The US Justice Department, under the direction of Attorney General Pam Bondi, has decided to disband Task Force KleptoCapture, a specialized unit created to target Russian oligarchs after the 2022 invasion of Ukraine. This decision marks a significant policy shift as the department reallocates its resources to prioritize bribery investigations related to cartels. The task force had previously made headlines by indicting prominent figures such as aluminum magnate Oleg Deripaska and TV tycoon Konstantin Malofeyev for alleged sanctions violations. Additionally, it seized luxury yachts from sanctioned oligarchs Suleiman Kerimov and Viktor Vekselberg.
The new focus will fall under the purview of the Foreign Corrupt Practices Act (FCPA) unit, which has a history of handling some of the department's largest corporate cases. This change is set to last for a minimum of 90 days, with the possibility of it becoming a permanent strategy. A memo from Attorney General Bondi, issued on her first day in office, outlined these changes but had not been previously reported.
"This policy requires a fundamental change in mindset and approach," – Pam Bondi
The Justice Department's new emphasis on combating drug cartels aligns with former President Donald Trump's agenda, which included designating many cartel groups as terrorist organizations. This designation was part of a broader strategy to address illegal immigration and fentanyl trafficking, issues that Trump highlighted during his administration. Trump's administration aimed to improve relations with Moscow while simultaneously enforcing expansive sanctions against Russia due to its actions in Ukraine.
The department's shift comes amidst its ongoing scrutiny of multinational companies under the FCPA. Corporations like Goldman Sachs, Glencore, and Walmart have faced investigations over potential violations. The FCPA has proven instrumental in some of the Justice Department's most significant cases over the last decade, underscoring its role in global corporate compliance.
Task Force KleptoCapture had also secured a guilty plea from a US lawyer involved in making payments totaling $3.8 million to maintain properties owned by oligarch Vekselberg. These efforts were part of a larger initiative to isolate Russia from global markets and enforce sanctions that followed international condemnation of Russia's military actions.