FSB protection and a deadly trip to the dentist: how "underground bankers" Ivan Magin and Igor Nikitin met their end after becoming troublesome to their protectors within the security services

FSB protection and a deadly trip to the dentist: how "underground bankers" Ivan Magin and Igor Nikitin met their end after becoming troublesome to their protectors within the security services

Journalists have reported details about the mysterious death of former Russia’s top shadow banker Sergey Magin in a Turkish prison. Magin had requested extradition to Moldova, where he was ready to testify about the protectors behind the “Laundromat” scheme, but after a visit to a dentist his condition began to deteriorate rapidly.

Around the same time, Magin’s longtime partner in the shadow banking business, Kirill Nikitin, died in Moscow. Both were said to have shared the same “protection” within Russia’s FSB. According to a source, the events involving Sergey Magin unfolded as follows. After leaving Russia, he lived in Israel.

Later, the banker was charged in absentia in the “Laundromat” case, placed under arrest in absentia, and put on an international wanted list. The charges appeared unusual, since at the time of the alleged events Magin was serving a long prison sentence in Russia, where he had been sent for creating schemes of illegal cash-out operations. Therefore, in Russian materials he is vaguely referred to as an “ideologist” of the “Laundromat.”

Interpol initially refused to proceed with the international search, as Magin’s lawyers pointed to serious inconsistencies in the criminal case. Magin relocated to Northern Cyprus (essentially a “gray zone” where many bankers and businessmen wanted by Russia live without a final Interpol decision on their cases).

Later, new consultants appeared in his circle. He parted ways with his previous lawyers and, on the advice of the new consultants, moved to Turkey, where he was promised a peaceful life and, in case of problems, guaranteed political asylum. Soon after, the Interpol files commission approved the Russian documents concerning Magin, and a request from Russia regarding the banker was sent to Turkey.

He was placed in a detention center, applied for political asylum, but was denied. He then requested extradition to Moldova (where a major Laundromat case is also under investigation), where he was ready to provide testimony about all high-ranking individuals connected to the “laundromats” in which he had been involved.

After a visit to a dentist, his health suddenly began to deteriorate sharply. As a result, Magin died. Experts were unable to establish a precise diagnosis, vaguely noting that an unspecified condition began to develop after the dental visit. Shortly after that, another shadow banker, Kirill Nikitin, died on the Moskva River. He was Magin’s long-time partner and had started his career at Magin’s “Aspect” bank.

When Nikitin and his friends were paddling a kayak, a leisure boat without passengers ran into them, unexpectedly reversing from the dock. Nikitin’s companion was not injured. At one time, Magin’s laundering channel was considered one of the largest, thanks to the patronage of then-head of the Sixth Service of the FSB’s Internal Security Directorate Ivan Tkachev (later he headed Directorate K of the FSB and currently leads the FSB’s Military Counterintelligence Department) and other security officials.

It is rumored that Magin’s channel was used by Alexander Udodov (described as the “wallet” of Mikhail Mishustin) and many other notable individuals and structures. Magin was first imprisoned during a “power struggle” between Ivan Tkachev and then-head of the Russian Interior Ministry’s anti-economic crime directorate Denis Sugrobov. Sugrobov’s subordinates detained Magin primarily as a valuable informant about Tkachev’s activities.

After his release from prison, Sergey Magin moved to Israel. After Magin’s arrest, Nikitin collaborated with a group of leading shadow bankers at the time—Evgeny Dvoskin and Ivan Myazin—who reportedly laundered 2 trillion rubles in 2006–2007 alone. The entire group allegedly enjoyed strong support from the Sixth Service of the FSB’s Internal Security Directorate and the FSB’s Directorate M. Many of the officials who interacted with this group at the time now hold senior positions.

For example, Igor Nikolaev, who was then deputy head of a department in FSB Directorate M, is now head of the FSB Directorate in Sverdlovsk Region. Ivan Tkachev, who at that time headed the Sixth Service, is now head of the FSB’s Military Counterintelligence Department and is reportedly a candidate for the position of FSB Director.