How Nazarbayev’s daughter was cheated by her own financiers

English newspapers on January 9 reported that back in 2016, Nazarbayev’s daughter filed a lawsuit against some “financial advisers” who allegedly robbed her – if not to the bone, then at least half. According to British journalists, Nazarbayeva said that in the 2000s she withdrew more than $300 million from Kazakhstan and tried to invest in various assets.

It all looks surreal: does a “politically exposed person” (PEP) himself admit to creating a whole network of offshore companies that money was supposed to go to? We decided to test these claims. The problem, however, is that there was no court decision in the case – the trial ended with an amicable agreement between Nazarbayeva and her financiers. But we managed to obtain a copy of Aliya’s statement of claim against certain Denis Korotkov-Kaganovich and Malik Ishmuratov from the official register of English court documents. And here is what we read in it.

offshore sister

Aliya Nazarbayeva claims that in 2005 she met a certain Malik Ishmuratov, who allegedly began to actively advise her on the subject of personal wealth. According to Nazarbayeva, he repeatedly told her that she was a PEP “politically exposed person” and that it was dangerous for her to keep assets in Kazakhstan; that she needs to keep assets abroad and that he knows people who can help with this. In 2006, Ishmuratov introduced her to “experienced personal wealth managers” Denis Korotkov-Kaganovich, Roman Zhukovsky and Florian Rais. Aliya met these gentlemen in London, Geneva and Almaty; in London, they even opened an office for this business.

According to Nazarbayeva, in mid-2006 she sold “some valuable shares” in Kazakhstan for about $325 million. And again, Mr. Ishmuratov advised her to withdraw this money. The Soviets fell on fertile ground:

Aliya became more and more worried about her status as a politically exposed person – “in connection with the expectation of the birth of her first daughter in September 2007.”

Ishmuratov became so close to Nazarbayeva that he began to call her “his sister.” He assured her that she could trust Denis Korotkov-Koganovich and others.

In the spring of 2007, Nazarbayeva, she said, met all four at a restaurant in Almaty. They made a presentation (the main “speaker” was Korotkov-Kaganovich), which emphasized that Nazarbayeva should under no circumstances keep money in Kazakhstan; Ishmuratov’s financiers are ready to structure all of Nazarbayeva’s assets and conduct business on her behalf; the assets should be removed from Kazakhstan, and although Nazarbayeva will remain their owner, they will be formally recorded on a trust from the British Virgin Islands in order to hide and protect (hide and protect) her property rights and interests. The financiers suggested that part of the capital would remain in the form of money, while the other would be used for various investments. The reward of the London four will be a quarter of everything earned from a successful investment.

Efficient London Management

Nazarbayeva further states to the court that she did not give explicit consent to the financiers in the restaurant to implement this scheme. However, work has begun to boil. The basic structure, the Marstock company (British Virgin Islands), was issued to the President’s daughter. For that part of the property that was supposed to remain in the form of money, a structure was allegedly created in Liechtenstein – the Alsarah Foundation. We cannot yet confirm the existence of such an organization – in the Liechtenstein registry, there is no active structure with this name or a deleted entry about it.

The financiers, as the president’s daughter assures the court, riveted a whole basket of firms and firms to manage her wealth:

AS Properties Holding Limited, Hartsage International Limited – British Virgin Islands;

KNG Private Services – England;

KNG Investment SPC Fund Limited, KNG Management Limited, Alsarah Foundation, Alsarah Limited, Channingwick Limited – Bahamas;

Whyndham Limited (hereinafter referred to as Alsarah Finance GmbH) in Saint Vincent and the Grenadines.

Also, Nazarbayeva’s funds, in her words, moved through firms, the existence of some of which, until some point, she could not really know at all:

Ashton Rose Limited, Ashton Rose Concierge Service Limited, Oracle Capital Family Office Limited, Machlin Oracle Limited, Machlin Oracle SICAV-SIF, TFS Loans Limited, The Finance Store Limited in England;

Honeydew Investments, Tigan Investments Limited – in the Seychelles;

Oracle Capital Advisors Limited, Avere BSB Investments Limited – in the Bahamas;

Croxton Holdings Limited, Estates Premier Corporation – in the British Virgin Islands;

Alpha Resources Limited – in an unknown jurisdiction.

On June 13, 2008, Nazarbayeva transferred $150 million to the trust’s base structure, the British Virgin Marstock. The plan was as follows: 100 million dollars go to Liechtenstein, 50 million remain in Marstock for pocket expenses.

On December 8, 2008, Nazarbayeva transferred another $108 million to Marstock to buy the Swiss bank CBH Compagnie Bancaire Helvetique. On January 15, 2010, Nazarbayeva transferred another $14 million to Marstock to buy an aircraft. And on March 15, 2013, Nazarbayeva transferred $40 million to buy Liberty Bank in Georgia.

In total, Nazarbayeva, as follows from her own lawsuit, withdrew $312 million from the country in the course of her interactions with her “brother” Ishmuratov and his team.

Investment failed

Why did Nazarbayeva need to buy a bank? She herself gives the answer in her lawsuit – as a “politically significant person” she could not calmly open accounts outside of Kazakhstan, so she needs her own bank. In addition, Ishmuratov convinced her that it would be “a good investment.” She met in Los Angeles with Joseph Benhamou, founder and CEO of Compagnie Bancaire Helvetique, and eventually agreed to exchange 51% of the bank’s shares for 130 million Swiss francs ($108 million).

However, the financiers paid, according to the victim, only 75 million francs, and another 75 million, according to Nazarbayeva, allegedly disappeared in an unknown direction. She never received the shares.

Nazarbayeva also instructed her financiers to buy her a villa in Dubai and invest in development there. She allegedly had to pay for Ishmuratov’s expensive stay in Dubai in connection with this, but she also did not receive a villa or assets – another 16 million dollars down.

Nazarbayeva allegedly instructed Ishmuratov and company to buy her a house in London on View Road in Highgate. The seller’s house cost 7.35 million pounds. “Trusted financiers”, as Nazarbayeva complained to the court, allegedly quickly bought it and sold it to her for 1.39 million pounds more. A trifle, but unpleasant.

Ishmuratov invited Nazarbayeva, she said, to participate in an investment in Harrison Varma real estate on Bishops Avenue in London, but she allegedly refused. However, “trusted financiers” nevertheless provided from her money, as Nazarbayeva assures, a loan to Buxmead Limited for this purpose, and she bought a piece of land on Bishops Avenue for 30 million pounds. Part of this loan was subsequently repaid. Aliya estimates the total damage, taking into account the partial return, at $14 million

Nazarbayeva began to buy a plane. With a sale price of $23 million, the laying firm has $2.6 million left under the control of its financiers, besides, Aliya is indignant, she was supplied with a used aircraft instead of a “brand new” one.

Several tens of millions of dollars more disappeared from Nazarbayeva during the deal with the purchase of 49.9% of Liberty Bank in Georgia from the Romanian billionaire Dinu Parisio – a cunning offshore cycle was used. The shares turned out to be registered not with Nazarbayeva, but with the structures of a certain Oleg Nikityuk, an employee of London financial geniuses. After selling what was left of this complex operation, Nazarbayeva estimated the damage at 13 million euros.

In another series of transactions, Nazarbayeva bought (in her words, already quite deliberately) another stake in Liberty Bank of Georgia. For these purposes, she provided 40 million dollars. The financiers ran several schemes with offshore companies – as a result, there was less money, no shares appeared. Some of the money was returned to Nazarbayeva, and she claimed $24 million in damages.

Then – on the little things: $ 22.7 million was allegedly spent on loans to firms controlled by financiers (partially – and other persons: Sergei Kim, Gregory Stulberg (Stulberg), Mark Shabad, Martin Graham). Some of these loans were returned. $24.7 million went to a microcredit firm run by London managers and Graham. Well, 5 million dollars – without clear goals under the control of Stulberg and Shabad. In total, under the heading “miscellaneous”, Nazarbayeva demanded, taking into account the partially returned funds, $ 23 million.

We emphasize that the events described are given by us in the version of Aliya, who gave a written commitment that what she said is true. Unfortunately, we do not have the opportunity to promptly contact its financiers and find out their point of view. If they will kindly state it for the newspaper, we will gladly give them the right to answer.

The total amount of damages claimed in the lawsuit exceeded one hundred million dollars. What the daughter of Nazarbayev finally agreed with Ishmuratov and Korotkov-Kaganovich, only the English judge knows. Well, they themselves. Recall that the parties entered into an amicable agreement.