MOSCOW, February 25 (RAPSI) – A Hong Kong court has imposed a freezing order restraining former BTA Bank Chairman Mukhtar Ablyazov from dealing with the shares and assets of two Hong Kong companies Kazoil-Astana Group Ltd. (“Kazoil”) and Maxray Logistics Ltd. (“Maxray”), according to court documents obtained by RAPSI.
JSC BTA Bank (BTA) filed an application seeking interim relief in Hong Kong in connection with its ongoing efforts to recover assets allegedly stolen by Ablyazov, who is accused of having misappropriated billions of dollars from BTA through the use of offshore companies or with the help of various associates.
BTA has filed 11 law suits in London accusing its former top management of embezzling over $5 billion. Ablyazov has claimed that the charges against him are politically motivated.
In November, London’s High Court of Justice granted BTA Bank’s application for summary judgment, ordering Ablyazov to pay out upwards of $294 million in connection with allegations that he had orchestrated various fraudulent transactions involving the transfer to shell companies in the British Virgin Islands of AAA-rated securities held by the bank.
Judge Zervos of the Court of First Instance of Hong Kong’s High Court asserted in a decision handed down last week that Ablyazov’s extensive history of litigation with the English courts, and that he has thus far failed to pay anything toward the satisfaction of the English judgments.
Zervos stated in the decision, “I am satisfied on the information and material before me that there is a strong case against Ablyazov of misappropriating Bank funds through widespread fraud and subterfuge. I am also satisfied that there is a strong case that Kazoil and Maxray are connected to, or under the control of, Ablyazov.”
With regard to the latter point, Zervos noted his satisfaction with the information presented thus far that Ablyazov was the ultimate beneficial owner of the shares in and assets of the two companies.
The judge likewise ordered the appointment of receivers over the shares and assets of Kazoil and Maxray, reasoning: “Given the nature and history of this case, I have no doubt that Ablyazov or his nominees would defy any freezing order and in my mind the risk is too great not to be supported by the appointment of receivers.”
Ablyazov was detained on July 31 near Cannes, France. Kazakhstan is seeking his extradition, as he fled to the UK after the Kazakh government acquired a stake in the by-then defaulted BTA in 2009 and the bank came under the control of its sovereign wealth fund Samruk-Kazyna. Kazakhstan, however, lacks an extradition treaty with France.
On January 9, the court of Aix-en-Provence ruled to extradite Ablyazov to Russia or Ukraine, with priority given to the Russian side.