From Las Vegas to Moscow: The Conservatorship of Britney Spears and the Caesars Casino Heist
Exploring the Overlapping Networks of Entertainment Conglomerates, Private Equity, and Russian Investment
After 13 years, Britney Spears’ conservatorship ended on November 12, 2021, marking the culmination of a secretive and controversial arrangement where her father, Jamie Spears, controlled every aspect of her life and finances since February 2008. This period coincided with the 2008 global financial crisis, which triggered a series of geopolitical circumstances that funneled illicit funds into the devastated Las Vegas economy, further empowering oligarchs to consolidate their influence over the entertainment industry. Amidst these conditions, Britney, under the stringent constraints of the conservatorship, became a centerpiece in Las Vegas, revitalizing the phenomenon of residencies and drawing tourists to the city.
Many were left wondering:
How could this audacious case of human trafficking of an American citizen happen to one of the most famous people in the world?
The Answer: Money. Lots and lots of dirty money.
In this article, I will explore how a constellation of forces collaborated to institute and maintain the conservatorship, drawing comparisons to a clandestine intelligence operation amid broader financial and geopolitical landscapes. This period unfolded against the backdrop the 2008 global financial crisis, coinciding with TPG Capital and Apollo Global Management’s leveraged buyout of Caesars Entertainment (formerly Harrah’s Entertainment). Co-founders of TPG, David Bonderman, and Apollo, Leon Black, later served on the board of the Russian Direct Investment Fund, while TPG also held a significant stake in Creative Artists Agency (CAA), Britney’s talent agency. Meanwhile, Live Nation was intimately intertwined her career serving as her manager, promoter and ticket vendor. These intricate connections underscore concerns about corporate governance and the potential for undue influence over Britney’s career and personal affairs.
The intricate connections between Britney Spears’ conservatorship, her Las Vegas residency at Caesars Entertainment, and the Russian Direct Investment Fund (RDIF) reveal a complex web of financial and geopolitical interests. The involvement of high-profile figures linked to RDIF, such as David Bonderman, Leon Black, and Stephen Schwarzman, adds another layer of complexity, especially considering their ties to controversial financial and political activities. Britney’s red square posts, interpreted by some as a distress signal, further underscore the enigmatic nature of her situation and the potential entanglement of her conservatorship with broader global and financial dynamics.
Background on Britney’s Case and the #FreeBritney Movement
The #FreeBritney movement emerged as a grassroots campaign to spotlight Britney’s abusive conservatorship, which restricted her ability to speak publicly, choose her associates, or manage her own healthcare decisions. Concerns heightened in April 2019 when fans heard reports that Britney had “voluntarily” entered a mental health facility.
Social media accounts began to proliferate that were specifically focused on galvanizing support for Britney’s cause. For example, after the social media account @FreeBritneyNYC was founded other accounts soon followed that represented locations around the world, including FreeBritNorway, FreeBritneyOH, and Free Britney America.
In her June 2021 testimony before Judge Brenda Penny in the Los Angeles Probate Court, Britney confirmed that she had been held against her will at a mental health facility named Bridges to Recovery. She disclosed that she had previously given identical testimony to Judge Penny two years prior in 2019. Judge Penny was appointed to the bench by then-Governor Jerry Brown in 2018, though she had already been overseeing Britney’s case for some time prior to her judicial appointment. In August 2008, Jerry Brown served as California’s Attorney General, and his office opted against investigating the legality of Britney Spears’ conservatorship.
This background underscores the persistence of the #FreeBritney movement in confronting entrenched power within the California state government, the entertainment industry, and the mass media.
Since the inception of the #FreeBritney movement, many supporters have expressed concerns about potential infiltrators purposely spreading disinformation. Some #FreeBritney advocates actively welcomed supporters of the QAnon conspiracy theory, leading to social media platforms being flooded with inflammatory rhetoric and preposterous conspiracy theories.
For instance, Liz Crokin, a notable QAnon and Pizzagate supporter, released a documentary titled “Slave Princess” with support from prominent #FreeBritney accounts. It’s established that QAnon is bolstered by support from the Russian government.
Legitimate #FreeBritney advocates are not mere sycophantic fans, but come from a wide variety of professional backgrounds and some have been extensively involved in the disability justice movement. Given the known facts of Britney’s case, it’s likely that hostile actors have sought to spread disinformation or undermine the #FreeBritney movement.
#FreeBritney advocates were subjected to surveillance by Black Box Security, a firm employed by Jamie Spears after the conservatorship began. Founded by Edan Yemini, former member of the Israeli special forces, Black Box’s operations echo those of Black Cube, famously used by convicted felon Harvey Weinstein to harass his victims and spy on journalists.
Casual observers may not fully grasp the extent of control exerted over Britney’s life, including restrictions on access to her finances and the constant surveilling of her communications. Alex Vlasov, a whistleblower and former Black Box employee, provided hundreds of hours of surveillance materials to the New York Times. This surveillance was further documented in Liz Day and Samantha Stark’s investigative film, Controlling Britney Spears. Following the termination of her conservatorship, Britney’s team hired military security experts to sweep her residence for any remaining surveillance equipment.
Indicators of a Relationship Between Britney’s Legal Team and the Mueller Investigation
Following the termination of Britney’s conservatorship, her legal team began to scrutinize potential wrongdoing in its administration. In a July 10th, 2022 court filing, Britney’s attorney Mathew Rosengart accused Jamie Spears obstruction and characterized Jamie Spears repeated claims that Britney is litigating against him as the “Big Lie,” drawing a parallel to President Trump’s controversial assertion about the 2020 election was stolen. While this does not directly suggest Russian influence in Britney’s case, the personnel hired by her legal team may indicate ties to Mueller’s investigation into 2016 election meddling.
Around the time Britney’s conservatorship ended in November 2021, Kyle R. Freeny joined Britney’s legal team at Greenberg Traurig alongside Mathew Rosengart. Freeny’s background includes significant roles in federal tax, bank fraud investigations, and a money laundering probe involving Russian intelligence cyber intrusions during the 2016 election. Freeny’s professional bio describes her experience as follows:
“As Assistant Special Counsel, Kyle played a lead role in federal tax and bank fraud investigations, as well as a money laundering investigation into the funding of Russian intelligence cyber intrusions during the 2016 Presidential election using cryptocurrency.”
Subsequently, Britney’s team also hired Sherine Ebadi, who worked on the Mueller investigation with a leadership role in the investigation and prosecution of Paul Manafort, as well as being the lead agent on the resulting guilty plea of Rick Gates. Ebadi’s professional bio describes her experience as follows:
“Ebadi served as a special agent for the FBI. Over a distinguished ten-year career, she led numerous high-profile investigations involving embezzlement, public corruption, international bank fraud, money laundering, securities fraud, organized crime and identity theft.”
Manafort and Gates had worked for Donald Trump’s 2016 presidential campaign and spent many years working for the former Ukrainian President Viktor Yanukovych. Yanukovych was forced out of power in 2014 and now resides in Russia. Gates was Manafort’s assistant and was a cooperating witness for the Mueller investigation. Manafort pleaded guilty to many felonies in 2018, which were largely related to his work in the Ukraine. These crimes included money laundering, tax fraud, illegal foreign lobbying, and lying to investigators. In 2019, he was sentenced in Virginia to an additional 47 months in prison for even more financial fraud crimes.
In 2021, after over a decade of silence, Britney Spears’ ex-husband Kevin Federline gave a tell-all interview to Daphne Barak. It is noteworthy that Daphne co-wrote a book with Rick Gates about his plea deal with Robert Mueller. Daphne, also the cousin of former Israeli Prime Minister Ehud Barak — a close associate of Jeffrey Epstein — has significant connections within the political and financial spheres. She credits herself with working with Steve Bannon to rally billionaire support in Palm Springs for Trump’s 2016 campaign. This web of influential figures surrounding Britney Spears and her business dealings raises more questions than it answers about the depth of their involvement and the broader implications for her conservatorship and career.
Ebadi has confirmed that Britney was under surveillance by her father, and that evidence gathered from her investigation may have criminal implications for Jamie Spears. Judge Penny ruled that Ebadi will not have to sit for a deposition by Jamie Spears’ legal team. Currently, Ebadi serves as the associate managing director in Business Intelligence and Investigations at Kroll. Kroll describes its work as follows:
“Kroll delivers the coverage global organizations need to anticipate and exceed the complex demands surrounding risk, governance, operations and growth.”
Kroll’s Oversight of the Caesars Bankruptcy and Britney Spears’ Conservatorship
Kroll’s oversight of the Caesars bankruptcy case, starting in 2015, uncovered significant financial misconduct, including fraudulent asset transfers and contentious dealings. Caesars, which owned Planet Hollywood in Las Vegas — the venue for Britney Spears’ Piece of Me residency — emerged from bankruptcy in 2017. During this period, Kroll’s involvement brought to light extensive documentation and complex financial maneuvers, totaling nearly 10,000 documents.
Despite the revelations, Britney Spears’ conservatorship case, which concluded in 2024 with a confidential settlement, has raised questions about the missing funds from her estate. Rosengart’s court filings indicated that Britney’s estate was short by ten figures, yet the case closed without criminal indictments. Given Kroll’s expertise and the detailed financial records from the Caesars bankruptcy, their insights might have been crucial in understanding the financial context and discrepancies in Britney’s case. However, the lack of criminal consequences for those involved remains a significant and unresolved issue.
The Business Relationships of Britney, Inc. Prior to the Conservatorship
Due to her astronomical level of fame, deep-pocketed businessmen always took interest in investing in Britney’s career. One notable example is the Maloof family. The Maloof heirs inherited substantial wealth from their father’s Coors Beer distribution empire, including George Maloof Jr. and Real Housewives of Beverly Hills star Adrienne Maloof. During the 2000s, they owned the NBA’s Sacramento Kings, the WNBA’s Monarchs, the Palms Casino in Las Vegas, and other business ventures.
Jamie Spears first crossed paths with the Maloofs through Britney’s longtime manager, Larry Rudolph, during the grand opening of the Palms Casino in 2001. The Palms quickly became a hotspot for the celebrity glitterati during the 2000s, even reviving Hugh Hefner’s fabled Playboy Club. Although forgotten in pop culture lore, the Palms was a popular location for filming many reality shows, such as the Real World Las Vegas, The Girls Next Doors, and was featured in the first season of Keeping Up with the Kardashians.
For years, George Maloof was very vocal about his desire for Britney to launch a Las Vegas residency before the conservatorship. From 2006 to 2009, Jamie Spears engaged in various business ventures with the Maloofs, including a stint as Adrienne Maloof’s personal chef. In a 2014 interview with the Las Vegas Review-Journal, Jamie Spears recounted how he became acquainted with the Maloofs:
Interviewer: How did you even meet [the Maloofs]?
Jamie Spears: My daughter’s manager, Larry Rudolph. I’ve been knowing them ever since the Palms started. … Larry and George (Maloof) were good friends. I had come to California. I was thinking about trying to go to a chef’s school or something. Larry told me, “Let me talk to George.” So I loaded up my truck. I took all my stuff down to Phil’s condo on Wilshire Boulevard, and I went and cooked for him: fried chicken, mashed potatoes, Southern stuff.
Even after Britney’s conservatorship began, Jamie Spears maintained a close relationship with the Maloof family, allowing Britney to publicly spend time with George Maloof when many of her former associates were banished from her life. Jamie Spears ongoing ties with the Maloofs included his work on the Maloof Money Cup, and Adrienne Maloof has referred to the Spears as family friends. Following Britney’s sighting with George Maloof in May 2008, rumors swirled that Britney was already planning a Las Vegas comeback.
Larry Rudolph connections with the Maloofs extended beyond Britney’s career, encompassing business ventures such as Sunset Tan, a reality show and tanning salon franchise. Additionally, George Maloof assisted Britney in annulling her marriage to Jason Alexander in 2004. After Britney’s subsequent marriage to Kevin Federline later that year, Larry Rudolph went to work for the Maloofs.
The Maloof family faced significant financial challenges during the financial crisis, exacerbated by heavy investment in expanding the Palms Casino. By 2011, they had sold 98% of their ownership in the Palms Casino, with TPG Capital and Leonard Green & Partners acquiring the major stakes. Concurrently, they encountered pressure from the California state legislature to repay a $73 million loan if they intended to relocate the Sacramento Kings to another city, further complicating their financial predicament.
Before the sale of the Palms, Britney performed a surprise show at the Palms’ Rain nightclub, part of the promotional activities for her album Femme Fatale.
The idea of Spears’ previewing her “Femme Fatale” album at the Palms’ Rain nightclub started with her manager, Larry Rudolph, Maloof said.
It all came together because of a longstanding relationship among Maloof, Rudolph, Spears and MTV.
— Las Vegas Review-Journal, March 31, 2011
How Did Lou Taylor Meet Jamie Spears
Lou Taylor served as Britney Spears’ business manager throughout the conservatorship, likely establishing her connection to Jamie Spears through the Maloofs’ ownership of the Sacramento Kings. Ron Artest (also known as Metta World Peace, Metta Sandiford-Artest) began working with Lou Taylor of Tri Star Sports and Entertainment after the infamous NBA brawl, Malice at the Palace, leading to his trade to the Maloofs’ Sacramento Kings in 2005. There is a detailed timeline of these events here.
In 2008, Lou Taylor became the public spokesperson for the Spears family, leveraging her behind-the-scenes reputation managing troubled celebrities. Based in Nashville at that time, she had the capital to expand Tri Star into Los Angeles, which coincides with the start of the conservatorship. While relatively unknown in Hollywood, Lou Taylor had strong connections in Evangelical Christian circles, including running the Caleb Group with Billy Graham’s grandson, Stephan Tchividjian.
The Opacity of Private Equity Firms and the Influx of Dirty Money Post-Global Financial Crisis
Private equity firms, renowned for their opaque dealings and heavy reliance on leveraged debt, frequently target distressed companies to maximize profitability through restructuring and eventual resale. This strategy, documented by ProPublica and others, often includes aggressive cost-cutting measures such as layoffs and service reductions post-acquisition, prioritizing short-term financial gains over long-term stability and employee welfare.
Moreover, the substantial debt burdens accrued from these acquisitions can severely strain the financial health of acquired companies, and due to these factors they are ten times more likely to declare bankruptcy. Critics argue that such practices not only erode company value but also raise ethical concerns for employees and the wider community.
Due to their private status, private equity firms have limited business disclosure compared to publicly traded companies, which can facilitate the flow of illicit funds into the financial system. Buzzfeed News has exposed how major Western banks facilitate trillions of dollars in suspicious transactions through private equity, enriching banks and shareholders while acting as financial cover for illicit activities such as terrorism, kleptocracy, and drug trafficking.
The 2008 global financial crisis exacerbated these issues, allowing an influx of dirty money, including from drug trafficking, into private equity. Bloomberg reported on the aftermath of the crisis, highlighting ongoing challenges in cracking down on money laundering:
Since the financial crisis, dozens of crackdowns have targeted money launderers who effectively rely on banks, shell companies, and other mechanisms to cover their tracks. Fines have surged into the billions of dollars, but it’s unclear whether the enforcement efforts — some of the more notable ones are described here — have made much of a dent. According to the United Nations Office on Drugs and Crime, shady transactions continue to reach as much as $2 trillion a year.
Against this backdrop, the acquisition of Caesars Entertainment by private equity giants Apollo Global Management and TPG Capital in 2008 raises critical questions. How did the corporate cultures and financial strategies of these firms influence their management of Caesars Entertainment? And what are the implications of this acquisition for high-profile figures like Britney Spears, who performed at Caesars’ Planet Hollywood in the aftermath of the financial crisis?
2008: TPG Capital & Apollo Global Management Buy Harrah’s Entertainment (later Caesars Entertainment)
Prior to the 2008 global financial crisis, TPG Capital and Apollo Global Management undertook a leveraged buyout of Harrah’s Entertainment (now Caesars) in December 2006 and the $27.8 billion acquisition was completed in January 2008. At the time, Harrah’s was the largest global casino operator with 39 properties, and the purchase was largely financed through debt. Investors included private and public pension funds, endowments, and institutional investors.
However, the financial crisis ensued after Lehman Brothers’ collapse in September 2008 severely impacted, TPG Capital exacerbated by losses from its $7 billion investment in Washington Mutual, regarded as one of the worst private equity deals in history. This dire economic situation was further compounded by Nevada’s severe downturn.
By June 2010, Nevada faced dire circumstances, particularly in the housing sector, with an estimated 65% of mortgaged homes underwater — a stark contrast to the national average of 24% and an all-time record in the United States. Las Vegas, heavily reliant on tourism and real estate, was among the hardest-hit regions in the United States.
In November 2009, Harrah’s announced plans to acquire Planet Hollywood, formerly known as the Aladdin, on the Las Vegas strip. The financing of the Aladdin involved the Teamsters pension fund, a transaction linked to organized crime. In November 2010, Harrah’s Entertainment rebranded as Caesars Entertainment.
In 2013 and 2014, Caesars transferred ownership of several hotels to its subsidiaries, including Planet Hollywood. These moves baffled observers but were aimed at masking Caesars’ broader financial troubles.
“In one of the more bizarre Las Vegas stories in some time (that, again, we aren’t making up), Caesars Entertainment has announced it’s going to sell four hotels, three of which are in Las Vegas, to itself.”
— Casino.org, March 4, 2014
These transactions lead to accusations of financial fraud by Caesars’ debt holders, culminating in the company filing for bankruptcy in 2015. The Planet Hollywood transaction became central to the bankruptcy proceedings, as it was undervalued by hundreds of millions, partly due to not factoring in the additive value of Britney’s residency.
In 2015, Caesars faced additional legal challenges when it was implicated in a large-scale money laundering scheme, resulting in a modest $8 million fine. The scheme, involving high-net-worth individuals and lapses in Caesars’ compliance oversight, underscoring broader concerns over anti-money laundering practices within the casino industry.
Against this backdrop of Caesars corporate malfeasance and financial turmoil, Britney Spears’ launched her residency at Planet Hollywood in 2013. This period marked a contrast between Caesars’ legal struggles and the Britney’s role in revitalizing the phenomenon of residencies as key attractions drawing tourists to the Las Vegas Strip.
Piece of Me: Caesars Partners with Live Nation
Prior to Britney Spears’ debut of her Piece of Me residency in 2013, there were clear indications her team aimed to establish her presence in Vegas. While many #FreeBritney advocates assert that Lou Taylor is the architect of Britney’s conservatorship, Irving Azoff, a prominent U.S. music mogul, appears to be a pivotal architect of her residency.
Irving Azoff, known as one of the most influential figures in the music industry, assumed the CEO role at Ticketmaster in 2008 and quickly initiated talks for its merger with Live Nation. Despite concerns over monopolistic control, the merger was finalized in 2010, propelling Azoff to the helm of Live Nation. However, by December 2012, Azoff stepped down, citing discomfort with the constraints of running a publicly traded company and jokingly attributing his departure to President Obama:
“It’s no secret that a public company isn’t my first choice of what to do. Fortunately there’s lots of money [available] and assets to consider — not just in the music space.”
— The Hollywood Reporter, December 31, 2012
Following Azoff’s departure, Michael Rapino took over as CEO of Live Nation in 2013, while Azoff maintained close ties with the company. Notably, Azoff’s son Jeffrey and longtime associate Rob Light became Britney’s talent agents. At the time, CAA was significantly owned by TPG Capital, which acquired a 35% stake in 2010. After Britney signed with CAA, rumors immediately circulated about her Vegas residency.
During this period, Irving Azoff was actively promoting his son Jeffrey among societal elites, likely leveraging his longstanding relationship with then-California Governor Jerry Brown. Jeffrey secured a prestigious statewide appointment under Brown’s administration, emphasizing Brown’s view on political appointments as a powerful tool for independent action. Notably, Jerry Brown, who declined to investigate Britney’s conservatorship during his tenure as California Attorney General in 2008, coincidentally left office in 2021, the same year Britney succeeded in terminating her conservatorship.
Despite a non-compete agreement with Live Nation, that barred him from directly managing new artists, Azoff allegedly used his son as a conduit to circumvent these restrictions. This strategic maneuver coincided with Britney’s transition to CAA, following her departure from William Morris Endeavor. Ari Emanuel, brother of Rahm Emanuel who served as Chief of Staff to President Obama, explicitly blamed Azoff for the agency switch.
Just days before Britney’s Piece of Me debut, Caesars Entertainment and Live Nation announced a historic partnership, setting the stage for her residency. This strategic alliance underscored Azoff’s enduring influence and the convergence of interests shaping Britney Spears’ career trajectory in Las Vegas.
2014: A Big Year In Vegas for Britney, Inc. in Vegas
In 2014, Britney Spears’ manager, Larry Rudolph, established a new management company called Maverick, a subsidiary of Live Nation. Additionally, Rudolph was given a new company under Live Nation named 724 Management, which was announced a month before Britney’s conservatorship ended on November 12, 2021.
Also in 2014, TPG Capital acquired a 53% controlling stake in Creative Artists Agency (CAA). Britney’s business manager, Lou Taylor, began to build a reputation for revitalizing Las Vegas residencies and started receiving industry awards. Many of these accolades were given by publications owned by Penske Media, including The Hollywood Reporter, Variety, and Billboard.
The success of Britney’s Vegas show significantly boosted the stature of the major players involved in Britney Inc., solidifying their professional relationships that have stood the test of time. Lou Taylor credited much of her success to having influential mentors, such as Michael Rapino and Irving Azoff. Her client list expanded to include high-profile celebrities as managed by Irving Azoff, including Travis Scott, Gwen Stefani, and the Prince estate.
Recently, Lou Taylor, Live Nation and Travis Scott faced a $750 million lawsuit related to the Astroworld concert tragedy, which resulted in 10 deaths and thousands of injuries.
Caesars Investors’ Relationship to Donald Trump and Russia
Leon Black of Apollo Global Management
Leon Black founded Apollo Global Management in 1990, and was, as of 2021, the second-richest private equity billionaire with a net worth around $10 billion. Black had a significant personal and financial relationship to Jeffrey Epstein, which began in the mid-1990s. Despite repeated attempts to involve others at Apollo in investing with Epstein, those efforts were declined. Epstein served on the board of the Black Family Foundation until 2007. Over the years, Black paid Epstein $158 million, some of which was purportedly for financial services that reportedly saved Black between $1 to $2 billion. However, there were allegations that the substantial payments to Epstein were also a means to distance Black’s name from certain financial activities.
Black ultimately resigned from his position at Apollo in 2021 due to the controversy surrounding his ties with Epstein, although he remains Apollo’s largest stakeholder. Apollo’s investment in Caesars Entertainment is regarded as one of its significant failures.
During Robert Mueller’s investigation, Black testified to the Senate Intelligence Committee due to his connections with Donald Trump and Russia. Black had participated in Trump’s 1996 trip to Moscow, reported meetings with President Putin in 2011, and was involved with the Russian Direct Investment Fund, among other connections of interest in the investigation.
Ultimately, Black would step down from running Apollo in 2021 due to his connections with Jeffrey Epstein, but he remains Apollo’s largest stakeholder. Apollo’s involvement in Caesars Entertainment is considered one of their biggest investment failures.
David Bonderman of TPG Capital
David Bonderman founded TPG Capital in 1992 and is one of the wealthiest private equity billionaires, with a net worth over $4 billion. As of 2015, TPG Capital was notably active in Russia. Bonderman has expressed interest in the Russian market, highlighting its appeal due to low asset prices and a lack of capital investment amid geopolitical conflicts. During the Milken Global Conference in 2015, he remarked on the attractiveness of investing in markets experiencing turmoil, stating, “Returns tend to be better in places where either the troops are in the street, or the prices are low.”
Bonderman is also noted to be a mentor to Irving Azoff, further connecting him to influential figures in the industry.
Stephen Schwarzman of The Blackstone Group
Stephen Schwarzman, founder of The Blackstone Group in 1985, is the wealthiest private equity billionaire, with a net worth exceeding $37 billion. During the Trump administration, Schwartzman served on the president’s business council, leveraging his proximity to advance Blackstone’s interests. This included a $20 billion investment deal with Saudi Arabia and favorable trade agreements with China. Schwarzman maintained his support for Trump even after the January 6 Capital insurrection, and also mirrored the president’s concerns regarding voting irregularities in the 2016 presidential election.
GSO Capital Partners, an affiliate of Blackstone, served as a senior creditor in the bankruptcy proceedings of Caesars Entertainment, playing a crucial role in the restructuring process. Their involvement highlights the importance of financial alliances during complex bankruptcy cases. GSO’s strategic partnership with Apollo Global Management underscores a coordinated approach to navigating Caesars’ financial troubles.
This alliance between GSO and Apollo reflects the interconnected nature of major financial entities and their influence over high-stakes restructuring. Their collaboration not only impacted the outcome of Caesars’ bankruptcy but also ties into the broader narrative of financial maneuvers affecting key figures and industries, including those associated with Britney Spears.
The Russian Direct Investment Fund (RDIF)
Could have Caesars’ private equity investors been corrupted by the Kremlin?
The Russian Direct Investment Fund (RDIF) was established in September 2011 by President Dmitry Medvedev and Prime Minister Vladimir Putin. The fund’s aim was to attract international investors to co-invest in Russian businesses, with the involvement of the Russian government intended to alleviate concerns about investing in Russia’s risky business environment. Vladimir Putin’s re-election as President occurred in December 2011, just a few months after the RDIF’s creation.
Critics have often described the RDIF as “Putin’s slush fund,” a term used for money that might be utilized for illicit purposes or evade proper accounting practices. This raises questions about the extent of the Kremlin’s influence over the RDIF and, by extension, the investors involved with it.
Several high-profile investors connected with Caesars Entertainment at the time of Britney Spears’ Piece of Me residency had ties to the RDIF. Their statements upon joining the RDIF’s inaugural board in 2011 reflect their optimism about Russian investments:
“We believe there are many attractive investment opportunities in Russia — the RDIF will provide the strong and experienced local partnership needed for investors to realize those opportunities.” — David Bonderman, TPG
“Russia has strong fundamentals that will continue to fuel its growth trajectory and offer attractive investment opportunities. We believe the Russia Direct Investment Fund will help further align U.S. and Russian objectives in terms of identifying paths toward partnership in the private sector.” — Leon Black, Apollo
“It’s always good to have friends when you are going to a place that you are not as familiar with.” — Stephen Schwarzman, Blackstone
— Business Insider, July 30, 2015
Following Russia’s invasion of Crimea in February 2014, many investors began withdrawing their funds from the RDIF. Nevertheless, some, including David Bonderman, chose to remain invested. In response to Russia’s actions, President Obama imposed sanctions on the RDIF through an executive order in 2015, reflecting the increasing geopolitical tensions and the U.S. government’s stance on Russia’s aggressive actions.
These connections and the RDIF’s controversial reputation raise significant questions about the potential for undue influence and corruption among the investors linked to Caesars Entertainment. The involvement of figures with ties to both the RDIF and major financial entities underscores a complex web of geopolitical and financial interests that may have impacted their investments and operations, including the circumstances surrounding Britney Spears’ conservatorship and her Las Vegas residency.
The Mueller Investigation and Connections to the RDIF
The CEO of the RDIF is Kirill Dmitriev who has strong connections inside the United States. In September 2014, following the invasion of Crimea, David Bonderman, Leon Black & Stephen Schwarzman’s names vanished from the RDIF’s website. Despite this, David Bonderman continued to engage in business with Russian entities in 2015, before the U.S. sanctions were imposed. Notably, Rick Gerson of Falcon Edge, a close friend of Jared Kushner, conducted business with Bonderman in 2017 and met with Kirill Dmitriev, the RDIF head, during the presidential transition period before Donald Trump’s inauguration. The Mueller Report reveals that Dmitriev sought to establish a back channel to communicate with the Trump administration, with possible involvement from Leon Black. The Seychelles meeting, which included Erik Prince and connections to key figures such as Steve Bannon, is central to this effort. Dmitriev’s role and the UAE’s involvement underscore the geopolitical and financial stakes at play.
The intertwining of Britney Spears’ business dealings, the RDIF, and the Seychelles meeting is particularly compelling against the backdrop of Caesars Entertainment’s 2015 bankruptcy and the Russian ruble’s collapse. This period of financial upheaval not only impacted the broader economic environment but also revealed the interconnected nature of influential networks involved in Britney’s career and the financial crises of the time. The overlapping interests and affiliations among these key figures raise questions about the extent of their influence and connections during a pivotal period of economic and geopolitical instability.
2015: Caesars Declares Bankruptcy
In January 2015, Caesars Entertainment filed for bankruptcy, burdened with $18 billion in debt. The bankruptcy sparked a legal battle between Apollo Global Management and TPG Capital, and their creditors, including GSO Capital Partners (affiliated with Blackstone), Elliott Management Corporation, Appaloosa Management, and Oaktree Capital Management. The creditors accused Apollo and TPG of “unimaginably brazen looting” as they sought to restructure the debts owed to them. Others likened it to a “modern day casino heist.”
The bankruptcy proceedings unveiled deeper issues, including up to $5.1 billion in potentially fraudulent asset transfers conducted by Caesars between 2009 and 2014. An independent investigation found that these transactions were suspect, as the key subsidiary holding Caesars’ debt was deemed insolvent and should have had independent oversight from Apollo and TPG. After emerging from bankruptcy in 2017, Apollo and TPG retained only 16% ownership of Caesars, and their handling of the company and the substantial losses incurred by investors relative to their returns. The lack of criminal repercussions for these financial maneuvers underscores the impunity of the ultra-wealthy in committing substantial white-collar crimes, potentially aided by their influential connections.
Trump, TPG Capital and the SEC
During the 2010s, the Securities and Exchange Commission (SEC) began scrutinizing private equity firms for exorbitant fees, including Blackstone and Apollo. However, following Donald Trump’s election as President, the SEC’s enforcement actions softened. TPG Capital, for instance, saw its $13 million settlement with the SEC quietly announced in December 2017, rather than through a high-profile release. This shift in regulatory approach raises concerns about the influence of political connections on financial oversight.
In 1999, Trump himself faced SEC scrutiny for inflating earnings in his hotel and casino empire, a practice known as pro forma accounting. The SEC’s investigation revealed that Trump Hotels had misrepresented its earnings, overstating their net income by $11 million. Trump settled the case in 2002 without admitting wrongdoing or paying a fine. This case highlighted Trump’s early entanglement with SEC regulations, foreshadowing later controversies involving his administration and private equity connections.
Final Reflections
While concrete evidence linking Putin’s Russian Direct Investment Fund (RDIF) directly to Caesars Entertainment remains elusive, several connections suggest significant associations. Notably, key figures from TPG Capital and Apollo Global Management had ties to both Caesars and the RDIF. Kirill Dmitriev, RDIF’s CEO, has connections with Americans involved in establishing a back channel with the Trump administration, as detailed in the Mueller investigation, hinting at deeper links. Additionally, the timing of the U.S. divestiture from Russia in 2014 following the Crimea invasion, and the financial irregularities uncovered during Caesars’ 2015 bankruptcy, raise questions about the broader financial environment.
Britney Spears’ legal team includes individuals who played pivotal roles in the Mueller investigation, adding an intriguing layer to her case. The dominance of Live Nation and the control over Britney’s conservatorship may have suppressed wider awareness of her situation, despite its open secret status in Hollywood. Potential connections between American oligarchs, Russia, and the Trump administration could have influenced the ongoing nature of her conservatorship. The unresolved questions about her substantial estate continue to provoke public concern, with the possibility that her estate’s involvement in the Caesars casino heist remains an unexplored facet of her case.
Here is my full connection map.