The Football Leaks Family 1: World leaders, mobsters, smoke and mirrors
Craig Shaw , Zeynep Sentek / 2016-12-20
Lead

Millions of files in the Football Leaks dataset relate to the business of a Kazakh-Turkish family called the Arifs.

For the past 25 years they have operated almost unnoticed, but built an empire which has cultivated relationships with Russian mobsters, post-soviet plunderers, wealthy Turks and even presidents. 

Read The Black Sea's investigation into the murky history of the Football Leaks family

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Credit: Corina Dragomir / The Black Sea

 

The source of the Arifs' wealth originates from a polluting chrome foundry in Kazakhstan

Since the 1990s, the Arifs have been in business with the 'Kazakh trio', controversial businessmen close to Kazakhstan president, Nursultan Nazarbayev

It is these relationships that the family has spent over two decades trying to protect

 

 

Kazakhstan businessman Tevfik Arif’s letter to the Qatari royals on 30 March 2013 starts with a conciliatory tone:

“I would like to take this opportunity to apologise for our not being able to meet each other in Istanbul. My son, Arif, has informed me of the events that ensued and I was most disappointed and upset to learn how matters had unfolded.”

The cause of the letter was a botched three day, get-to-know-you meeting two weeks earlier. The board of the Qatari royals' venture firm, Qatar Investment & Projects Development Holding Co (QIPCO) had travelled to Turkey with a couple of billion dollars to invest.

The man who invited QIPCO was Arif Arif, a 27-year-old businessman and face of the Arif family's London-based trading companies, Doyen Capital and Doyen Sports. Arif - who is also known as Arif Efendi, promised the royals the highest-level meetings with government ministers and businessmen.

The Qataris cared only about one meeting, however: Could Doyen get them in the room with Turkish prime minister, Recep Tayyip Erdoğan? 

For weeks, the younger Arif desperately tried to engineer a meeting between the Qataris and Erdoğan. But it was all without success. The royal delegation arrived in Turkey expecting to meet with the prime minister - and instead found the leader's door firmly closed.

The Qataris were furious, even refusing to meet with Tevfik who flew from his sickbed in London to try to soothe the dispute. 

In his letter, Tevfik's tried his best to explain the mishap. Arif, he wrote, has "grown used to the fact that I always took him along when requesting the [Prime Minister’s] audience in the past [but] when trying to do so himself this time around the PM’s office was not so welcoming, largely due to his tender age and the fact that I was not present.”

This wasn’t bravado.  Since setting up shop in Turkey, the 49-year-old Tevfik has cultivated an impressive cabal of influential friends – and the list was growing.

The dirty dealings of the Kazak-Turkish Arif family, and their powerful friends, are exposed, as the architects of the Doyen Group, the major subject of the Football Leaks data obtained by Der Spiegel and shared with EIC's media partners.

The millions of leaked internal emails, contracts and other company documents from the Doyen Group helped The Black Sea and EIC partners reveal the inner workings of a multi-billion euro, global enterprise founded in the toxic smog and violence of Kazakhstan's natural resources sector in the early 1990s.

It is this cash that for over two decades has helped fund an expansion into Europe, Africa, the U.S., and Turkey, rubbing shoulders with mobsters, plunderers and presidents along the way.

In Turkey, the Arifs’ main base of operations, their influence has grown, almost undetected, through secret deals with the country’s rich and powerful – including those closest to President Erdoğan.

What is clear is that the largest leak in sports history is not only about football.

 

Pier pressure on the Savarona
 

 

For a family who for decades had largely avoided unwanted publicity, the Savarona scandal in Turkey in 2010 was a dramatic coming out party.

On 28 September 2010, officers from the Turkish gendarmerie stormed the deck of the Savarona, a luxury yacht once owned by Mustafa Kemal Ataturk, founder of the Turkish Republic. On board was Tefvik “Skip” Arif and a cabal of influential businessmen, mostly from Kazakhstan, being entertained by several young 'models' from Russian and Eastern Europe.

Months earlier, acting on a tip from an unnamed source, police began tapping the phones of a group of Turkish pimps and associates of Tevfik. Copies transcripts contained in the Savarona indictment, obtained by The Black Sea, reveal that police first tracked Arif and his inner-circle when they arranged orgies with prostitutes, one of whom only 15 years old, at the Rixos Hotel Belek earlier in March. Then again as they prepared the bash on the Savarona.

After the police sting operation that morning in September, Arif was arrested on sex trafficking charges. For many in Turkey, it was the first time they had heard of the Kazakh-born businessman now accused of running a prostitution enterprise that included underage girls.

The charges against him might have been ambitious, but the new fame was unwelcome and problematic. The sting had exposed Arif’s powerful, billionaire friends to the media spotlight. [Read in more depth, our investigation here: Kazakh moguls, the pal of Donald Trump, teen models and the yacht of the 'Father of the Turks']

On board the yacht was the ‘Kazakh trio’, Alexander Mashkevich, Patokh Chodiev and Alijan Ibragimov.The trio, none of whom are from Kazakhstan, own the multi-billion Eurasian Natural Resources Company, a mining conglomerate with close ties to the President Nursultan Nazarbayev.

So, too, was Russian-Chechen tycoon, Musa Bazhaev, head of Alliance Group in Russia. Bazhaev’s Chechen family is linked to the mafia wars of the early 90s, say Russian media, when criminal groups battled to gain control of the region’s natural resources, and used forged bank papers to embezzle billions through the post-soviet financial system.

Around the time of the Savarona incident, Bazhaev, who inherited Alliance Group in 2000 following the death of his brother Zia, son-in-law of Nazarbayev, was attempting to convince Mashkevich to join a prospective oil deal between Alliance Group and CapFox Congo, owned by Khulubuse Zuma, nephew of the South African president, Jacob Zuma.

Curiously, despite renting the yacht for the week, and not for the first time, Mashkevich, former-president of the Euro-Asian Jewish Congress, was never questioned by Turkish authorities. Neither were Bazhaev, Chodiev or Ibragimov.

When Arif was acquitted in 2011, the company hired UK firms, Bell Pottinger and Shillings, specialists in public relations and privacy, to cajole news organisation onto removing references the Savarona affair.

This was important for business. The Kazakh trio were seemingly crucial to the family's past and future success. It is a strange friendship that going back two decades to the early days of the post-Soviet Kazakhstan and the lucrative metals business.

 
Astana to Istanbul: The history of the 'Arifovs'
 

A triangle of deal-making between Moscow, Astana and Istanbul: Bazhaev, Mashkevitch, Tevfik Arif

 

The men behind the Doyen are four secretive brothers from Kazakhstan: Refik Arif, Rustem Arif, Vakif Arif and Tevfik, born Tofic Arifov. Little is known about the other three, but Tevfik, an ethnic Turk born in Cambul, Kazakhstan in May 1953, earned an international relations degree from a university in Moscow. His first known job was in the USSR Ministry of Commerce and Trade in Kazakhstan in the late 70s, serving as the director of the department of hotel management.

With the end of Communism imminent and Soviet state assets ripe to be plundered, Tevfik shifted in to the private sector. During the Savarona trial, Tevfik stated that he “worked in energy sector, chemical sector and metallurgy sector. I was producing coal in Russia and copper in Kazakhstan. Due to lack of coal, it was not possible to make production. I started to organise them”. Indeed, in 1991, he retired from the ministry and started his own private commercial enterprise, called the Speciality Chemicals Trading Co. trading in “chrome, rare metals and raw materials.”

It wasn’t long before Tevfik’s business brought him into contact with the Reuben Brothers, David and Simon. Natives of India living in London, the ruthlessly ambitious Reubens were at the time in the early days of monopolising the region’s natural resource industry through their company, Trans World Group. Tevfik joined them as an “agent on the ground” in Kazakhstan, according to the company’s internal documents.  

Trans World started around 1991 as a cooperation between and the Reubens and Uzbekistan-born Israeli oligarchs, Lev and Michael Cherney. It was the successor to Trans Commodities, an import/export business of Ukrainian entrepreneur Semyon “Sam” Kislin, who employed the Chernoys in the late 1980s.

The Kislin family, especially Sam, who emigrated to the U.S. from the Soviet Union in the early 70s through President Brezhnev’s exit-visa programme for Russian Jews, is mentioned by several FBI and secret service reports as being part of the Solntsevskaya Russian mafia group in New York –more precisely the Yaponchik organization of Vyacheslav Ivankov, a particularly brutal mobster, according to reports.

Over the next few years, The Chernoys and the Reuben Brothers spearheaded Trans World into a multi-billion-dollar behemoth in the natural resource sector, as it became the third biggest seller of aluminium in the world. To get to the top, the brothers played dirty; criminally dirty, say some.

It was during these years that the Arifovs likely crossed paths with the Kazakh trio. In an interview with EIC’s Belgium partner, Le Soir, Patokh Chodiev said that he, Mashkevich and Ibragimov first met the Reubens in Spring 1992. At the time, the trio were making billions selling copper on the international market through their British Virgin Islands company, Kazakhstan Mineral Resources Corporation, with the help of Kazakh officials.

Seeing a mutual interest, the Kazakh trio and the Reubens joined forces. They set up a network of offshore companies in the BVI, including one named KazChrome. It could not have hurt the fortunes of Tevfik, the Reubens or the Kazakh trio that Refik Arif, also born in Kazakhstan, in 1961, was from 1991-1999 senior manager at the Kazakh Ministry of Industry, and the “first point of contact for foreign investors wanting wishing to invest in phosphorous and ferroalloy”.

The eye-watering profits available during the post-Soviet fire sale inspired the rise of ‘gangster capitalism’, so-called because of the emerging cross-over of business and the mafia. Events in the region turned criminal – and deadly. The ‘Aluminium wars’ of the 1990s were a bloody battleground. Industrialists, like the Reubens and Chernoys, were accused of hiring contract killers to murder their competition in the aluminium sector.

The Reuben brothers would be forced to sell most of their assets in Russia and Kazakhstan. And based on these early deals, mostly with aluminium, a new wave of oligarchs emerged, such as Boris Berezovsky, and, later, Oleg Deripaska and Roman Abramovich.

By the end of the 1990s, the fight for soviet resources had mostly shifted from the streets and into the courts, usually London. These lawsuits provide extensive details of this period of lucrative partnership between Soviet and Russian secret services, high-ranking officials and top mobsters.

Arif is, during these years, intimately linked to the three main elements gluing post-Soviet’s violent entrepreneurs and secret services together: Trans World and mineral resources, mob organizations in the US and western European, and global financial structures that were built to serve them.

It seemed from the beginning, however, the 40-year-old Tevfik did not have the taste for blood. Tevfik’s son Arif later told a colleague his father left Kazakhstan “once the business began intertwining with organised crime”.

 

A toxic fortune

Tofic Arifov moved to Turkey in 1993, where, public records state, he had had a jewellery business called Alset Dis Ticaret (English) since 1979. Within a year, he obtained a Turkish passport and Turkified his name to ‘Tevfik Arif’. Reliable information about Tevfik’s early days in Turkey is scarce. But in the Savarona indictment, he said that he did some business in the tourist and jewellery sector there, but emigrated with his wife and children to the U.S. shortly after, starting a real estate business that would eventually bring him onto contact with President-Elect Trump.

It wasn’t until the late 1990s that the family began to make its mark on Turkey and the rest of the world. But this expansion could not have occurred without the family’s solid cash source from back home – and its crucial connection to the Kazakh trio. In the mid-90s, the Arifs acquired the Aktyubinsk Chromium Chemicals Plant (ACCP) in Aktobe, located in the Aktyubinsk region of north-western Kazakhstan, near the border with Russia.

ACCP was registered to Refik Arif while he was still an official in the Ministry of Industry in Kazakhstan. Twenty years later, the plant is the only producer of chromium-based chemical products in the country. The Aktobe plant, according to a 2002 NATO Science Committee report, is responsible for pouring toxins into the local water supply, rendering it undrinkable.

Housed in the same town as ACCP is KazChrome, part of the empire established during the Kazakh trio’s ventures with the Reubens in the early 1990s, and which is now solely in the hands of ENRC. It operates one of the biggest chromium mines in the region and likely supplies ACCP with the chromium ore which is vital for its operations – and the Arif’s mysterious wealth.

The baggage of this post-Soviet world of violence and plundering was carried by the family as it set up shop in Turkey and the United States.

 

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