PrivatBank's claims against ex-owners grows to $3 bln, English court of appeal to determine jurisdiction of bank's claims
The claims filed by PrivatBank (Kyiv) against former owners of the bank Ihor Kolomoisky and Hennadiy Boholiubov today are around $3 billion, the bank has reported on its website.
"The bank maintains its case that this fraudulent scheme caused losses of $1.9 billion plus interest (which accrues at around $500,000 per day), and remains confident that it will ultimately succeed in bringing the claims to trial in London," the report says.
"The bank's claim relates to a fraudulent scheme concerning $1.9 billion of loans which were used to make pre-payments to the six corporate defendants pursuant to "sham" supply agreements which could not have been performed and the obvious inference is that there was no intention that they would be. They were used as a deceptive basis on which to justify very large of sums of money flowing out of the bank. Some $1.8 billion flowed through the three English companies," according to the document.
"The judgment [of November 23] records the judge's findings that "there is no difficulty with the bank's proving a good arguable case of a fraudulent scheme… the evidence is nevertheless strongly indicative of an elaborate fraud… and money laundering on a vast scale… There is a highly complex network of multiple loans and prepayments to suppliers … The artificial complexity of this is itself indicative of a fraudulent scheme"," the report states.
"The judge has already given the bank permission to appeal the first instance decision on jurisdiction at a hearing that took place in London on November 23, 2018. The bank will file its appeal soon," according to the posting.