SAN FRANCISCO - A former Ukrainian prime minister who fled his country last year has been charged by a federal grand jury with conspiring to launder $114 million he allegedly demanded as a price for doing business in Ukraine.
Pavel Lazarenko, 47, was already being held without bail on an extradition request from Switzerland, where he also is accused of money laundering.
Lazarenko was named prime minister by Ukrainian President Leonid Kuchma in 1996 and held office for 13 months before losing a power struggle. He became an opposition party leader, but left for the United States in February 1999 after being accused by the Ukrainian government of stealing about $2 million and being stripped of his legislative immunity.
He has maintained that the accusations were part of an attempt by his enemies, including Kuchma, to silence political opposition. Lazarenko applied for political asylum after arriving in the United States, but his request was delayed after Switzerland filed for extradition.
Defense lawyer Joseph Russoniello denied that Lazarenko extorted money, adding: ''There is a serious question about whether information coming from the government of the Ukraine against Mr. Lazarenko was ... the product of a political vendetta.''
The indictment, unsealed Thursday, said Lazarenko ''would seek, demand and receive payment from individuals and entities as a condition of doing business in Ukraine.''
Lazarenko is accused of conspiring with an aide to transfer about $114 million in ill-gotten funds from Ukraine to U.S. bank and brokerage accounts to conceal their origin. The indictment also said Lazarenko transferred about $70 million to a bank in Antigua between May and September 1997. The charges did not specify whether the $70 million was part of the $114 million or an additional sum.
Lazarenko exercised his official authority in favor of companies owned by those who paid money, the indictment said.
He is charged with one count of conspiracy, seven counts of money laundering and 23 counts of transportation of stolen property. The conspiracy and laundering charges carry maximum sentences of 20 years, and the transportation charges 10 years each.
