Nearly two decades after a massive tax scheme that exposed high-level corruption in Russia and led to a whistleblower’s death, a French court has begun hearing a case against the man accused of orchestrating it.
Dmitry Klyuev, a Russian businessman previously blacklisted by Washington for alleged links to organized crime, is facing charges of aggravated money laundering in Paris. Prosecutors claim he was a key figure in a complex network that drained hundreds of millions of dollars from Russia’s treasury, funneling the proceeds through a maze of offshore firms.
The scandal, which became known worldwide after lawyer Sergei Magnitsky uncovered the fraud, resulted in his death in a Moscow prison in 2009. That tragedy spurred the U.S. to create the Magnitsky Act, a law targeting human rights violators and corrupt officials.
While the fraud itself was based in Russia, French authorities allege the money helped fund a luxurious lifestyle across Europe. Court documents show that between 2008 and 2012, accounts tied to Klyuev channeled over 2.1 million euros into high-end French purchases. These included nearly 670,000 euros at a Parisian art gallery, almost 700,000 euros at two elite fashion houses, and roughly 97,000 euros at a jewelry store in the Courchevel ski resort.
One payment of about 127,000 euros covered a Courchevel vacation package for Russian Senator Dmitry Saveliev and his guests. Investigative reports have linked Saveliev’s company to nearly $8 million from the same source.
Prosecutors say the money moved through FBME Bank accounts belonging to companies registered in the British Virgin Islands. Though others were listed as owners, investigators believe Klyuev was the true controller, using the funds to pay for personal expenses, including his son’s Swiss boarding school tuition.
Klyuev, who has not responded to the allegations, is being tried without being present. If convicted and later arrested, he could face up to a decade in prison. A European arrest warrant from March 2025 suggests he is likely in Russia, with ties to organized crime. French officials did not seek his extradition, citing Moscow as uncooperative.
The case was triggered by a 2014 complaint from Hermitage Capital Management, the investment firm originally victimized by the fraud. For its founder, Bill Browder, who has campaigned for Magnitsky-style sanctions, the Paris trial represents a step toward accountability. He described it as a moment when justice is finally being served.
The stolen funds also reached other global markets. Previous investigations have tied Klyuev’s companies to investments in a Cypriot seaside resort and luxury properties on Dubai’s Palm Jumeirah.