BTA Bank’s $6 Billion Fraud Case

Hogan Lovells has achieved a further landmark judgment for BTA Bank in a $6 Billion fraud Case.

In a High Court judgment made public this week, the Court ruled in favour of BTA, finding Ilyas Khrapunov liable for conspiring with BTA’s former chairman, Mukhtar Ablyazov, to deal with assets in breach of a freezing order.

His Honour Judge Waksman ordered Mr Khrapunov to pay damages of over US$500m (US$424,110,000 + interest of US$75,851,783.01).

The judgment comes after the UK Supreme Court ruled in March that the English court had jurisdiction to hear BTA’s claims of unlawful means conspiracy against Mr Khrapunov.

BTA Bank commenced legal proceedings against Mukhtar Ablyazov and others in 2009 after auditors identified a massive hole in the Bank’s balance sheet. This led to the discovery of a large-scale fraud committed by Mukhtar Ablyazov while he was Chairman of the Bank.

The legal proceedings in England consist of 11 claims filed by BTA Bank in the English High Court seeking to recover the funds misappropriated by Mr Ablyazov. The Bank has secured judgments for more than US$4.5 billion and is in the process of seeking to enforce those judgments.

Stephen Smith QC and Tim Akkouh of Erskine Chambers advised BTA Bank instructed by Hogan Lovells partner Richard Lewis (Picture) and associate Will Moir

 

Involved fees earner: Richard Lewis – Hogan Lovells; Will Moir – Hogan Lovells;

Law Firms: Hogan Lovells;

Clients: Bta Bank;