#Kazakhstan fraudster’s 'lieutenant' found in leafy DC suburb after fleeing the UK

A top 'lieutenant' of a convicted Kazakh fraudster is facing US court action after being tracked down to a quiet suburb in Washington DC. Russian businessman Aleksandr Udovenko fled London in 2012 after being implicated in a multibillion dollar fraud carried out by Mukhtar Ablyazov, former chairman of BTA bank in Kazakhstan, according to US court filings, writes James Hipwell.

Earlier this year it was revealed that Ablyazov, who currently lives in Paris, was lobbying the Belgian government for residency and had appointed Brussels lawyer Marc Uyttendaele to secure him safe haven. It is believed that Uyttendaele's primary objective is to make sure his client remains outside the clutches of authorities in the UK, Russia, Ukraine and Kazakhstan. Ablyazov is wanted on fraud charges by authorities in all these countries, while in Kazakhstan he has also been found guilty of ordering a high profile assassination on his former business partner.

BTA, which has brought the action, alleges that as Ablyazov’s “point man” in London, Udovenko was involved in creating a vast network of offshore companies used to siphon billions from the bank into private accounts. Udovenko moved to America and has been working as an “investment consultant” in Bethesda, Maryland, in the leafy outskirts of Washington DC. Now his past has caught up with him after BTA bank tracked him down to his $855,000 home and served him with a subpoena to testify before the courts.

Udovenko denies the allegations and claims he is the victim of a “politically motivated” campaign by the Kazakh authorities. BTA bank, in conjunction with the Kazakh city of Almaty, is also seeking a deposition and document disclosure from Udovenko in relation to a case they have brought against the controversial businessman Felix Sater. Sater, a convicted criminal and former advisor to Donald Trump, is accused of helping Ablyazov and his alleged co-conspirator (and son-in-law), Ilyas Khrapunov, of laundering their stolen money through his real estate projects, including those connected to the US president.

When Ablyazov’s fraud was first uncovered in 2009 he fled to the UK, which resulted in BTA bringing a case against him and his co-conspirators, including Udovenko, in the country’s courts. In their action against Udovenko, BTA claims that a UK court found that he was “one of Ablyazov’s principal lieutenants”. The court filings claim that this involved Udovenko serving as nominee owner and administrator for “literally hundreds of off-shore shell companies used to move the stolen money in furtherance of that scheme”.

It is alleged Udovenko managed this network through an investment holding company called Eastbridge Capital, which was incorporated in London. When BTA’s lawyers asked to see Eastbridge's computer records, they were told that they had been lost. However, investigators were able to follow Ablyazov's brother-in-law, Salim Shalabayev, to a storage unit in London in January 2011 and located a cache of 25 boxes of documentation and a hard drive detailing much of this shell company network.

The UK courts found Ablyazov in contempt for failing to honestly disclose his assets and handed down a 22-month prison sentence. However, he fled to France before he could be jailed. According to the court papers: “Udovenko likewise fled the United Kingdom at or about the same time.” The UK courts had issued a freezing order over Ablyazov’s assets, which BTA and the City of Almaty claim has been violated by the alleged laundering scheme involving Sater and Khrapunov. BTA also claims to have recently obtained documents relating to incorporations in the Isle of Man which “establish that Udovenko provided instructions regarding Ablyazov’s shell companies on Ablyazov’s behalf.”

It also cites former bank employees who confirmed his “central importance to the scheme”. In response to the court action, Udovenko has filed a motion to quash the subpoena compelling him to testify. Udovenko, who is also wanted in Russia in relation to fraud charges, claims he is being targeted for political reasons. Until the court action was brought, Udovenko’s public persona in the US was that of a respectable businessman. An online profile describes him as an “investment and management consultant” working in business development for a firm in Vienna, Virginia.