Alex Konanykhin
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Alex Konanykhin (born Alexander Pavlovich Konanykhin (russian: Александр Павлович Конаныхин) September 25, 1966) is an entrepreneur and former banker. He started his career by founding a private bank in Russia towards the end of communist rule. Konanykhin is sometimes spelled as Konanykhine. Konanykhin and his wife left Russia in 1992, and seven years later were granted
political asylum The right of asylum (sometimes called right of political asylum; ) is an ancient juridical concept, under which people persecuted by their own rulers might be protected by another sovereign authority, like a second country or another ent ...
in the United States. The asylum grants were reversed in 2004, but reinstated in 2007. He spent his business career largely in the United States, being a citizen of Italy, Russia, and Argentina. He has founded companies including KMGi Group and TransparentBusiness.


Early life

Konanykhin studied at the Department of Space Research at the
Moscow Institute of Physics and Technology Moscow Institute of Physics and Technology (MIPT; russian: Московский Физико-Технический институт, also known as PhysTech), is a public research university located in Moscow Oblast, Russia. It prepares speciali ...
to pursue a career in engineering.Constable, Pamela
Russian Pair in Custody, Accused of Embezzlement.
Washington Post, June 29, 1996
In 1986, he was expelled from MIPT for running a small business during his summer vacation.William Norman Grigg, "Cozy with the KGB", ''The New American'', Volume 13, Number 20, September 29, 1997. After his expulsion, he took advantage of the loosening business climate during Mikhail Gorbachev's economic reforms ('' perestroika''). Within a few years, he became the head of a $30 million construction enterprise.Pamela Constable
"From Russia with Chutzpah"
''The Washington Post'', August 18, 1996.


Career in Russia

In 1991, Konanykhin was the founder, co-owner, and President of the Russian Exchange Bank, which became the first institution to receive a currency-trading license from the Yeltsin government. In 1992, he was one of the delegates to accompany Yeltsin to Washington, D.C., where they met with President George H. W. Bush, and afterwards, in Canada with Prime Minister Brian Mulroney. Richard Sakwa named him the wealthiest person in Russia at that time, with an estimated $300 million in net worth. He had developed about 100 different companies within Russia by this time, when he was twenty-five years old. In 1992 he was kidnapped while on a business trip to
Budapest Budapest (, ; ) is the capital and most populous city of Hungary. It is the ninth-largest city in the European Union by population within city limits and the second-largest city on the Danube river; the city has an estimated population ...
, during which time his business assets in Russia were seized. This account is according to Alex himself. Russian sources have a different account of events, based on a US court case. Konanykhin claims he fled to New York where he delivered protest letters to senior Moscow officials and members of the press warning of the looming " mafiocracy". This prompted an investigation by the Moscow-based military prosecutor's office, and Konanykhin soon found himself under investigation. The prosecutor, Alexander Volvodez, now charged Konanykhin with illegally wiring $8.1 million from the Russian Exchange Bank to overseas accounts, and many other crimes, and demanded his extradition to Russia. All charges were later dropped. As hearings in American federal court would later show, during this time the
FBI The Federal Bureau of Investigation (FBI) is the domestic intelligence and security service of the United States and its principal federal law enforcement agency. Operating under the jurisdiction of the United States Department of Justice, t ...
had opened a division in Moscow; because American prosecutors and FBI officials were anxious to develop a relationship with Russian law enforcement officials, they had agreed to assist Volvodez in his request for Konanykhin's deportation. However, as Russia and the United States do not have an extradition treaty, Justice Department officials agreed to try to deport him for violating immigration laws under a minor visa violation. The allegation was later proven false and dismissed during Konanykhin's first grant of asylum in 1999.


First immigration trial

On June 27, 1996, Immigration and Naturalization Service (INS) agents along with Russian federal prosecutors arrested Konanykhin and his wife, Elena Gratcheva, at their Watergate apartment in
Washington, D.C. ) , image_skyline = , image_caption = Clockwise from top left: the Washington Monument and Lincoln Memorial on the National Mall, United States Capitol, Logan Circle, Jefferson Memorial, White House, Adams Morgan, ...
The couple was taken to
Arlington County Arlington County is a county in the Commonwealth of Virginia. The county is situated in Northern Virginia on the southwestern bank of the Potomac River directly across from the District of Columbia, of which it was once a part. The county ...
, and charged in federal immigration court with violating the conditions of their temporary U.S. visas. Between July 19 and August 2, 1996, hearings were held by Judge John M. Bryant to determine if, as Konanykhin claimed, his deportation was being masterminded by Russian prosecutor Volvodez for political reasons, and if Konanykhin's life and/or freedom were in danger. The trial touched upon issues as to whether the
secret police Secret police (or political police) are intelligence, security or police agencies that engage in covert operations against a government's political, religious, or social opponents and dissidents. Secret police organizations are characteristic of ...
had taken over the Russian banking industry, and also if the United States government had been fooled into going after Konanykhin. In court Konanykhin testified he was being targeted by Volvodez and the Russian government because of his anti-corruption campaign, and his lawyers argued that he had transferred money to private accounts to prevent it from being stolen.
, michaelmaggio.org; December 10, 1996.
Appearing as witnesses at the trial were FBI agents who testified that the Russian mafia had previously taken out a contract on Konanykhin's life. Also appearing were former Immigration and Naturalization Service, INS prosecutor, Antoinette Rizzi, who had previously been in charge of the government's case against Konanykhin, and former KGB agent
Yuri Shvets Yuri may refer to: People and fictional characters Given name *Yuri (Slavic name), the Slavic masculine form of the given name George, including a list of people with the given name Yuri, Yury, etc. * Yuri (Japanese name), also Yūri, feminine Ja ...
. Both Rizzi and Shvets testified that they had serious doubts about the charges filed against Konanykhin by Volvodez and the American government. On August 26, 1997, in federal court in Arlington County, a settlement agreement was reached between Konanykhin, who had spent more than 13 months in INS custody, although Gratcheva had been released on supervision, and the District Director of the Arlington INS District Office, and endorsed by District Judge T. S. Ellis III. Judge Ellis stated that he found the testimonies of Yuri Shvets and Antoinette Rizzi in Konanykhin's immigration case "credible and somewhat disturbing". ordered the INS to pay $100,000 of Konanykhin's legal fees to pro bono counsel at Arent Fox Kintner Plotkin & Kahn.Alexander, "Russian Freed, INS Faces Ethics Probe". The settlement also ordered Assistant U.S. Attorney Robert Spencer to confirm within 30 days that there would be an internal probe by the
Department of Justice A justice ministry, ministry of justice, or department of justice is a ministry or other government agency in charge of the administration of justice. The ministry or department is often headed by a minister of justice (minister for justice in a ...
into the conduct of INS lawyers at the hearing.


Libel lawsuits and political asylum

In a lawsuit filed in February 1997 with the Arlington County Circuit Court, Konanykhin alleged defamation against the daily Russian newspaper ''
Izvestia ''Izvestia'' ( rus, Известия, p=ɪzˈvʲesʲtʲɪjə, "The News") is a daily broadsheet newspaper in Russia. Founded in 1917, it was a newspaper of record in the Soviet Union until the Soviet Union's dissolution in 1991, and describes i ...
'' which had reported that Konanykhin was involved in various criminal acts. The suit claimed that the information was erroneous and published with "reckless disregard for its truth or actual malice."Jessica S. Buel, "Jury Awards Russian $33 M Damage Ruling", ''The Arlington Journal'', December 15, 1999. An Arlington County Circuit Court jury recommended Konanykhin be awarded $33.5 million. Soon thereafter the same court awarded him an additional $3 million in a libel case against the Russian financial journal ''
Kommersant ''Kommersant'' (russian: Коммерсантъ, , ''The Businessman'' or Commerce Man, often shortened to Ъ) is a nationally distributed daily newspaper published in Russia mostly devoted to politics and business. The TNS Media and NRS Russia ...
''. According to ''
The Sunday Times ''The Sunday Times'' is a British newspaper whose circulation makes it the largest in Britain's quality press market category. It was founded in 1821 as ''The New Observer''. It is published by Times Newspapers Ltd, a subsidiary of News UK, w ...
'', in 2010 the amount remained the largest amount ever awarded to an individual in a libel suit. On February 23, 1999, Judge Bryant granted political asylum to Konanykhin and Gratcheva, saying the former banker faced persecution and possible death if returned to Russia to face embezzlement charges. In his decision, Bryant wrote that testimony from several experts had convinced him that Konanykhin was being targeted for prosecution for political reasons. Temporarily freed from his trials with the Russian and American governments, Konanykhin and Gratcheva went on to develop a $100 million Internet startup in New York called KMGi, among other businesses. On November 20, 2003, however, the
Board of Immigration Appeals The Board of Immigration Appeals (BIA) is an administrative appellate body within the Executive Office for Immigration Review of the United States Department of Justice responsible for reviewing decisions of the U.S. immigration courts and cert ...
revoked Konanykhin's political asylum and ordered him returned to Russia. The ruling came less than a month (October 25, 2003) after the arrest of Mikhail Khodorkovsky, Konanykhin's former banking rival in Russia and business partner during his exile. Konanykhin had served as vice president for the international development of Khodorkovsky's bank, Menatep.


Second immigration trial

Konanykhin and Gratcheva fled to the Canada–United States border to evade immigration authorities. There, on December 18, 2003, they were arrested by several
Department of Homeland Security The United States Department of Homeland Security (DHS) is the U.S. federal executive department responsible for public security, roughly comparable to the interior or home ministries of other countries. Its stated missions involve anti-terr ...
agents at the
Peace Bridge The Peace Bridge is an international bridge between Canada and the United States at the east end of Lake Erie at the source of the Niagara River, about upriver of Niagara Falls. It connects Buffalo, New York, in the United States to Fort Er ...
.Douglas Farah,
Couple Tied to Putin Foes, Fights Deportation
, ''Washington Post'', January 9, 2004.
Konanykhin and Gratcheva were saved from deportation at the last minute by a series of emergency hearings in Federal Court. On January 26, 2004, Judge Ellis delivered his ruling, which found the arrest unlawful, and allowed the couple to stay in the United States temporarily until appeals in their immigration case were exhausted. For the second time the Department of Justice was ordered to pay compensation to Konanykhin for unlawful arrest. In 2005, all charges against him in Russia were dropped. On September 18, 2007, in a federal courtroom in
Alexandria, Virginia Alexandria is an independent city in the northern region of the Commonwealth of Virginia, United States. It lies on the western bank of the Potomac River approximately south of downtown Washington, D.C. In 2020, the population was 159,467. ...
, Konanykhin was granted asylum for the second time. Overall, Konanykhin successfully filed five different lawsuits against the US government as a part of the process.


Career in America

He and his first wife established the Internet firms KMGi (an advertising agency), Publicity Guaranteed (a public relations firm), and The Syndicated News, an online marketplace. In 2004, Konanykhin was named "New York Businessman of the Year" by the
Republican National Committee The Republican National Committee (RNC) is a U.S. Political action committee, political committee that assists the Republican Party (United States), Republican Party of the United States. It is responsible for developing and promoting the Republi ...
. His firm, KMGi established a subsidiary, WikiExperts.us, a business centered around creating Wikipedia articles for companies. Paid editing of Wikipedia has sparked considerable debate due to conflicts of interest. Konanykhin has called for a boycott of Wikipedia fundraising campaigns, "We believe that boycotting fundraising efforts of Wikipedia might compel it to raise billions via advertising and develop content of significantly better quality." reprinted on wikiexperts.us His company WikiExperts.us, which offers editing services on Wikipedia, was banned from editing on the online encyclopedia on October 17, 2013. In 2011 Konanykhin was named the winner of the WW IT Visionary Award by ''CIO Magazine'' (in Spanish: ''WW IT Visionary 2011 de CIO America Latina''). In 2011 Konanykhin's firm KMGi founded TransparentBusiness, which allows employers or clients to monitor the activity of those working for them on computers. He developed the idea for the company while dealing with the monitoring of those in his own company, before the software grew into its own business. As of 2017 the software was in use in 98 countries. In 2018, Konanykhin began working with legislators in states including Rhode Island in order to introduce bills such as H-7788 and S-2660 to try to mandate government contractors to verify the hours they billed to the government. He also worked with the New Jersey State Assembly on draft bill NJ A3989, in addition with other states such as Missouri, Illinois, and Minnesota, with twenty-two states having proposed bills for billing verification as of February 2019. In 2018 the company opened a $10 million 506(c) offering for a ten percent stake, following a $1.5 early investment round. In 2019 Konanykhin appeared on the ''
City & State ''City & State'' is a political journalism organization based in New York City. The company publishes a weekly magazine covering politics and government in New York City and New York State that is distributed to New York State legislators, count ...
'' "New York Tech Power 50" list.


''Unicorn Hunters''

In 2021 Konanykhin became one of seven entrepreneurs to form the "Circle of Money" on the streaming television series ''Unicorn Hunters''. The television panel also includes Steve Wozniak,
Lance Bass James Lance Bass (; born May 4, 1979) is an American singer, dancer, actor, film, and television producer. He grew up in Mississippi and rose to fame as the bass singer for the American pop boy band NSYNC. NSYNC's success led Bass to work in film ...
,
Rosa Gumataotao Rios Rosa Gumataotao Rios (born July 17, 1965) is an American academic. She served as the 43rd Treasurer of the United StatesCarla Marinucci"Obama selects Bay Area Latina as his choice for U.S. Treasurer,"''San Francisco Chronicle'' (May 15, 2009). an ...
, Moises Vela, Scott Livingston, and
Silvina Moschini Silvina Moschini (born 1972) is an Argentine entrepreneur. As a businesswoman, she is the founder of Yandiki, SheWorks!, and Intuic and the president of KMGi Group. As an analyst of Internet trends, she appears on networks including CNN en Esp ...
. According to ''Real Screen'' the show intends to, "show mixes entertainment with the potential for consumers to back select pre-IPO investment opportunities, thereby democratizing wealth creation." The show streamed on Amazon Prime, in addition to other platforms. While the seven investors represented on the panel choose to invest or not as prospective companies pitch their businesses, viewers of the show are also able to invest their own funds in the businesses featured.


Unicoin

The company behind the television show released the cryptocurrency unicoin in February 2022. According to fellow founder Steve Wozniak, the coin is tied to the financial results of the companies that the Unicorn Hunters and the show’s viewers have invested in, making it an asset backed cryptocurrency. When investing with unicoin, investors won’t own a stake in the companies themselves, but unicoin will hold the stake, allowing for it to increase in value with the value of the investment. Soon after its founding it became considered a securities token by the SEC. $25 million in unicoins had been sold by May 2022.


Bounty on Putin's head

On March 1, 2022 during the
2022 Russian invasion of Ukraine On 24 February 2022, in a major escalation of the Russo-Ukrainian War, which began in 2014. The invasion has resulted in tens of thousands of deaths on both sides. It has caused Europe's largest refugee crisis since World War II. ...
, Konanykhin announced on social media that he was offering a $1 million bounty for the arrest of
Vladimir Putin Vladimir Vladimirovich Putin; (born 7 October 1952) is a Russian politician and former intelligence officer who holds the office of president of Russia. Putin has served continuously as president or prime minister since 1999: as prime min ...
with the text "Wanted: Dead or Alive. Vladimir Putin for mass murder". Despite the wording of his online poster, Konanykhin subsequently re-iterated that he was not advocating assassination, but admitted that he would celebrate Putin's death.


Published works

* ''Defiance: How to Succeed in Business Despite Being Hounded by the FBI, the KGB, the INS, the Department of Homeland Security, the Department of Justice, Interpol, and Mafia Hitmen'' Renaissance Publishing, 2006;


Personal life

Brian Haig Brian Fox Haig (born March 15, 1953) is an American thriller author and Fox News military analyst. Early life and family Haig's father was former U.S. Secretary of State Alexander Haig (1924–2010); his mother is Patricia (née Fox). He has a ...
's book, ''The Hunted'' (), is a novel based on the life of Alex Konanykhin and Elena Gratcheva. The book is dedicated to the late Gratcheva. In 2016 the ''
USA Today ''USA Today'' (stylized in all uppercase) is an American daily middle-market newspaper and news broadcasting company. Founded by Al Neuharth on September 15, 1982, the newspaper operates from Gannett's corporate headquarters in Tysons, Virgi ...
'' reported that Konanykhin was moving to Canada due to the election of
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of P ...
. On February 27, 2022, Konanykhin promised in a Facebook post to pay a $1,000,000 bounty for the arrest of
Vladimir Putin Vladimir Vladimirovich Putin; (born 7 October 1952) is a Russian politician and former intelligence officer who holds the office of president of Russia. Putin has served continuously as president or prime minister since 1999: as prime min ...
for war crimes. The site removed his post later on.https://www.facebook.com/story.php?story_fbid=10158124190715286&id=637610285


See also

*
List of people granted political asylum This is a list of people granted political asylum for individual and publicly known reasons. They were persecuted because of their actions as individuals, not because they were members of a persecuted group. Individual reasons for persecution c ...


References

* * * * * * * * * * * * * * {{DEFAULTSORT:Konanykhin, Alex 1966 births Living people Naturalized citizens of Argentina Soviet emigrants to Argentina Moscow Institute of Physics and Technology alumni American computer businesspeople Critics of Wikipedia Russian bankers Russian businesspeople in the United States Russian activists against the 2022 Russian invasion of Ukraine Soviet businesspeople Soviet bankers