Banking Fraud Cases Rock Seychelles: Authorities Raid Offshore Firm Tied to Putin’s Inner Circle
In a shocking turn of events, Seychelles authorities have launched an investigation into offshore financial services provider Alpha Consulting after a Pandora Papers investigation revealed that the firm had helped front companies used by Vladimir Putin’s inner circle. The raid comes just hours after the publication of the report, which exposed how Alpha exploited a UK secrecy loophole to hide the true owners of over 900 British-registered firms.
The Investigation
According to investigators, Alpha Consulting used nominee directors, including an office administrator and cleaner, to sign corporate documents on behalf of real owners seeking anonymity. The firm also provided a director for a company owned by Leonid Reiman, a close friend of President Putin and former Russian communications minister.
Alpha’s founder, Victoria Valkovskaya, defended the practice, stating that it was not illegal in the industry. However, authorities are investigating whether Alpha and its nominee directors had any involvement in the management of these companies.
Controversial Activities
Some of the Alpha-linked UK firms were allegedly involved in controversial activities, including:
- Corruption schemes
- Links to fugitive oligarchs
- Unlicensed pharmaceutical sales
These firms took advantage of a loophole exempting limited partnerships from UK transparency rules, allowing them to remain anonymous.
The Raid
Within hours of the investigation’s publication, Seychelles police and financial regulators raided Alpha Consulting’s offices in Victoria, seizing hard drives and documents. The country’s Financial Services Authority confirmed that it had opened an investigation into the revelations.
Alpha Consulting was founded in 2008 by Valkovskaya and her ex-husband Roy Delcy. Notable clients include:
- Russian billionaire Roman Avdeev
- Crypto scion Alexander Vinnik
- Angolan billionaire Isabel dos Santos
According to a 2019 annual report, 75% of Alpha’s customer base was Russian.
The Pandora Papers Investigation
The Pandora Papers investigation, which involved over 600 reporters worldwide, revealed that Alpha Consulting had provided services to numerous high-profile individuals, including Yevgeny Prigozhin, the late boss of the Wagner Group, who was sanctioned by the US in 2019. The firm has denied any wrongdoing and is cooperating with authorities.
Key Takeaways
- Alpha Consulting helped front companies used by Vladimir Putin’s inner circle
- The firm exploited a UK secrecy loophole to hide the true owners of over 900 British-registered firms
- Authorities are investigating whether Alpha and its nominee directors had any involvement in the management of these companies
- Some Alpha-linked UK firms were allegedly involved in controversial activities, including corruption schemes and unlicensed pharmaceutical sales.