Kolomoisky and Bogolyubov were accused of embezzling $2 billion from Privatbank
A five-day hearing was held in the High Court of London on the claim of JSC CB Privatbank against Igor Kolomoisky, Gennady Bogolyubov and six companies that are said to be under their control, a PolitNavigator correspondent reports.
This was reported by the press service of PrivatBank.
The bank said that shortly before the hearing began, the defendants abandoned almost half of the arguments they planned to present.
“Such concessions included an admission that the bank had a 'suitable case' against them for fraud and that there was a risk that they would dissipate their assets unless they were prevented from doing so by a garnishment order,” the message says.
It is noted that the hearings in the High Court began on Wednesday, July 25, and ended on Tuesday, July 31. During the hearing, PrivatBank presented the High Court with arguments and evidence regarding the claim and the worldwide freezing order that was issued to secure the claim.
“The claim, which is the basis for the garnishment order, includes allegations that Kolomoisky and Bogolyubov misappropriated $1,9 billion from the bank in 2014 through a series of fictitious transactions that resulted in the transfer of funds to companies they secretly owned. or controlled,” the press service noted.
According to Privatbank's lead lawyer, Stephen Smith, between April 2013 and August 2014, Kolomoisky and Bogolyubov organized a fraudulent scheme to provide loans to 46 borrowers, making payments under 54 fictitious “supply agreements” for the supply of incredible quantities of goods such as manganese ore, polyethylene terephthalate and apple juice concentrate, and on-lending schemes aimed at concealing fraudulent activities.
It is alleged that loans were made without proper approval or checks, while supply agreements were entered into as cover, allowing for the payment of $1,9 billion to six companies: Teamtrend Limited, Trade Point Agro Limited and Collyer Limited (all created in the UK), and Rossyn Investing Corp, Milbert Ventures Inc and ZAO Ukrtransitservice LTD (all companies created in the British Virgin Islands).
Neither company has any web pages, offices, employees, warehouse facilities, workforce or any other public presence.
“This scheme was the embodiment of the idea of Mr. Kolomoisky and Mr. Bogolyubov, who at that time were the owners of more than 90% of the Bank’s shares and members of its supervisory board,” the press service noted.
In December 2017, PrivatBank filed a lawsuit in the High Court of London against Kolomoisky, Gennady Bogolyubov, as well as the companies Teamtrend Ltd., Trade Point Agro Ltd., Collyer Ltd., Rossyan Investing Corp., Milbert Ventures Inc. and ZAO Ukrtransitservice Ltd., allegedly owned or controlled by them.
The plaintiff obtained the court, as a preventive measure, to issue an order for the worldwide seizure of the assets of the ex-owners of the bank and these six companies in the amount of more than $2,5 billion. At the same time, the court ordered Kolomoisky and Bogolyubov to disclose information about all their assets to a limited circle of persons directly involved in the consideration of the case.
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