TD Bank is in the process of seizing the Quebec home of Nikolay Goltsev, a Russian-Canadian who was convicted in New York for his involvement in secretly shipping over $10 million in restricted electronics to the Kremlin for use in weapons systems during the Ukraine war. Goltsev, along with his wife Kristina Puzyreva, had a market value of $848,800 as listed in City of Montreal property assessment records. TD Bank is also facing issues with the U.S. Department of Justice and other American financial regulators, negotiating penalties of up to $4 billion for multiple money-laundering lapses. This comes as TD’s CEO announced plans to retire and be replaced in 2025.
American officials have been investigating TD’s American affiliate for lax anti-money laundering controls that allowed criminals like Goltsev and his wife to use the bank to facilitate crimes. Specific cases have been reported, such as a TD USA banker in Florida taking bribes to overlook money laundering activities of a drug trafficking ring. Another example involved Chinese crime groups and drug traffickers using TD to launder money from fentanyl sales. TD Bank’s corporate spokesperson, Elizabeth Goldenshtein, preferred not to discuss the specifics of Goltsev’s case or the foreclosure action on his Quebec home.
Goltsev entered a guilty plea on July 11 after reaching a deal with prosecutors in the U.S. attorney’s office for the Eastern District of New York. He agreed to forfeit and pay $4 million, as well as surrender assets worth $1.68 million seized by FBI and Homeland Security investigators. Goltsev agreed not to appeal any sentence less than 46 months in jail and agreed to be deported from the United States. TD Bank filed a notice of intent to foreclose on Goltsev’s Quebec home, stating that he owed the bank $232,715 on a home equity line of credit. Goltsev’s wife, Kristina Puzyreva, was also charged in the technology smuggling scheme and sentenced to two years in jail.
Goltsev, along with Puzyreva and other members of their conspiracy, admitted to buying electronic components from U.S. manufacturers using front companies, SH Brothers and SN Electronics, and shipping them to the Kremlin. They coordinated over 300 shipments of restricted electronics that were later used by Russian defense contractors in weapons systems that were used in the Ukraine war. Text messages and banking records collected by FBI and U.S. Homeland Security investigators showed that Goltsev and Puzyreva were aware of the technology’s military use and actively participated in the scheme. Puzyreva operated multiple bank accounts and conducted financial transactions to further the group’s illegal activities.
The U.S. prosecutors discovered that some of the electronic components shipped by Goltsev were later found in Russian military equipment such as attack helicopters, unmanned aerial vehicles, battle tanks, and guided missiles. Goltsev used various front companies in Turkey, China, Hong Kong, India, and the United Arab Emirates to conceal the transactions. Puzyreva and Goltsev communicated about their profits from the scheme, with Puzyreva mentioning that they would be wealthy from the illicit activities. Goltsev is set to be sentenced on December 10, 2024, and faces up to 20 years in prison for his involvement in the illegal arms trafficking scheme. TD Bank has taken action to foreclose on Goltsev’s Quebec home, demanding repayment following his conviction in New York.
