In 2009 his Russian lawyer, Sergei Magnitsky, was killed in a Moscow prison after uncovering and exposing a $230 million fraud committed by Russian government officials.  Because of the impunity in Russia, Mr. Browder has spent the last eight years conducting a global campaign to impose visa bans and asset freezes on individual human rights abusers, especially those who played a role in Magnitsky’s false arrest, torture and death.  The United States was the first to impose these sanctions with the passage of the 2012 “Magnitsky Act.”  A Global Magnitsky Bill, which broadens the scope of the U.S. Magnitsky Act to human rights abusers around the world, was passed at the end of 2016.  Estonia and the UK also passed a Magnitsky amendment in December 2016 and April 2017 respectively.  Magnistky legislation in Canada and Lithuania is currently underway.

 

In his presentation, Mr. Browder captivated the audience by explaining the history of his incredible story that has exposed the tremendous corruption of the Russian government headed by Vladimir Putin, who Mr. Browder self described as Putin's top foreign enemy.

 

Mr. Browder's story began in 1927 when his grandfather, a labor organizer, went to work in Moscow in 1927, married a Russian wife and started a family.  When he returned to the United States, he became the head of the communist party and was prisoned in 1941.  Pardoned in 1942, his grandfather was later kicked out of the communist party for being "too capitalistic."  With the motivation to rebel against his family, Mr. Browder became a staunch capitalist, graduating from Stanford business school in 1989.  In the 1990's he became the biggest capitalist in Eastern Europe by setting up investment funds in Russia after the Soviet government collapsed.  In an effort to kick start the new era of capitalism in Russia, the state quickly gave its nationally owned property back to the people.  Mr. Browder managed many of these new investments, which included a famous banker whose funds increased 850% (the best performer in the world).  At 31 years old Mr. Browder was featured in top business publications  including the Wall Street Journal for his billions of dollars in earned assets.

 

After incredible economic growth, in 1998, Russia defaulted on domestic debt, and their currency was devalued by 75%.  Mr. Browder's billions of dollars in investment value plummeted 95%.  Determined to make his investors money back, he focussed on shares of oil, which in theory should have rebounded.  Instead the oligarchs in Russia embarked in unprecedented acts of asset stripping, stealing and embezzlement, the most famous occurring with Gazprom.  With shares trading at an extremely undervalued rate, Mr. Browder worked to figure out exactly how much valuation was stolen from Gazprom.  In a tale of intrigue and luck, he was able to expose the theft of oil and gas reserves (the size of Kuwaiti oil), publish into chapters, and share this news with top business media companies (including the Russian press).

 

Up until 2004, Mr. Browder continued to take on the oligarchs in Russia with impunity until Putin struck a deal with the oligarchs that providing him (Putin) with 50% of the oligarch's wealth.  Mr. Browder now was directly fighting the oligarchs AND the President of Russia, and quickly became an enemy of the state.  After being held in detention overnight at the Moscow airport, Mr. Browder was deported and declared a threat to national security.  From London, he evacuated his staff, sold every last share in Russia, paid $230 million in capital gains taxes, and started a new focus on other parts of the world.  With one employee remaining in Russia, 18 months after his expulsion the Russian government raided his former office looking for stamps and seals of investment companies.  After seized investments were registered to a prosecuted murderer, Mr. Browder became worried about the implications and hired the smartest Russian lawyer and auditor to help him-- Sergei Magnitsky.

 

When Magnitsky exposed the government theft of $230 million dollars of capital gains taxes paid when Mr. Browder sold his Russian investments, he (Magnitsky) was arrested.  While in prison, Magnitsky was tortured in an attempt to sign a false confession saying that he and Mr. Browder stole the $230 million worth of funds.  Refusing to recant the truth and confess under pressure, Magnitsky was eventually beaten to death while incarcerated in 2009.  With over 450 complaints of mistreatment, his story became one of the most well documented cases of human rights abuses coming from Russia.  Following Magnitsky's death, Mr. Browder was put on trial in Russia and sentenced in abstensia to nine years in prison.  The $230 million stolen by the government, which included direct links to Putin, was kept in property rights and companies in the US and other western countries.

 

In an attempt to expose this incredible story, Mr. Browder met with US Senators who eventually passed the Magnitsky Act which froze assets and visas of those responsible for Sergei Magnitsky's death.  Putin was furious because he was traced to the $230 million theft, and retaliated by banning US families from adopting Russian children.  The new law signed by President Obama remains, and in a unbelievable twist, another political crisis surfaced when a Russian lawyer met with President Trump's son during the Presidential campaign in an attempt to influence the then Presidential candidate to overturn the Magnitsky Act.  

 

The conclusion to Mr. Browder's incredible story is that Vladimir Putin is not a leader that can be reasoned with.  He is a mafia boss, and an enemy.  Our political leadership must stand up to Putin, and with devastating consequences go after his money.  Amidst numerous threats, in February 2015 Browder published the New York Times bestseller, Red Notice, which recounts his experience in Russia and his ongoing fight for justice for Sergei Magnitsky.  

Roger is happy that he won the raffle.  Jon is happy for an amazing Ducky Derby and thanked Head Duck Mike, Susan and others.  Roger is happy for the Ducky Derby success and happy to be a part of such a great event.  Maurice is happy for Margo (the perfect exchange student), and happy for the new exchange student coming from Denmark.  Mike is happy for the club, a great Ducky Derby, and for his guest Linda.  Guest Bruce Golden is happy because he just became the past District Governor in Texas and is happy to get out of Austin.  Steve is happy about the story of Ducky Derby sales winner Hunter Maytin (see article).  Susan is happy that she won first place in the Tour de Rump and because her daughter is with her.  Guest Pascal Uhlrich (the father of former exchange student Margo, and visiting Rotarian) is happy to be in attendance.  Christina is happy that her parents are in attendance and for the upcoming mental health hike up Smuggler benefitting Aspen Strong.  Jeanette is happy because of the product of the Odyssey at the Chapel.  Rob is happy to have a Michelin Star chef at his restaurant and that this event is sold out.  Craig is happy to fill in as President and that today the President does not need to do anything.