Kazakh businessman Orifdzhan Shadiev, once a prominent figure and ranked 40th on the Forbes domestic list, was recently found guilty of abuse of power leading to substantial damages to Asia Credit Bank.
Alongside him, his assistant Mikhail Solovyov was also convicted. The verdict was announced without much fanfare, but it has sent shockwaves through the business community.
The core of the case revolves around events that unfolded in 2019 when Orifjan Shadiev, a nephew of Patokh Shadiev, made a deal to purchase Asia Credit Bank shares from former owner Nurbol Sultan, son of Sarybay Kalmurzaev. However, the deal was not without its conditions - Sultan was required to transfer ownership of the bank to Shadiev, who, in turn, would release collateral for several loans and assume these obligations. The total worth of the property in question was a staggering $37 mn.
At the outset, everything appeared to be proceeding as planned. Shadiev provided the bank with collateral, consisting of seven valuable land plots in the prestigious upper part of Almaty, which were initially deemed sufficient to cover the total amount of loans.
However, the situation took a turn for the worse when Asia Credit Bank failed to fulfill its obligations, leading to the revocation of its license. The Liquidation Commission of the Agency for Regulation and Development of the Financial Market was called upon to manage the enterprise and evaluate the bank's assets for potential sale to repay customers and creditors.
During the evaluation process, it was discovered that the land pledged by Shadiev was not worth the previously estimated $102 mn. The discrepancy arose due to a critical factor - the intended purpose of the land was designated for peasant economic use. This meant that the land could be utilized for agricultural purposes, such as farming and livestock rearing, but building cottages and townhouses, as stated in the altered documentation, was not permitted. This had a significant impact on the property's overall value.
The revelation of these manipulations in the documentation led to criminal charges against Orifdzhan Shadiev and his assistant Mikhail Solovyov. Shadiev pleaded guilty to the charges of abuse of power, while Solovyov admitted partial guilt for his complicity in the scheme.
The court delivered its judgment, sentencing Shadiev to a year and a half in prison, and Solovyov to a one-year term under Article 250 of the Criminal Code. Both individuals are to serve their sentences in a minimum-security colony. Additionally, they have been ordered to compensate Asia Credit Bank for the entire amount of the damage incurred, which stands at a staggering $36 mn.
Despite the verdict being announced, it has not yet entered into force, leaving room for potential appeals or further legal actions.
Follow Daryo's official Instagram and Threads pages to keep up to date on world news.
Comments (0)