Financial Fraud Exposed: Seychelles-Based Firm Helped Putin’s Inner Circle Hide Assets
A shocking revelation has emerged about a Seychelles-based offshore financial service provider, Alpha Consulting, which has been exposed for helping front companies used by Vladimir Putin’s inner circle to hide their assets.
The Pandora Papers
Alpha Consulting was one of 14 offshore services providers whose leaked files made up the Pandora Papers, a massive trove of documents obtained by the International Consortium of Investigative Journalists and shared with over 600 reporters worldwide.
Alpha Consulting’s Activities
A recent investigation by Finance Uncovered, the BBC, and Seychelles Broadcasting Corporation uncovered that Alpha Consulting had exploited a UK secrecy loophole to help set up over 900 U.K.-registered firms, linked to nominee directors. The company’s office administrator and cleaner were found to have allowed their names and signatures to be used on corporate documents, allowing real owners to remain anonymous.
Beneficiaries of Alpha Consulting
The investigation revealed that Yevgeny Prigozhin, the boss of the Wagner Group, who died earlier this year, was among those who benefited from Alpha’s services. His company, Beratex Group Ltd, was sanctioned by the United States in 2019. Additionally, a close friend of President Putin and former Russian communications minister, Leonid Reiman, also used Alpha’s services.
Founder’s Response
Alpha Consulting’s founder, Victoria Valkovskaya, claimed that using nominee directors to hide true owners was “not something new or illegal” in the industry. However, authorities disagree, and an investigation has been launched into the company’s activities.
Investigation Launched
Within hours of the investigation being published, Seychelles police and financial regulators raided Alpha Consulting’s offices, seizing hard drives and documents. The country’s Financial Services Authority confirmed that it had opened an investigation to probe the revelations in the media reports. Valkovskaya claimed that Alpha Consulting was complying fully with authorities’ demands and remained at their disposal at all times.
Linked Individuals
Alpha Consulting has been linked to several high-profile individuals, including:
- Russian billionaire Roman Avdeev
- Crypto scion Alexander Vinnik
- Angolan billionaire Isabel dos Santos
The company’s customer base was predominantly Russian, with 75% of its clients hailing from the country in 2019.
Authorities’ Response
An investigation has been launched into Alpha Consulting’s activities. The authorities are working to uncover the extent of the firm’s involvement in hiding assets and the identities of those who benefited from its services.