Vadim Wolfson, a Russian national who is also a legal permanent resident in the United States, found himself in custody on Thursday following his arrest in Austin by local federal task force officers, as detailed in court records.
Wolfson, identified as the founder of Bank Otkritie, once a major privately-owned bank in Russia, had relocated to the U.S. around 2018.
The arrest was made based on a federal warrant from the Southern District of New York, which outlined charges related to violations of the International Emergency Economic Powers Act (IEEPA) and money laundering.
The court documents named two co-defendants: Andrey Kostin, a Russian national residing in Russia, and a U.S. national living in New Jersey.
As of Thursday evening, there was no information available regarding legal representation for Wolfson. Updates on this matter will be provided once available.
According to the records, the accused were involved in a complex scheme employing shell companies to manage assets valued at “tens of millions of dollars” for the benefit of Kostin, a Russian oligarch and president of VTB Bank, a significant Russian state-owned banking entity.
Assets included a luxurious residence in Aspen, Colorado, primarily used by Wolfson, and two opulent superyachts valued at over $135 million, as per the Department of Justice.
Kostin had been sanctioned in 2018 and designated a Specially Designated National, leading to his inclusion on the Blocked Persons list (“SDN List”) by the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”).
According to court records, Kostin was aware of potential new sanctions targeting Russian oligarchs amidst the ongoing Russia-Ukraine conflict.
A news report cited in the court documents suggested that Kostin was cognizant of the risk of being added to a new U.S. list of individuals close to Vladimir Putin but remained undeterred by the possibility.
While the indictment noted that Wolfson had moved to New York around 2018, where he was residing at the time, it did not specify the reason for his presence in Austin.
Property records revealed two properties owned by Wolfson in Austin: a nearly 4.5-acre ranch in southwest Austin purchased in 2020 and a home in west Austin’s upscale Tarrytown neighborhood purchased in 2022. The combined value of these properties is close to $10 million.
According to U.S. Attorney Damian Williams, the investigation highlights the collaborative efforts aimed at enforcing critical sanctions and holding accountable those who attempt to undermine them.
