Gennadiy Bogolyubov, a Ukrainian billionaire who once resided in a grand London mansion, reportedly made a £7 million payment to his wife, Sofia, in a bid to relocate her from the capital.
This move aimed to avoid impending legal action involving allegations of a colossal fraud, according to court documents presented at the High Court.
The documents assert that Bogolyubov, residing in a £62.5 million property on Belgrave Square for several years, incentivized his wife to leave London while threatening to withdraw financial support from their children if she did not comply.
Despite this effort, a judge ruled that the case could proceed in London. Bogolyubov, along with fellow oligarch Igor Kolomoisky, faces legal action initiated by Ukraine's Privatbank over allegations of embezzling more than £1.5 billion from the institution.
The litigation involves claims that the duo used an encrypted communication system called "Black" while orchestrating the alleged scam. Bogolyubov is purported to have installed lines for this system on his multimillion-pound yachts, as well as in London and Ukraine-based offices, and in Geneva.
The case details complex financial transactions where loans were used to prepay for excessive amounts of commodities, never delivered, ranging from apple juice tankers to industrial machinery.
The bank contends a total loss of $1.9 billion, pursuing the recovery of this amount plus interest, potentially reaching $500,000 per day, through the ongoing High Court proceedings, expected to conclude next year.
Bogolyubov and Kolomoisky have vehemently refuted any wrongdoing. Clare Montgomery KC, Bogolyubov's barrister, underscored a lack of evidence indicating fund misappropriation, highlighting a scheme of "loan recycling." Montgomery argued that her client wasn't involved in the bank's alleged loss and accused the bank of unjustly grouping Bogolyubov with Kolomoisky.
Privatbank's closing statement alleged Bogolyubov's evasion tactics, including disposing of phones, failing to disclose devices, and manipulating evidence.
Legal confrontations have shadowed Bogolyubov, following his move from London to Switzerland in 2017 amid previous lawsuits. The court's scrutiny delves into his extensive financial dealings, potentially affecting significant personal liabilities. Photo by Bjørn Erik Pedersen, Wikimedia commons.