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Enforcement Release: December 4, 2025
OFAC Imposes $7,139,305 Penalty on Gracetown, Inc. for Violating Ukraine-/Russia-Related Sanctions and Reporting Obligations
The Office of Foreign Assets Control (OFAC) has issued a Penalty Notice imposing a $7,139,305 penalty on Gracetown, Inc., a property management company based in New York, for violating OFAC’s Ukraine-/Russia-Related sanctions and for failing to file reports of blocked assets.
Between April 2018 and May 2020, Gracetown received 24 payments on behalf of a company ultimately owned by a sanctioned Russian oligarch, Oleg Deripaska, despite having received explicit prior notice from OFAC that direct and indirect dealings with Deripaska were prohibited. Gracetown also failed to report blocked assets in its possession and control for over 45 months. The penalty amount reflects OFAC’s determination that the violations were egregious and were not voluntarily self-disclosed.
In 2013, Gracetown began receiving payments on behalf of a British...
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1) Read in conjunction with ENF 51231 (1) (Notable Notification of Third Party Blocking) (notification of third-party blocking served on Gracetown) and U.S. v. Graham Bonham Carter (Criminal Indictment, 2022 - SDNY) (2022 criminal indictment against an individual in connection with illegal payments through Gracetown).
2) Gracetown is a U.S. person holding company alleged to have owned by the SDN Oleg Deripaska up through a point prior to his designation, and afterward, “a relative and known associate of Deripaska”. OFAC alleges that “Gracetown received 24 payments on behalf of a company ultimately owned by a sanctioned Russian oligarch, Oleg Deripaska, despite having received explicit prior notice from OFAC that direct and indirect dealings with Deripaska were prohibited. Gracetown also failed to report blocked assets in its possession and control for over...