MOSCOW (dpa-AFX) - The U.S. Department of the Treasury's Office of Foreign Assets Control has imposed a $7,139,305 penalty on Gracetown Inc., a property management company in New York, for violating OFAC's Russia-related sanctions and for failing to report blocked assets to it.
This enforcement action, which resulted in a penalty near the statutory maximum, highlights the importance of following OFAC-issued guidance and the significant consequences that can occur from failing to do so.
'Treasury will act firmly against those who ignore our sanctions and aid our adversaries,' said Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley. 'Under Secretary Bessent's leadership, we will continue to investigate and hold accountable those who enable sanctioned actors.'
OFAC's investigation revealed that between April 2018 and May 2020, Gracetown received 24 payments totaling $31,250 on behalf of a company ultimately owned by sanctioned Russian oligarch Oleg Deripaska, despite having received prior notice from OFAC that dealings with Deripaska were prohibited. Additionally, Gracetown failed to report blocked assets in its possession or control for more than 45 months.
Gracetown was established in 2006 to manage three luxury real estate properties in New York and Washington, D.C., which Deripaska acquired around the same time through various legal entities. From 2006 to 2018, Deripaska was the ultimate beneficial owner of Gracetown.
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