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Burlakov case

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Burlakov case

The Burlakov case[1][2] is a series of large-scale international court proceedings ongoing in several jurisdictions, including the London-based High Court of Justice, relating to the assets and dealings of prominent Russian businessman Oleg Burlakov, who died of COVID in 2021 and left a fortune valued at nearly 3 billion pounds.[3][4][5]

Court proceedings are ongoing in the UK, Monaco, Panama, Montenegro, Switzerland, Ukraine, USA, Cyprus, Latvia, Russia and several other countries.

Premises

Main article: Oleg Burlakov

Oleg Leonidovich Burlakov[6][7] was a Russian entrepreneur[8] and billionaire. In 2021, Burlakov was ranked 177th in the Russian Forbes list with a fortune of nearly 3 billion pounds.[9] In the same year, he died from complications of a COVID-19 infection.[10][11] The circumstances of death raised various suspicions that he did not die of a natural cause.[11][12]

Burlakov was born in Leningrad in August 24, 1949. His father was a military engineer specializing in nuclear weapons. Oleg Burlakov spent his childhood in Crimea, and was later educated at Kyiv Military Aviation Engineering Academy. At the academy, he met his future wife Ludmila, whom he married in 1971. Later, two daughters were born, named Elena and Veronica.

For about 20 years of his early career Burlakov served in the USSR's Soviet Army, conducting scientific research in military aviation. In 1980 he successfully defended a dissertation and earned the Soviet academic title of a "Candidate of Sciences" from Moscow-based Zhukovsky Air Force Engineering Academy. In 1989 he left Soviet Army for "moral reasons" amongst the ongoing dissolution of the Soviet Union.[13]

Oleg Burlakov's close friend and brother-in-law, Nikolay Kazakov, later became his business partner. In 1988 Oleg Burlakov, Nikolai Kazakov and his wife Vera Kazakova established a joint cooperative in Kharkov city, named "Integral". The company specialized in fur trade initially and quickly broadened its business, amongst other things, to trade chemicals and medical equipment as well as engage in small construction projects. A few months into the operation of "Integral", the partners created a French-Russian joint venture called "Sov-Inter-France" which carried on trading activities in cement, engaged in an oil and gas production joint venture, and carried out small construction projects. The USSR collapsed in 1991, while Burlakov and Kazakov were enlarging their businesses, acquiring control of several large industrial companies, specifically "Belgorodcement", "Novoroscement" and "Burneftegaz".

In 1994, Oleg Burlakov decided to move to Canada with his family after criminals in Russia attempted to kidnap his daughters. Lyudmila Burlakova and daughters, Elena and Veronica, came to live in Canada permanently and eventually acquired Canadian passports. Oleg Burlakov also became a Canadian citizen and continued to engage in business activities in Russia. In 2008, Oleg Burlakov, his wife Lyudmila and daughter Veronica received residence permits in Monaco and became taxpayers there.

Origins of family conflict

Oleg Burlakov and Nikolai Kazakov sold the "Belgorodcement" factory in 2003 for 75 million US dollars. The sale proceeds were re-invested in "Novoroscement", a cement factory based in Novorossiysk. In 2007, the partners sold their shares in "Novoroscement" for about 1.5 billion US dollars. In parallel, they acquired control in oil company "Burneftegaz" based in Tyumen and developed its operations until 2014, when they sold their controlling share.

At the time of the sale, a large amount of the sale proceeds were transferred to Lyudmila Burlakova to hold as nominee for the purpose of tax optimization.

In 2017–2018 relationships within the family were becoming increasingly tense and hostile. According to mass media, this was mainly because Oleg Burlakov appeared to be having an affair with a young woman called Sofia Shevtsova, a stewardess.[14] It became known that Burlakov and Shevtsova were aiming to conceive a child using in vitro fertilisation and went through several attempts to conceive.

In 2018, Lyudmila Burlakova transferred large sums of capital from bank accounts entrusted to her by her husband and his business partner, Nikolai Kazakov. These operations were assisted by her daughters and their husbands, one of them American investment banker Gregory Gliner.[15] The overall amount siphoned off by Lyudmila Burlakova was estimated at 1.5 billion US dollars, all of which were collectively earned by Oleg Burlakov and his business partner.

Divorce proceedings

In 2018, Lyudmila Burlakova began divorce proceedings in Monaco, which were accompanied by a monetary dispute between the spouses. Oleg Burlakov believed that his wife had stolen money and initiated a criminal investigation against her in Monaco.[7]

In March 2019, the court decided to separate Lyudmila and Oleg Burlakov within the family home in Monaco: the 10th and 11th floor with a swimming pool were given to Lyudmila, while the 9th floor was left to the businessman.[16]

In September 2019, Burlakov accused his wife and youngest daughter Veronica of fraud and embezzlement by filing allegations to courts in Monaco and Switzerland. In complaint, the businessman argued that part of the funds belonged to him, and part to his business partner, with whom he had earned the money from the sale of the Burneftegaz ($1 billion) and Novoroscement ($1.45 billion). In 2018, without the consent of Burlakov and Kazakov, the money was withdrawn into various offshore accounts controlled by Lyudmila Burlakova, including in Guernsey. Some of the money ended up in the accounts of Burlakov's daughters and some in a Bahamian trust, whose beneficiaries are the businessman's wife and daughters.[16][17] The Monaco police started investigation and charges were brought against Lyudmila Burlakova in December 2022.

In 2020, Lyudmila Burlakova filed a civil claim against her husband in the High Court of England and Wales. In addition to her husband, 12 individuals and entities in Switzerland were included as defendants, including Leo Trust, a corporate services provider for the various entities created by Oleg Burlakov.[18][19]

Oleg Burlakov's adult daughters, Veronica and Elena, stopped communicating with their father, siding with their mother. According to Russian newspaper Izvestia, Burlakov made several attempts to reconnect with his daughters, but received only formal letters from the daughters' lawyers demanding that all contact cease in response.[7]

The divorce was supposed to be finalized at the end of the summer of 2021, but the businessman died before it was completed.[7]

Circumstances of death

In 2018, a tracking device was found inside Oleg Burlakov's private jet. The Nice prosecutor's office launched an investigation for breach of privacy. According to Forbes’ sources, the tracker was brought on board in a bag carried by his daughter Veronica.[16]

In November 2018, an assassination attempt was made against Burlakov in Moscow, and he was wounded.[20] A tracking device was found in his car at the time of this attempt. Oleg Burlakov openly named his wife, daughters and Gregory Gliner as the organizers of his attempted assassination.[21][22]

Oleg Burlakov died from COVID-19 in 2021 in a hospital called Lapino near Moscow. The circumstances of death raised suspicions that he did not die of a natural cause.

Vera Kazakova, his sister, planned to bury him at Serafimovskoe Cemetery in his native Saint Petersburg where graves of Oleg Burlakov's mother, father and grandmother are located. Vera Kazakova stated that she considered it to be her brother's wish that he be buried there.

However, the businessman's widow Lyudmila Burlakova and her daughters Veronika and Elena insisted on burying the body in Canada, despite the fact that they never visited Oleg Burlakov in hospital according to Russian newspaper Izvestia.[7][23][24] Kazakova claims that throughout the course of the businessman's illness, none of Burlakov's immediate family asked for information about his state of health.[23] However, representatives of Burlakov's wife and daughters stated that they did request such information.[25][24]

Russian authorities refused to hand over the remains of Oleg Burlakov to his sister. Later, individuals claiming to be lawyers of Lyudmila Burlakova, arranged for the onward transportation of his remains from the morgue. Vera Kazakova requested an autopsy from the Investigative Committee of Russia. The deceased was moved to another morgue by order of the investigator, but Lyudmila Burlakova appealed the decision. His remains were eventually[7] transferred to Switzerland by the lawyers[26] and later to Canada.

In February 2021, breaches of Russian law during removal of his remains were being investigated by the Russian police. In October 2021, the circumstances of the removal of Oleg Burlakov's body were investigated by the Solntsevsky interdistrict investigative department (Investigative Directorate, Western Administrative District of Moscow). The inspection revealed that Vnukovo customs officers had accepted forged documents when during the transportation of the billionaire's remains to Switzerland.[27][28][7]

Burlakov was buried in Canada on July 16, 2021. According to the magazine Company source,[29] Burlakov's ashes were buried in the columbarium wall without an identification plate.

Inheritance claims

Oleg Burlakov's estate is being claimed by Lyudmila Burlakova and both of his daughters on the one hand and his sister Vera Kazakova and her husband and business partner Nikolai Kazakov on the other. Inheritance claims are also being made by Sofia Shevtsova, acting on behalf of her minor daughter, whose father is allegedly Burlakov. Shevtsova filed a lawsuit in St. Petersburg in December 2021 to establish that Oleg Burlakov was indeed her daughter's father.[30]

Mass media states that Burlakov made a will in 2004. Later in 2018 he personally claimed that no valid will existed at the time. After his death, a will was found, that was handwritten and dated 2019.[29] In this document, he left all of his property to his sister Vera Kazakova and her husband Nikolai Kazakov; his wife and daughters are not mentioned in this will.[31][32] The businessman also instructed his sister and brother-in-law to take care of Sofia Shevtsova and her daughter as well as other members of his family.[16] The courts in Russia have upheld the validity of this will.[33]

International court proceedings about inheritance

After Burlakov's death, a number of court and police proceedings, both civil and criminal, are continuing in several countries. They mainly concern entitlement to assets as well as claims relating to the estate of Oleg Burlakov.[34]

UK

In the UK, a claim was filed in the High Court of Justice by Lyudmila Burlakova. She sought a declaration that Nikolai Kazakov and Oleg Burlakov were not business partners and sought damages in excess of USD 700 million. As at April 2023, this process was at an early stage.[1][35]

Monaco

Civil proceedings are ongoing in Monaco seeking recognition of the validity of the handwritten will made in 2019 will in favour of Nikolai Kazakov and Vera Kazakova. The court accepted jurisdiction and appointed an administrator over the estate.[1]

A criminal case against Lyudmila Burlakova was initiated for embezzlement and money laundering in 2018, based on the withdrawal of assets that were entrusted to her as a nominee.

Panama

Burlakov and Kazakov partly operated in the country of Panama. Veronica and Lyudmila Burlakova attempted to gain control over several Panamanian companies owned by Panamanian private interest foundations by representing invalid bearer shares and seeking to change the board of directors of companies created by the businessmen. These attempts turned out to be unsuccessful and the Panamanian court issued civil and criminal injunctions prohibiting Veronika and Lyudmila to hold themselves out as shareholders of these Panamanian companies

Montenegro

Black Pearl (yacht)
Main article: Black Pearl (yacht)

Burlakov widow and daughters attempted to freeze the yacht "Black Pearl", owned by a company controlled by Burlakov[36][37] in the Court of Montenegro.[38] The court refused to seize the vessel.

Switzerland

Proceedings were initiated by Luydmila Burlakova and daughters seeking a freeze on the accounts owned by Panamanian entity of which Burlakov was a beneficiary. The application was withdrawn. The women further made several criminal complaints against Oleg Burlakov and the Kazakovs. These complaints were dismissed by the prosecutor.[8]

Ukraine

Three criminal investigations were initiated against Lyudmila Burlakova in Ukraine for contempt of court, fraudulent seizure of inheritance, and embezzlement of property. As of April 2023, all three cases were at the initial stage. Lyudmila Burlakova was put on a wanted list by the Ukrainian Police.[39][40]

USA

The Burlakov daughters filed a lawsuit on behalf of their children against the Kazakov family for the recovery of $15 million caused as a result of the Burlakovas' loss of rights to a luxury apartment in Miami, Florida. As part of this process, Nikolai and Vera Kazakov filed a counterclaim, alleging a conspiracy by the Burlakovas to divert and steal assets owned by the Kazakovs. This counterclaim was filed by Nikolay Kazakov in the USA against Lyudmila, her daughters and Gregory Gliner. The Kazakovs claims that Gliner used his knowledge and professional connections to facilitate the transfer and dissipation of partnership assets of Kazakov and Oleg Burlakov. Some of the assets were allegedly moved through hedge fund Ironwall Capital by creating false losses on investments in an effort to cover up significant transfers of those assets abroad.[41]

In November 2022, the Burlakovas made a claim under the RICO law, alleging that various corporate service providers and entities were part of a criminal organisation engaged in racketeering activity. The Burlakovas voluntarily withdrew the claim three months after its filing.

Russia

Following the application by Veronica for the issuance of an inheritance certificate in Russia, the Kazakovs filed a civil claim in the Russian courts for recognition as heirs under the 2019 handwritten will. The Lyublinsky district court of the Russian Federation recognized the 2019 will as valid on October 8, 2022. Recognition was appealed by the Burlakovas in Moscow City Court, which confirmed the decision on April 4, 2023.[42] [43] In accordance with the Civil Code of Russia, the form of the will is determined by the law of the country in which the person had permanent residence at the time of its making. It cannot be invalidated due to observance of its form if the form complies with the laws of the place of the residence of the person making a will.[16]

In the meantime, stewardess Sofia Shevtsova applied to Vyborgsky district court to recognize her daughter Nicole as daughter of Oleg Burlakov. The court supported her on March 11, 2022. The decision was also appealed and appellation court canceled the decision and ordered a genetic expertise.[44]

Lyudmila Burlakova filed a claim with the Petrogradsky district of Saint Petersburg against Nikolaiy Kazakov seeking the return of 800 million of Russian roubles. The first instance court dismissed the claim, a decision that was appealed by Lyudmila Burlakova. The appeal court confirmed the first instance decision on October 22, 2022. An appeal to the court of cassation was filed, but dismissed on March 3, 2023.

Latvia

Latvian authorities initiated a criminal investigation against Sofia Shevtsova, Ludmila Burlakova and Elena Burlakova, as well as their local affiliate notary Ingūna Bobrovska, for an alleged conspiracy to seize assets of Oleg Burlakov by way of obtaining an inheritance certificate based on fraud.[41][45][1]

Cyprus

In Cyprus a challenge is pending to an application brought by Lyudmila Burlakova and her daughters for an ad colligenda order over the shares of the entity holding the famous yacht named Black Pearl. The ad colligenda order was challenged by an application of the Kazakovs for the issuance of Prerogative Order Certiorari. The Supreme Court ruled in favour of Kazakovs. Lyudmila Burlakova and her daughters appealed the decision and this appeal is currently pending before the Supreme Court.

In addition, the Cypriot court is currently determining a challenge brought by the Kazakovs against an interim order seeking the transfer of the entity holding the Black Pearl to trustees of the estate appointed pursuant to a Latvian inheritance proceedings.

See also

References

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  32. ^ Евгений ПРОСКУРЯКОВ (2021-11-23). "Наследники российского богача спорят из-за "пиратской яхты" стоимостью в 21 млрд рублей". kp.ru (in Russian). Retrieved 2022-02-14.
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  34. ^ "Family Of Wealthy Russian Businessman Wants Independent Investigation Of Death". Radio Free Europe/Radio Liberty. 2021-06-27. Retrieved 2023-08-01.
  35. ^ Ames, Jonathan (2023-07-31). "Russian oligarch's widow and daughters fight for a share of his £3bn estate". The Times. ISSN 0140-0460. Retrieved 2023-08-01.
  36. ^ "Oleg Burlakov, Leading Russian Entrepreneur, Self-Made Billionaire & Eco-Sailing Pioneer Dies At 72". www.businesswire.com. 2021-08-18. Retrieved 2023-08-01.
  37. ^ "Remembering Oleg Burlakov: Russian Billionaire and Visionary in Yachting Industry". SuperYachtFan. Retrieved 2023-08-01.
  38. ^ "Russian Oligarch's 'Black Pearl' at the Center of Huge Legal Dispute Over His Fortune". BoatBlurb. 2021-12-29. Retrieved 2023-08-01.
  39. ^ P, Matthew (2022-05-25). "Lyudmila Burlakova Marchenko: from a typist to billionaire, the controversial career". Talk Finance. Retrieved 2023-08-01.
  40. ^ Joseph (2023-05-31). "The family of a Russian oligarch in the EU is hiding almost $ 1.5 billion from sanctions - media - Daily News Hack". Retrieved 2023-08-01.
  41. ^ a b "Latvian police foil an attempt by Russian nationals to illegally seize inheritance left in Latvia - The Daily". the-daily.org. October 3, 2017.
  42. ^ "Конец ушлой вдовы и ее дочерей - В битве за многомиллиардное наследство суд признал единственное завещание Олега Бурлакова". versia.ru (in Russian). Retrieved 2023-05-19.
  43. ^ "Суд поделил богатства умершего от COVID-19 миллионера Бурлакова". РИА Новости (in Russian). 2022-11-24. Retrieved 2023-05-19.
  44. ^ "Суд без генетической экспертизы признал наследником миллиардера полуторагодовалую девочку" (in Russian). Retrieved 2023-08-01.
  45. ^ "Pietiek :: Latvijā sākts kriminālprocess pret Krievijas valstspiederīgajiem, kuri pretendē uz krievu oligarha atstāto mantojumu". pietiek.com (in Latvian). Retrieved 2023-08-01.
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