Russiagate and the Magnitsky Act have become inextricably linked in the news. We may even reach the point where the average person readily makes the connection. This is certainly the stuff of mainstream media now and that’s a good thing. One person who is definitely an authority on the subject is investor Bill Browder. If you were to read just one book on what is going on in Russia today, it is Browder’s “Red Notice.” The full title is “Red Notice: A True Story of High Finance, Murder, and One Man’s Fight for Justice,” published by Simon & Schuster. Keep in mind, the devil is in the details–and these are some diabolical details.
For this story, the one person you will never forget, once you know his story, is Sergei Magnitsky. What happened to him is hardly a new story but a story that reverberates as more and more people become aware. You can think of it, in some sense, as similar to the story of Emmett Till. Once you know his story, you never forget it. See what I mean? In a nutshell, we are living through the complex aftermath of the murder of Sergei Magnitsky.
Bill Browder’s book is so well-paced that, by the time he reaches the details about Sergei Magnitsky, the reader is prepared with a sense of how high finance works (in this case, by the seat of one’s pants) and how Russia works (it can get very dark). What makes this book so readable is Browder’s keen understanding of human nature. He is often self-deprecating and strikes the right tone. If you are looking for an absorbing read, this is it. Browder tells you everything about how he stumbled upon investing in post-Soviet Russia. That alone, is fascinating. Browder did so well with his hedge fund that he became Russia’s biggest foreign investor. The new oligarch regime took notice. Putin took notice.
The Russian response to Browder was, first, to discredit him. And it would escalate from there, especially since Browder was more than happy to push back on being bullied. The Browder team went after the oligarchs and Russian government corruption like there was no tomorrow. That led to the exposing of an outlandish tax fraud scheme: a $230 million tax rebate reverting back to Putin and friends. It was one of Bill Browder’s attorneys, Sergei Magnitsky, who uncovered this fraud. His reward was to be taken prisoner and, for all intents and purposes, handed down a death sentence. Magnitsky’s health steadily declined and, instead of getting medical attention, he was repeatedly beaten and tortured. When he died from this treatment, the government denied any involvement. Instead, Magnitsky and Browder would be blamed for the corruption scandal.
But the level of corruption we are talking about is much bigger than any casual observer might hazard to guess. To that end, Browder and his team created videos that make it a lot easier to digest. There are some key government henchmen involved that, while making meager salaries, managed to live like royalty:
Seeking justice for Sergei Magnitsky led Bill Browder to Washington, D.C. on a mission to enact legislation that would punish the network of people involved with his death. In the process, we get quite an insightful look behind the scenes. In 2010, the Obama administration was determined to improve relations with Russia. The State Department did not look favorably upon anything to strain relations. That was the general tone–but there were detractors to the status quo like U.S. Senator from Maryland, Ben Cardin. It was Sen. Cardin who began work on creating a bill. Now, Browder still needed a heavy hitter in the Senate and he found that support with Sen. John McCain. A number of political twists and turns still lay ahead but it would ultimately lead to a law with some real teeth, a law that could eventually ensnare Putin–unless, of course, this law were somehow made to go away.
The Magnitsky Act is very straightforward. Originally, its intent was to place sanctions on Magnitsky’s killers and then it was broadened to cover all Russian human rights offenders: take away their assets in the U.S. as well as their visas to the U.S. Simple as that. The bill went through various hurdles and ultimately was signed into law by Pres. Obama in 2012. If you are still new to the Magnitsky Act, you will be hearing more and more about it. Keep in mind that Putin has done everything in his power to discredit both Sergei Magnitsky and Bill Browder. After all, put two and two together: if you follow the letter of the law, the Magnitsky Act would surely apply to Putin.
Shortly after the passage of the Magnitsky Act, Putin retaliated by banning Americans from adopting Russian children. This becomes complicated as it also involves numerous children with special medical needs. As you may recall, and how could you not, Donald Trump’s son, Don Jr., met with a Russian lawyer who was essentially lobbying for the repeal of the Magnitsky Act. The excuse Don Jr. uses is that they were actually talking about Russian adoption. But, if you understand the context, talking about Russian adoption equates to talking about the Magnitsky Act. Any scheme to repeal the Magnitsky Act is now dead, right? But these are very strange times we live in. That said, Browder’s book could not be more relevant.
RED NOTICE is a 416-page book available in hardcover, paperback, in audio, and e-book. For more details, visit Simon & Schuster right here. And for more information on Bill Browder, visit him right here. And, if you really want to dig deeper, visit the Russian Untouchables website right here.