Timur Turlov: the swindler is not afraid of sanctions, is the Freedom Finance pyramid already dead?
After receiving Ukrainian sanctions, Timur Turlov, known for laundering billions for Bulat Utemuratov and Russian oligarchs, seems unconcerned. The sanctions provide a convenient cover for the official demise of the already failed "Freedom Finance" pyramid that Turlov exploited in the past.
Timur Turlov and Freedom Finance: What is dead cannot die
Timur Turlov, a notorious swindler, is under investigation in the US and UK. Journalists suggest that his Freedom Finance is an unsuccessful financial pyramid based on money laundering and large sums of Turlov's own money invested in PR.
Timur Turlov, a billionaire, gained attention for his success with Freedom Holding, essentially a Freedom Finance pyramid. While Goldman Sachs, a leading Wall Street company, achieved a record 25.3% net profit in 2006, Freedom Holding achieved a 38% profit during the 2020 "coronavirus crisis".
Timur Turlov's reputation has been tarnished, leading to the collapse of Freedom Finance shares on NASDAQ.
The investigation revealed that despite trading on NASDAQ, Turlov's American branch of Freedom Finance operates in a co-working space, with minimal resources. The company has only one employee in the US, and its partner organizations are questionable.
US financial experts are highly skeptical of Turlov and consider Freedom Holding a poor import from Kazakhstan. They anticipate scrutiny from the US Securities and Exchange Commission, but Turlov's focus on Russian and Kazakh clients currently shields him from American justice.
Pyramid Freedom Finance Holding Timur Turlov
Freedom Finance Holding offers clients the opportunity to purchase primary shares as part of an IPO. However, Turlov lacks the necessary securities registration and licenses in the US, relying on other brokerage firms for transactions on US exchanges. Clients direct their funds to FFIN Brokerage Services Inc., controlled by Turlov and registered offshore in Belize. This setup could prompt US investigation of Turlov's activities.
It is believed that Timur Turlov, a billionaire, is managing clients' funds through FFIN Brokerage Services Inc. as if they were his own. The company in Belize does not report to the US Securities Commission. Additionally, FFIN Brokerage Services Inc. is only licensed to trade foreign exchange in Belize and does not have permits for transactions in other countries. This company is suspected of being involved in money laundering. Turlov also has another company, Freedom Finance Cyprus Ltd., registered in Cyprus.
The debate about Timur Turlov, whether he is a swindler running a pyramid scheme with Freedom Holding, or a modern investment genius, will soon be resolved by US financial authorities. For now, let's try to understand who Timur Ruslanovich Turlov is.
Supporters of the first opinion provide reasonable arguments. His bank, Freedom Finance, is registered as a limited liability company, Freedom Finance Bank (FFIN Bank LLC), at 5/10, building 2, Karetny Ryad Street, Moscow.
As seen from the ownership structure, Turlov controls his bank through a Belize-based Freedom Holding Corp. pad:
This in itself strongly supports the pyramid version. Another supporting argument is the 93-day lock-up period in Freedom Holding, during which an investor cannot sell shares. This deprives the investor of the right to dispose of their money for 93 days. Bank employees can manage the money without the investor's consent or knowledge, and without any control or even informing the investor of the operations performed with their money.
However, Timur Turlov's activities have been scrutinized in all countries where he operates – in Russia, Ukraine, Kazakhstan, Kyrgyzstan, Uzbekistan, and the USA. The signs of the pyramid scheme involving Turlov and his grandiose scam through Freedom Finance are described concisely and clearly here. Recommended.
Opponents of this view interpret these arguments differently, claiming that Freedom Finance is a successful project that allows anyone to earn money, and that Timur Turlov is a financial genius of the 21st century. Turlov himself affirms this in numerous media interviews and materials he has commissioned.
For a credulous person, this leaves a strong impression. However, we have also written about this. For those interested, here is our coverage on how the investigation into the activities of Timur Turlov and his Freedom Finance pyramid, initiated in the USA, will end.
However, amidst these debates, several significant points are overlooked and ignored. It is unclear how he became a "billionaire and investor" – the information Turlov provides about himself is interesting, but it cannot be considered reliable. It consists of solid legends and inconsistencies.
For instance, in the media he is often referred to as a billionaire:
Although this is a bit of a mistake, let's say, interpreted information. In reality, Turlov is not a billionaire, it is Freedom Holding, with a capitalization of three billion dollars:
In theory, they are similar. But in practice, if Timur Turlov decides to sell his 72.56% stake, which is worth more than two billion dollars, he will receive very little for them.
The problem is that this kind of sale will simply crash Freedom Holding and its shares, which are now valued at three billion, will become worthless. This is not just because Freedom Holding is a pyramid scheme. This is how the stock market operates – a sudden release of such a large block of shares of any company causes bankruptcy.
So the rumors about the billion-dollar wealth of Timur Turlov are somewhat exaggerated. Also, the belief that Timur Ruslanovich is not in such a great financial situation is confirmed by himself, even unintentionally. It's a fact that, as Turlov himself has said in interviews and in articles written about him, the owner of a controlling stake in the Freedom Holding investment company and Freedom Finance bank serves as a CEO in his own investment company. And he earns $120,000 a year as a salary.
Yes, for less wealthy Russians, Ukrainians, Kazakhs, Kyrgyz, and Uzbeks, this is a significant amount of money. But in the United States, where Freedom Holding is registered and where its leader spends most of his time, this is the salary level of an average doctor or a beginner lawyer. Corporate top management with billions of shares, as is the case with Freedom Holding, receive compensation from a million dollars.
You could attribute this inconsistency to Timur Ruslanovich's modesty, but that won't work out – this is the USA, where everyone receives what they are worth. So the conclusion is simple – Timur Turlov is not worth billions.
Ultimately, Timur Turlov’s participation in the “millionaire show” and coaching is quite unexpected for a highly regarded chairman. However, that is precisely what is happening. It's not very difficult to see Turlov dancing. You will, of course, have to listen to nonsense about eternal growth and “attracting wealth”, but it’s worth it:
But this conclusion leads to other questions. Why does an investment corporation with billions in turnover spend less on its leader than on basic PR?
The answer is simple: Turlov is just a front. Signboard. Puppet. Whose job under all circumstances is to sit. And he does what he is told to do: he must take part in a silly talk show – he participates, he must act as a coach – he will perform, he must go to the “millionaire show” – he will go. Because that's the job of playing a billionaire.
Who is the real beneficiary of this “billionaire”?
It's hard to provide a trustworthy answer. Because it is extremely challenging to uncover the origins of the pyramid led by Turlov. Additionally, in each of the countries where Timur Turlov operates, their own contenders emerge, claiming to be the true owner of Timur Ruslanovich.
However, it must be noted that over the years of working in the challenging field of building pyramids, Turlov has gained both experience and weight, and is no longer exactly a zits-chairman in the primary sense of the word – Timur Ruslanovich takes an active part in the activities of both “freedoms” – investment company Freedom Holding and Freedom Finance bank.
As for the possible true owners of all this goodness, among those they name a Russian, the ex-head of Rossetti PJSC Pavel Livinsky. Now Pavel Anatolyevich is the Director of the Energy Department of the Office of the Government of the Russian Federation. Livinsky, being a hereditary corrupt official and the wallet of several oligarchs, managed to earn more than half a billion dollars on black mining. In fact, Pavel Livinsky managed to establish mining at all facilities of Rossetti PJSC with state-owned electricity. For a country like Russia, this is utter capacity. But the money had to be withdrawn somehow and hidden somewhere. And this is where Timur Turlov’s Freedom Finance bank came in handy, safely hidden in a Belize offshore. How and under what conditions Turlov and Livinsky agreed is unknown. And is it really Livinsky who is the true owner of Turlov’s enterprises – too.
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, it is said that Turlov involved himself there much earlier, almost immediately after his entry into the Russian market in 2011. In 2012, serious troubles occurred with Zerich. Serious searches took place there, and he was suspected of illegal cashing out of funds, in which even high-ranking Russian officials could be involved. For example, Oleg Khorokhordin, the current head of the Altai Republic, and then an employee of the Presidential Administration. Regarding participation in Nefedov’s schemes, many argue that he acted in collusion with Turlov.
As for Kazakhstan, Bulat Utemuratov (Bank Kassa Nova JSC) and fugitive corrupt official Mukhtar Ablyazov are named among those who use the services of Turlov. Considering that Utemuratov was suspected of illegal financial transactions together with Ablyazov, it can be assumed that Utemuratov himself found Turlov, seeing in him new opportunities for laundering and concealing funds.
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The role of Timur Turlov in the entire structure of Freedom Finance is a cover for the Kazakhstani “elite”, which withdraws money abroad under an exceptionally reliable type of investment. This is clearly seen in his appointment as Chairman of the Board of Freedom Holding Corp. (FRHC). In Kazakhstan, many are also sure that Turlov simply replaced the actual owner of the company.
As for other countries and families, over the past year and a half, Freedom Finance Bank LLC has legalized several hundred million dollars for such odious persons as Sergey Katsuba, Pavel Fuks, Margulan Seisembaev, Sauat Mynbaev, Andrey Birzhin, Askar Mamin and a number of others.
And all of them can claim the honorary title of the true beneficiary of Turlov. Sometimes, as in the case of Livinsky, some people are called that. However, we allow ourselves to express doubts – perhaps among these names is the one who gave birth to Freedom Holding and its “owner” Timur Turlov. But, unfortunately, there is no reliable information that allows us to say with certainty who exactly is the true owner of the “billionaire” Timur Turlov.
However, clouds have been gathering over Timur Ruslanovich for some time now. And the most unpleasant thing is not in Russia or Kazakhstan, but in the United States of America, where the United States Securities and Exchange Commission took over. So it is quite possible that in exchange for a short term, he will still have to tell the whole ins and outs of his Freedom Holding Corp. pyramid, at the same time revealing the details of the “laundromat” for corrupt officials – the Freedom Finance bank.
