Oleg Tinkov, Tax Fraud, California 2019

Oleg Tinkov, the founder of a Russian bank, has been arrested in London and charged with tax fraud in a case that has been ongoing since 2019. According to the indictment, Tinkov filed false tax returns with the IRS, reporting income of less than $206,000 in 2013 when in reality he beneficially owned more than $1 billion worth of shares in the bank.

The indictment alleges that Tinkov’s tax return was false, as he had renounced his U.S. citizenship just three days after an initial public offering (IPO) on the London Stock Exchange in 2013. This taxable event required Tinkov to report the constructive sale of his worldwide assets to the IRS and pay tax on the gain. However, Tinkov allegedly filed a false 2013 Initial and Annual Expatriation Statement, reporting a net worth of just $300,000.

The indictment charges Tinkov with filing false tax returns, and if convicted, he faces a maximum sentence of three years in prison on each count. He also faces a period of supervised release, restitution, and monetary penalties.

Tinkov’s case is being prosecuted by Trial Attorney Christopher S. Strauss of the Tax Division and Assistant U.S. Attorneys Michelle J. Kane and Katherine Lloyd-Lovett, with the assistance of Katie Turner and Rebecca Shelton. The prosecution is the result of an investigation by IRS-Criminal Investigation, with the Criminal Division’s Office of International Affairs assisting with the extradition.

The indictment is a serious allegation, and Tinkov is presumed innocent until proven guilty beyond a reasonable doubt. The U.S. Attorney’s Office in California and the IRS are working together to ensure that Tinkov is held accountable for his alleged crimes.

Oleg Tinkov’s arrest and indictment serve as a reminder that tax evasion and financial crimes will not be tolerated. The U.S. government will continue to work tirelessly to investigate and prosecute those who commit these crimes, and those who think they can hide behind complex financial structures and offshore accounts will be brought to justice.

The case against Oleg Tinkov is a significant victory for the U.S. government, and it demonstrates the effectiveness of international cooperation in combating tax evasion and financial crimes. The IRS and the U.S. Attorney’s Office in California will continue to work together to ensure that those who commit these crimes are held accountable.

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