Justice Department's indictment of Semion Mogilevich
Justice Department's indictment of Semion Mogilevich
Justice Department's indictment of Semion Mogilevich
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36. Defendants MOGILEVICH, FISHERMAN, BOGATIN and TSOURA, in<br />
order to make YBM look pr<strong>of</strong>itable and attractive to investors, made the following material<br />
misrepresentations to the securities regulators and to the investment community regarding YBM’s<br />
operation and financial condition in public filings with securities regulators, and through the<br />
methods set forth below in paragraph 38. It was materially misrepresented at various times<br />
between 1994 and September <strong>of</strong> 1998 that:<br />
Core Business<br />
(a) YBM Magnex had an established track record <strong>of</strong> pr<strong>of</strong>itably selling high<br />
energy permanent industrial magnets, which it manufactured and distributed throughout<br />
Europe, the United States and Canada from 1992 through 1994.<br />
Operations<br />
since 1992.<br />
• In reality, the defendants knew YBM had no such history <strong>of</strong> significant<br />
magnet sales in the global market, including Europe, the United States and<br />
Canada; and further, knew that YBM MAGNEX’s predecessor and<br />
subsidiary, ARIGON, was a European commodities trader, with a financial<br />
history involving commodities, alcohol and food products, not industrial<br />
magnets;<br />
(b) The magnet manufacturing plant in Budapest, Hungary had been operational<br />
• In reality, the defendants knew the MAGNEX RT manufacturing plant was<br />
not operational until at least August 1994 when some magnet<br />
manufacturing commenced and, furthermore, knew it was only marginally<br />
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