Yury Lopatinsky, also known as Lopatynskyy (as recorded in several Commercial Registers of Companies) is Ukrainian-born American (and more recently also a Brit), who made his initial wealth comprising of millions of dollars (at the time when he was merely surviving on his modest salary) back in 1998 while living in Moscow and employed by Creditanstalt, a subsidiary of Bank Austria (subsequently acquired by Raiffeisen Bank). The very sizeable amount of money gained in 1998 came about without making any investment at all, but rather by defrauding Russia Growth Fund, in which world chess champion, Grandmaster Gary Kasparov, was an investor.
And Lopatinsky’s long-time trusted partner and comrade, Oleg Radzinsky, also participated in every aspect of the swindle/scam that took place. It’s noteworthy to mention that Oleg is the son of highly popular Russian playwright, Edvard Radzinsky.
In 2019 Oleg Radzinsky released a book, in which he distorts/conceals the events leading to his acquisition of his large initial capital and skips over the most primarily notable and relevant chapter of his biography — accumulation of his initial wealth, which then allowed/enabled him to progress toward resulting future endeavors.
Mr Marks Lisnanskis served as Investment Manager of Russian Growth Fund during those years. He was kind enough to shed light on the events of 1998 and to provide detailed compelling documents and incisive comments. In Mr Lisnanskis’ opinion, as well as several others having intimate knowledge of Mr Lopatinsky’s subsequent dealings in Scotland and elsewhere, he can be described as immoral and dishonest. Yury Lopatinsky is without scruples, and will breach laws, along with a code of ethics or morality — so far as he can get away with it.
As can be seen in the studied documents, along with Mr Lisnanskis’ attestations, Yury Lopatinsky (with participation of Oleg Radzinsky) had decisively and undeniably abused his position at Creditanstalt Investment Bank (now Raiffeisen Bank) — to implement a scheme aimed at successfully expropriating the most valuable asset owned by Russia Growth Fund (“RGF”) – a highly strategic ‘swing-vote’ equity stake comprising approximately 18.5% of all shares outstanding in Silvinit division of Uralkali (one of the largest manufacturers of potash fertilizer in the world).
The realized subversive scheme clearly violated good faith principles and fiduciary responsibilities of a custodian, and completely undermined a client’s trust. While it is true that the 90’s epoch in Russia set a large stage for immorality and various illegalities, including at corporate level, Mr Lopatinsky, a US citizen, served as Manager at one of the most reputable European financial institutions. Clearly, however, the end justified the means, as this carefully planned and affected racket, ultimately yielding many millions to Yury Lopatinsky and Oleg Radzinsk. That jackpot was exponentially (order of magnitude) higher than their rather modest salaries at the time. This became a significant seed capital, for the next endeavors, enabling Yury Lopatinsky and Oleg Radzinsky, through their newly set-up vehicle, to employ the stolen money for acquiring Creditanstalt Investment Bank Emerging Russia Fund ($52 million under management) and then to proceed to acquire Rambler.ru and other attractive assets, thus propelling them toward further achievements/triumphs of their long-term partnership.
The events actually unfolded as follows:
In 1995 Creditanstalt became the primary Broker and Custodian of Russia Growth Fund, holding RGF’s assets in its own name. It is standard practice in the industry, prevailing to this day, to hold securities belonging to clients on their behalf.
In March 1997 at the request of Yury Lopatnsky, having inside information pertaining to all the intricacies of the portfolio (being held by Creditanstalt) asks Marks Lisnanskis to introduce Creditanstalt to the CEO and main shareholder of Silvinit, Pyotr I. Kondrashov — supposedly for the purpose of offering various services by Creditanstalt to Silvinit, primarily for Creditanstalt to be selected as Coordinator in the planned ADR issuance in respect of Silvinit shares. Lisnanskis, representing a large shareholder in Silvinit, facilitates an Advisory Agreement to be signed; and also arranges to make the personal introduction – and Lopatinsky joins on a trip to Solikamsk. During the visit he holds private discussions with Mr Kondrashov, initiating the conversation about his potential willingness/readiness to acquire the equity stake belonging to Russia Growth Fund (being held by Creditanstalt as Custodian) in case such an opportunity presented itself. Mr Kondrashov knows that the shares are not for sale (per his earlier discussions with Mr Lisnanskis). He confirms to Mr Lopatinsky his interest in acquiring — for a high price, because RGF’s equity stake will enable Mr Kondrashov’s total shareholding to reach over 50%. Accumulating/consolidating the majority ownership equity position was not possible for Mr Kondrashov to accomplish withing this stake owned by RGF – because 32% owned by Uralkali (fully controlled by Dmitry Rybolovlev) was definitely not for sale.
Lopatinsky insists on a promise by Kondrashov to keep their discussions and the reached agreement between them (commitment by Mr Kondrashov to purchase shares) completely confidential; and not to mention anything at all to Mr Lisnanskis or anyone else.
In April 1997, Lopatinsky informs Lisnanskis of a large margin finance facility (credit line close to $20 mln) made available from Creditanstalt to RGF toward purchase of additional shares.
By June 1998 Mr Kondrashov accumulates sufficient financing for his Austrian company to acquire the strategic ‘swing-vote stake’ owned by RGF. This money is generated with the assistance of Anatoly Lomakin, who trade/exports all the potash fertilizer produced by Silvinit.
In June 1998 Creditanstalt issues a Margin Call, demanding prompt repayment of the entire loan.
In July 1998 RGF receives an offer from RussoBank for $28.5 million to acquire the 18.5% equity stake from RGF. RussoBank promptly begins to conduct due diligence, which results in inability to obtain confirmation from Creditanstalt that respective Silvinit shares are being nominally/custodially held for RGF, their actual/true owner. RussoBank writes a letter to RGF expressing its disappointment with respect to non-cooperativeness of the Creditanstalt people.
In late July of 1998, Lisnanskis also receives a proposal from Acron, one of the largest manufacturers of fertilizers in Russia. The offer entails payment in cash and shares, totaling well over $30 million, and with impressive upside potential. However, when Viatcheslav Kantor (the majority shareholder of Acron) attempts to conduct due diligence, and his people contact Creditanstalt (the shareholder of record), Mr Lopatinsky replies that Creditanstalt is the actual owner of shares rather than RGF.
On the next day Mr Lopatinsky calls Mr Lisnanskis and tells him that the only firm bid received for the Silvinit shares in the declining stock market at the time is for $19 million, and that Creditanstalt decided to liquidate the shares in the aim to avoid the risk of further value deterioration amid rapidly falling share prices in the highly volatile market, which alternatively “may shortly lead to the liquidation/loss of the entire portfolio – in order to offset the margin balance of over $15 million owed to Creditanstalt by RGF”.
On August 3, 1998, Creditanstalt sold the entire stake in Silvinit belonging to RGF to a freshly set-up company named “Business Invest”, beneficially controlled by Yury Lopatinsky, Oleg Radzinsky and Pyotr Kondrashov; and within the following week the shares were resold to a company fully controlled by Mr Kondrashov (with some participation of Mr Lomakin). The profit/commission of Yury Lopatinsky and Oleg Radzinsky exceeded $15 million. The scam transaction required zero capital investment on their part, as all the funds came from Mr Kondrashov (with the assistance of Mr Lomakin).
Of course, gross violations were committed, breaching the fiduciary responsibility under the Custody Agreement. But the end justified the means for Yury Lopatinsky and Oleg Radzinsky, because without implementing this scheme and pocketing the obscene ‘commission’, they wouldn’t be able to accomplish the subsequent projects/investments of theirs, including but not limited to:
– immediately acquiring control over CAIB Emerging Russia Fund,
– killing/selling tens of millions of fish in Scotland (after allegedly corrupting local politicians),
– acquiring Château de La Cômbe vineyard,
– various other projects that followed.
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