The International case against Mukhtar Ablyazov
From 20 May 2005 to 2 February 2009, Mukhtar Ablyazov was the Chairman of the Board of Directors of JSC BTA Bank (the «Bank»). As Chairman, Mr Ablyazov exercised management control over the Bank and was responsible for establishing and overseeing procedures within the Bank to avoid any conflicts of interest arising between shareholders, the Board of Directors and employees of the Bank and for settling any conflicts of interest on issues which other bodies within the Bank were unable to handle.
During the period that he was the Chairman of the Board of Directors, Mr Ablyazov beneficially owned a significant portion of the shares in the Bank through intermediary companies. Mr Ablyazov’s beneficial interest in the Bank was not disclosed in the Bank’s consolidated financial statements for the years 2006, 2007 or 2008 or the nine months ended 30 September 2009.
Accordingly, the Bank assembled a team to investigate the circumstances behind the Bank’s current financial position and the extent to which it is a result of what are believed to be fraudulent transactions entered into by, or on the instructions of, the former management, in particular, Mr Ablyazov, and legal proceedings were taken in a variety of relevant jurisdictions around the world to recover missing assets. Such jurisdictions have included England and the USA, two of the most respected legal forums in the world.