US Citizen Charged With Violating Russia Sanctions for Helping Oligarch Establish TV Network

The U.S. charged American citizen John "Jack" Hanick with violating U.S. sanctions on Russia related to Russians promoting separatism in Crimea in 2014 via his work for sanctioned Russian oligarch Konstantin Malofeyev, the U.S. Attorney's Office for the Southern District of New York said. Hanick was arrested on Feb. 3 in London and faces a maximum of 20 years in prison for the sanctions charge and five years in prison for a false statements charge. The criminal indictment is the first stemming from the 2014 Russia sanctions regime.

According to the indictment, Hanick tapped his experience as a former cable television network producer to aid Malofeyev in establishing media outlets in Russia, Greece, Bulgaria and elsewhere. The U.S. designated Malofeyev under the International Emergency Economic Powers Act in a wave of sanctions in 2014 relating to Russia's occupation of Crimea. Malofeyev was listed due to his role as being "one of the main sources of financing for Russians promoting separatism in Crimea" and Donetsk.

Hanick allegedly worked for Malofeyev from 2013 to 2017 in violation of the sanctions, the indictment said. Malofeyev had plans to create a Russian cable television news network, allegedly employing Hanick to help in these efforts. The U.S. discovered details about the nature of Hanick's work through Hanick's unpublished "memoir," which FBI agents found through a search of the defendant's email account, the indictment said. Hanick filled a leadership role at the new Russian network, working as board chairman, general producer and chairman of the HR committee, among other roles.

Hanick also allegedly sought to hide Malofeyev's role in acquiring a Bulgarian television network. The defendant did so by allegedly arranging to travel to Bulgaria with a Greek associate of Hanick's to give off the appearance that a Greek national was buying the network as opposed to Malofeyev, the indictment said. In all, Hanick faces two charges -- one for violating IEEPA sanctions on Malofeyev and another for making false statements to the FBI over the Bulgarian TV network deal.

“Konstantin Malofeyev is closely tied to Russian aggression in Ukraine, having been determined by OFAC to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine," said U.S. Attorney Damian Williams. "The United States sanctions on Malofeyev prohibit United States citizens from working for or doing business with Malofeyev but as alleged, Hanick violated those sanctions by working directly for Malofeyev on multiple television projects over the course of several years. The Indictment unsealed today shows this Office’s commitment to the enforcement of laws intended to hamstring those who would use their wealth to undermine fundamental democratic processes. This Office will continue to be a leader in the Justice Department’s work to hold accountable actors who would support flagrant and unjustified acts of war.”