BTA Bank statement on arrest of former Bank Chairman Mukhtar Ablyazov02.08.2013 15:38:28
Almaty, August 2, 2013 - Today BTA Bank confirmed that former Bank Chairman Mukhtar Ablyazov was arrested in connection with crimes that he is alleged to have committed against the bank.
BTA Bank Managing Director and Member of the Management Board, Pavel Prosyankin said:
"BTA Bank welcomes the arrest of Mukhtar Ablyazov. This arrest is a result of the Bank's diligent efforts through the British justice system to recover the billions of dollars he stole while Chairman. We have sought his arrest to prevent him from further dissipating assets which the English High Court ordered to be put in receivership. He has flouted many court orders and fled the UK after we secured another High Court judgment sentencing him to prison in England. He is now in custody and we are optimistic that we will be better positioned to recover more of the assets which the court has authorised us to seize. The Bank remains determined to seek redress against those who have been instrumental in the losses that it has suffered from alleged fraud, as well as those who are assisting in the concealment of monies or assets inappropriately taken from the Bank. "
He was arrested yesterday 31 July in Aix-en Provence, France and is being held in custody.
BTA Bank launched global legal proceedings against Mr Ablyazov in 2009 after auditors at PwC identified a massive hole - more than $10 billion - in the Bank's balance sheets which led to the discovery of a large-scale fraud committed by Mukhtar Ablyazov while he was Chairman of the Bank.
The most comprehensive legal proceedings are 11 claims filed by BTA Bank in the English High Court seeking to recover more than $6 billion in assets misappropriated by Mr Ablyazov. The Bank has secured numerous judgments for in excess of US$3 billion and is in the process of seeking to enforce those judgments against assets currently held in receivership.
In February 2012, the Bank secured an English High Court judgment, subsequently upheld by the Court of Appeal, to commit Mr Ablyazov to prison for contempt of court. Rather than abide by the court's ruling, he fled to France and has since been a fugitive from justice.
The Bank has sought to have him detained so to prevent him from hiding and dissipating the assets that the courts have said should be available for enforcement of the bank's judgments. Since Mr Ablyazov fled the UK in violation of court orders, BTA Bank has sought to locate him and recently traced him to southern France.
BTA Bank provided information about Mr Ablyazov's whereabouts to French authorities who acted promptly to arrest him based on the Interpol "Red Notice" issued by Ukraine in relation to the Bank's legal proceedings in that jurisdiction.
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