JSC BM Bank v Kekhman & Ors (Rev1) [2018] EWHC 791 (Comm) (12 April 2018)

JSC BM Bank v Kekhman & Ors (Rev1) [2018] EWHC 791 (Comm) (12 April 2018)

Mr Kekhman is liable to the Claimant under Russian law for fraudulent misrepresentation and asset dissipation, having directed or known of the false representations and asset transfers. The Claimant relied on the false accounts and representations in advancing the loans. Bankruptcy discharge does not release liability arising from fraud.

Citation
[2018] EWHC 791 (Comm)
Parties
Claimant: JSC BM Bank; First Defendant: Vladimir Abramovich Kekhman; Second Defendant: JFC Group Holding (BVI) Limited; Third Defendant: Whilm Management Limited; Fourth Defendant: Garold Projects Limited
Jurisdiction
England and Wales
Judgment Date
12 April 2018
Procedural Posture
Commercial Court Claim / Final Judgment
Outcome
Judgment for the Claimant against Mr Kekhman
Legal Topics
Fraudulent Misrepresentation, Unlawful Means Conspiracy, Director's Fiduciary Duties, Bankruptcy Discharge, Asset Dissipation, Guarantees, Russian Civil Code
Commercial Law Fraud Insolvency Russian Law Fraudulent Misrepresentation Unlawful Means Conspiracy Director's Fiduciary Duties Bankruptcy Discharge +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 6 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

JSC BM Bank

Claimant

Vladimir Abramovich Kekhman

First Defendant

JFC Group Holding (BVI) Limited

Second Defendant

Whilm Management Limited

Third Defendant

Garold Projects Limited

Fourth Defendant

Procedural Posture

Commercial Court Claim / Final Judgment

Legal Issues

  1. 1 Whether Mr Kekhman is liable in tort under Russian law for fraudulent misrepresentation and asset dissipation
  2. 2 Whether the representations made to the Claimant were false and relied upon
  3. 3 Whether Mr Kekhman directed or knew of the fraudulent acts

Ratio Decidendi

Mr Kekhman is liable to the Claimant under Russian law for fraudulent misrepresentation and asset dissipation, having directed or known of the false representations and asset transfers. The Claimant relied on the false accounts and representations in advancing the loans. Bankruptcy discharge does not release liability arising from fraud.

Court Disposition

Judgment for the Claimant against Mr Kekhman

Orders

  • Mr Kekhman to pay damages for fraudulent misrepresentation and asset dissipation
  • Damages to be calculated as US$140 million plus ₽305,732,000 less recoveries of US$5,895,278.81 plus interest