Malitskiy & Filipenko vs. Adamovsky & Stockman Interhold SA
Malitskiy & Filipenko alleged that proceeds from the sale of a business in Ukraine had been used by Stockman Interhold SA to acquire shares in a Cypriot business. Adamovsky & Stockman claimed that the proceeds of $71.6 million had been used to discharge the liabilities of a group of companies owned by Malitskiy & Filipenko and Mr. Adamovsky.
The key issue related to the insufficient disclosure provided by the defendants in reliance on an order of the BVI court that permitted redaction of non-relevant material. In addition, there were gaps in the disclosure, in reliance on assertions by Mr. Adamovsky that monies had been paid to third parties, such that it was not possible to perform a complete analysis of the money trail.
KRyS Global was instructed to perform an equitable tracing exercise relating to the $71.6 million of sale proceeds.
This analysis involved review of schedules, bank statements, and loan documentation. The majority of the documents provided were in Ukrainian with no translation and loaded into a dataroom with no structure or index.
KRyS Global worked with the legal team to identify relevant documents and obtain translations so that its expert report provided clear analysis and conclusions to assist the court.
KRyS Global demonstrated the ability of its team to adapt to the poor quality documentation provided, and to use forensic technology provided by our forensic technology team to provide a forensically sound analysis that stood up to in-depth cross examination in the BVI court.
The client was pleased with the work performed. KRyS Global’s report was instrumental in achieving a successful outcome and an award of approximately $35 million, plus costs.