Case 16-132, Document 190-1, 09/20/2016, 1866945, Page1 of 6 16-132-cv ____________________________________________________________ United States Court of Appeals for the Second Circuit ___________________________________ UNITED STATES OF AMERICA, Plaintiff-Appellees, v. PREVEZON HOLDINGS LTD., ET AL., Defendants-Appellees, v. HERMITAGE CAPITAL MANAGEMENT LTD., Movant-Appellant. ___________________________________ ON APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK __________________________________________________________________________ EMERGENCY MOTION OF DEFENDANT-APPELLEES TO MODIFY STAY __________________________________________________________________________ MICHAEL B. MUKASEY DEBEVOISE & PLIMPTON LLP 919 Third Avenue New York, New York 10022 Tel: (212) 909-6000 Attorneys for Defendants-Appellees Case 16-132, Document 190-1, 09/20/2016, 1866945, Page2 of 6 Defendants-Appellees Prevezon Holdings Ltd., et al. (collectively, “Prevezon”) hereby move the Court for an order modifying its January 25, 2016 order staying the proceedings in Case No. 13 Civ. 6326 in the U.S. District Court for the Southern District of New York pending the adjudication of this appeal for the limited purpose of deposing Andrei Alexeevich Pavlov, an individual now within the District Court’s jurisdiction who is both central to the Government’s case against Prevezon and available only for a brief period. See Doc. No. 78 (the “Stay Order”). Third-party Hermitage Capital Management Ltd. (“HCML”)’s appeal was argued on June 9, 2016, and remains sub judice. Counsel for the Government and counsel for HCML have both been notified of this motion but have not yet indicated whether they oppose the relief sought herein. As the Court is aware, on September 10, 2013, the United States filed a civil action against Prevezon in the District Court, seeking the forfeiture of allegedly laundered funds resulting from “an elaborate tax refund fraud scheme” perpetrated by corrupt Russian officials and international criminals who “defrauded Russian taxpayers of approximately . . . $230 million in United States dollars” using falsified lawsuits and fraudulently-obtained tax refunds and obtained an ex parte freezing order over the defendants’ worldwide assets. A-303–04, A-316–20.1 Mr. 1 Unless otherwise indicated, all citations to appendices are as they appear in HCML’s opening brief on the merits. Case 16-132, Document 190-1, 09/20/2016, 1866945, Page3 of 6 Pavlov is a central figure in the scheme alleged by the Government, appearing in five separate paragraphs of its Second Amended Complaint (“SAC”). See A-311– 12 ¶¶ 22–23, A-316 ¶ 34, A-317 ¶ 36, A-321 ¶ 50. In brief, the SAC alleges that Mr. Pavlov traveled with the members of a shadowy criminal syndicate – identified only as the “Organization” – to plan an alleged fraud against the Russian Treasury, that Mr. Pavlov purported to represent Hermitage companies in Russian litigations even though the companies had no knowledge of or relationship with Mr. Pavlov, and that it was Mr. Pavlov who appeared on behalf of entities suing those Hermitage companies in the sham litigations that form the basis of the fraud alleged by the Government. Id. Mr. Pavlov, who resides in Russia, was served with a grand jury subpoena when he entered the United States to attend an international conference in Washington, D.C. Mr. Pavlov approached counsel for Prevezon in Washington D.C., Baker & Hostetler LLP, and disclosed his presence. He is scheduled to appear before the grand jury in the Southern District of New York on Wednesday, September 21 at noon.2 His stay within the jurisdiction of the District Court, 2 The subpoena also demands that Mr. Pavlov produce his correspondence with, among others, Mr. Dmitry Klyuev, another individual mentioned repeatedly in the SAC, and Ms. Natalia Veselnitskaya, Prevezon’s Russian counsel. See Exhibit A (Grand Jury subpoena); A-311–12 ¶¶ 22–23, A-318 ¶ 39, A-321–22 ¶ 54, A-326 ¶ 71. Although not the subject of this motion, Prevezon has moved in District Court challenging the propriety of the Government’s prior 2 Case 16-132, Document 190-1, 09/20/2016, 1866945, Page4 of 6 however, is likely to be brief. Upon information and belief, Mr. Pavlov will return to Russia immediately after he gives testimony before the grand jury, leaving the jurisdiction of the District Court and frustrating Prevezon’s ability to obtain his testimony. Although Mr. Pavlov has not expressed any opposition to returning to making himself available to be deposed at a later date, the likelihood and/or success of any such attempts in the future is speculative at best. In granting HCML’s request for a stay, this Court considered the test set forth in In re World Trade Ctr. Disaster Site Litig., 503 F.3d 167 (2d Cir. 2007), which includes (1) “whether the stay applicant has made a strong showing that he is likely to succeed on the merits”; (2) “whether the applicant will be irreparably injured absent a stay”; (3) “whether issuance of the stay will substantially injure the other parties interested in the proceeding”; and (4) “the public interest.” Id. at 170 (quoting Hilton v. Braunskill, 481 U.S. 770, 776 (1987)). See Stay Order at 1. This Court has applied those same factors in considering whether to vacate a stay. See In re World Trade Ctr. Disaster Site Litig., 503 F.3d at 170; Mohammed v. Reno, 309 F.3d 95, 100 (2d Cir. 2002). Here, the Court’s imposition of the stay pending resolution of this appeal will substantially injure Prevezon by depriving it of an unusual opportunity to depose a figure central to the Government’s use of grand jury subpoenas in connection with this case. See S.D.N.Y. Case No. 13 Civ. 6326, Doc. Nos. 464, 531. 3 Case 16-132, Document 190-1, 09/20/2016, 1866945, Page5 of 6 allegations that would otherwise be unavailable. The public interest in fair adjudication and equal access to factual information necessary for litigation also weighs heavily in favor of modifying the stay, as any deprivation will not be born equally by both parties in the District Court; the Government is empowered to seek disclosure of the grand jury proceedings if it desires. See Fed. R. Crim. P. 6(e)(3)(E). Finally, Prevezon may be irreparably injured absent a limited modification of the stay, as there is no guarantee that it will have another opportunity to depose Mr. Pavlov once he leaves the Southern District of New York. For the foregoing reasons, Prevezon seeks a modification of the stay previously entered by this Court on January 25, 2016 for the limited purpose of deposing Mr. Pavlov. Dated: September 20, 2016 New York, New York Respectfully 1,10 / Alo -war 4,4 Michae B ukasey Michael B. Mukasey Jennifer F. Mintz Jarrod L. Schaeffer DEBEVOISE & PLIMPTON LLP 919 Third Avenue New York, New York 10022 4 Case 16-132, Document 190-1, 09/20/2016, 1866945, Page6 of 6 (212) 909-6000 mbmukasey@debevoise.com Attorneys for DefendantsAppellees 5 Case 16-132, Document 190-2, 09/20/2016, 1866945, Page1 of 1 UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT Thurgood Marshall U.S. Courthouse 40 Foley Square, New York, NY 10007 Telephone: 212-857-8500 MOTION INFORMATION STATEMENT Docket Number(s): Motion for: 16-132 Caption [use short title] limited modification of the stay of the action United States of America v. Prevezon Holdings, Ltd. before the District Court. Set forth below precise, complete statement of relief sought: Defendant Prevezon Holdings, Ltd. seeks a limited modification of the stay of the action below pending the resolution of the interlocutory appeal currently before this Court for the limited purpose of deposing Mr. Andrei Alexeevich Pavlov who is in this country for a limited period of time. IYIOVIN FLPARTY: Prevezon Holdings, Ltd. et V Defendant LjPlaintiff Appellant/Petitioner V Appellee/Respondent al. OPPOSING PARTY: Hermitage Capital Management p MOVING ATTORNEY: Michael B. Mukasey OPPOSING ATTORNEY: Jacob [name of attorney, with firm, address, phone number and e-mail] W. Buchdahl Debevoise & Plimpton LLP Susman Godfrey LLP 919 3rd Ave., New York, NY 10022 1301 Ave. of the Americas, 32nd Fl., New York, NY 10019 212-909-6000; mbmukasey©debevoise.com 212-336-8342; jbuchdahl©susmangodfrey.com Court-Judge/Agency appealed from: Southern District of New York, Hon. Thomas P. Griesa (case has since been reassigned to Hon. William H. Pauley Ill) Please check appropriate boxes: Has movant notified opposing counsel (required by Local Rule 27.1): LI Yes❑ No (explain): Opposinsm.unses position on motion: Unopposed apposedaon't Know Does opposing counsel intend to file a response: Yes o 0Don't Know FOR EMERGENCY MOTIONS, MOTIONS FOR STAYS AND INJUNCTIONS PENDING APPEAL: Has request for relief been made below? YeskJ No Has this relief been previously sought in this Court? Yes ✓ 1/ No Requested return date and explanation of emergency: 9/21/2016 11 Upon information and belief, Mr. Pavlov, who is present for the purpose of appearing 0 before the Grand Jury, will depart the United States on September 21, 2016. Prevezon seeks emergency leave to depose Mr. Pavlov prior to his departure. Is oral argument on motion requested? 111 Yes El No (requests for oral argument will not necessarily be granted) LI Yes OM If yes, enter date: Date: Form T-1080 (rev. 12-13) Zed P//‘ 06/09/2016 Service by: 1=1CM/ECF 1=1 Other [Attach proof of service] Case 16-132, Document 190-3, 09/20/2016, 1866945, Pagel of 9 EXHIBIT A Case 16-132, Document 190-3, 09/20/2016, 1866945, Page2 of 9 Grand Jury Subpoena PnitetrSfutez 4 Mtrirt (Court SOUTHERN DISTRICT OF NEW YORK TO: Andrei Alexeevich Pavlov DOB August 7, 1977 GREETINGS: WE COMMAND YOU that all and singular business and excuses being laid aside, you appear and attend before the GRAND JURY of the people of the United States for the Southern District of New York, at the United States Courthouse, 40 Foley Square, Room 220, in the Borough of Manhattan, City of New York, New York, in the Southern District of New York, at the following date, time and place: Appearance Date: September 21, 2016 Appearance Time: 12:00 p.m. to testify and give evidence in regard to an alleged violation of : 18 U.S.C. § 1343, 1344, 1349, 1956, 1957. and not to depart the Grand Jury without leave thereof, or of the United States Attorney, and that you bring with you and produce at the above time and place the following: Personal appearance is required. In addition, please bring the documents requested in the attached rider. Failure to attend and produce any items hereby demanded will constitute contempt of court and will subject you to civil sanctions and criminal penalties, in additimi to other penalties of the Law. DATED: New York, New York September 15, 2016 aeef i REET BHARARA(t iff O the United States Attorney Jr he D• trict of New York aul M. Monte eoni Assistant United States Attorney One St, Andrew's Plaza New York, New York 10007 Telephone: 212-637-2219 rev. Q2.01.12 Case 16-132, Document 190-3, 09/20/2016, 1866945, Page3 of 9 RIDER (Grand Jury Subpoena to Andrei Alexeevich Pavlov) Please bring with you to the grand jury true and correct copies of the following documents. Please provide documents in native electronic format if possible. All non-privileged documents in your possession relating to the following cases (the "Specified Cases"): a. St. Petersburg Arbitration Court Case No. A56-22479/2007 b. Kazan Arbitration Court Case No. A65-26689/2007 c. Criminal Case No. 678540 d. Criminal Case No. 152979 e. Moscow Arbitration Court Case No. A40-12329/06-45-117 f. Moscow Arbitration Court Case No. A40-16205/06-137-172 g. Moscow Arbitration Court Case No. A40-16204/06-137-172 h. Moscow Arbitration Court Case No. A40-12328/06 i. Kazan Arbitration Court Case No. A65-6851/2006-CG1-17 2. All non-privileged correspondence in your possession with any of the following persons regarding the Specified Cases or regarding the subject matter of any of the Specified Cases: a. Oleg Urzhumtsev b. Yuri Nikolaev c. Oleg Kirilenko d. Sergei Orlov e. Dimitri Klyuev f. Natalia Veselnitskaya 1. Case 16-132, Document 190-3, 09/20/2016, 1866945, Page4 of 9 Advice of Rights 1. The grand jury is conducting an investigation of possible violations of Federal criminal laws involving wire fraud in violation of 18 U.S.C. § 1343, bank fraud in violation of 18 U.S.C. § 1344, wire and bank fraud conspiracy in violation of 18 U.S.C. § 1349, and/or money laundering in violation of 18 U.S.C. §§ 1956, 1957. 2. You may refuse to answer any question if a truthful answer to the question would tend to incriminate you. 3. Anything that you do say may be used against you by the grand jury or in a subsequent legal proceeding. 4. If you have a lawyer, the grand jury will permit you a reasonable opportunity to step outside the grand jury room to consult with your lawyer if you so desire. 5. If you would like a lawyer but do not have funds to retain one, you may make an application to the United States Magistrate Judge who will decide whether to appoint a lawyer to represent you. Case 16-132, Document 190-3, 09/20/2016, 1866945, Page5 of 9 II0BeCTKa B cyg OT BOYILMOI-0 HCI-OpH OlepyACHOil Cy,a CoeAAxexxbix HITaTOB AMepHKH IOcxbiH Oicpyr ropoLa llmo-flopic Komy: AHApelo AmexceeButly flaBnoBy gam po)KgeHH.A: 7 ABrycTa 1977 11.1-'14BETCTB1/121: Mbl HOBEJLEBAEM BAM OTJIOXHT13 B cTopoHy Bce Baum ,Mena H onpaugaHuR H upegcTaTE, nepeA tigeHamm EMILIII0F0 NCIOpH ripHcsDicHux COegHlleHHLIX LLITaTOB AMepHKH 10)KHOTO OKpyra HMO-gopica B 3AaHHH 0Kpy)ICHOr0 Cyga COegHHeIllibIX IIITaTOB, Haxoximerocff no agpecy 40 (Donal CKBep, KomHam 220, patioH MaBX3TTeH, ropog Hmo-Pioplc, IHTaT B K))1(HOM OKpyre HLIO-ROpKa B cuegyfonwio gary H Bpemsi: gaTa 5IBKH: 21 CeHT516p5I 2016 Bpeivisi SIBICH: 12:00 3aCBHgeTeMaCTBOBaTL H ,gaTL Hoica3aHum B Aerie 0 upegnomaraemom HapymeHHH 18 Hrucra xogeKca CILIA, naparpa OB 1343, 1344, 1349, 1956, 1957. H He TIOKHgaTb EOHLIHOe Xl0pH 6e3 pa3pemeHHA, B TOM 1114C.Tle OT cl)egepa.m.Horo npoKypopa, H LITo6hI BLI HpuHecim C C060I1 H HpegocTaBligH B pca3aHHoe Bpem51 H B yKa3aHHom mecTe c.gegyfomee: JIHUHax 5IBKa 065I3aTCJILHa. Fle5IBKa H HeripegouraugeHHe 3aripampmaemmx goica3areamcTB 6ygeT paccmarpllBamcA KaK HeyBaxceHme K Cygy H nomegeT 3a co6oA rpa)KgaHcK.He CaHICIIHH H yrogosHme Harca3aHuff B gonaTmerme K HHLIM Mepam HaKa3aHHA HpegycmarpHBaemmx 3aKOHOM. itarupoBaHo: r HM0-HopK, Case 16-132, Document 190-3, 09/20/2016, 1866945, Page6 of 9 15 Cetrrst6p5i 2016 110)2(HHCE. Preet Bharara c2e,tcepairmnatI npoKypop 10)Knoro Oxpyra Hmo-lilopKa IIenaTb Oxpy)Knoro Cy,aa Coempmemmix IIITaTOB Amepnxn H HOADMCB Paul M. Monteleoni nomotAnnx ctle,Reparnmoro npoKypopa OAHH CT. 3HAp1-03 ThIa3a 111,K)410pK, HMO-VIOpK Case 16-132, Document 190-3, 09/20/2016, 1866945, Page7 of 9 lloripasKa (H0BeCTKa B cyg OT Bonbluoro )KlopH Anse AHApe5I AfleICCeeBlItla flaBTIOBa) lloNcagyAcra uplixecprre c CO6Ott gas' BOTILLII0r0 )KJopH IIoAJIIIHHble H HGTHHHEde KOIIHH cgegyfouwx goicymeffroB. HoxcagyileTa, IIO BO3MONCHOCTH, npegoeTaBLTe goKymeirrm B IiX opm-piamaom 3.1IeKTpOHHOM (1)opmaTe. 1. Bee HeripHBH.nempoBamime goicymernm HaxogsagHeeff B BameM Bga4eHm4 OTHOCALTAHeC51 IC cgegyfoumm cyge6Hum genam ("Yica3algime eaa"): a. 7(eno Camcr-1leTep6yPrcicoro Ap6mpaxcHoro cyga No. A5622479/2007 b. gego Ap6gTpaaHoro cyga Ka3aHH No. A65-26689/2007 c. Yrogomme Aeno No. 678540 YrogosHoe AeHo No. 152979 d. e. gem) MocKoscicoro Ap6HTpaxcHoro cyga No. A40-12329/06-45-117 f. gem MocKoscicoro Ap6liTpaxcHoro cyga No. A40-16205/06-137-172 g. gem) MOCK0B6C0F0 Ap6krrpawaioro cyga No. A40-16204/06-137-172 h. gag° MocKoscicoro Ap6inpaxmoro cyga No. A40-12328/06 i. gem Ap6HTpaxcHoro cyga Ka3aHH No. A65-6851/2006-CG1-17 2. Belo HenpmBagenvoBaxxylo gepel1HCKy, HaX0,1151LIIT005I B Bamem BJIa,ZICHHH, c J1106E.IM 113 mmenepeimegemmx II0 II0130Ay "YKa3aHHLIX jjeau gH6o o6 o6cpKgemm JII060F0 H3 "YKa3aHHMX gen": a. Oger Ypxc-ymgeB b. KVHA HHIC011aeB C. Oner KliparIeHKO d. Cepreil Op.TIOB e. gmliTpHil KJII0eB HaragHsi BeceghHHTeicag Case 16-132, Document 190-3, 09/20/2016, 1866945, Page8 of 9 YBeAom.aenne 0 Haanmin HpaB paccHer4oBaHme o BO3MOACHLIX Hapymefflux KpHMHHaJIHbIX 3aKOHOB, BoBileicalofflax moruefflnigecTso C HCII0J1b30BaHHeM cospemeHHEax cpeAcTB CB5I3H, Hapymammee 18 IlyHKT Kogexca CUJA naparpacl) 1343, croBop B 6aHKOBCKOM MOILIeHHHtleCTI3e, Hapymffloafflm 18 Hyffla KoAeicca CILIA Haparpdp 1344, momeHHHtiecTBo c HCIIOJIb3OBaHHeM coBpemeHaux cpeAcTB GROH H croBop B 6aHKOBCKOM MODICHHIfileCTBe HapymaKngee 18 Hyma KoTkeicca CHIA naparpact. 1349, H/11.1111 OTMbIBaHHe geHer, Hapyinalofflee 18 IIyHIZT KoAeicca CILIA naparpaclu 1956, 1957. 1. BOJIBLII0e )1(IopH IIpHC5DKHHX Hp0B01IHT 2. Y Bac ecTE, IvaBo OTKa3aISC5l oTBeriarb Ha .TrEo6Ne soripocm, ealm IIpaBAHBbIII OTBeT MO)KeT H306JIHLIHTB Bac. 3. Bee, TO BbI cicaxceTe moxceT 6bITb HCHOJIb30BaHO HPOTHB Bac BOJITAIIHM 51C1010H HJIH B Hoc.neAromem Hpogeccyan.Hom AeticTBHH. y Bac eCTb aABoKaT, BOJIMHOe )KIopH nperwaraBHT BaM pa3rymyto BO3MORCHOCTb BbIHTH 113 KOM-HaTbI H HpOKOHCYJILTHp0BaTbC5/ C Baumm arkBoKaTom, eau' BBI H3b5IBHTe xce.11aHHe. 4. ECJIH agBoicaTa, HO y Bac HeT ,TkeHeNCHIDIX cpeAcTB, BLa moNceTe Horkam xogaTaticTB° mHpoBomy cyffl,e KoTopmil peffiliT Ha3HatIHTb BaM arrmoicaTa NM Baffler° HpegcTaBaexHA HJIH HeT. 5. ECJIH BbI XOTHTe HaHATI, Case 16-132, Document 190-3, 09/20/2016, 1866945, Page9 of 9 CERTIFICATE OF ACCURACY Aliona Salauyova, hereby attest that I am a Per Diem Certified Russian/English Interpreter with the Court of the State of New York and that I have translated the attached English document (Grand Jury Subpoena, 3 pages) into Russian. I also attest that to the best of my knowledge, ability, and belief this translation is true, accurate, and complete translation of the attached English document that was provided to me. STA 1 E. OF NEW YORK ) ss COUNTY OF NEW YORK ) Subscribed and sworn to before me this 6 day of KATHY CHIOD1 Notary Publi My COmmission Expires: fq-711 , Commissioner of Deeds, City of New York No. 3-6831 Certificate Filed in New York Count, , / Commission )tplres December 7 x, 2016.