Following a U.S. civil allegation of Money Laundering, the CEO of a Russian-based company Denis Katsyv has offered to pay a sum of $6 million, reports Yahoo News who cited Reuters. The firm was alleged to have laundered the proceeds of a $230 million tax fraud. The settlement brought an end to a politically induced Case a few days before the trial.

The unexpected settlement that transpired between the U.S. government and the Russian businessman was announced on Friday by Federal prosecutors just at the verge of the trial. The case was said to have been prepared and investigated for three years.

The Russian company Prevezon Holdings hit rock bottom last week when U.S. District Judge William Pauley denied a judgment motion by the defense and permitted the motion by the government to reveal evidence from a Russian criminal case.

Prevezon celebrates victory

Prevezon’s statement depicts a victory in the case, stating that the company did not have to plead guilty and also the payment was far less than the proposed amount the U.S. government wanted from them.

The U.S. government aimed at seizing over $20 million from Prevezon’s bank accounts and houses in Manhattan. Related companies had laid claims that these accounts and houses have been used to house laundered money by Russian tax officials.

The settlement leads to stronger ties between Russia and the U.S. thereby bringing an end to economic sanctions and allegations of political corruption between the two nations.

The U.S. government reiterated that the first mention of the tax fraud and laundering was by a Russian accountant, Sergei Magnitsky who worked for Hermitage Capital, an Investment firm.

Sergei Magnitsky dies in prison

Following his discovery, Magnitsky was charged and imprisoned for tax evasion. He later died in the prison. Kremlin’s Human rights council thinks Magnitsky died from a beating by the prison guards and medical neglect but the Russian government denies the claim. They say he died of heart failure and not foul play.

In 2012, Magnitsky’s former boss CEO William Browder compelled the U.S. to salvage the situation. The U.S. capital passed a law confiscating any U.S. assets belonging to Russian investigators and prosecutors that were involved in the accountant’s case and in return, Russia placed a ban on the adoption of Russian children by Americans.

The settlement stated that neither the Russian investigators nor the prosecutors had a hand in the death of Magnitsky. Katsyv’s lawyer, Gay reiterated that the allegations that Russia interfered in the just concluded U.S. election was the most likely reason that the both parties decided to settle the case before the trial.