OFAC Imposes $4.7 Million Penalty on Real Estate Investor for Dealing in Blocked Russian’s Property

Sale of Blocked Residential Real Property Also Violated OFAC Cease-and-Desist OrderWASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed a $4,677,552 penalty on an individual (“U.S. Person-1”) for violating OFAC sanctions on Russia and failing to comply with an OFAC subpoena. This action—which imposes the statutory maximum penalty—highlights the obligation of all U.S. persons, including individual investors and others in the real estate sector, to comply with OFAC’s sanctions regulations and orders. It results from OFAC’s proactive efforts to identify and prevent dealings in the blocked property of sanctioned individuals.“Under President Trump’s leadership, the United States has put in place strong sanctions against Russia,” said Treasury Under Secretary for Terrorism and Financial Intelligence John K. Hurley. “Today’s action makes clear that Treasury will continue to actively investigate and hold accountable those who violate U.S.