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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) Comment forthcoming