1016-00009
· Dunmore Energy Holdings · Internal Investigation
transaction-summary-schedule.xlsx
DOCUMENT
Litigation
[sheet: Transaction Summary]
| Transaction No. | Trade Date | Settlement Date | Counterparty | Counterparty Jurisdiction | Counterparty Managing Director | Product Type | Volume (barrels) | Notional Value (USD) | DTI Trader | DTI Approving Officer | Trade Finance Bank | Volkhov-Connected | Tainted Transaction | Basis for Tainted Determination | Applicable OFAC Program | Bates Reference Range | Notes |
| COS-001 | 2020-06-15 | 2020-07-15 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | Urals Blend Crude | 185000 | $12,400,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | Yes | Yes | Crude oil sourced from Volkhov-controlled entity; Petronova identified as front for Volkhov Industrial Group JSC per Ridgeline forensic analysis | Directive 2 under E.O. 13662 (sectoral sanctions, energy sector — Volkhov designated Nov. 15, 2019) | DEH-DOJ-004218 – DEH-DOJ-004297 | First identified transaction in suspect series |
| COS-002 | 2020-08-20 | 2020-09-20 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | Urals Blend Crude | 200000 | $13,200,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | Yes | Yes | Crude oil sourced from Volkhov-controlled production subsidiary; Petronova acted as intermediary; payment structured through Crescent Commercial Bank PJSC | Directive 2 under E.O. 13662 (sectoral sanctions, energy sector) | DEH-DOJ-007415 – DEH-DOJ-007502 | Second transaction in suspect series; similar structure to COS-001 |
| COS-003 | 2020-11-05 | 2020-12-05 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | ESPO Blend Crude | 150000 | $10,500,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | Yes | Yes | Crude oil destined for Volkhov-controlled refinery; beneficial ownership links confirmed by Ridgeline forensic tracing | Directive 2 under E.O. 13662 (sectoral sanctions, energy sector) | DEH-DOJ-011230 – DEH-DOJ-011318 | First ESPO Blend transaction; destined for Volkhov refinery in Nizhny Novgorod |
| COS-004 | 2021-01-18 | 2021-02-18 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | Urals Blend Crude | 220000 | $15,400,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | No | No | N/A — Ridgeline tracing determined crude sourced from non-Volkhov producer (Kazakh origin); no Volkhov nexus for this specific cargo | N/A | DEH-DOJ-016880 – DEH-DOJ-016945 | Petronova counterparty but no Volkhov connection for this specific transaction |
| COS-005 | 2021-03-22 | 2021-04-22 | Zenith Petroleum DMCC | Dubai, UAE | Farhan Qureshi | Brent Crude | 210000 | $16,800,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | No | No | N/A — No Volkhov connection identified by Ridgeline forensic tracing | N/A | DEH-DOJ-021540 – DEH-DOJ-021612 | One of two Zenith Petroleum transactions; no Volkhov nexus found |
| COS-006 | 2021-05-10 | 2021-06-10 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | Urals Blend Crude | 230000 | $17,500,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | Yes | Yes | Crude oil sourced from Volkhov-controlled production subsidiary; payment routed through 2 intermediary accounts at Crescent Commercial Bank PJSC | Directive 2 under E.O. 13662 (sectoral sanctions, energy sector) | DEH-DOJ-028710 – DEH-DOJ-028815 | Largest Urals Blend volume in series to date |
| COS-007 | 2021-07-14 | 2021-08-14 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | ESPO Blend Crude | 175000 | $14,700,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | Yes | Yes | Crude oil destined for Volkhov-controlled refinery; payment structured through intermediaries to obscure beneficial ownership | Directive 2 under E.O. 13662 (sectoral sanctions, energy sector) | DEH-DOJ-035420 – DEH-DOJ-035518 | Second ESPO Blend transaction destined for Volkhov refinery |
| COS-008 | 2021-08-30 | 2021-09-30 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | Brent Crude | 190000 | $15,200,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | No | No | N/A — Ridgeline tracing confirmed crude sourced from independent North Sea producer; no Volkhov nexus | N/A | DEH-DOJ-041205 – DEH-DOJ-041278 | Brent Crude transaction with Petronova; independently sourced cargo |
| COS-009 | 2021-10-12 | 2021-11-12 | Zenith Petroleum DMCC | Dubai, UAE | Farhan Qureshi | Brent Crude | 195000 | $16,100,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | No | No | N/A — No Volkhov connection identified by Ridgeline forensic tracing | N/A | DEH-DOJ-048930 – DEH-DOJ-049010 | Second of two Zenith Petroleum transactions; no Volkhov nexus found |
| COS-010 | 2021-11-08 | 2021-12-08 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | Urals Blend Crude | 240000 | $19,200,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | Yes | Yes | Crude oil sourced from Volkhov-controlled production subsidiary; largest single sourcing transaction; structured payments confirmed | Directive 2 under E.O. 13662 (sectoral sanctions, energy sector) | DEH-DOJ-055140 – DEH-DOJ-055260 | Largest volume transaction in series (240,000 bbl) |
| COS-011 | 2021-12-15 | 2022-01-15 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | Urals Blend Crude | 205000 | $16,400,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | Yes | Yes | Crude oil sourced from Volkhov-controlled entity; payment routed through 2 intermediary accounts at Crescent Commercial Bank PJSC | Directive 2 under E.O. 13662 (sectoral sanctions, energy sector) | DEH-DOJ-063780 – DEH-DOJ-063870 | Settlement crossed into 2022; Volkhov sectoral sanctions in effect |
| COS-012 | 2022-01-10 | 2022-02-10 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | ESPO Blend Crude | 160000 | $14,500,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | No | No | N/A — Ridgeline tracing confirmed crude sourced from non-Volkhov entity (Sakhalin independent producer); no beneficial ownership nexus | N/A | DEH-DOJ-072450 – DEH-DOJ-072530 | ESPO Blend from independent producer; Petronova counterparty but no taint |
| COS-013 | 2022-01-28 | 2022-02-28 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | Urals Blend Crude | 250000 | $18,600,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | Yes | Yes | Crude oil destined for Volkhov-controlled refinery; payment routed through 3 intermediary accounts at Crescent Commercial Bank PJSC | Directive 2 under E.O. 13662 (sectoral sanctions, energy sector) | DEH-DOJ-080115 – DEH-DOJ-080240 | Second-largest notional value among tainted transactions |
| COS-014 | 2022-02-10 | 2022-03-10 | Petronova Trading FZE | Jebel Ali Free Zone, UAE | Sergei Volkov | Urals Blend Crude | 275000 | $22,100,000 | Natasha Sorokin | Derek Hargrave | Crescent Commercial Bank PJSC | Yes | Yes | Crude oil destined for Volkhov-controlled refinery; payment routed through intermediary accounts at Crescent Commercial Bank PJSC | Directive 2 under E.O. 13662; potentially also E.O. 14024 (Volkhov added to SDN List Apr. 6, 2022, post-trade but pre-settlement for final tranche) | DEH-DOJ-089312 – DEH-DOJ-089478 | Last transaction in suspect series; settled weeks before Volkhov SDN designation |
| TOTALS / SUMMARY | Petronova: 12 | Zenith: 2 | 3,085,000 | $218,700,000 | Yes: 9 | No: 5 | Yes: 9 | No: 5 | Tainted Notional: $156,300,000 | Untainted Notional: $62,400,000 | 14 transactions total; 9 tainted ($156.3M); 5 untainted ($62.4M) |
[sheet: Counterparty Detail]
| Counterparty Full Legal Name | Short Name | Entity Type | Jurisdiction of Registration | Registered Address | Managing Director | Nationality of MD | Volkhov Industrial Group Connection | OFAC Status of Counterparty | OFAC Status of Connected Entity | Beneficial Ownership Analysis Reference |
| Petronova Trading FZE | Petronova | Free Zone Establishment (FZE) | Jebel Ali Free Zone, UAE | Office 1407, Al Shafar Tower, Dubai Internet City, Dubai, UAE | Sergei Volkov | Russian (UAE resident) | Alleged front entity for Volkhov Industrial Group JSC (chaired by Arkady Volkhov); beneficial ownership links identified by Ridgeline Advisory Group forensic analysis and Calderwood & Harkness 50% Rule analysis | Not independently listed on OFAC SDN List as of investigation close; however, subject to blocking as entity owned/controlled by SDN-listed Volkhov Industrial Group per OFAC 50% Rule | Volkhov Industrial Group JSC: Directive 2 under E.O. 13662 (designated Nov. 15, 2019); full SDN blocking under E.O. 14024 (designated Apr. 6, 2022) | See Memo: Petronova Beneficial Ownership Analysis (June 15, 2022, Liam Donahue); Memo: Volkhov Designation History & 50% Rule (June 20, 2022, Conrad Reeves) |
| Zenith Petroleum DMCC | Zenith Petroleum | DMCC company | Dubai, UAE | Unit 2201, Jumeirah Bay Tower X2, Cluster X, Jumeirah Lakes Towers, Dubai, UAE | Farhan Qureshi | Pakistani (UAE resident) | Involved in 2 of 14 flagged crude oil swap transactions; Ridgeline forensic tracing found no direct Volkhov beneficial ownership link for those 2 transactions | Not listed on OFAC SDN List or Entity List | N/A for the 2 Zenith transactions (no Volkhov nexus identified) | See Memo: Zenith Petroleum DMCC — Counterparty Due Diligence Findings (July 5, 2022, Amara Osei) |
[sheet: Tainted Transaction Analysis]
| Transaction No. | Trade Date | Counterparty | Notional Value (USD) | Estimated Net Margin (%) | Estimated Net Profit (USD) | Nature of Volkhov Connection | Direction of Crude Flow | Payment Routing | Number of Associated Wire Transfers | Ridgeline Forensic Report Cross-Reference | Key Documents — Bates Range | OFAC Program Violated |
| COS-001 | 2020-06-15 | Petronova Trading FZE | $12,400,000 | 5.6% | $694,400 | Crude sourced from Volkhov-controlled production subsidiary; Petronova acted as intermediary | Sourced from Volkhov entity | Payment routed through 2 intermediary accounts at Crescent Commercial Bank PJSC (Dubai); structured to obscure Volkhov beneficial ownership | 8 | Ridgeline Final Forensic Report, Section 4.1, Table 4-A (Engagement No. RAG-2022-0319; delivered Apr. 1, 2023) | DEH-DOJ-004218 – DEH-DOJ-004297 | Directive 2 under E.O. 13662 (sectoral sanctions — energy sector of Russian Federation) |
| COS-002 | 2020-08-20 | Petronova Trading FZE | $13,200,000 | 5.6% | $739,200 | Crude sourced from Volkhov-controlled production subsidiary; Petronova acted as intermediary | Sourced from Volkhov entity | Payment routed through 2 intermediary accounts at Crescent Commercial Bank PJSC; structured to obscure Volkhov beneficial ownership | 9 | Ridgeline Final Forensic Report, Section 4.1, Table 4-A | DEH-DOJ-007415 – DEH-DOJ-007502 | Directive 2 under E.O. 13662 (sectoral sanctions — energy sector) |
| COS-003 | 2020-11-05 | Petronova Trading FZE | $10,500,000 | 5.6% | $588,000 | Crude destined for Volkhov-controlled refinery; beneficial ownership links confirmed by Ridgeline forensic tracing | Destined for Volkhov entity | Payment routed through 2 intermediary accounts at Crescent Commercial Bank PJSC | 7 | Ridgeline Final Forensic Report, Section 4.1, Table 4-A | DEH-DOJ-011230 – DEH-DOJ-011318 | Directive 2 under E.O. 13662 (sectoral sanctions — energy sector) |
| COS-006 | 2021-05-10 | Petronova Trading FZE | $17,500,000 | 5.6% | $980,000 | Crude sourced from Volkhov-controlled production subsidiary; payment routed through intermediaries | Sourced from Volkhov entity | Payment routed through 2 intermediary accounts at Crescent Commercial Bank PJSC; structured payments confirmed | 11 | Ridgeline Final Forensic Report, Section 4.1, Table 4-B | DEH-DOJ-028710 – DEH-DOJ-028815 | Directive 2 under E.O. 13662 (sectoral sanctions — energy sector) |
| COS-007 | 2021-07-14 | Petronova Trading FZE | $14,700,000 | 5.6% | $823,200 | Crude destined for Volkhov-controlled refinery; payment structured through intermediaries to obscure beneficial ownership | Destined for Volkhov entity | Payment routed through 3 intermediary accounts at Crescent Commercial Bank PJSC | 10 | Ridgeline Final Forensic Report, Section 4.1, Table 4-B | DEH-DOJ-035420 – DEH-DOJ-035518 | Directive 2 under E.O. 13662 (sectoral sanctions — energy sector) |
| COS-010 | 2021-11-08 | Petronova Trading FZE | $19,200,000 | 5.6% | $1,075,200 | Crude sourced from Volkhov-controlled production subsidiary; largest single sourcing transaction | Sourced from Volkhov entity | Payment routed through 3 intermediary accounts at Crescent Commercial Bank PJSC; structured to obscure Volkhov beneficial ownership | 13 | Ridgeline Final Forensic Report, Section 4.1, Table 4-C | DEH-DOJ-055140 – DEH-DOJ-055260 | Directive 2 under E.O. 13662 (sectoral sanctions — energy sector) |
| COS-011 | 2021-12-15 | Petronova Trading FZE | $16,400,000 | 5.6% | $918,400 | Crude sourced from Volkhov-controlled entity; payment structured through intermediary accounts | Sourced from Volkhov entity | Payment routed through 2 intermediary accounts at Crescent Commercial Bank PJSC | 11 | Ridgeline Final Forensic Report, Section 4.1, Table 4-C | DEH-DOJ-063780 – DEH-DOJ-063870 | Directive 2 under E.O. 13662 (sectoral sanctions — energy sector) |
| COS-013 | 2022-01-28 | Petronova Trading FZE | $18,600,000 | 5.6% | $1,041,600 | Crude destined for Volkhov-controlled refinery; payment routed through multiple intermediary accounts | Destined for Volkhov entity | Payment routed through 3 intermediary accounts at Crescent Commercial Bank PJSC | 12 | Ridgeline Final Forensic Report, Section 4.1, Table 4-D | DEH-DOJ-080115 – DEH-DOJ-080240 | Directive 2 under E.O. 13662 (sectoral sanctions — energy sector) |
| COS-014 | 2022-02-10 | Petronova Trading FZE | $22,100,000 | 5.6% | $1,237,600 | Crude destined for Volkhov-controlled refinery; payment structured through intermediaries | Destined for Volkhov entity | Payment routed through 3 intermediary accounts at Crescent Commercial Bank PJSC | 14 | Ridgeline Final Forensic Report, Section 4.1, Table 4-D | DEH-DOJ-089312 – DEH-DOJ-089478 | Directive 2 under E.O. 13662; potential E.O. 14024 applicability (Volkhov SDN-listed Apr. 6, 2022) |
| TOTALS | All Petronova Trading FZE | $144,600,000 | 5.6% | $8,097,600 | 95 |
[sheet: Timeline & Regulatory Context]
| Date | Event | Relevance to Transactions |
| 2019-11-15 | Volkhov Industrial Group JSC designated under OFAC Directive 2 (sectoral sanctions, energy sector) pursuant to E.O. 13662 | All 14 crude oil swap transactions (June 2020 – Feb. 2022) occurred after this designation; 9 tainted transactions potentially violated Directive 2 prohibitions |
| 2020-03-01 | Earliest suspect transaction at DTI trading desk (approximate); structured payments through Crescent Commercial Bank PJSC commenced | Beginning of the relevant conduct period for the DOJ inquiry |
| 2020-06-15 | First crude oil swap transaction (COS-001) with Petronova Trading FZE executed | First transaction in the 14-transaction series at issue; $12.4M notional |
| 2020-08-20 | Second crude oil swap transaction (COS-002) with Petronova Trading FZE executed | Continued pattern of Volkhov-connected transactions through Petronova |
| 2021-04-15 | Executive Order 14024 issued by the President of the United States | Expanded sanctions authority for Russia-related designations; basis for subsequent Volkhov full SDN blocking |
| 2022-02-10 | Last crude oil swap transaction (COS-014) with Petronova Trading FZE executed; $22.1M notional | Final transaction in the series; settled shortly before Volkhov SDN designation |
| 2022-02-24 | Russian Federation invasion of Ukraine commenced | Significantly heightened sanctions enforcement environment; accelerated OFAC designations across Russian energy sector |
| 2022-03-10 | Settlement of COS-014, the final crude oil swap transaction | Last settlement date in the series; all 14 transactions fully settled by this date |
| 2022-04-06 | Volkhov Industrial Group JSC added to OFAC SDN List (full blocking) under E.O. 14024 | Elevated sanctions status from sectoral (Directive 2) to full blocking; triggered screening refresh by then-CCO Gerald Fisk on Apr. 11, 2022 |
| 2022-04-11 | Gerald Fisk (CCO) identified potential Volkhov exposure via Petronova Trading FZE; notified General Counsel Marcus Wellbourne | Internal discovery of potential sanctions violations; commenced internal escalation |
| 2022-04-14 | Dunmore Energy Holdings Ltd. retained Calderwood & Harkness LLP (Victoria Chambers, partner); Matter No. 1016-00009 | Engagement of defense counsel for internal investigation and DOJ defense |
| 2022-04-19 | DOJ National Security Division opened inquiry; grand jury subpoena GJ No. 22-418 issued by U.S. District Court for the District of Columbia (Grand Jury 22-2) | Formal commencement of DOJ investigation; subpoena scope included all transactions with Petronova, Volkhov, Zenith Petroleum, and Caspian Logistik from Jan. 1, 2019 forward |
| 2022-05-02 | Ridgeline Advisory Group LLC retained for forensic accounting analysis (Engagement No. RAG-2022-0319; Dr. Margaret Liu, CPA, CFE) | Commencement of forensic tracing of suspect transaction flows and beneficial ownership analysis |
| 2022-09-15 | Natasha Sorokin (Senior Trader, DTI) separated from Dunmore | Primary trader on all 14 crude oil swap transactions; separation as part of remediation measures |
| 2022-10-01 | Derek Hargrave (President, DTI) separated from Dunmore | Approving officer for all 14 crude oil swap transactions; separation as part of remediation measures |
| 2023-04-01 | Ridgeline Advisory Group delivered final forensic accounting report | Confirmed 9 of 14 crude oil swap transactions ($156.3M notional) involved Volkhov-connected entities; identified $34.2M in structured payments across 127 wire transfers |
| 2023-06-01 | OFAC voluntary self-disclosure filed by Dunmore Energy Holdings Ltd. | Disclosure of apparent violations related to the 9 tainted transactions under Directive 2 / E.O. 13662 |
| 2023-11-30 | Voluntary disgorgement payment of $8,750,000 to U.S. Treasury | Represents estimated net profits from the 9 tainted crude oil swap transactions ($156.3M × 5.6% net margin, rounded) |
| 2024-04-15 | OFAC issued Cautionary Letter (Ref. OCA-2024-11587) — not a civil penalty | Favorable OFAC outcome citing mitigating factors including voluntary self-disclosure, cooperation, and remediation (personnel separations, enhanced compliance) |
| 2024-06-28 | DOJ issued formal declination of prosecution; matter closed | Resolution of the investigation without charges against Dunmore; cited cooperation, voluntary disgorgement, and compliance enhancements |
[sheet: Summary Statistics]
| Metric | Value | Notes |
| Total Crude Oil Swap Transactions | 14 | June 2020 – February 2022 |
| Total Notional Value (All 14 Transactions) | $218,700,000 | Sum across all counterparties |
| Transactions with Petronova Trading FZE | 12 | Managed by Sergei Volkov |
| Transactions with Zenith Petroleum DMCC | 2 | Managed by Farhan Qureshi |
| Tainted Transactions (Volkhov-Connected) | 9 | Per Ridgeline forensic analysis |
| Untainted Transactions | 5 | No Volkhov nexus identified |
| Tainted Notional Value | $156,300,000 | 9 transactions involving Volkhov-connected entities |
| Untainted Notional Value | $62,400,000 | $218,700,000 − $156,300,000 |
| Estimated Net Margin (Tainted Transactions) | 5.6% | Uniform margin per Ridgeline analysis |
| Estimated Net Profit (Tainted Transactions) | $8,752,800 | $156,300,000 × 5.6% |
| Voluntary Disgorgement Paid | $8,750,000 | Rounded; paid Nov. 30, 2023 to U.S. Treasury |
| Trade Finance Bank | Crescent Commercial Bank PJSC (Dubai) | Relationship Manager: Khalid Mansour |
| DTI Primary Trader | Natasha Sorokin | Senior Trader; separated Sept. 15, 2022 |
| DTI Approving Officer | Derek Hargrave | President, DTI; separated Oct. 1, 2022 |
| Applicable OFAC Programs | Directive 2 under E.O. 13662; E.O. 14024 (post-Apr. 6, 2022) | Volkhov designated Nov. 15, 2019 (Directive 2); SDN-listed Apr. 6, 2022 (E.O. 14024) |
| Related Structured Payments (Crescent Bank) | $34,200,000 across 127 wire transfers | March 2020 – March 2022; structured to obscure Volkhov beneficial ownership |
| Related Oilfield Equipment Exports | $12,400,000 | Via Caspian Logistik GmbH (separate from swap transactions) |
| Calderwood & Harkness Matter No. | 1016-00009 | Victoria Chambers, Responsible Partner |
| Ridgeline Engagement No. | RAG-2022-0319 | Forensic accounting; Dr. Margaret Liu, CPA, CFE |
| Prepared By | Jasmine Thornton, Lead Associate, Calderwood & Harkness LLP | With input from Ridgeline Advisory Group LLC |
| Date Prepared | April 1, 2023 | Coinciding with delivery of Ridgeline final forensic report |