Second ADM Broker Questioned in $22 Million Russian Gang Probeby and
Paul Osborne interviewed by police after colleague arrested
Dzmitry Niadzvetski was arrested at ADM in London in March
A second employee from futures brokerage ADM Investor Services International Ltd., a unit of Archer-Daniels-Midland Co., was questioned in an investigation into a Russian organized crime gang when his colleague was arrested in March, according to people with knowledge of the situation.
Paul Osborne, an account executive at ADMISI, was interviewed by police after Dzmitry Niadzvetski was arrested, five people said, who asked not be identified because Osborne’s name isn’t public. Osborne and Niadzvetski are both listed as inactive on the U.K. regulator’s list of industry approved persons as of March 23, the day of the arrest. They have both been suspended from ADMISI, four of the people said.
The investigation came to light last month after London police said they’d seized $22 million from five trading accounts of an unidentified broker who was arrested in March on suspicion of using the Intercontinental Exchange Inc. futures market to launder money from a Russian organized crime gang. Niadzvetski was arrested early in the morning at ADMISI’s London offices, the people said.
Four companies, including a Russian oil firm and a Swiss investment company, are thought to be acting as a front for the group to move money out of Russia through the U.K., the police said in a May 9 statement.
Before Niadzvetski became an account executive in 2012, he was a broker at now-defunct MF Global Holdings Ltd. for 12 years, according to his LinkedIn profile. Osborne also worked at MF Global with Niadzvetski and moved to ADMISI at the same time, his LinkedIn profile shows.
A woman who answered at a phone number for Niadzvetski said she would pass on a message. He didn’t respond to messages sent through social media. Osborne didn’t respond to LinkedIn and Facebook messages. ADMISI declined to provide contact details for him and a phone number wasn’t listed.
ICE reiterated its statement from last month, saying the exchange is assisting police and “notified the authorities immediately upon detecting suspicious trading activity.”
A spokesman for ADMISI and the U.K. Financial Conduct Authority declined to comment. Officials at the City of London Police declined to comment on the identity of the individuals.
Niadzvetski’s arrest was the result of a four-month investigation by the City of London Police’s money laundering unit. He was released on bail until July without any charges being filed. No one has been charged in the case, City of London Police said.
The U.K. government has been trying to crack down on money laundering in Britain. Prime Minister David Cameron outlined plans last month to extend legislation to make companies liable for their employees’ complicity in money laundering and fraud.