Crossroads Asia

Why Is a Kazakh Bank Suing a New York Developer?

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Crossroads Asia

Why Is a Kazakh Bank Suing a New York Developer?

Kazakhstan’s BTA Bank and the city of Almaty are suing a New York real estate developer, claiming he helped launder money.

Why Is a Kazakh Bank Suing a New York Developer?
Credit: Flickr/kenlund

Earlier this week, Kazakhstan’s BTA Bank joined the city of Almaty, Kazakhstan, in filing suit in a U.S. federal court in New York against developer Joseph Chetrit. According to Bloomberg, the bank and city allege that Chetrit “conspired to hide $40 million in real estate deals” to aid former BTA Bank chair Mukhtar Ablyazov, who is currently being held in France, and former Almaty mayor Victory Khrapunov, who is currently living in Switzerland.

The suit alleges that Chetrit helped Ablyazov and Khrapunov invest heavily in New York real estate, namely within condominium projects at the Manhattan Flatotel and the Cabrini Medical Center, via Chetrit’s shell corporations. The lawsuit also claims that Khrapunov, in his tenure as mayor of Almaty from 1997-2004, swindled some $300 million from the city via cut-rate auctions and outright embezzlement through friends and family. Per the report, this filing stands as a response to Chetrit’s company’s earlier lawsuit, filed to determine whether the entity Chetrit Group LLC “should pay a disputed $21 million to the company allegedly controlled by Ablyazov and Khrapunov or to Almaty, which claims the money was stolen.”

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