« Sanction-busting Investigation Could Threaten Nets Deal, Atlantic Yards | Main | TODAY: April 12, 9:30 AM. Oral Argument in Atlantic Yards Eminent Domain Related Case - NOTE VENUE CHANGE »
April 11, 2010
It came from Develop Don't Destroy Brooklyn...
Political Leaders Need to Explain How Apparent Prokhorov Sanctions Busting Was Missed or Ignored
It appears that the US Treasury Department's sanctions do not allow the kind of business connections prospective Nets owner and prospective 45% owner of the Barclays Center Arena has with Robert Mugabe. Mugabe is considered by many to be one of the world's worst tyrants and the US has sanctioned him for this. It appears that Bruce Ratner's partner in the whole Atlantic Yards boondoggle has violated these laws.
Whether or not Mr. Prokhorov's extensive holdings in Zimbabwe—in light of his involvement with an American business enterprise—violate US law, remains to be seen. But clearly his involvement with the Nets, Ratner, New York City and State is unsavory.
Because of this, Ratner's project must come to a complete halt until the results of a federal inquiry into potential sanction violations by Mr. Prokhorov are known.
And the NBA must come forth and explain if they simply missed this information in its Prokhorov vetting process (and why?) or saw it and ignored it. Whether the latter or the former, David Stern has a lot of explaining to do.
NBA Shoots Big Airball on Prokhorov's Background Check
On April 8th, in The Star Ledger, NBA President Joel Litvin said:
"[Barclays Center Arena] Site possession is the only thing impacting the timing of the [NBA's] vote [on Prokhorov's ownership of the Nets]. The documentation of the Nets’ purchase and the background investigation of Mr. Prokhorov have been complete for some time."
Well, Mr. Litvin's basketball cartel may have completed its investigation of Prokhorov, but it clearly forgot to look at certain things or ignored some big red flags out of desperaton to land the billionaire's big bucks.
Lots of Egg On David Stern's Face With Prokhorov's Extensive Holdings in Zimbabwe
It's not a good week to be NBA commissioner David Stern, whose background check on Mikhail Prokhorov appears to have been as porous as the Nets 2010 defense.
Posted by eric at April 11, 2010 10:54 PM