing. Bidders must have at least $500 million in net worth and be willing to put down a $10 million deposit for the luxury ship, which features a helipad, an ornate pool, heated floors, a "cinema setup," jet skis and jet packs among other amenities. The Amadea was seized as part of the Justice Department's "Operation KleptoCapture," a task force that aimed to punish sanctioned Russian oligarchs for the country's invasion of Ukraine. The task force was disbanded soon after President Trump took office this year. A holding company tied to the vessel claims it's not owned by Kerimov. The company and its lawyers say it's owned by another, non-sanctioned Russian, named Eduard Khudainatov. That claim has been rejected by the Justice Department. An FBI agent said in a 2022 court filing that Khudainatov, an oil executive, does not have nearly enough money to own the Amadea. The agent referred to Khudainatov as "a second-tier oligarch (at best)" and a "straw man" for sanctioned Russian elites. In an affidavit filed in Fiji, the agent said he had interviewed "numerous members of the yacht brokerage community" to learn about the yacht's "concealed" ownership "behind nested shell companies." A second ship tied to Khudainatov, the Scheherazade, estimated to be worth up to $700 million, was seized by Italy in 2022. It remains impounded. A lawyer for Khudaintov warned would-be bidders against buying the ship. "We doubt it will attract any rational buyer at fair market price, because ownership can, and will, be challenged in courts outside the United States, exposing purchasers to years of costly, uncertain litigation," Adam Ford said in a statement to CBS News. Khudaintov is appealing a recent court decision mandating the ship's forfeiture. "If our appeal succeeds, the government must repay the vessel's full value," Ford said.
NBC News
5 days ago
- Business
- NBC News
Super bargain? U.S. auctioning off Russian oligarch's $325 million superyacht
The U.S. government is auctioning off a 348-foot superyacht that was seized in 2022 from a Russian oligarch — and it comes with some eye-popping amenities. The winning bidder will get all the bells and whistles aboard the custom-built Lurssen yacht, including a helipad, infinity pool, beauty salon, gym, two spas and two elevators. There are multiple bars — one illuminates so that it glows — and a full grand piano situated next to the dining room. It also features eight staterooms, and can accommodate 16 guests and 36 crew members. While the winning bidder will likely be able to purchase the Amadea for far less than its estimated value of $325 million, the eventual cost is still expected to be prohibitive for most. Bidders are required to put down a $10 million deposit for the Sept. 10 sealed-bid auction. The auction is being administered by National Maritime Services, a Florida-based company. 'This is perhaps the most spectacular, exacting and beautiful ship any of us will ever see,' the company's chairman, Bob Toney, said in a statement Tuesday. 'An opportunity like this for discerning owners is exceedingly rare — maybe once in a lifetime.' The vessel was seized in Fiji three years ago through Operation KleptoCapture, a since-disbanded Justice Department task force launched in 2022 to go after the assets of sanctioned oligarchs in the wake of Russia's invasion of Ukraine. It was previously owned by Suleiman Kerimov, a Russian billionaire who has been called the 'Russian Gatsby.' He had been the subject of sanctions since 2018 for his ties to Russian President Vladimir Putin. The Amadea was one of the highest profile seizures by the DOJ task force. Operation KleptoCapture Director Andrew Adams said in a 2022 statement that the seizure of the vessel "nearly 8,000 miles from Washington, D.C., symbolizes the reach of the Department of Justice as we continue to work with our global partners to disrupt the sense of impunity of those who have supported corruption and the suffering of so many.' The seizure process hasn't been all smooth sailing. The federal government incurred costs of approximately $32 million tied to maintenance, storage and transportation of the Amadea, according to a recent court filing. The U.S. government is trying to get Eduard Khudainatov, another Russian oligarch, to foot the bill for those expenses, arguing it was his effort to put a claim on the vessel which stalled the auction process. That legal fight is ongoing. The vessel is now in the possession of the U.S. Marshals, and docked in San Diego. It will be "delivered as-is, where is" to the winning bidder, according to National Maritime Services. The new owner could take it to distant seas — it has a 13 knot cruising speed, with a top speed of 20 knots, and an 8,000 nautical mile cruising range. Along the way, the owner could make use of some of the other amenities, including a humidor, wine cellar, pizza oven, Jacuzzi and fully equipped infirmary, while enjoying various gold-colored trimmings and marble work throughout.
