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. Last Updated: 07/27/2016

IRS to Auction Russian Scam Loot

SAN FRANCISCO -- The Internal Revenue Service said it will auction off yachts, cars and an armored truck to pay part of $63 million in taxes owed by a company at the center of a Russian diamond scandal.


But other items -- including diamonds, fine artworks and two jeweled Faberg? eggs -- will wait until the agency has a better idea of their worth, IRS spokesman Larry Wright said Tuesday. Saturday's auction of San Francisco-based Golden ADA property indicates the Russian government has not established any claim on the items, Wright said.


"All a third party has to do is establish its ownership and we'll turn it over," he said. "That hasn't happened yet."


Russian officials have accused Golden ADA of importing government-owned diamonds into the United States, supposedly for cutting and polishing, and failing to return them to Russia.


Among the items to be auctioned Saturday are three yachts, including two 43-foot Tiaras. Also on the block are a limousine, two Lexus automobiles, a Toyota Land Cruiser complete with CD player, an armored car and seven other vehicles.