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The High Court of England sentenced Paul Kitreotis, associate of Mukhtar Ablyazov, for 21 months of imprisonment

Almaty, November 3, 2011 – The High Court of England (hereinafter – «The Court») adjudged Paul Kitreotis, associate of the ex-Chairman of the Board of Directors of BTA Bank, Mukhtar Ablyazov, to be guilty for contempt of the Court, and imposed a sentence to 21 months of imprisonment. This judgment of the court was issued on October 28, 2011, within the current litigation pursued by BTA Bank to recover compensation for the losses suffered under its previous management.

As part of a worldwide freezing order, on July 29, 2010, Mr. Kythreotis was required by the Court to provide details of his assets for the amount of USD 68 286 517 as well as to provide information on the USD 295 million that the Bank alleged has been misappropriated from it. Paul Kythreotis subsequently failed to disclose accurate information, and in fact admitted to submitting false information to the Court.

Mr. Kythreotis claimed that he had not told the truth because he had been subject to threats, surveillance and intimidation by other defendants. The Court of Appeal did not accept this statement. Electronic correspondence dated October 12, 2010, between Mr. Kythreotis and Mr. Shalabayev, Mukhtar Ablyazov’s brother in-law, indicated that Mr. Kythreotis had an agreement to be paid GBP 4.5 million by Mr. Ablyazov. This has led members of the Court of Appeal, Lord Justice Neuberger, Lord Justice Carnwath and Lord Justice Jackson to conclude that his refusal to comply with the Court’s order had been willful. In addition to that, the falsification of evidence as attempt to mislead the Court persuaded the Court of Appeal to impose a sentence on Mr. Kythreotis of 21 months in prison.

This decision followed the similar sentence for contempt of the Court in June 2011, when the High Court of England sentenced Mr. Shalabayev to 18 months of imprisonment.

According to the Bank’s obligations to creditors undertaken in connection with the restructuring, the Bank again confirms its intention to seek indemnity of losses from all persons involved into fraud, and from those who assisted in concealment of money and assets inappropriately taken from the Bank. Where necessary, actions of the Bank will include measures such as applications to commit to prison those who do not comply with the obligations of the English Court and render assistance to the Bank.

The Bank also deems it necessary to note that the Court’s decision in respect of Mr. Kythreotis is one in a series of successful steps to recover the assets that the Bank alleges have been misappropriated.

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