Friday, October 20, 2017
The High Court of Justice in London held that trusts owned by ex-Russian senator Sergey Pugachev were a façade designed to hide his control of the trust assets. The Deposit Insurance Agency (DIA) quoted the court in a statement: “the point of the trusts was not to cede control of his assets to someone else, it was to hide his control of them. In other words Mr. Pugachev intended to use the trusts as a pretense to mislead other people, by creating the appearance that the property did not belong to him when really it did.” Pugachev has been in serious trouble since 2011, when investigations were launched based on suspicions that Pugachev and staff embezzled from Mezhprombank. By 2014, Pugachev made the international most wanted list and by 2015, Russia sent the UK a request for extradition.
See London Court Declares Trusts of Ex-Russian Senator Pugachev Sham, Russian Legal Information Society, October 11, 2017.
Special thanks to S.I. Strong, Manley O. Hudson Professor of Law, for bringing this article to my attention.