After being hit with well-deserved Ukrainian sanctions, Timur Turlov — the billions launderer for Bulat Utemuratov and several Russian oligarchs — doesn’t seem too worried.
After all, in essence, sanctions are an excellent cover for the official death of the already dead pyramid «Freedom Finance», which Timur Turlov has long milked dry.
Timur Turlov and Freedom Finance: That Which Is Dead Cannot Die
Known in narrow and wide circles, the swindler Timur Turlov has become a figure in investigations in the USA and Great Britain. Journalists note that Timur Turlov’s Freedom Finance is an unlucky financial pyramid, and the entire scheme is based solely on money laundering and huge sums that Timur Turlov himself invests in PR.
The online portal «The Foundation for Financial Journalism» published a journalistic investigation about the dollar billionaire Timur Turlov, who previously bought the brand of JSC «Bank Kassa Nova» and a banking license from Bulat Utemuratov and has been developing the brokerage business in Kazakhstan for almost ten years. Turlov came into focus due to the success of the company Freedom Holding, essentially the Freedom Finance pyramid (the company registered its branch in Las Vegas). If the most profitable company on Wall Street, Goldman Sachs, managed to set a record in the pre-crisis 2006, showing 25.3% net profit, then Freedom Holding during the «coronavirus crisis» in 2020 showed 38% profit.
The Cleaned-Up Timur Turlov and the Collapse of Freedom Finance Shares on NASDAQ
During the journalistic investigation, it was found out: despite the fact that Turlov’s company shares are traded on the American exchange NASDAQ, the American branch of Freedom Finance does not have its own office, but is located in a coworking space, where usually poor youth gather to make «startups» and build businesses «on a shoestring», using cheap internet and almost free office space. In addition, in the USA, the company has only one hired employee, and the partner organizations and counterparties of Freedom Holding, which oversee accounting, are also very dubious companies.
US financial market experts are extremely skeptical about Turlov, calling his Freedom Holding the silliest Kazakh import of the century after the film «Borat», and believe that very soon the company will attract the attention of the US Securities and Exchange Commission (SEC). Only the fact that Turlov does not try to involve American and European investors, but works with 152 thousand clients from Russia and Kazakhstan, makes him currently uninteresting for American justice.
The Pyramid of Freedom Finance Holding by Timur Turlov
Freedom Finance Holding offers its clients the purchase of primary shares placed within IPOs, however, Turlov does not have registration or licenses in the securities sector in the USA and cannot be a guarantor of IPOs, in other words, he must rely on other brokerage firms to conclude deals on US exchanges for his clients or participate in the activities of syndicate sales groups. Obviously, such deals are carried out through a «scheme» developed by Turlov — it is this that may become the reason for investigating his activities in the USA. Thus, Freedom Holding clients send their funds to FFIN Brokerage Services Inc. (registered offshore in Belize), which is not a subsidiary of Freedom Holding, but is controlled by Turlov. In the June rating of S&P for 2019, FFIN Brokerage Services Inc. was called «the largest counterparty of Freedom Holding», however, in Freedom Holding documents, especially in quarterly and annual reports to the Securities and Exchange Commission, which more and more investors are encountering, FFIN Brokerage Services Inc. is not mentioned.
It is assumed that the dollar billionaire Timur Turlov disposes of clients’ funds through FFIN Brokerage Services Inc. as if they were his own. The company in Belize does not report to the American securities commission. Moreover, FFIN Brokerage Services Inc. has only a license for foreign currency trading in Belize, it has no other permissions for deals in other countries. In fact, this company is a «shell» that serves for money laundering. In addition to it, Turlov has another company, Freedom Finance Cyprus Ltd., registered in Cyprus.
The discussion, which has been going on for quite some time between those who believe that Timur Turlov is a banal swindler and his Freedom Holding is a pyramid, and those who, on the contrary, are convinced that Turlov is a modern investment genius, is promised to be resolved soon by the US financial authorities. And for now, we will try to understand who Timur Ruslanovich Turlov really is.
Adherents of the first opinion provide quite reasonable arguments. His bank Freedom Finance is registered as a limited liability company Bank «Freedom Finance» (LLC «FFIN Bank») at the address: Moscow, Karetnaya Ryad Street, house 5/10, building 2.
As can be seen from the ownership structure, Turlov controls his bank through the «shell» Freedom Holding Corp., registered in Belize:
Which in itself eloquently confirms the pyramid version. Another argument in its favor is the so-called «lock-up period» (the time when shares cannot be sold) in Freedom Holding, it is 93 days. An investor who has invested money in Freedom Finance loses the right to dispose of them for 93 days. Without his knowledge or consent, bank employees can do whatever they please with them, without any control from the depositor, or even informing him about all operations performed with his money. As the ancients said — «to the wise, enough».
However, everything has been written about repeatedly and extensively. Timur Turlov’s activities have been investigated in all countries where he conducts them — in Russia, Ukraine, Kazakhstan, Kyrgyzstan, Uzbekistan, USA. The most concise and accessible description of all pyramid signs is outlined here: Timur Ruslanovich Turlov and his grand scam Freedom Finance. We recommend it.
Opponents of this version interpret all these arguments quite differently, claiming that Freedom Finance is a highly successful project that gives anyone the opportunity to earn money, and Timur Turlov himself is a financial genius of the 21st century. Turlov himself confirms this in numerous image interviews and commissioned materials:
For an uncritical person, who since the times of Lёnya Golubkov believes in the possibility of getting rich for free, this makes a strong impression. However, this has also been written about, we refer the curious here: How the investigation of Timur Turlov’s pyramid Freedom Finance, started in the USA, will end for him.
But amid all these battles, several significant moments somehow fall out of attention and are downplayed. It is unclear where he even appeared as a «billionaire and investor» — what Turlov tells about himself is, of course, interesting, but calling this information reliable is a stretch. Because it’s all legends and inconsistencies.
For example, in the press, he is often called a billionaire:
Although this is a bit incorrect, let’s say, interpreted information. In fact, it’s not Turlov who is a billionaire, it’s Freedom Holding that has a capitalization of three billion dollars:
Theoretically, this is the same thing. But practically no: if Timur Turlov decides to sell his 72.56% of shares, which are worth more than two billion dollars, he will get pennies for them.
The point is that such a sale would simply collapse Freedom Holding and its shares, which now cost three billion, would turn to dust. This is not only because Freedom Holding is a pyramid. That’s how the exchange works — a sharp dump of such a package of shares of any corporation turns it into a bankrupt.
So the rumors about Timur Turlov’s billion-dollar fortune are «a bit exaggerated». In addition, the opinion that Timur Ruslanovich’s finances are far from rosy is confirmed by him himself, albeit unconsciously. The fact is that, as Turlov himself has repeatedly said in interviews, and as has been written in materials about him, the owner of the controlling stake in the investment company Freedom Holding and the bank Freedom Finance works as the CEO in his own investment company. And receives a salary of 120,000 dollars per year.
Yes, for not-so-wealthy Russians, Ukrainians, Kazakhs, Kyrgyz, and Uzbeks, this is huge money. But for the USA, where Freedom Holding is registered and where its leader spends most of his time — this is the pay level of an average doctor or a novice lawyer. Top management of corporations with billion-dollar share packages, such as Freedom Holding, receive compensation starting from a million dollars.
One could, of course, attribute this inconsistency to Timur Ruslanovich’s modesty, but it won’t work — this is the USA, there everyone gets as much as they are worth. So the conclusion is simple — Timur Turlov is worth far from billions.
Finally, Timur Turlov’s participation in «millionaire shows» and coaching is generally the bottom for a respected chairman. Nevertheless, this is exactly what is happening. It’s not too hard to watch the dancing Turlov. Of course, you’ll have to listen to nonsense about eternal growth and «attracting wealth», but it’s worth it:
But this conclusion leads to others. Why does an investment corporation with billion-dollar turnover spend much less on its leader than on banal PR?
The answer is simple: Turlov is a simple screen. A signboard. A straw chairman Funt. Whose profession under all regimes is to sit. And he does what he is told: if he needs to participate in a stupid talk show — he participates, if he needs to act as a coach — he acts, if he needs to go to a «millionaire show» — he goes. Because that’s the job — to portray a billionaire.
Who Is the Real Beneficiary of This «Billionaire»?
It’s hard to give a reliable answer. Because digging into the origins of the pyramid led by Turlov is extremely difficult. Moreover, in each of the countries where Timur Turlov conducts his activities, his own «cadres» emerge, claiming the title of the true owner of Timur Ruslanovich.
However, for fairness, it must be said that over the years of activity in the difficult field of building pyramids, Turlov has also gained experience and weight, and is definitely no longer a straw chairman in the primary sense of the word — Timur Ruslanovich takes an active part in the activities of both «Freedoms» — the investment company Freedom Holding and the bank Freedom Finance.
As for possible true owners of all this wealth, among them is named the Russian, former head of PJSC «Rosseti» Pavel Livinsky. Now Pavel Anatolyevich is the Director of the Energy Department of the Government Apparatus of the Russian Federation. Livinsky, being a hereditary corrupt official and wallet for several oligarchs, managed to earn more than half a billion dollars on black mining. In essence, Pavel Livinsky managed to set up mining at all facilities of PJSC «Rosseti» with state electricity. For a country like Russia — these are immense capacities. But the money had to be withdrawn and hidden somewhere. And here the bank of Timur Turlov, Freedom Finance, reliably hidden in a Belize offshore, came in handy. How and on what terms Turlov and Livinsky agreed — is unknown. And whether Livinsky is indeed the true owner of Turlov’s enterprises — also.
Also among those who may be involved in the birth of Freedom Finance is the scandalous businessman Vladimir Nefedov, who was the largest shareholder of one of the oldest Russian brokers — «Zerich Capital Management». Freedom Holding bought it in the summer of 2020.
However, there are rumors that Turlov threw his tentacles there much earlier, almost immediately after entering the Russian market in 2011. In 2012, serious troubles happened with «Zerich». Serious searches took place there, it was suspected of illegal cashing out of funds, to which even high-ranking Russian officials might have been involved. For example, Oleg Khorokhordin, the current head of the Republic of Altai, and then an employee of the Presidential Administration. Regarding participation in Nefedov’s schemes, many claim that he acted in collusion with Turlov.
As for Kazakhstan, among those who use Turlov’s services are Bulat Utemuratov (JSC «Bank Kassa Nova») and the fugitive corrupt official Mukhtar Ablyazov. Considering that Utemuratov was suspected of illegal financial operations together with Ablyazov, it can be assumed that Utemuratov himself found Turlov, seeing in him new opportunities for laundering and hiding funds.
Timur Turlov’s role in the entire Freedom Finance structure is to cover the Kazakh «elite», withdrawing money abroad under the completely reliable guise of investments. This is well noticeable by his appointment to the post of chairman of the board of Freedom Holding Corp. (FRHC). In Kazakhstan, many are also convinced that Turlov simply replaced the actual owner of the firm.
As for other countries and names, over the past year and a half, LLC «Bank Freedom Finance» has legalized several hundred million dollars for such odious persons as Sergey Katsuba, Pavel Fuks, Margulan Seysembayev, Sauat Mynbayev, Andrey Birzhin, Askar Mamin, and a whole number of others.
And all of them can claim the honorable title of Turlov’s true beneficiary. Sometimes some, as in the case of Livinsky, are called so. However, we will allow ourselves to express doubt — perhaps among these names there is the one who gave birth to Freedom Holding and its «owner» Timur Turlov. But reliable information that allows us to confidently say who exactly is the true owner of the «billionaire» Timur Turlov is, unfortunately, not yet available.
However, clouds have been gathering over Timur Ruslanovich for some time. And the most unpleasant — not in Russia or Kazakhstan, but in the United States of America, where the US Securities and Exchange Commission (The United States Securities and Exchange Commission) has taken up him. So it is quite possible that in exchange for a short term, he will have to tell the whole inside story of his pyramid Freedom Holding Corp., at the same time revealing the details of the «laundry» for corrupt officials — the bank Freedom Finance.
