A Paris court has begun hearings against Dmitry Klyuev, accused of orchestrating a $230 million tax fraud that targeted Russian Treasury funds in 2007. The case, which came to light through whistleblower Sergei Magnitsky, who died in a Moscow prison in 2009, led to the creation of global Magnitsky-style sanctions targeting corruption and human rights abuses.

Klyuev, 58, faces charges of aggravated money laundering, accused of funneling stolen funds through offshore companies into luxury purchases across France. According to prosecutors, between 2008 and 2012, more than 2.1 million euros ($2.42 million) were spent on high-end fashion, art, jewelry, and exclusive ski resorts. Some transactions allegedly benefited other Russian officials and connected parties.

The trial is being held in absentia, as Klyuev is believed to remain in Russia. French authorities have cited the unlikelihood of extradition, noting limited cooperation from Russian authorities. If convicted, he could face up to 10 years in prison and fines of 4.5 million euros.

Investigators say the fraud involved the seizure of Hermitage Capital subsidiaries and fraudulent claims for tax refunds, which were approved by Russian officials.

The illicit funds were traced across Europe and beyond, including through Swiss bank accounts, British Virgin Islands companies, and Western financial institutions. A portion of the funds was laundered through Danske Bank’s Estonian branch, resulting in a $2 billion settlement with U.S. authorities, while other proceeds were invested in real estate in Manhattan, Cyprus, and Dubai.

Bill Browder, co-founder of Hermitage Capital, said, “The investigation revealed how complex laundering operations can move illicit funds across borders. This trial represents a long-overdue step in holding the key perpetrators accountable.”