Behind a set of imposing metal doors in an easy-to-miss office building in a New York City suburb, a small team manages billions of dollars for a Russian billionaire.
People familiar with the matter say that a group of wealthy Russians have used a company in Tarrytown, N.Y., to secretly invest their money in U.S. hedge funds and private equity firms.
It's hard to know who the money Concord manages comes from. Several people said the majority of the funds belong to RomanAbramovich, a close ally of Putin.
Concord is part of a constellation of American and European advisers that have helped Russian billionaires navigate the Western financial, legal, political and media landscapes.
Firms are wrestling with what to do with lucrative but controversial clients now that U.S. and European sanctions are targeting those close to Mr. Putin.
Many are abandoning them. Some seem to be sticking with them. Others won't say what they are doing.
Lawyers and investment advisers are coming under intense scrutiny for work that was almost completely hidden from the public.
Congressional investigators are interested in Concord. On Wednesday, a lawmaker wrote to the Biden administration requesting a freeze on Mr. Abramovich's funds.
In Britain, where there is a thriving industry of attorneys who specialize in hiding assets, lawmakers have taken to the floor of Parliament to condemn lawyers and law firms that are still working with the wealthy.
There is nothing wrong with working for companies, individuals or governments if certain rules are followed.
In the United States, lawyers can represent clients in court or before government agencies, and they can also advise them on complying with sanctions. Lobbyists and public relations firms have to get licenses from the Treasury Department.
According to people familiar with the industry, the going rate for law and lobbying firms that represent people on the sanctions list has gone up into the millions of dollars.
Many firms don't have enough money to make up for the damage done to their reputation by working for Russians. Western lobbying, law and public relations firms have recently stopped working with Russian clients.
A spokeswoman for the law firm said that they are ending their representation of Alfa Bank. She wouldn't say whether that work continues for Mr. Abramovich, the billionaire owner of England's Chelsea Football Club.
Linklaters andNorton Rose Fulbright said they were leaving Russia. A spokeswoman for another large firm said it will not take new clients in Moscow. Ashurst, a large London-based law firm, said it would not act for any new or existing Russian clients.
The accounting giants, which have provided extensive services to the wealthy, said they were leaving Russia or severing ties with their local affiliates.
Firms parted ways with Russian clients who had praise for them in the days leading up to the invasion.
A former Treasury official turned lobbyist wrote a letter to the White House arguing that Russia's Sovcombank shouldn't face sanctions because of its commitment to gender equity, environmental and social responsibility.
The lobbyist's firm, Mercury Public Affairs, would be paid $90,000 a month by Sovcombank.
Sovcombank was recently sanctioned by the Biden administration. Mercury filed paperwork with the Justice Department indicating that it was ending its contract with Sovcombank.
The British law firm of Schillings represented the Russian billionaire Alisher Usmanov.
The European Union and the U.S. Treasury imposed sanctions on Mr. Usmanov. The firm is not acting for any individuals or entities that have been blacklisted.
Thomas A.Clare has written threatening letters to news organizations on behalf of his clients. He warned that he might try to hold The New York Times liable for the economic damages caused by Mr. Deripaska.
Mr. Clare said that his firm did not work for Mr. Deripaska again in the foreseeable future.
Leading U.S. law firms have represented Russian companies that are under sanctions.
None of the firms would say if they are still working with the Russian companies.
Some of Russia's largest companies are represented by Baker McKenzie, according to the law firm's website. The firm said it is reviewing and adjusting its operations to comply with sanctions.
The US Treasury is being sued in Washington by a leading sanctions lawyer who is trying to overturn sanctions imposed on him.
Stryk said he has had conversations about representing Russian companies that have been hit with sanctions. He has represented clients who have been targeted by sanctions, including the administrations of President Nicols Maduro of Venezuela and Joseph Kabila of the Democratic Republic of Congo.
Mr. Stryk said he would consider taking the work if the prospective clients opposed Russia's aggression in Ukraine and the Treasury Department gave him the necessary licenses.
The money of a small group of ultrawealthy Russians is managed by Concord Management.
The firm has a staff of about two dozen. According to online profiles of current and former Concord employees, it invests in hedge funds and real estate funds run by private equity firms.
There is gas supplies. Europe gets nearly 40 percent of its natural gas from Russia, and it is likely to be walloped with higher heating bills. European leaders accuse Russia's president of reducing supplies to gain a political edge, as natural gas reserves are running low.
There are shortages of essential metals. Russia is the world's largest exporter of the metal and the price of it has gone up as a result. The price of nickel has gone up.
Financial turmoil. Russia's access to foreign capital and its ability to process payments in dollars, euros and other currencies will be affected by the sanctions. Russia is also on alert for cyberattacks.
Wall Street bankers and hedge fund managers have interacted with Concord and its founder, Michael Matlin.
It's not clear how much of that belongs to Mr. Abramovich.
Mr. Abramovich hasn't been reprimanded. His spokeswoman wouldn't comment on Concord.
Over the years, Concord has steered its clients' money into marquee financial institutions, including the global money manager, the private equity firm, and the fund run by John Paulson, who predicted the collapse of the U.S. housing market. After being convicted of a Ponzi scheme, Bernard Madoff died in prison.
Brevan Howard is a European hedge fund company. A person familiar with the matter said that Brevan Howard will return the funds to Concord, which will no longer be a client.
In a letter sent Wednesday to Attorney General Garland, Representative Steve Cohen, Democrat of Tennessee, wrote that he had recently received information from credible sources that Concord oversees billions of dollars for Mr. Abramovich.
The co-chairman of a panel focused on European security requested that the U.S. government impose sanctions on Mr. Abramovich and seize the assets at Concord, as this blood money presents a flight risk.
The work done by law, lobbying and public relations firms is often performed in public, but it is rarely done in the financial arena.
Russian billionaires often make tabloid headlines for splashing out for extravagant homes and cars, but their bigger investments are often hidden thanks to a largely invisible network of financial advisory firms.
Hedge fund managers and their advisers are starting to look at their investor lists to see if any clients are under sanctions. If that is the case, their money needs to be disclosed to the Treasury Department.
Some hedge funds are considering returning money to people who haven't been targeted by the US or European authorities.
Ron Geffner, a lawyer who advises hedge funds, said that the implication of sanctions being imposed on Russia is rippling through the private fund community.
Western firms helped Russians hide assets when they were targeted by sanctions, but they prefer to keep their work under wraps.
The Appleby law firm's files were involved in the Paradise Papers leak. Four clients owned private jets through shell companies.
Appleby dropped clients it believed were affected by the sanctions on companies and individuals linked to Mr. Putin.
The Russians found other Western firms to help fill the void.
The Quincy Institute for Responsible Statecraft tracks foreign influence, and Ben said Russians will likely find new firms.
The initial backlash can be too much for some people, and they can turn on these lucrative contracts.
David Segal was reporting. Susan Beachy was involved in research.
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