SBU wants PrivatBank to get permission before suing Kolomoisky abroad

Ukraine’s Security Service asked PrivatBank to coordinate with Ukrainian authorities before launching any international lawsuits against its former owners, the investigative program Schemes reported on Dec. 20.

The state-owned bank has been suing the former owners Ihor Kolomoisky and Gennadiy Boholyubov and their business associates in multiple jurisdictions alleging that they stole $5.5 billion in assets before the bank was nationalized in 2016. The latest claim was filed on Dec. 18 in Tel Aviv District Court.

Schemes published a Dec. 17 letter, in which Volodymyr Horbenko, the deputy head of Security Service, asked Privatbank to refrain from legal actions before running them by either the Security Service or the Prosecutor General’s Office.

Read More: Ukraine government says it is committed to justice for PrivatBank

“We consider it necessary to ensure the obligatory coordination of lawsuits of banking institutions in international jurisdictions with the Security Service of Ukraine and the Prosecutor General’s Office of Ukraine and the preliminary coordination of claims brought before courts outside the territory of Ukraine with said authorities,” Horbenko wrote to PrivatBank. “Before that, I would like you to refrain from filing new lawsuits.”

“Filing claims in international arbitration, in certain cases, may negatively affect the conduct of pretrial criminal investigations into banking offenses (in Ukraine),” he added.

The Security Service confirmed the authenticity of the letter.

PrivatBank was nationalized on Dec. 18, 2016 after failing a stress test in Sept. 2016. The National Bank of Ukraine later revealed that PrivatBank’s corporate lending portfolio was almost entirely made up of non-performing loans, often made to companies connected to its owners.

In 2018, a report by forensic auditor Kroll uncovered a “large-scale and coordinated fraud” scheme that emptied $5.5 billion from the bank’s balance while under Kolomoisky’s control. U.K. courts have also recognized that “fraud on an epic scale” has taken place.

Read More: PrivatBank sues Discount Bank, Kolomoisky for alleged $600-million fraud in Israel

PrivatBank has launched lawsuits against Kolomoisky, Boholyubov and various other individuals and companies in the U.S., U.K., Switzerland and Israel, trying to recover as much of the missing $5.5 billion as possible. The bank alleged that the defendants used shell companies to move money out of the bank and park it in assets around the world.

The most recent complaint in Tel Aviv alleges that Kolomoisky transferred $600 million in stolen funds into accounts at Israel’s Discount Bank.

In Delaware, Privatbank is accusing Kolomoisky and Boholyubov of laundering “hundreds of millions” of dollars into U.S. enterprises and real estate.

In London, PrivatBank is pursuing claims that the former owners used three U.K. companies to move $1.72 billion in embezzled funds into offshore accounts. The claims have now reached $3 billion with accruing interest.

Kolomoisky has strongly denied all wrongdoing and is trying to reclaim his stake in PrivatBank in Ukrainian courts.

(c) KyivPost

7 comments

  • “Filing claims in international arbitration, in certain cases, may negatively affect the conduct of pretrial criminal investigations into banking offenses (in Ukraine),” he added.

    Is Kolomoisky now running the SBU?

    Liked by 4 people

    • Almost appears so, but filing claims in international courts could have a negative effect on ongoing investigations. Real justice went to the crapper a number of years ago, and got lost coming back.

      Liked by 3 people

  • Kolomoisky is not a friend of Ukraine. Regrettably neither is Israel, which still licks putler’s jackboots, despite the undeniable fact that he is close allies with the worst regimes in the world (apart from Russia) : Iran and Syria: even to the extent that he provides weapons that are used to murder Jews.

    Liked by 4 people

  • This government will face another final Maidan soon…

    Liked by 3 people

    • That would be a bad idea. Zel has a mandate and lots of power as a consequence of his big victory. It is up to his opponents to gather strength in opposition and put together a credible challenge next time.
      Another Maidan would further alienate Ukraine’s few friends and encourage the little shitweasel to do even more evil things, with even less condemnation from the world community.

      Liked by 3 people

      • I fully disagree. If Ukraine’s existence is at stake all actions are justified. Zelensky won because the Kolomoisky-dominated media made him win.

        Liked by 5 people

        • The existential threat comes from Russia, not Zel. The voters have made the wrong choice; so it is up to the opposition to reverse that via the ballot box next time round. You can’t have a revolution against someone with such a big majority, it’s just not democratic. If some Corbynista scum decided to start a revolution because Boris was helped by the media, they would have no case. If there was a revolution in America because putler helped Trumpkov, Even though we know he actually did, albeit without collusion. But they would still have no case because he can be voted out. However, the opposition have the impeachment option, which they are exercising. I predict it will go tits up anyway and allow Trump to increase his majority. But also I understand that Ukraine also has an impeachment process available if they think Zel is a putler puppet. IMO he is a naive fool, rather than a fifth columnist. A likable person rather than a hard nosed politician. But he is the people’s choice. At least for now.

          Liked by 4 people

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