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Judicial Watch • JW-v-State-Podesta-Group-production-02489-1 pg. 26-71

JW-v-State-Podesta-Group-production-02489-1 pg. 26-71

JW-v-State-Podesta-Group-production-02489-1 pg. 26-71

Page 1: JW-v-State-Podesta-Group-production-02489-1 pg. 26-71

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Number of Pages:46

Date Created:January 11, 2019

Date Uploaded to the Library:January 11, 2019

Tags:evasion, Miroslav, Finer, Serbias, Belgrade, miskovic, Serbian, Marko, serbia, Delta, 02489, podesta, Criminal, obtained, Group, documents, unclassified, production, State Department, department


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UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569939 Date: 12/20/2018 Judicial Watch, Inc.
From:
Sent:
To:
Cc:
Subject:
Attachments:
Yee, Hoyt
[RELEASE PART BS[
Wednesday, May 25, 2016 12:19
Rubin, Joshua
Yazdgerdi, Thomas Visek, Richard Heffern, John Nuland, Victoria
FW: Documents for meeting with Jon Finer
Delta Background Miskovic Case undated.docx; Key Facts About the Miskovic Case
5-20-16.docx
Josh, hope this reaches you time. Below pis find update and suggested talking points today based input from
Embassy Belgrade:
The Podesta Group paid lobbyist for Delta Holdings and Miskevic. AMB Scott met with Tony Podesta earlier this week,
but tread softly the Miskevic case. The latest development that the son was convicted tax evasion little
while back, and Dads case expected come conclusion soon the courts. Although Miskevics folks have
pressed the issue his need possibly travel abroad for medical treatment the past, Podesta didnt raise this issue our meeting.
Suggested points:
Hoyt
[RELEASE PART BS]
This email UNCLASSIFIED.
From: Heffern, John
Sent: Wednesday, May 25, 2016 3:49
To: Yee, Hoyt Yazdgerdi, Thomas
Subject: FW: Documents for meeting with Jon Finer
This email UNCLASSIFIED.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569939 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569939 Date: 12/20/2018 Judicial Watch, Inc.
From: Rubin, Joshua
Sent: Tuesday, May 24, 2016 8:50
To: Visek, Richard C;- Heffern, John
Subject: FW: Documents for meeting with Jon Finer
Rich, John:
Vin Roberti and Tony Podesta have asked meet with Jon Finer tomorrow about the attached case. there
anything you your teams know that Jon needs know before the meeting? Ive pasted the key facts
document below give you sense.
Thanks very much,
KEY FACTS ABOUT THE MISKOVIC CASE
Serbias prosecution one the countrys most successful businessmen-Miroslav Miskovic,
President Delta Holding-has all the characteristics President Putins prosecution Mikhail
Khodorkovsky.
The 2014 State Department human rights report Serbia identified number irregularities
the case, including intimidation the presiding judge and unlawful detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited the subsequent demotion and
removal the presiding judge the Miskovic case evidence that Serbias courts remained
susceptible corruption and political influence.
Mr. Miskovic, who was held prison for seven months before being charged with any crime, was
eventually indicted
two alleged criminal offenses: abuse office, and assisting tax evasion.
The first these (arising under Article 234 ofthe Serbian Criminal Code) communist-era crime
tliat makes sense free market society-so much that the European Union has demanded
that expunged from Serbian law precondition Serbias admission the EU.
The 2015 State Department human rights report Serbia also criticizes Article 234, citing
overuse the vague abuse office charge for alleged private sector corruption schemes
example corruption and lack transparency government.
The second charge involves allegation that Mr. Miskovics son Marko failed pay capital gains
tax stock transaction, and Mr. Miskovic assisted this tax evasion due his strong influence
over his son. March 25, Marko was convicted tax evasion, despite the fact that had been advised that
the transaction question was not taxable. This advice was provided writing the time the
transaction not only KPMG and other reputable accounting firms, but also officials the
Serbian Ministry Finance.
for
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569939 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569939 Date: 12/20/2018 Judicial Watch, Inc.
Marko was, however, acquitted the abuse office charge. The proceedings related Mr.
Miskovic were postponed due Mr. Miskovics critical health situation, which required treatment
and hospitalization. convict Mr. Miskovics son, the judge the case resorted the unpreced_ented procedure
formally requesting the advice the Serbian parliament whether their opinion the
transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and then formally
voting approve authentic interpretation affirming that the transaction was, their opinion,
taxable notwithstanding the written advice provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced months iri
prison. The same judge expected render verdict the charges against Mr. Miskovic the
very near future.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic will found
guilty assisting that tax evasion, notwithstanding that the evidence presented trial his
control over his sons actions was non-existent. may also found guilty the abuse position charge, notwithstanding that the other
defendants were acquitted that charge and that Serbia under enormous pressure eliminate
this criminal offense.
All this taking place the context recent national election and political controversy ahead the formation new Government led Prime Minister Vucic, who has repeatedly claimed
credit for bringing one ofthe countrys most prominent and successful (but politically unpopular)
businessman justice, and publicly stated that the acquittal Miskovic would personal
defeat for him.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569939 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569946 Date: 12/20/2018 Judicial Watch, Inc.
From:
Sent:
To:
Subject:
Rubin, Joshua
Wednesday, May 25, 2016 2:17
Visek, Richard
RE: Documents for meeting with Jon Finer
Thanks, Rich. Got it.
[RELEASE PART B5j
From: Visek, Richard
Sent: Wednesday, May 25, 2016 2:16
To: Rubin, Joshua
Subject: RE: Documents for meeting with Jon Finer
Josh For reference, Kathleen Hooke now supervises L/EUR and L/LEI llaw enforcement). She should looped going
forward. Regards, Rich
SBU
This email UNCLASSIFIED.
From: Rubin, Joshua
Sent: Wednesday, May 25, 2016 12:23
To: Yee, Hoyt
Cc: Yazdgerdi, Thomas Visek, Richard Heffern, John Nuland, Victoria
Subject: RE: Documents for meeting with Jon Finer
Thanks very much for this.
From: Yee, Hoyt
Sent: Wednesday, May 25, 2016 12:19
To: Rubin, Joshua
Cc: Yazdgerdi, Thomas Visek, Richard Heffern, John Nuland, Victoria
Subject: FW: Documents for meeting with Jon Finer
Josh, hope this reaches you time. Below pis find update and suggested talking points today based input from
Embassy Belgrade:
The Podesta Group paid lobbyist for Delta Holdings and Miskevic. AMB Scott met with Tony Podesta earlier this week,
but tread softly the Miskevic case. The latest development that the son was convicted tax evasion little
while back, and Dads case expected come conclusion soon the courts. Although Miskevics folks have
~ressed the issue his need possibly travel abroad for medical treatment the past, Podesta didnt raise this issue our meeting.
Suggested points:
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569946 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569946 Date: 12/20/2018
Hoyt
This email UNCLASSIFIED.
From: Heffern, John
Sent: Wednesday, May 25, 2016 3:49
To: Yee, Hoyt Yazdgerdi, Thomas
Subject: FW: Documents for meeting with Jon Finer
This email UNCLASSIFIED.
From: Rubin, Joshua
Sent: Tuesday, May 24, 2016 8:50
To: Visek, Richard Heffern, John
Subject: FW: Documents for meeting with Jon Finer
Rich, John:
Vin Roberti and Tony Podesta have asked meet with Jon Finer tomorrow about the attached case. there
anything you your teams know that Jon needs know before the meeting? Ive pasted the key facts
document below give you sense.
Thanks very much,
KEV FACTS ABOUT THE MISKOVIC CASE
Serbias prosecution one the countrys most successful businessmen-Miroslav Miskovic,
President Delta Holding-has all the characteristics President Putins prosecution Mikhail
Khodorkovsky.
The 2014 State Department human rights report Serbia identified number irregularities
the case, including intimidation the presiding judge and unlawful detention Mr. Miskovic.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569946 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569946 Date: 12/20/2018 Judicial Watch, Inc.
The 2015 State Department human rights report Serbia cited the subsequent demotion and
removal the presiding judge the Miskovic case evidence that Serbias courts remained
susceptible corruption and political influence.
Mr. Miskovic, who was held prison for seven months before being charged with any crime, was
eventually indicted for two alleged criminal offenses: abuse office, and assisting tax evasion.
The first these (arising under Article 234 the Serbian Criminal Code) communist-era crime
that makes sense free market society-so much that the European Union has demanded
that expunged from Serbian law precondition Serbias admission the EU.
The 2015 State Department human rights report Serbia also criticizes Article 234, citing
overuse the vague abuse office charge for alleged private sector corruption schemes
example corruption and lack transparency government.
The second charge involves allegation that Mr. Miskovics son Marko failed pay capital gains
tax stock transaction, and Mr. Miskovic assisted this tax evasion due his strong influence
over his son. March 25, Marko was convicted tax evasion, despite the fact that had been advised that
the transaction question wa~ not taxable. This advice was provided writing the time the
transaction not only KPMG and other reputable accounting firms, but also officials the
Serbian Ministry Finance.
Marko was, however, acquitted the abuse office charge. The proceedings related Mr.
Miskovic were postponed due Mr. Miskovics critical health situation, which required treatment
and hospitalization. convict Mr. Miskovics son, the judge the case resorted the unprecedented procedure
formally requesting the advice the Serbian parliament whether their opinion the
transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and then formally
voting approve authentic interpretation affirming that the transaction was, their opinion,
taxable notwithstanding the written advice provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced months
prison. The same judge expected render verdict the charges against Mr. Miskovic the
very near future.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic will found
guilty assisting that tax evasion, notwithstanding that the evidence presented trial his
control over his sons actions was non-existent. may also found guilty the abuse position charge, notwithstanding that the other
defendants were acquitted that charge and that Serbia under enormous pressure eliminate
this criminal offense.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569946 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569946 Date: 12/20/2018 Judicial Watch, Inc.
All this taking place the context recent national election and political controversy ahead the formation new Government led Prime Minister Vucic, who has repeatedly claimed
credit for bringing one the countrys most prominent and successful (but politically unpopular)
businessman justice, and publicly stated that the acquittalof Miskovic would personal
defeat for him.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569946 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06604599 Date: 12/20/2018 Judicial Watch, Inc. DISCERNIBLE CLASSIFICATION
Rubin, Joshua
Wednesday, May 25, 2016 8:05
Visek, Richard Heffern, John Hooke, Kathleen
RE: Documents for meeting with Jon Finer
From:
Sent:
To:
Subject:
Thanks, Rich. Just wanted follow this, and thanks again.
From: Visek, Richard
Sent: Tuesday, May 24, 2016 2:52
To: Rubin, Joshua Heffern, John Hooke, Kathleen
Subject: RE: Documents for meeting with Jon Finer
!RELEASE FULLJ Kathleen
SBU
This email is.UNCLASSIFIED.
From: Rubin, Joshua
Sent: Tuesday, May 24, 2016 2:50
To: Visek, Richard Heffern, John
Subject: FW: Documents for meeting with Jon Finer
Rich, John:
Vin Roberti and Tony Podesta have asked meet with Jon Finer tomorrow about the attached case. there anything you your teams know that Jon needs know before the meeting? rve pasted the key facts
document below give you sense.
Thanks very much,
,..
KEY FACTS ABOUT THE MISKOVIC CASE
Serbias prosecution one the countrys most successful businessmen-Miroslav Miskovic,
President Delta Holding-has all the characteristics President Putins prosecution Mikhail
Khodorkovsky.
The 2014 State Department human rights report Serbia identified number irregularities
the case, including intimidation the presiding judge and unlawful detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited the subsequent demotion and
removal t_he presiding judge the Miskovic case evidence that Serbias courts remained
susceptible corruption and political influence. DISCERNIBLE CLASSIFICATION
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604599 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06604599 Date: 12/20/2018 Judicial Watch, Inc. DISCERNIBLE CLASSIFICATION
Mr. Miskovic, who was held prison for seven months before being charged with any.crime, was
eventually indicted for two alleged criminal offenses: abuse office,. and assisting tax evasion.
The first these (arising under Article 234 the Serbia,:i Criminal Code) communist-era crime
that makes sense free market society-so much that the European Union has demanded
that expunged from Serbian law precondition Serbias admission the EU.
The 2015 State Department. human rights report Serbia also criticizes Article 234, citing
overuse the vague abuse office charge for alleged private sector corruption schemes
example corruption and lack transparency government.
The second charge involves allegation that Mr. Miskovics son Marko failed pay capital gains
tax stock transaction, and Mr. Miskovic assisted this tax evasion due his strong influence
over his son. March 25, Marko was convicted tax evasion, despite the fact that had been advised that
the transaction question was not taxable. This advice was provided writing the time the
transaction not only KPMG and other reputable accounting firms, but also officials the
Serbian Ministry Finance.
Marko y.1as, however, acquitted the abuse office charge. The proceedings related Mr.
Miskovic were postponed due Mr. Miskovics critical health situation, which required treatment
and hospitalization. convict Mr. Miskovics son, the judge the case resorted the unprecedented procedure
formally requesting the advice the Serbian parliament whether their opinion the
transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and then formally
voting approve authentic interpretation affirming that the transaction was, their opinion,
taxable notwithstanding the written advice provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced months
prison. The same judge expected render verdict the charges against Mr. Miskovic the
very near future.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic will found
guilty assisting that tax evasion, notwithstanding that the evidence presented trial his
control over his sons actions was non-existent. may also found guilty the ab~se position charge, notwithstanding that the other
defendants were acquitted that charge and that Serbia under enormous pressure eliminate
this.-as criminal offense.
All this taking place the context rece national electiol) and political controversy ahead the formation new Government led Prime Minister Vucic, who has repeatedly claimed DISCERNIBLE CLASSIFICATION
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604599 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06604599 Date: 12/20/2018 Judicial Watch, Inc. DISCERNIBLE CLASSIFICATION
credit for bringing one the countrys most prominent and successful (but politically unpopular)
businessman justice, and publicly stated that the acquittal Miskovic would ~ea personal defeat for him. DISCERNIBLE CLASSIFICATION
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604599 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06604681 Date: 12/20/2018 Judicial Watch, Inc. DISCERNIBLE CLASSIFICATION
Visek, Richard
Tuesday, May 24, 2016 2:51
Rubin, Joshua Heffern, John Hooke, Kathleen
-RE: Documents for meeting with Jon Finer
Delta Background Miskovic Case undated.docx; Key Facts About the Miskovic Case
5-20-16.docx
From:
Sent:
To:
Subject:
Attachments: Kathleen
SBU
This email UNCLASSIFIED.
[RELEASE FULL
From: Rubin, Joshua
Sent: Tuesday, May 24, 2016 2:50
To: Visek, Richard Heffern, John
Subject: fN: Documents for meeting with Jon Finer
Rich, John:
Vin Roberti and Tony Podesta have asked meet with Jon Finer tomorrow about the attached case. there
anything you your teams know that Jon needs know before the meeting? Ive pasted the key facts
document below give you sense.
Thanks very much,
KEY FACTS ABOUT THE MISKOVIC CASE
Serbias prosecution,of one the countrys most successful businessmen-Miroslav Miskovic,
President Delta Holding-has all the characteristics President Putins prosecution Mikhail
Khodorkovsky.
The 2014 State Department human rights report Serbia identified number irregularities
the case, including intimidation the presiding judge and unlawful detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited the subsequent demotion and removal the presiding judge the Miskovic case evidence that Serbias courts remained
susceptible corruption and political influence.
Mr. Miskovic, who was held prison for seven months before being charged with any crime, was
eventually indicted for two alleged criminal offenses: abuse office, and assisting tax evasion.
NO.DISCERNIBLE CLASSIFICATION
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604681 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06604681 Date: 12/20/2018 Judicial Watch, Inc. DISCERNIBLE CLASSIFICATION
The first these (arising under Article 234 the Serbian Criminal Code) communist-era crime
that makes sense free market society-so much that the European Union has demanded
that expunged from Serbian law precondition Serbias admission the EU.
The 2015 State Department human rights report Serbia also critici,zes Article 234, citing
overuse the vague abuse office charge for alleged private sector corruption schemes
example corruption and lack transparency government.
The second charge involves allegation that Mr. Miskovics son Marko failed pay capital gains
tax stock transaction, and Mr. Miskovic assisted this tax evasion due his strong influence
over his son. March 25, Marko was convicted tax evasion, despite the fact that had been advised that
the transaction question was not taxable. This advice was provided writing the time the
transaction not only KPMG and other reputable accounting firms, but also offidals the
Serbian Ministry Finance.
Marko was, however, acquitted the .abuse office charge. The proceedings related Mr.
Miskovic were postponed due Mr. Miskovics critical health situation, which required treatment
and hospitalization. convict Mr. Miskovics son, the judge the case resorted the unprecedented procedure
formally requesting the advice the Serbian parliament whether their opinion the
transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and then formally
voting approve authentic interpretation affirming that the transaction was, their opinion,
taxable notwithstanding the written advice provided the taxpayei the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced months
prison. The same judge expected render verdict the charges against Mr. Miskovic the
very near future.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic will found
guilty assisting that tax evasion, notwithstanding that the evidence presented trial his
control! over his sons actions was non-existent. may also found guilty the abuse position charge, notwithstanding that the other
defendants were acquitted that charge and that Serbia under enormous pressure eliminate
this criminal offense.
All this taking place the context recent national election and political controversy ahead the formation new Government led Prime Minister Vucic, who has repeatedly claimed
credit for bringing one the countrys niost prominent and successful (but politically unpopular)
businessman justice, and publicly stated that the acquittal Miskovic would personal
defeat for him. DISCERNIBLE CLASSIFICATION
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604681 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06604681 Date: 12/20/2018 Judicial Watch, Inc. DISCERNIBLE CLASSIFICATION DISCERNIBLE CLASSIFICATION
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604681 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604684 Date: 12/20/2018
[RELEASE FULLj
MEMORANDUM
I~,
BACKGROUND THE PROSECUTION MIROSLAV Ml~KOVIC
Overview
Miroslav Miskovic the President Delta Holding, Serbias largest privatelyowned company. was arrested December 12, 2012, for allegedly engaging improper financial transactions involving PZP Nis, road construction
company that was privatized 2005. was formally indicted o.n May 2013
for abuse position responsible person and assisting tax evasion.
July 23, 2013, following more than seven months jail, was released
mi.Ilion bail, pending trial the charges set forth the indictment. the same time that Miroslav was arrested, his son Marko Miskovic was
arrested for engaging other financial transactions relating PZP Nis. Marko
was released from prison April 2013 and confined home detention with
electronic surveillance. Marko was also indicted May for abuse position responsible person and tax evasion. review the underlying facts demonstrates that both Miroslav and Marko did
nothing improper. Their offense, can called one, consisted only
seeking earn profit routine financial transactions conducted full
compliance with applicable laws. Their actions would not criminal under the
law any modern European country. cursory analysis Serbian law
demonstrates that their actions were not criminal under the laws Serbia.
About Miroslav Miskovic and Delta Holding
Born 1947, Miskovic was raised Bosnjane, village central Serbia, where
his parents owned small farm. attended the University Kragujevac,
studying finance and earning degree economics. After completing college,
Miskovic went work for the Jugobanka bank Krusevac, becoming its
youngest finance director 29. Soon afterwards, went work for the
largest chemical factory what was then Yugoslavia the ZUPA company, also Krusevac. became chief financial officer and, 1982, chief executive
officer.
During the final years the former Yugoslavia, Miskovic was named Deputy
Prime Minister, with the task starting the process privatizing the economy
under Slobodan Milosevic. resigned after six month, disagreeing with how
Milosevic was carrying out the privatizations. Miskovic believed that Serbian
companies should looking for international partners that would help put
place best-in-class business practices and import the newest technologies.
~-...~ 1991, founded company- then called Delta -with modest start-up
capital and five employees. The business began selling consumer goods such toys, chocolate and roller-skates. that time, the Serbian economy was
~.,;vJ{J~ ,,:11
PODESTA GROUP
PODESTAGROUP.COM
1001 STREET NW. SUITE 1000 WEST
WASHINGTON DC. 20001
privileged confidential
,... UNCLASSIFIEQ ~.S. Department State Case No. F-2017-15330 Doc No. C06604684 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. Doc No. C06604684 Date: 12/20/2018
dominated state-owned enterprises. Delta was one the first private
companies created Serbia, and the business climate wasnt conducive its
growth. Yet Delta survived and thrived era ethnic conflict, international
isolation, difficult democratic reforms, and rampant corruption.
Over the years, the enterprise evolvea into Delta Holding- family
companies, including bank, insurance company, investment fund, retail chains,
real estate and development, distribution, and agricultural companies.
Delta Holdings real estate investments include shopping malls, business towers
and residential complexes, and the firm known throughout the region for
bringing some the top international brands Serbia, including Nike, Fiat,
Honda, BMW, Renault, Johnson Wax and Unilever. Yet another subsidiary the
largest insurance company Serbia, also managing pensio~ funds. Other
ventures have included trade, retail and wholesale the sport and fashion
industry.
Even after selling its retail grocery units, Delta Holding remains among the three
largest companies Serbia, and among the five largest the Adriatic area.
country with percent unemployment, Delta has more than 7,000 employees,
almost half whom are women. 2007, established the Delta Foundation integrate Delta Holdings
humanitarian efforts. far, the Foundation has conducted least 300
projects, helping more than 65,000 people cost least 5.5 million. The
major focus has been orphans and people with disabilities. Among the
ventures 2011 alone were: daycare center for children with disabilities
Belgrade, assistance earthquake victims the city Kraljevo, and programs
for hearing-disabled children Belgrade.
About. PZP Nis
The Serbian road construction company PZP Nis was privatized February
2003. The company was sold the state Serbian businessman Milo
Ouraskovic. 2005, Miroslav supported PZP ~is acquiring ownership PZP
Beograd, another Serbian road construction company that was then being
privatized. Miroslav did this arranging for company owned him,
Hemslade Trading Ltd. (incorporated Cyprus), loan million PZP Nis
finance th_e acquisition PZP Beograd. The loan agreement provided for
interest paid the rate EURIBOR plus 3%, which the Serbian market
was relatively low interest rate 2005. Consistent with the requirements
Serbian law, this cross border loan agreement was registered with and approved the National Bank Serbia before the funds were disbursed.
The loan was repaid 2008. The total repayment was 26.366 million,
representing million principal and 3.366 million interest. This interest
DRIVEN. INSPIRED. SMART
priv,leged confide1?tial
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604684 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. Doc No. C06604684 Date: 12/20/2018
payment was the amount owed under the loan agreement, calculated
EURIBOR 1.799 million during the period the loan) plus 1.567 million
during that same period-for total 3.366 million).
The criminal indictment asserts that this loan repayment resulted unlawful
gain Hemslade Trading Ltd. 217,000. They have not explained the basis their evident belief that the interest payment should have been {217,000 less
than the 3.366 million actually paid (or 3.149 million), and Miroslavs lawyers
and accounts have been unable construct interest calculation
interpretation Serbian law that would have resulted interest payment
3.149.iii
When initially arrested, both Miroslav and Marko were alleged have violated
Serbias law prohibiting abuse office. For many decades this law applied both owners and managers businesses.
The application this law businessmen relic communist Yugoslavia.
During the communist era, all commercial enterprises were state-owned,
was not illogical treat busirtessmen state officials. todays capitalist
economy, however, anachronistic treat businessmen this manrier.
Accordingly, part the effort conform Serbian law European standards preparation for admission the European Union, the Group States against
Corruption (GRECO) recommended that this law changed limit its
applicatiol} government officials only.v response this recommendation, the Serbian parliament last year amended
the law refin..~ its application. Under legislation enacted January 2013,
the Abuse Office law was amended, and new criminal offence entitled
Abuse Position Responsible Person was created, effective April 15,
2013.VI
Under this legislation, the definition responsible person was expressly
limited persons entrusted with management, supervision, performance
other activities within the companys operations.v departure from the
previous law, owners businesses were omitted from the definition. The logic this change was that the new law intended protect business owners
from mis.conduct their managers and employees. defendant must fall within the definition responsible person order
face criminal liability under the new criminal offense. therefore critically
important that neither M!roslav nor Marko was ever personally involved ii) the
management PZP Nis its subsidiaries. Both were involved only financial
investors, and both cases their investm~nts were indirect-through other
companies that they owned directly indirectly_;_were not made them
DRIVEN. INSPIRED. SMART
privdeged conf,dential
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604684 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. Doc No. C06604684 Date: 12/20/2018
personal capacity, and never gave them control majority the shares
the companies.viii
Under settled principles Serbian law, criminal defendants are entitled the
benefit amendments the criminal code enacted prior their conviction.ix
Because. both Miroslav and Marko were only investors-and therefore most
minority owners11 -and were never involved the management, supervision, performance the operations PZP Nis and its subsidiaries, they cannot
properly charged with abuse office responsible person result
their involvem.ent with these companies. Nevertheless, both Miroslav and
Marko were indicted for abuse position responsible person.x
National Bank Serbia registration number 613106, dated May 30, 2005.
Indictment, dated May 2013. addition arranging financing through Hemslade Trading Ltd. for the acquisition
PZP Belgrade PZP Nis, Miroslavs company, Delta originally took 48% stake
PZP Belgrade, with PZP Nis taking 51% stake. Four months after the privatization, all
but Delta stake PZP Belgrade was transferred PZP Nis. Miroslav has not
been accused any criminal wrongdoing connection with this investment. Article 359, item with reference item Criminal.Code the Republic Serbia. Report Group States against Corruption (GRECO) respect Republic Serbia
during the third level evaluation. Act Amendments and Supplements the Criminal Code Republic Serbia.
vii Article the Act Amendments and Supplements the Criminal Code
Republic Serbia. addition the fact that Miroslav and Marko cannot considered responsible
persons under Serbias new law prohibiting abuse position responsible
person, there are other reasons why they cannot properly charged under that law.
Even under the previous law which did apply owners companies, the law was
applied only the direct owners companies, not the indirect owners. Miroslav and
Marko never invested directly PZP Nis PZP Belgrade. Rather, they invested
indirectly through other companies that they owned. Further, the law was only applied owners Serbian (and Yugoslav) companies, not owners foreign companies. The
co.mpanies through which Miroslav and Marko invested were foreign companies,
incorporated Cyprus and the Netherlands Antilles. Article the Criminal Code the Republic Serbia. Indictment, dated May 2013.
DRIVEN. INSPIRED. SMART
privileged confidential
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604684 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. Doc No. C06604687 Date: 12/20/2018
May 20, 2016
KEV FACTS ABOUlTHE MISKOVIC CASE~--~
[RELEASE FULL[
Serbias prosecution one the countrys mo~t successful businessmen-Miroslav
Miskovic, President Delta Holding-has all the characteristics President Putins
prosecution Mikhail Khodorkovsky.
The 2014 State Department human rights report Serbia identified number
irregularities the case; including intimidation the presiding judge and unlawful
detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited the subsequent
demotion and removal the presiding judge the Miskovic case evidence that
Serbias courts remained susceptible corruption and political influence.
Mr. Miskovic, who was held prison for seven months before being charged with
any crime, was eventually indicted for two alleged criminal offenses: abuse
office, and assisting tax evasion.
The first these (arising under Article 234 the Serbian Criminal Code)
communist-era crime that makes sense free market-society-so much that
the European Union has demanded that expunged from S.erbian law
precondition Serbias admission the EU.
The 2015 State Department human rights report Serbia also criticizes Article 234,
citing overuse the vague abuse office charge for alleged private sector
corruption schemes example corruption and lack transparency
government.
The second charge involves allegation that Mr. Miskovics son Marko failed pay
capital gains tax stock transaction, and Mr. Miskovic assisted this tax evasion
due his strong influence over his son. March 25, Marko was convicted tax .evasion, despite the fact that had been
advised that the transaction question was not taxable. This advice was provided writing the time the transaction not only KPMG and other reputable
accounting firms, but also officials the Serbian Ministry Finance.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604687 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06604687 Date: 12/20/2018 Judicial Watch, Inc.
Marko was, however, acquitted the abuse office,, charge. The proceedings
related Mr. Miskovic were postponed due Mr. Miskovics critical health
situation, which required treatment and hospitalization. convict Mr. Miskovics son, the judge the case resorted the unprecedented
procedure formally requesting the advice the Serbian parliament whether
their opinion the transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and
then formally voting approve authentic interpretation affirming that the
transaction was, their opinion, taxable notwithstanding the written advice
provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced
months prison. The same judge expected render verdict the charges
against Mr. Miskovic the very near future.
Give that Marko was found guilty tax evasion, seems likely that Mr. Miskovic
will found guilty assisting,, that tax evasion, notwithstanding that the
evidence presented trial his control over his sons actions was non-existent. may also found guilty the abuse position charge, notwithstanding that
the ~ther defendants were acquitted that cha.rge and that Serbia under
enormous pressure eliminate this criminal offense.
All this taking place the context recent national election and political
controversy ahead the formation new Government led Prime Minister
Vucic, who has repeatedly claimed credit for bringing one the countrys most
prominent and successful (but politically unpopular) businessman justice, and
publicly stated that the acquittal Miskovic would personal defeat for him.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06604687 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569958 Date: 12/20/2018 Judicial Watch, Inc.
From:
Sent:
To:
Subject:
Veidenheimer, Paul
Wednesday, May 25, 2016 12:38
Hooke, Kathleen
FW: Documents for meeting with Jon Finer
Kathleen, dont know when Finers meeting is, policy clients passed these along separately, but please see the points/info
below.
Paul
!RELEASE PART B5j
This email UNCLASSIFIED.
From: Yazdgerdi, Thomas
s~nt: Wednesday, M~y 25, 2016 12:16
To: Veidenheimer, Paul
Cc: Bradley, Meghan campbell, Ian; Pfeuffer, Paul
Subject: FW: Documents for meeting with Jon Finer
FYI
This email UNCLASSIFIED.
From: Yee, Hoyt
Sent: Wednesday, May 25, 2016 12:11
To: Scott, Kyle (Belgrade); Yazdgerdi, Thomas campbell, Ian; Duguid, Gordon (Belgrade); Tervakoski, Mark
(Belgrade)
Cc: Long, Jeremy (Belgrade); Bradley, Meghan
Subject: RE: Documents for meeting with Jon Finer
Thanks very much for the comprehensive points Kyle. Hoyt
This email UNCLASSIFIED.
From: s,ott, Kyle (Belgrade)
Sent: Wednesday, May 25, 2016 11:23
To: Yee, Hoyt Yazdgerdi, Thomas campbell, Ian; Duguid, Gordon (Belgrade); Tervakoski, Mark (Belgrade)
Cc: Long, Jeremy (Belgrade); Bradley, Meghan
Subject: RE: Documents for meeting with Jon Finer
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569958 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569958 Date: 12/20/2018 Judicial Watch, Inc.
Need bear mind that Podesta Group paid lobbyist for Delta Holdings and Miskevic. met with Tony Podesta
earlier this week, but tread softly the Miskevic case.
The latest that the son was convicted tax evasion little while back, and Dads case expected come
conclusion soon the courts. Although Miskevics folks have pressed the issue his need possibly travel abroad for
medical treatment the past, Podesta didnt raise this issue our meeting.
SBU
This email UNCLASSIFIED.
From: Yee, Hoyt
Sent: Wednesday, May 25, 2016 11:54
To: Scott, Kyle (Belgrade); Yazdgerdi, Thomas Campbell, Ian; Duguid, Gordon (Belgrade); Tervakoski, Mark
(Belgrade)
Subject: Fw: Documents for meeting with Jon Finer
~----------------------------~Hoyt
Sent from BlackBerry smartphone.
From: Heffern, John 
Sent: Wednesday, May 25, 2016 3:48
To: Yee, Hoyt Yazdgerdi, Thomas
Subject: FW: Documents for meeting with Jon Finer
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569958 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. ~oc No. C06569958 Date: 12/20/2018
This email UNCLASSIFIED.
From: Rubin, Joshua
Sent: Tuesday, May 24, 2016 8:50
To: Visek, Richard Heffern, John
Subject: FW: Documents for meeting with Jon Finer
Rich, John:
Vin Roberti and Tony Podesta have asked meet with Jon Finer tomorrow about the attached case. there
anything you your teams know that Jon needs know before the meeting? Ive pasted the key facts
document below give you sense Thanks very much,
KEV FACTS ABOUT THE MISKOVIC CASE
Serbias prosecution one the country~ most successful businessmen-Miroslav Miskovic,
President Delta Holding-has all the characteristics President Putins prosecution Mikhail
Khodorkovsky.
The 2014 State Department human rights report Serbia identified number irregularities
the case, including intimidation the presiding judge and unlawful detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited the ,subsequent demotion and
removal the presiding judge the Miskovic case evidence that Serbias courts remained
susceptible corruption and political influence.
Mr. Miskovic, who was held prison for seven months before being charged with any crime, was
eventually indicted for two alleged criminal offenses: abuse office, and assisting tax evasion.
The first these (arising under Article 234 ofthe Serbian Criminal Code) communist-era crime
that makes sense free market society-so much that the European Union has demanded
that expunged from Serbian law preco.ndition Serbias admission the EU.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569958 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569958 Date: 12/20/2018 Judicial Watch, Inc.
The 2015 State Department human rights report Serbia also criticizes Article 234, citing
overuse the vague abuse office charge for alleged private sector corruption schemes
example corruption and. lack transparency government.
The second charge involves allegation that Mr. Miskovics son Marko failed pay capital gains
tax stock transaction, and Mr. Miskovic assisted this tax evasion due his strong influence
over his son. March 25, Marko was convicted tax evasion, despite the fact that had been advised that
the transaction question was not taxable. This advice was provided writing the time the
transaction not only KPMG and other reputable accounting firms, but also officials the
Serbian Ministry Finance.
Marko was, however, acquitted the abuse office charge. The proceedings related Mr.
Miskovic were postponed due Mr. Miskovics critical health situation, which required treatment
and hospitalization. convict Mr. Miskovics son, the judge the case resorted the unprecedented procedure
formally requesting the advice the Serbian parliament whether their opinion the
transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and then formally
voting approve authentic interpretation affirming that the transaction was, their opinion,
taxable notwithstanding the written advice provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Mis~ovic was sentenced months
prison. The same judge expected render verdict the charges against Mr. Miskovic the
very near future.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic will found
guilty assisting that tax evasion, notwithstanding that the evidence presented trial his
control,, over his sons actions was non-existent.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569958 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569958 Date: 12/20/2018 may also found guilty the abuse position charge, notwithstanding that the other
defendants were acquitted that charge and that Serbia under enormous pressure eliminate
this criminal offense.
All this taking place the context recent national election and political controversy
ahead the formation new Government led Prime Minister Vucic, who has rep_eatedly
claimed credit for bringing one ofthe countrys most prominent and successful (but politically
unpopular) businessman justice, and publicly stated that the acquittal-of Miskovic would
personal defeat for him.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569958 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569962 Date: 12/20/2018
From:
Sent:
To:
Subject:
Attachments:
Veidenheimer, Paul
Wednesday, May 25, 2016 9:07
Hooke, Kathleen
Fw: Documents for meeting with Jon Finer
Delta Background.to Miskovic Case undated.docx; Key Facts About the Miskovic Case
5-20-16.docx
Good morning. Sitting, waiting, the metro but wanted pass this string along case useful._ Will let you
know they come with anything.
Paul
Sent from BlackBerry smartphone.
From: Pfeuffer, Paul 
Sent: Wednesday, May 25, 2016 8:22
To: Veidenheimer, Paul
Subject: FW: Documents for meeting with Jon Finer
[RELEASE PART B5j
This email UNCLASSIFIED.
From: Yazdgerdi, Thomas
Sent: Wednesday, May 25, 2016 7:39
To: Bradley, Meghan Morrison, Anne
Cc: Campbell, Ian; pfeuffer, Paul
Subject: FW: Documents for meeting with Jon Finer
FYI
This email UNCLASSIFIED.
From: Yee; Hoyt
Sent: Wednesday, May 25, 2016 5:54
To: Scott, Kyle (Belgrade); Yazdgerdi, Thomas Campbell, Ian; Duguid, Gordon (Belgrade); Tervakoski, Mark
(Belgrade)
Subject: Fw: Documents for meeting with Jon Finer
Kyle, any off the shelf points/background can share with Jon Finer al? Hoyt
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569962 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569962 Date: 12/20/2018 Judicial Watch, Inc.
Sent from BlackBerry smartphone.
From: Heffern, John 
Sent: Wednesday, May 25, 2016 3:48
To: Yee, Hoyt Yazdgerdi, Thomas
Subject: FW: Documents for meeting with Jon Finer
This email UNCLASSIFIED.
From: Rubin, Joshua
Sent: Tuesday, May 24, 2016 8:50
To: Visek, Richard Heffern, John
Subject: FW: Documents for meeting with Jon Finer
Rich, John:
Vin Roberti and Tony Podesta have asked meet with Jon Finer tomorrow about the attached case. there
anything you your teams know that Jon needs know before the meeting? Ive pasted the key facts
document below give you sense.
Thanks very much,
KEV FACTS ABOUT THE MISKOVIC CASE
Serbias prosecution one the countrys most successful businessmen-Miroslav Miskovic,
President Delta Holding-has all the characteristics President Putins prosecution Mikhail
Khodorkovsky.
The 2014 State Department human rights report Serbia identified number irregularities
the case, including intimidation the presiding judge and unlawful detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited the subsequent de.motion and
removal ofthe presiding judge the Miskovic case evidence that Serbias courts remained
susceptible corruption and political influence.
Mr. Miskovic, who was held prison for seven months before being charged with any crime, was
eventually indicted for two alleged criminal offenses: abuse office, and assisting tax evasion.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569962 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569962 Date: 12/20/2018 Judicial Watch, Inc.
The first these (arising under Article 234 the Serbian Criminal Code) communist-era crime
that makes sense free market society-so much that the European Union has demanded
that expunged from Serbian law precondition Serbias admission the EU.
The 2015 State Department human rights report Serbia also criticizes Article 234, citing
overuse the vague abuse office charge for alleged private sector corruption schemes
example corruption and lack transparency government.
The second charge involves allegation that Mr. Miskovics son Marko f_ailed pay capital gains
tax stock transaction, and Mr. Miskovic assisted this tax evasion due his strong influence
over his son. March 25, Marko was convicted tax evasion, despite the fact that had been aqvised that
the transaction question was not taxable. This advice was provided writing the time the
transaction not only KPMG and other reputable accounting firms, but also officials the
Serbian Ministry Finance.
Marko was, how~ver, acquitted the abuse office charge. The proceedings related Mr.
Miskovic were postponed due Mr. Miskovics critical health situation, which required treatment
and hospitalization. convict Miskovics son, the judge the case resorted the unprecedented procedure
formally requesting the advice the Serbian parliament whether their opinion the
transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and then formally
voting approve authentic interpretation affirming that the transaction was, their opinion,
taxable notwithstanding the written advice provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced months
prison. The same judge expected render verdict the charges against Mr. Miskovic the
very near future.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569962 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569962 Date: 12/20/2018 Judicial Watch, Inc.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic will found
guilty assisting that tax evasion, notwithstanding that the evidence presented trial his
control over his sons actions was non-existent. may also found guilty the abuse position charge, notwithstanding that the other
defendants were acquitted that charge that Serbia.is under enormous pressure eliminate
this criminal offonse.
All this taking place the context recent national election and po.litical controversy
ahead the formation new Government led Prime Minister Vucic, who has repeatedly
claimed credit for bringing one the countrys most prominent and successful (but politically
unpopular) businessman justice, and publicly stated that the acquittal Miskovic would
personal defeat for him.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569962 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569963 Date: 12/20/2018
MEMORANDUM
[RELEASE FULL]
BACKGROUND THE PROSECUTION MIROSLAV MISKOVIC
Overview
Miroslav Miskovic the President Delta Holding, Serbias largest privatelyowned company. was arrested December 12, 2012, for allegedly engaging improper financial transactions involving PZP Nis, road construction
company that was privatized 2005. was formally indicted May 201,3
for abuse position responsible person and assisting tax evasion.
July 23, 2013, following more than seven months jail, was released
million bail, pending trial the charges set forth the indictment. the same time that Miroslav was arrested, his son Marko Miskovic was
arrested for engaging other financial transactions relating PZP Nis. Marko
was released from prison April 2013 and confined home detention with
electronic surveillance. Marko was also indicted May for abuse position responsible person and tax evasion. -~~~
:1;
...~:-
111
........
....
[fl
e:.i
t}j
.I)
Bl. r:r
1/i~-,
.h-.t review the underlying facts demonstrates that both Miroslav and Marko did
nothing improper. Their offense, can called o~e, consisted only
seeking earn profit routine financial transactions conducted full
compliance with applicable laws. Their actions would not criminal under the
law any modern European country. cursory analysis Serbian law
demonstrates that their actions were not criminal under the laws Serbia.
About Miroslav Miskovit and Delta Holding
Born 1947, Miskovic was raised Bosnjane, village central Serbia, where
his parents owned sma)I farm. attended the University Kragujevac,
studying finance and earning degree economics. After completing college,
Miskovic went work for the Jugobanka bank Krusevac, becoming its
youngest finance director 29. Soon afterwards, went work for the
largest chemical factory what was then Yugoslavia the ZUPA company, also Krusevac. became chief financial officer and, 1982, chief executive
officer.
During the final years the former Yugoslavia, Miskovic was named Deputy
Prime Minister, with the task starting the process privatizing the economx
under Slo_bodan Milosevic. resigned after six month, disagreeing with how
Milosevic was carrying out the privatizations. Miskovic believed that Serbian
companies should looking for international partners that would help put
place oest-in-class business practices and import the newest technologies. 1991, founded company- then called Delta -with modest start-up
capital and five employees. The business began selling consumer goods such toys, chocolate and roller-skates. that time, the Serbian economy was
..,
llllt.o,,
Pt,~~~
i:iL.:!
~,:-
PODESTA GROUP
;:,
P() .ll
-,, A(;-JI 000 ,vi
WA!>I .JC ;oc01
P:.16 c,,,.f1w i,,,1
..a...:.i..:
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569963 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. Doc No. C06569963 Date: 12/20/2018
dominated state-owned enterprises. Delta was one the first private
companies created Serbia, and the business climate wasnt conducive its
growth. Yet Delta survived and thrived era ethnic conflict, international
isolation, difficult democratic reforms, and rampant corruption.
Over the years, the enterprise evolved into Delta Holding family
companies, including bank, insurance company, investment fund, retail chains,
real estate and development, gistribution, and agricultural companies.
Delta Holdings real estate investments include shopping malls, business towers
and residential complexes, and the firm known throughout the region for
bringing some the top international brands Serbia, including Nike, Fiat,
Honda, BMW, Renault, Johnson Wax and Unilever. Yet ;;mother subsidiary the
largest insurance company Serbia, also managing pension funds. Other
ventures have included trade, retail and wholesale the sport and fashion
industry.
Even a.fter selling its retail grocery units, Delta Holding remains among the three
largest companies Serbia, and among the five largest the Adriatic area.
country with percent unemployment, Delta has more than 7,000 employees,
almost half whom are women. 2007, established the Delta Foundation integrate Delta Holdings
humanitarian efforts. far, the Foundation has conducted least 300
projects, helping more than 65,000 people cost least 5.5 million. The
major focus has been orphans and people with disabilities. Among the
ventures 2011 alone were: daycare center for children with disabilities
Belgrade, assistance earthquake victims the city Kraljevo, and programs
for hearing-disabled children Belgrade.
About PZP Nis
The Serbian road construction company PZP Nis was privatized February
2003. The company was sold the state Serbian businessman Milo
Ouraskovic. 2005, Miroslav supported PZP Nis acquiring ownership PZP
Beograd, another Serbian road construction company that was then being
privatized. Miroslav did this arranging for company owned him,
Hemslade Trading Ltd. (incorporated Cyprus), loan million PZP Nis
finance the acquisition PZP Beograd. The loan agreement provided for
interest paid the rate EURIBOR plus 3%, which the Serbian market
was relatively low interest rate 2005. Consistent with the requirements
Serbian law, this cross border loan agreement was registered with and approved the National Bank Serbia before the funds were disbursed.
The loan was repaid 2008. The total repayment was 26.366 million,
representing million principal and 3.366 million interest. This interest
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569963 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-153~0 Judicial
Watch, Inc. ~oc No. C06569963 Date: 12/20/2018
payment was the amou~t owed under the loan agreement, calculated
EURIBOR 1.799 million during the period the loan) plus 1.567 million
during that same period-for total 3.366 million).
The criminal indictment asserts that this loan repayment resulted unlawful
gain Hemslade Trading Ltd. 217,000. They have not explained the basis their evident belief that the interest payment should have been 217,000 less
than the 3.366 million actually paid (or 3.149 million), and Miroslavs lawyers
and accounts have been unable construct interest calculation
interpretation Serbian law that would have resulted interest payment
0.149.ill
When initially arrested, both Miroslav and Marko were alleged have violated
Serbias law prohibiting abuse office.v For many decades this law applied both owners and managers businesses.
The application this law businessmen relic communist Yugoslavia.
During the communist era, all commercial enterprises were state-owned,
was not illogical treat businessmen state officials. todays capitalist
economy, however, anachronistic treat businessmen this manner.
Accordingly, part the effort conform Serbian law European standards prep~ration for admission the European Union, the Group States against
Corruption (GRECO) recommended that this law changed limit its
application government officials only.v response this recommendation, the Serbian parliament last year amended
the law to.refine its application. Under legislation enacted January 2013,
the Abuse Office law was amended, and new criminal offence entitled
Abuse Position Responsible Person was created, effective April 15,
2013.VI
Under this legislation, the definition responsible person was expressly
limited persons entrusted with management, supervision, performance other activities within the companys operations_v,, departure from the revious law, owners businesses were omitted from the definition. The logic this change was that the new law intended protect business owners
from misconduct their managers and employees. defendant must fall within the definition responsible person order
face criminal liability under the new criminal offense. therefore critically
important that neither Miroslav nor Marko was ever personally involved the
management PZP Nis its subsidiaries. Both were involved only financial
investors, and both cases their investments were indirect-through other
companies that they owned directly indirectly-were not made them
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569963 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. Doc No. C06569963 Date: 12/20/2018
personal capacity, and never gave them control majority the shares
the companies.viu
Under settled principles Serbian law, criminal defendants are entitled the
benefit amendments the criminal code enacted prior their conviction.
Because both Miroslav and Marko were only investors-and therefore most
minority owners -and were never involved the management, supervision, performance the operations PZP Nis and its subsidiaries, they cannot
properly charged with abuse office re~ponsible person result
their involvement with these companies. Nevertheless, both Miroslav and
Marko were indicted for abuse position responsible person.x
National Bank Serbia registration number 613106, dated May 30, 2005
Indictment, dated May 2013.
111 addition arranging financing through Hemslade Trading Ltd. for the acquisition
PZP Belgrade PZP Nis, Miroslavs company, Delta originally took 48% stake
PZP Belgrade, wit~ PZP Nis taking 51% stake. Four months after the privatization, all
but Delta stake PZP Belgrade was transferred PZP Nis. Miroslav has not
been accused any criminal wrongdoing connection with this investment. Article 359, item with reference item Criminal Code the Republic Serbia. Report Group States against Corruption (GRECO) respeCt Republic Serbia
during the third level evaluation. Act Amendments and Supplements the Criminal Code Republic Serbia.
vii Article the Act Amendments and Supplements the Criminal Code
Republic Serbia.
vui addition the fact that Miroslav and Marko cannot cons1de~ed responsible
persons under Serbias new law prohibiting abuse position responsible
person, there are other reasons why they cannot properly charged under that law.
Even under the previous law which did apply owners companies, the law was
appli~d only the direct owners companies, not the indirect owners. Miroslav and
Marko never invested directly PZP Nis PZP Belgrade. Rather, they invested
indirectly through other companies that they owned. Further, the law was only applied owners Serbian (and Yugoslav) companies, not owners foreign companies. The
companies through which Miroslav and Marko invested were foreign companies,
incorporated Cyprus and the Netherlands Antilles. Article the Criminal Code the Republic Serbia. Indictment, dated May 2013.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569963 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. Doc No. C06569965 Date: 12/20/2018
May 20, 2016
KEY FACTS ABOUT THE MISKOVIC CASE
[RELEASE FULL[
Serbias prosecution one the countrys most successful businessmen-Miroslav
Miskovic, President Delta Holding-has all the characteristics President Putins
prosecution Mikhail Khodorkovsky.
The 2014 State Department human rights report .Serbia identified number
irregularities the case, including intimidation the presiding judge and unlawful
detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited the.subsequent
demotion and removal the presiding judge the Miskovic case evidence that
Serbias courts remained susceptible corruption and political influence.
Mr. Miskovic, who was held prison for seven months before being charged with
any crime, was eventually indicted for two alleged criminal offenses: abuse
office, and assisting tax evasion.
The first these (arising under Article 234 the Serbian Criminal Code)
communist-era crime that makes sense free market society-so much that
the European Union has demanded that expunged from Serbian law
precondition Serbias admission the EU.
The 2015 State Department human rights report Serbia also criticizes Article 234,
citing overuse the vague abuse office charge for alleged private sector
corruption schemes example corruption and lack transparency
government.
The second charge involves allegation that Mr. Miskovics son Marko failed pay
capital gains tax stock transaction, and Mr. Miskovic assisted this tax evasion
due his strong influence over his son. March 25, Marko was convicted tax evasion, despite the fact that had been
advised that the transaction question was not taxable. This advice was provided writing the time the transaction not only KPMG an.d other reputable
accounting firms, but also officials the Serbian Ministry Finance.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569965 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569965 Date: 12/20/2018 Judicial Watch, Inc.
Marko was, however, acquitted ofthe abuse ofoffice charge. The proceedings.,
related Mr. Miskovic were postponed due Mr. Miskovics critical health
situation, which required treatment and hospitalization. convict Mr. Miskovics son, the judge the case resorted the unprecedented
procedure formally requesting the advice the Serbian parliament whether
their opinion the transaction was taxable the time was made.
The Serbian parliamen.t (controlled the government) responded drafting and
then formally voting approve authentic interpretation affirming that the
transaction was, their opinion, taxable notwithstanding the written advice
provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced
months prison. The same judge expected render verdict the charges
against Mr. Miskovic the very near future.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic
will found guilty assisting that tax evasion, notwithstanding that the
evid~nce presented trial his control over his sons actions was non-existent. may also found guilty the abuse position charge, notwithstanding that
the other defendants were acquitted that charge and that Serbia under
enormous pressure eliminate this criminal offense.
All this taking place the context recent national election and political
controversy ahead the formation ofa new Government led Prime Minister Vucic, who has repeatedly claimed credit for bringing one the countrys most
prominent and successful (but politically unpopular) businessman justice, and
publicly stated that the acquittal Miskovic would personal defeat for him.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569965 Date: 12/20/2018
UNCLASSIFIED U.S. Department StateObtained
Case No.
F-2017-15330 Doc No. C06569968 Date: 12/20/2018 Judicial Watch, Inc.
From:
Sent:
To:
Subject:
Attachments:
Veidenheimer, Paul
Tuesday, May 24, 2016 4:22
Bradley, Meghan (Belgrade)
FW: Documents for meeting with Jon Finer
Delta Background Miskovic Case undated.docx; Key Facts About the Miskovic Case
5-20-16.docx
Meghan, you have any information material onthis case that could/should pass back through our front office?
Thanks.
[RELEASE FULLj
Paul
SBU
This email UNCLASSIFIED.
From: Rubin, Joshua
Sent: Tuesday, May 24, 2016 2:50
To: Visek, Richard Heffern, John
Subject: FW: Documents for meeting with Jon Finer
Rich, John:
Vin Roberti and Tony Podesta have asked meet with Jon Finer tomorrow about the attached case. there
anything you your teams know that Jon needs know before the meeting? Ive pasted the key facts
document below give you sense.
Thanks very much,
KEY FACTS ABOUT THE MISKOVIC CASE
Serbias prosecution one the countrys most successful businessmen-Miroslav Miskovic,
President Delta Holding-has all the characteristics President Putins prosecution Mikhail
Khodorkovsky.
The 2014 State Department human rights report Serbia identified number irregularities
the case, including intimidation the presiding judge and unlawful detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited ~he subsequent demotion and
removal the presiding judge the Miskovic case evidence that Serbias courts remained susceptible corruption and political influence.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569968 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569968 Date: 12/20/2018 Judicial Watch, Inc.
Mr. Miskovic, who was held prison for seven months before being charged with any crime, was
eventually indicted for two alleged criminal offenses: abuse office, and assisting tax evasion.
The first these (arising under Article 234 the Serbian Criminal Code) communist-era crime
that makes sense free market society-so much that the European Union has demanded
that expunged from Serbian law precondition Serbias admission the EU.
The 2015 State Department human rights report Serbia also criticizes Article 234, citing
overuse the vague abuse office charge for alleged private sector corruption schemes
example corruption and lack transparency government.
The second charge involves allegation that Mr. Miskovics. son Marko failed pay capital gains
tax stock transaction, and Mr. Miskovic assisted this tax evasion due his strong influence
over his son. March 25, Marko was convicted tax evasion, despite the fact that had been advised that
the transaction question was not taxable. This advice was provided writing the time the
transaction not only KPMG and other reputable accounting firms, but also officials the
Serbian Ministry Finance.
Marko was, however, acquitted ofthe abuse office charge. The proceedings related Mr.
Miskovic were postponed due Mr. Miskovics critical health situation, which required treatme_nt
and hospitalization. convict Mr. Miskovics son, the judge the case resorted thetunprecedented procedure
formally requesting the advice the Serbian parliament whether their opinion the
transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and then formally
voting approve authentic interpretation affirming that the transaction was, their opinion,
taxable notwithstanding the written advice provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced months
prison. The same judge expected render verdict the charges against Mr. Miskovic the
very near future.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic will found
guilty assisting that tax evasion, notwithstanding that the evidence presented trial his
control over his sons actions was non-existent. may also found guilty the abuse position charge, notwithstanding that the other
defendants were acquitted that charge and that Serbia under enormous pressure eliminate
this criminal offense.
All this taking place the context recent national election and political controversy ahead the formation new Government led Prime Minister Vucic, who has repeatedly claimed
credit for bringing one ofthe countrys most prominent and successful (but politically unpopular)
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569968 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569968 Date: 12/20/2018 Judicial Watch, Inc.
businessman justice, and publicly stated that the acquittal Miskovic would personal
defeat for him.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569968 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569969 Date: 12/20/2018 Judicial Watch, Inc.
[RELEASE FULLj
MEMORANDUM
BACKGROUND THE PROSECUTION MIROSLAV MISKOVIC
Overview
Miroslav Miskovic the President Delta Holding, Serbias largest privatelyowned company. was arrested December 12, 2012, for allegedly engaging improper financial transactions involving PZP Nis, road construction
company that was privatized 2005. was formally indicted May 2013
for abuse position responsible person and assisting tax evasion.
July 23, 2013, following more than seven months jail, was released
million bail, pending trial the charges s~t forth the indictment. the same time that Miroslav was arrested, his son Marko Miskovic was
arrested for engaging other financial transactions relating PZP Nis. Marko
was released from prison April 2013 and confined home detention with
electronic surveillance. Marko was also indicted May for abuse position responsible person and tax evasion. review the underlying facts demonstrates that both Miroslav and Marko did
nothing improper. Their offense, can called one, consisted only
seeking earn profit routine financial transactions conducted full
compliance with applicable laws. Their actions would not criminal under the
law any modern European country. cursory analysis Serbian law
demonstrates that their actions were not criminal under the laws Serbia.
_,..,.., .El~
About Miroslav Miskovic and Delta Holding
Born 1947, Miskovic was raised Bosnjane, village central Serbia, where
his parents owned small farm. attended the University Kragujevac,
studying finance and earning degree economics. After completing college,
Miskovic went work for the Jugobanka bank Krusevac, becoming its
youngest finance director 29. Soon afterwards, went work for the
largest ~hemical factory what was then Yugoslavia -the ZUPA company, also Krusevac. became chief financial officer and, 1982, chief executive
officer.
During the final years the former Yugoslavia, Miskovic was named Deputy
Prime Minister, with the task starting the process privatizing the economy
under Sloboda_n Milosevic. resigned after six month, disagreeing with how
Milosevic was carrying out the privatizations. Miskovic believed that Serbian
companies should looking for international partners that would help put
place best-in-class business practices and import the newest technologies.
:t! T......
/?f 1991, founded company- then called Delta -with modest start-up
capital and five employees. The business began selling consumer goods such toys, chocolate and roller-skates. that time, the Serbian economy was
,)~.
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PODESTA GROUP
1001 lW. >.JI
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UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569969 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. Doc No. C06569969 Date: 12/20/2018
dominated state-owned enterprises. Delta w.as one the first private
companies created Serbia, and the business climate wasnt conducive its
growth. Yet Delta survived and thrived era ethnic conflict, international
.isolation, difficult democratic reforms, and rampant corruption.
Over the years, the enterprise evolved into Delta Holding family
companies, including bank, insurance company, investment fund, retail chains,
real estate and development, distribution, and agricultural companies.
Delta Holdings real estate investments include shopping malls, business towers
and residential complexes, and the firm known throughout the region for
bringing some the top international brands Serbia, including Nike, Fiat,
Honda, BMW, Renault, Johnson Wax and Unilever. Yet another subsidiary the
largest insurance company Serbia, also managing pension funds. Other
ventures have included trade, ret~il and wholesale the sport and. fashion
industry.
Even after selling its retail grocery units. Delta Holding remains among the three
largest companies Serbia, and among the five largest the Adriatic area.
country with percent unemployment, Delta has more than 7,000 employees,
almost half whom are women. 2007, established the Delta Foundation. integrate Delta Holdings
humanitarian efforts. far, the Foundation has conducted least 300
projects, helping more than 65,000 people cost least 5.5 million. The
major focus has been orphans and people with disabilities. Among the
ventures 2011 alone were: daycare center for children with disabilities
Belgrade, assistance earthquake victims the city Kraljevo, and programs
for hearing-disabled children Belgrade.
About PZP Nis
The Serbian road construction company PZP Nis was privatized February
2003. The company was sold the state Serbian businessman Milo
Ouraskovic. 2005, Miroslav supported PZP Nis acquiring ownership PZP
Beograd, another Serbian road construction company that was then being
privatized. Miroslav did this arranging for company owned him,
Hemslade Trading Ltd.(incorporated Cyprus), loan million PZP Nis
finance the acquisition PZP Beograd. The loan agreement provided for
interest paid the rate EURIBOR plus 3%, which the Serbian market
was relatively low interest rate 2005. Consistent with the requirements
Serbian law, this cross border loan agreement was registered with and approved the National Bank Serbia before the funds were disbursed.
The loan was repaid 2008. The total repayment was 26.366 million,
representing million principal and 3.366 million interest. This interest
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569969 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Judicial
Watch, Inc. Doc No. C06569969 Date: 12/20/2018
payment was the amount owed under the loan agreement, calculated
EURIBOR 1.799 million during the period the loan) plus 1.567 million
during that same period-for total 3.366 million).
The criminal indictment asserts that this loan repayment resulted unlawful
gain Hemslad~ Trading Ltd. 217,000. They have not explained the basis their evident belief that the interest payment should have been 217,000 less
than the 3.366 million qctually paid (cir 3.149 million), and Miroslavs lawyers
and accour:its have been unable construct interest calculation
interpretation Serbian law that would have resulted interest payment
3.149.i~I
When initially arrested, both Miroslav and Marko were alleged have violated
Serbias law prohibiting abuse office. For many decades this law applied both owners and m~nagers businesses.
The application this law to. b,usinessmen relic communist Yugoslavia.
During the communist era, all commercial enterprises were state-owned,
was not illogical treat businessmen state ?fficials. todays capitalist
econ9my, however, anachronistic treat businessmen this manner.
Accordingly, part the effort conform Serbian law European standards preparation for admission the European Unio~, the Group States against
Corruption (GRECO) recommended that this law changed limit its
application government officials only.v response this recommendation, the Serbian parlia~ent last year amended
the law refine its application. Under legislation enacted January 2013,
the Abuse Office law was amended, an~ new criminal offence entitled
Abuse Position Responsible Person was created, effective April 15,
2013.VI
Under this legisla~ion, the definition responsible person was expressly
limited persons entrusted with management, supervision, performance
other activities within the companys operations.v departure from the
previous law, owners businesses were omitted from the definition. The logic this change-was that the new law intended protect business owners
from misconduct their managers and employees. defendant must fall within the definition responsible person order
face criminal liability under the new criminal offense. therefore critically
important that neither Miroslav nor Marko was ever personally involved the
management PZP Nis its subsidiaries. Both were involved only financial
investors, and both cases their investments were indirect-through other
companies that they owned directly indirectly-were not made them
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569969 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569969 Date: 12/20/2018
personal capacity, and never gave them control majority the shares
the companies.v
Under settled principles Serbian law, criminal defendants are entitled the
benefit amendments the criminal code enacted prior their conviction.
Because both Miroslav and Marko were only investors-and therefore most
minority owners -and were never involved the management, supervision, performance the operations PZP Nis and its subsidiaries, they cannot
properly charged with abuse office responsible person result
their involvement with these companies. Nevertheless, both Miroslav and
Marko were indicted abuse position responsible person.x
National Bank Serbia registration number 613106, dated May 30, 2005.
Indictment, dated May 2013.
111 addition arranging financing through Hemslade Trading Ltd. for the acquisition
PZP Belgrade PZP Nis, Miroslavs company, Delta originally took 48% stake
PZP Belgrade, with PZP Nis taking 51% stake. Four months after the privatization, all
but Delta stake PZP Belgrade was transferred PZP Nis. Miroslav has not
been accused any criminal wrongdoing connection with this investment. Article 359, item with reference item Criminal Code the Republic Serbia. Report Group States against Corruption (GRECO) respect Republic Serbia
during the third level evaluation. Act Amendments and Supplements the Criminal Code Republic Serbia.
vii Article the Act Amendments and Supplements the Criminal Code
Republic Serbia.
viii addition the fact that Miroslav and Marko cannot considered responsible
persons under Serbias new law prohibiting abuse position responsible
person, there are other reasons why they cannot properly charged under that law.
Even under the previous law which did apply owners companies, the law was
applied only the direct owners companies,.not the indirect owners. Miroslav and
Marko never invested direc_tly PZP Nis PZP Belgrade. Rather, they invested
in.directly through other companies that they owned. Further, the law was only applied owners Serbian (and Yugoslav) companies, not owners foreign companies. The
companies through which Miroslav and Marko invested were foreign companies,
incorporated Cyprus and the Netherlands Antilles.
Article the Criminal Code the Republic Serbia.
Indictment, dated [Vlay 2013.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569969 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569970 Date: 12/20/2018
!RELEASE FULLj
May 20, 20~6
KEY FACTS ABOLIT THE MISKOVIC CASE
Serbias prosecution one the countrys most successful businessmen-Miroslav
Miskovic, President Delta Holding-has all the characteristics President Putins
prosecution Mikhail Khodorkovsky.
The 2014 State Department human rights report Serbia identified number
irregularities the case, including intimidation the presiding judge a~d unlawful
detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited the subsequent
demotion and removal the presiding judge the Miskovic case evidence that
Serbias courts remained susceptible corruption and political influence.
Mr. Miskovic, who was held prison for seven months before being charged with
any crime, was eventually indicted for two alleged criminal offenses: abuse
office, and :assisting tax evasion.
The first these (arising under Article 234 the Serbian Criminal Code)
communist-era crime that makes sense free market society-so much that
the European Union has demanded that expunged from Serbian law
precondition Serbias admission the EU.
The 2015 State Department human rights report Serbia also criticizes Article 234,
citing overuse the vague abuse office charge for alleged private sector
corruption sc~emes example corruption and.lack transparency
government.
The second charge involves allegation that Mr. Miskovics son Marko failed pay
capital gains tax stock transaction, and Mr. Miskovic assisted this tax evasion
due his strong influence over his son. March 25, Marko was convicted tax evasion, despite the fact that had been
advised that the transaction question was not taxable. This advice was provided writing the time the transaction not only KP.MG and other reput~ble
accounting firms, but also officials the Serbian Ministry Finance.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569970 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569970 Date: 12/20/2018 Marko was, however, acquitted the abuse office charge. The proceedings
related Mr. Miskovic were postponed due Mr. Miskovics critical health
situation, which required treatment and hospitalization. convict Mr. Miskovics son, the judge the case resorted the unprecedented
procedure formally requesting the a.dvice the Serbian parliament whether their opinion the transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and
then formally voting approve authentic interpretation affirming that the
transaction was, their opinion, taxable notwithstanding the written advice
provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced
months prison. _The same judge expected render verdict the charges
against Mr. Miskovic the very near future.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic
will found guilty assisting that tax evasion, notwithstanding that the
evidence presented trial his control over his sons actions was non-existent. may also be.found guilty the abuse position charge, notwithstanding that
the other defendants were acquitted that charge and that Serbia under.
enormous pressure eliminate this criminal offense.
All this taking place the context recent national election and political
controversy ahead the formation new Government led Prime Minister
Vucic, who has repeatedly claimed credit for bringing one the countrys most
prominent and successful (but politically unpopular) businessman justice, and
publicly stated that the acquittal Miskovic would personal defeat for him.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569970 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569972 Date: 12/20/2018 Judicial Watch, Inc.
From:
Sent:
To:
Subject:
Veidenheimer, Paul
Tuesday, May 24, 2016 4:28
H~oke, Kathleen
RE: Documents for meeting with Jon Finer
Sure. will let you know there anything useful.
SBU
This email UNCLASSIFIED.
From: Hooke, Kathleen
Sent: Tuesday, May 24, 2016 4:27
To: Veidenheimer, Paul
Subject: RE: Documents for meeting with Jon Finer
[RELEASE FULLj
Ok, thanks. there nothing, thats fine. Just want sure arent missing something should aware of.
SBU
This email UNCLASSIFIED.
From: Veidenheimer, Paul
Sent: Tuesday, May 24, 2016 4:21
To: Hooke, Kathleen
~ubject: RE: Documents for meeting with Jon Finer not familiar with it. Will check with desk see they have anything further.
Paul
SBU
This email UNCLASSIFIED.
From: Hooke, Kathleen
Sent: Tuesday, May 24, 2016 4:08
To: Veidenheimer, Paul
Subject: FW: Documents for meeting with Jon Finer
Paul, there anything about this case that should tell Jon Finer before meeting has this tomorrow. See
below. Thanks, Kathleen
SBU
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569972 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569972 Date: 12/20/2018 Judicial Watch, Inc.
Thi~ email UNCLASSIFIED.
From: Visek, Richard
Sent: Tuesday, May 24, 2016 2:52
To: Rubin, Joshua Heffern, John Hooke, Kathleen
Subject: RE: Documents for meeting with Jon Finer Kathleen
SBU
This email UNCLASSIFIED.
From: Rubin, Joshua
Sent: Tuesday, May 24, 2016 2:50
To: Visek, Richard Heffern, John
Subject: FW: Documents for meeting with Jon Finer
Rich, John:
Vin Roberti and Tony Podesta have asked meet with Jon Finer tomorrow about the attached case. there
anything you your teams know that Jon needs know before the meeting? Ive pasted the key facts
document below give you sense.
Thanks very much,
KEY FACTS ABOUT THE MISKOVIC CASE
Serbias prosecution one the countrys most successful businessmen-Miroslav Miskovic,
President Delta Holding-has all the characteristics President Putins prosecution Mikhail
Khodorkovsky.
The 2014 State Department human rights report Serbia identified number irregularities
the case, including intimidation the presiding judge and unlawful detention Mr. Miskovic.
The 2015 State Department human rights report Serbia cited the subsequent demotion and
removal the presiding judge the Miskovic case evidence that Serbias courts remained
susceptible corruption and political influence.
Mr. Miskovic, who was held prison for seven months before being charged with any crime, was
eventually indicted for two alleged criminal offenses: abuse office, and assisting tax evasion
The first these (arising under Article 234 the Serbian Criminal Code) communist-era crime
that makes sense free market society-so much that the European Union has demanded
that expunged from Serbian law precondition Serbias admission the EU.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569972 Date: 12/20/2018
UNCLASSIFIED U.S. Department State Obtained
Case No.
F-2017-15330 Doc No. C06569972 Date: 12/20/2018 Judicial Watch, Inc.
The 2015 State Department human rights report Serbia also criticizes Article 234, citing
overuse the vague abuse office charge for alleged private sector corruption schemes
example corruption and lack transparency government.
The second charge involves allegation that Mr. Miskovics son Markb failed pay capital gains
tax stock transaction, and Mr. Miskovic assisted this tax evasion due his strong influence
over his son. March 25, Marko was convicted tax evasion, despite the fact that had been advised that
the transaction question was not taxable. This advice was provided writing the time the
transaction not only KPMG and other reputable accounting firms, but also officials the
Serbian Ministry Finance.
Marko was, however, acquitted the abuse office charge. The proceedings related Mr.
Miskovic were postponed due Mr. Miskovics critical health situation, which required treatment
and hospitalization. convict Mr. Miskovics son, the judge the case resorted the unprecedented procedure
formally requesting the advice the Serbian parliament whether their opinion the
transaction was taxable the time was made.
The Serbian parliament (controlled the government) responded drafting and then formally
voting approve authentic interpretation affirming that the transaction was, their opinion,
taxable notwithstanding the written advice provided the taxpayer the Ministry Finance. the strength this parliamentary action, Marko Miskovic was sentenced months
prison. The same judge expected render verdict the charges against Mr. Miskovic the
very near future.
Given that Marko was found guilty tax evasion, seems likely that Mr. Miskovic will found
guilty assisting11 that tax evasion, notwithstanding that the evidence presented trial his
control over his sons actions was non-existent. may also found guilty the abuse position charge, notwithstanding that the other
defendants were acquitted that charge and that Serbia under enormous pressure eliminate
this criminal offense.
All this taking place the context recent national election and political controversy ahead the formation new Government led Prime Minister Vucic, who has repeatedly claimed
credit for bringing one the countrys most prominent and successful (but politically unpopular)
businessman justic,, and publicly stated that the acquittal Miskovic would personal
defeat for him.
UNCLASSIFIED U.S. Department State Case No. F-2017-15330 Doc No. C06569972 Date: 12/20/2018