Justice Department's indictment of Semion Mogilevich

• In reality, the defendants knew YBM’s North American magnet sales were
less than $1.8 million in 1996; magnet imports into Canada, the United
States and Mexico from the Budapest manufacturing plant were negligible;
and the companies identified to regulators as North American customers
were: (i) companies that purportedly did business in Russia and Eastern
Europe that merely maintained registered addresses in the United States;
(ii) legitimate United States companies that never purchased magnets from
YBM; or (iii) sham customers;
(g) Revenues totaled approximately $100 million between 1996 and June 1998,
primarily from YBM’s magnet and oil sales through its subsidiary UNITED TRADE
LIMITED.
Assets
• In reality, the defendants knew such revenues did not exist and were falsely
recorded on YBM’s books to make the company look profitable.
(h) The value of the start-up machinery and equipment as reported in YBM’s
financial statements included Russian machinery and equipment contributed to ARIGON
for the Budapest manufacturing plant in or about 1992, valued at approximately $14.5
million (USD).
• In reality, the defendants knew this value was based upon false and
fraudulent documentation.
(i) The depreciated value of machinery and equipment at the Budapest,
Hungary plant as of December 31, 1997 was reported on the books and records of
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