Kingdom of Sweden v Serwin & Ors [2022] EWHC 2706 (Comm) (27 October 2022)

Kingdom of Sweden v Serwin & Ors [2022] EWHC 2706 (Comm) (27 October 2022)

The court found overwhelming and undisputed evidence that the First and Second Defendants (and others) orchestrated and participated in a fraudulent scheme to sell MBSs at inflated prices to Optimus, causing direct economic loss to Sweden. The evidence established breach of trust, gross breach of trust, and promotion of such breaches under Swedish law. The claims were not barred by res judicata. The loss was suffered by Sweden, not the Swedish Pension Authority. The court was satisfied that summary judgment was appropriate against the relevant defendants, as there was no realistic prospect of defending the claims.

Citation
[2022] EWHC 2706 (Comm)
Parties
Claimant: The Kingdom of Sweden; First Defendant: Max Emil Serwin; Second Defendant: Mark Bishop; Third Defendant: Afram Gergeo; Fourth Defendant: Ulf Roland Deckmark; Fifth Defendant: John Anthony Farrell; Sixth Defendant: Barbaros Ökten; Seventh Defendant: Solid Venture Capital Ltd; Eighth Defendant: Lamina Limited (formerly Solid Venture Capital Limited (Malta)); Ninth Defendant: Optimus Socially Responsible Investments Ltd; Tenth Defendant: Energy Everything Investments PLC; Eleventh Defendant: Boardwalk Co Limited; Twelfth Defendant: Gergeo Holding AB; Thirteenth Defendant: Gergeo Invest AB; Fourteenth Defendant: Werel OY
Jurisdiction
England and Wales
Judgment Date
27 October 2022
Procedural Posture
Civil (commercial Court, Summary Judgment Application) / Summary Judgment on Merits, Post Evidence, Pre Trial
Outcome
Summary judgment granted in favour of the Claimant (Sweden) against the First, Second, Sixth, Seventh, Tenth, Twelfth and Thirteenth Defendants.
Legal Topics
Summary Judgment, Dishonesty, Breach of Trust, Fraud, Jurisdiction and Applicable Law, Damages for Economic Loss, Res Judicata, Cross Border Pension Fraud
Civil Fraud Trusts and Fiduciary Law Conflict of Laws Pensions Law Summary Judgment Dishonesty Breach of Trust Fraud +4 more

Case Brief

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Parties

The Kingdom of Sweden

Claimant

Max Emil Serwin

First Defendant

Mark Bishop

Second Defendant

Afram Gergeo

Third Defendant

Ulf Roland Deckmark

Fourth Defendant

John Anthony Farrell

Fifth Defendant

Barbaros Ökten

Sixth Defendant

Solid Venture Capital Ltd

Seventh Defendant

Lamina Limited (formerly Solid Venture Capital Limited (Malta))

Eighth Defendant

Optimus Socially Responsible Investments Ltd

Ninth Defendant

Energy Everything Investments PLC

Tenth Defendant

Boardwalk Co Limited

Eleventh Defendant

Gergeo Holding AB

Twelfth Defendant

Gergeo Invest AB

Thirteenth Defendant

Werel OY

Fourteenth Defendant

Procedural Posture

Civil (commercial Court, Summary Judgment Application) / Summary Judgment on Merits, Post Evidence, Pre Trial

Legal Issues

  1. 1 Whether summary judgment should be granted against the SJ Respondents for participation in a fraudulent scheme misappropriating Swedish pension funds
  2. 2 Whether the claims are barred by res judicata or estoppel
  3. 3 Whether Swedish or Maltese law applies to the claims

Ratio Decidendi

The court found overwhelming and undisputed evidence that the First and Second Defendants (and others) orchestrated and participated in a fraudulent scheme to sell MBSs at inflated prices to Optimus, causing direct economic loss to Sweden. The evidence established breach of trust, gross breach of trust, and promotion of such breaches under Swedish law. The claims were not barred by res judicata. The loss was suffered by Sweden, not the Swedish Pension Authority. The court was satisfied that summary judgment was appropriate against the relevant defendants, as there was no realistic prospect of defending the claims.

Court Disposition

Summary judgment granted in favour of the Claimant (Sweden) against the First, Second, Sixth, Seventh, Tenth, Twelfth and Thirteenth Defendants.

Orders

  • Defendants to pay damages to Sweden in the amount of US$29,529,986 on a joint and several basis (First and Second Defendants)
  • Further directions for assessment of damages and costs