Michael Cherney Israel Russia

British High Court to Decide: Can Michael Cherney Testify by Video?

2011-06-22T21:18:00.000-07:00

British High Court to decide: Can Michael Cherney testify by video?

By JONNY PAUL JERUSALEM POST CORRESPONDENT
06/23/2011 05:42

Israeli oligarch originally from Uzbekistan suing Deripaska over a disputed shareholding stake in Rusal, the world’s largest aluminium company.

LONDON – The British High Court has this week deferred a decision on whether Israeli oligarch Michael Cherney should appear in the London court in a case involving Russian oligarch Oleg Deripaska.

Cherney, originally from Uzbekistan, now living in Israel, is suing Deripaska over a disputed shareholding stake in Rusal, the world’s largest aluminium company. However, following a European arrest warrant issued by Spain in 2009 Cherney will not travel to the UK, fearing arrest by British authorities.

On Monday, the High Court decided that further evidence was needed on whether Cherney should be permitted to give evidence by video link from Israel rather than appear in person in the London court.

A further hearing on this issue is expected to take place in July.

The case was originally brought to the High Court in London by Cherney in 2006.

Cherney claims he is owed a percentage of Deripaska’s shareholding in Rusal.

Deripaska, who paid Cherney $250 million as part of the agreement, vehemently rejects
the claim. Cherney claims the deal included a 20 percent stake in Rusal.

In 2007, the court ruled that it had no jurisdiction in the case as Deripaska was not a British citizen. However, the following year, the court said that although Russia was the “natural forum,” the case should be held in the UK because of “risks inherent in a trial in Russia.”

Michael Cherney Foundation Reinforces A United Jerusalem

2011-05-24T04:38:00.001-07:00

Michael Cherney Foundation Reinforces A United Jerusalem

Michael Cherney: "My Foundation will continue
to support Israel and a united Jerusalem."

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By Herb Brandon
Israel News Agency

Jerusalem ---- May 23, 2011 .... The Michael Cherney Foundation is continuing in assisting various cultural, humanitarian and charitable projects that are critical to Israel's growth. One of many projects dedicated to Israel and keeping Jerusalem united is the publication of a brochure by a non-profit, non-partisan organization "Keep Jerusalem" which educates people about the importance of a united Jerusalem under Israel sovereignty.

The Michael Cherney Foundation, together with "Keep Jerusalem", feels that there is an essential need to replace Islamic distortions of historical realities with basic facts, which support Israel's right to sustain Jerusalem as her united capital.
One organization that enjoys continued assistance from the Cherney Foundation is "Meeting Place" which is presently expanding its network of training groups. The concept behind "Meeting Place" is gathering different Israelis - secular and religious, men and women - around classical Jewish texts.
In May of 2011 two new study groups were created consisting of a group for the study of Jewish mystical texts - the book of Azriel and the Zohar (which takes place in Jerusalem) and a study group which is being held in a peripheral and somewhat underdeveloped city of Lod, making it a significant educational and cultural contribution to that area. Regular groups for study of the Talmud and tales of Rabbi Nachman are continuing as well in Jerusalem.
Another activity that "Meeting Place" coordinates is ascends to the Temple Mount to hold Bar Mitzvah celebrations. With assistance from the Michael Cherney Foundation and a large preliminary work and advertising, the idea for this is spreading rapidly. One such celebration of a bar-mitzvah took place for a Russia boy from the Zacharias family. The ascend was attended by more than 20 people, including six children of various ages, relatives from the US as well as the crew from Israel TV Channel 9. Such ascends serve to stimulate interest in the subject of Temple Mount for the wider secular Russian-speaking Israelis.
A non-profit organization "Pri," which also enjoys prolonged support from the Michael Cherney Foundation, created a play "The Wanderer," which premiered at Pesach. The play is a story of a Jewish traveler who gets into different situations and learns the lessons of life experiences, love and wisdom.
The performers themselves invented and created decorations, costumes and took part in developing the script. The performance involved both Jewish children and adults. The audience reacted very vividly to the play, which turned out to be a lively, creative and dynamic holiday! After the play children were presented with gifts.
The Michael Cherney Foundation strongly believes that cultural and educational programs such as these have an enormous and positive impact on Israel's growth and development.
The Michael Cherney Foundation is a charitable foundation created by Michael Cherney, a Russia born Israel entrepreneur. Cherney defines the mission of the Foundation as to help democratic nations in their war on terrorism and assist fellow émigrés to Israel from Russia and other post-Soviet nations realize their intellectual potential and become successfully integrated into the Israel society.

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Anti Mafia Witness Jalol Khaydarov Meets Russia Aluminum Magnate, Israel Philanthropist Michael Cherney

2011-02-04T16:23:00.000-08:00

Anti Mafia Witness Jalol Khaydarov Meets Russia Aluminum Magnate, Israel Philanthropist Michael Cherney

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By Herb Brandon
Israel News Agency

Tel Aviv, Israel ---- February 4, 2011 ...... A few days ago a popular Russia Israel news Website IzRus.co.il had reported that its deputy editor-in-chief became an accidental observer of a hearty meeting and a lengthy conversation between Jalol Khaydarov - a chief witness against the "Russian Mafia" in many Western courts - and Michael Cherney (Mikhail Chernoy), an oligarch residing in Israel and, as Khaydarov alleges, someone who threatens his life.

On the evening of January 23, in the lobby of Tel Aviv Hilton, Alexander Goldenshteyn, the deputy editor of Izrus, an Israel news Website, spotted Michael Cherney, a well-known businessman, the father of Russian aluminum industry, resident of Israel since 1994, and a generous philanthropist in anti-terrorist causes.
Facing Cherney at the table tete-a-tete was Jalol Khaydarov, a native of Uzbekistan, who had become famous in the late '90s as a player in the redistribution of Russian metallurgy market. In 2000, Khaydarov fled Russia, which is still trying to arrest him for a long list of alleged crimes. Three years later he found a home in Israel, and in 2005 he became a citizen changing his name to Moshe Neeman.
Why would a Jewish state give him shelter?
The alleged reason is that he agreed to tell all he knew or made up about mysterious Russia oligarchs, including Michael Cherney. At the time the Israelis were afraid the oligarchs would want to buy up the tiny Holy Land.
Soon, Israel police decided to share Khaydarov's memoirs with their Western colleagues. In Europe, he gained reputation of the chief expert on Russian Mafia. According to Israeli international crime police (YAHBAL) who availed themselves of Khaydarov's services, he was in demand by their European colleagues and even the FBI. A book called Palabra de vor. Las mafias rusas en Espana, published in October 2010, Khaydarov is described as a unique witness in the case of Izmailovo crime group, allegedly headed by three Russian industrialists - Oleg Deripaska, Iskander Makhmudov, and Michael Cherney.
Spanish Attorney General's office opened a criminal money laundering case on all three. Judge Andreu traveled to Moscow to question Deripaska. Makhmudov's questioning is still pending. Last May Israeli Attorney General's office turned down Spanish extradition request for Cherney. Cherney said he was prepared to answer Andreu's questions in Israel or travel to Spain if his arrest warrant is revoked.
What was their crime against Spain?
They bought property in Catalonia amounting to 4 million Euro and claimed that it was legitimate profit from the Russia metallurgy business. The Attorney General's office claimed that it was mafia money - basing this judgment on Khaydarov's testimony.
There is an interesting detail. Khaydarov used to be a manager at one of these oligarchs' companies. According to them, he was caught in an embezzlement and fled Russia to avoid prosecution. They say that as defense, he chose to slander his ex-employers.
The authors of Palabra de vor consider Khaydarov's testimony against Deripaska, Makhmudov, and Cherney in the State Court of Delaware in November 2004 to be especially valuable - yet neglect to mention that the American court rejected Khaydarov's lawsuit.
Nor do they mention that the Swiss Attorney's office investigated Cherney's suspected links to organized crime for ten years, and in 2008 Swiss Supreme Court ruled that all suspicions against Cherney were unfounded. In May 2010 a Swiss court directed that Cherney be compensated substantially for moral damages caused by an overly long investigation.
In his lawsuits and confessions to the authors of Palabra de vor Khaydarov claimed that terrible "Russian mafia" and Cherney personally were threatening his life. Thus, the Israeli reporter says, it was particularly odd to watch Khaydarov and Cherney chat in a warm and friendly manner, like two old pals, at a table in the Mediterranean seaside Hilton Hotel.
The reporter watched that cordial conversation from aside for at least an hour. As they parted, the two warmly shook hands. Later Israeli reporters have contacted Michael Cherney's lawyers in Israel and attorney Yevgeny Traspov of Weinroth Law has confirmed the fact of his client's meeting with Jalol Haidarov and added that Mr Haidarov was seeking a meeting with Mr Cherney for quite some time.
Is this another case of ex-Soviet businessmen craftily using Western justice system to put pressure on one another?
A Switzerland court recently ruled that Israeli businessman Michael Cherney (Mikhail Chernoy) is to be financially compensated for unfounded suspicions of his links to the "Russian Mafia".
According to the Swiss court's ruling, Cherney will be financially compensated 30,000 Swiss francs for moral damages to him and his family caused by an investigation which lasted from 1996 until 2007. The investigation was related to Cherney's suspected links to the "Russian Mafia", and started in November 1996 when Cherney was detained for four days upon his entry to Geneva. This was followed by a decade-long investigation, which resulted in the Swiss High Federal Court's verdict in 2008, exonerating Cherney from all the charges.
After the Swiss court's 2008 ruling that Cherney was not linked to organized crime, he decided to sue for moral damages. According to the Canton of Geneva law, this compensation could not exceed the amount of 10,000 francs. Exceptions are made in cases where courts discern "special circumstances". According to the court's latest verdict, this was the case with Cherney, especially since the investigation had unduly dragged out for eleven years. As a result, Cherney was awarded a compensation of 30,000 Swiss francs, three times the standard amount.
In January Tel Aviv's court found that the campaign to discredit Michael Cherney had been managed at the order of Russian citizen Alexei Drobashenko, formerly the public relations director for Base Element, a financial and industrial group belonging to Oleg Deripaska. Cherney and Deripaska are former partners in the aluminum business.
Currently Cherney's multi-million dollar suit against Oleg Deripaska is being considered by a London court.
Following his repatriation to Israel, Michael Cherney has maintained business interests in Russia and post-Soviet states, while developing new business relations between Russia, Europe, Israel, and the US.
In Israel, Michael Cherney spends much effort on Jewish charity and global humanitarian projects that reinforce cooperation between Israel and Russia in fighting Islamic terrorism.
Michael Cherney established a Website for his Foundation on June 1, 2001, the night of the terrorist bombing outside the Dolphinarium Disco in Tel Aviv. When Michael Cherney learned that the number of terror victims were 21 dead and over 150 wounded, he realized that rendering assistance required a systematic organized effort.
Prior to 2001, Cherney was engaged in charity work in Russia, Ukraine, Central Asia, Bulgaria, the US - wherever he did business. He made valuable contributions into Jewish philanthropy in Russia.
Following the Dolphinarium terrorist tragedy in Tel Aviv, the Michael Cherney Foundation became the helping hand for all its victims. In a misfortune like this, emigres from the former Soviet countries are even worse off than those born in Israel: they don't have a support system or savings.
The Cherney Fund renders help mostly to the new arrivals, victims of catastrophes and Hamas, Islamic Jihad terrorist acts that continue to bleed Israel, as well as to the low-income victims of terror in other countries.
Another equally important task assumed by the Cherney Foundation is the media effort in the war on Islamic terror. Shortly after the Dolphinarium attack, the Foundation published a book called Dolphinarium: Terror Targets the Young.
The Michael Cherney Foundation has established grants for students from the former Soviet Union in all major Israel universities with an annual endowment of one million shekels.
The Michael Cherney Foundation also supported Israel's efforts in helping the people in Haiti after suffering from a devastating earthquake in January 2010.
Mr. Cherney and his family live in a suburb of Tel Aviv.

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Michael Cherney Seeks Justice For Money Owed by Oleg Deripaska

2008-08-17T03:18:00.000-07:00

Richest Russian oligarch, Oleg Deripaska, Loses Round

By ERIC REGULY
The Globe And Mail

August 4, 2008
ROME -- Oleg Deripaska is not used to setbacks.

He has been extraordinarily successful since he won the so-called aluminum wars in the 1990s. He is Russia's richest man and is said to be Prime Minister Vladimir Putin's favourite oligarch. Through his holding company, Basic Element, Mr. Deripaska controls $45-billion (U.S.) of assets, among them UC Rusal, the world's biggest aluminum producer, and 18 per cent of Canadian auto parts maker Magna International Inc.

But setbacks are suddenly what he faces. His effort to merge Rusal and MMC Norilsk Nickel, the biggest nickel maker on the planet, to create a global rival to Australia's BHP Billiton Ltd. and Britain's Rio Tinto PLC is hitting land mines. Turns out some rival oligarchs, none of them known for sweet demeanours, have similar designs on the Russian mining company.

Potentially worse is the Michael Cherney affair. Mr. Cherney, a Ukrainian-born Israel citizen of considerable wealth, intrigue and aggression, has gone from ally to foe. While the younger Mr. Deripaska is wealthier, better connected and the savvier businessman, it is Mr. Michael Cherney (Chernoy) who is winning the slugfest.

Proof came last month when Mr. Justice Christopher Clarke, of Britain's Royal Court of Justice, gave Mr. Cherney the right to use British courts instead of Russian ones to try to extract billions from Mr. Deripaska.

Mr. Cherney has documented that he owns 20 per cent of Rusal and wants his booty.

For Mr. Deripaska, the Michael Cherney affair could be damaging. If the case does go ahead in Britain, Mr. Cherney's legal Rottweilers would be sure to hang out all the aluminum wars' dirtiest laundry.

The business deals that propelled Mr. Deripaska from struggling nuclear physics student to oligarch could be examined. Until the case is resolved, Rusal's efforts to list on a stock market may be hampered. So may be Mr. Deripaska's plan to unite Rusal and Norilsk.

By any legal standard, Mr. Cherney's victory is unusual, for neither man resides in Britain nor has any significant business interests there. Judge Clarke's ruling reflects his belief that Mr. Cherney made a "good arguable case" that he had little chance of a fair trial in the messy Russian legal system, and that he might even get assassinated there.

The basic outline of the dispute is fairly simple. Both men had considerable aluminum interests; Mr. Cherney claims he was Mr. Deripaska's partner in an aluminum company called SibAl. Early this decade, the various tycoons who owned aluminum assets agreed to merge those assets, including SibAl, to create an aluminum supergiant. Mr. Cherney claims his partnership with Mr. Deripaska gave him 20 per cent of the new company, Rusal.

In 2001, the two met in London's Lanesborough Hotel to hammer out an agreement. Mr. Deripaska paid $250-million to Mr. Cherney: this is not in dispute. But Mr. Cherney claims Mr. Deripaska also agreed to hold Mr. Cherney's Rusal stake in trust. He wants to be paid for the value of the stake. Mr. Deripaska says there was no deal beyond the $250-million payment. A "fact sheet" produced by Basic Element says: "This amount was a final payment to end Mr. Cherney's interference in Mr. Deripaska's business. Mr. Deripaska denies that there was any agreement to pay further amounts to Mr. Cherney."

Judge Clarke's ruling gives no opinion on the merits of either side's interpretation of the agreement. It only allows the case to be heard in Britain. That means any agreement reached at in the London hotel would be subject to British law. Mr. Deripaska's legal team notes that Russian law does not even recognize the notion of beneficial ownership or trust.

Mr. Cherney's lawyers were brilliant, convincing the judge that Russia's legal system lacks credibility. The implication was that Mr. Deripaska could use his considerable influence to get the judgment he wants. Judge Clarke said as much. In his ruling, he said, "There is significant risk that Mr. Cherney will not obtain in Russia a trial unaffected by improper interference by state actors and that substantial justice may not be done."

The judge said he was persuaded the risks "inherent in a trial in Russia (assassination, arrest on trumped up charges and lack of a fair trial) are sufficient to make England the forum in which the case can most suitably be tried."

Never mind that Mr. Michael Cherney's lawyers argued in 2000 and again in 2004 that cases against him in the American courts should be tried in Russia. Or that Judge Clarke's ruling contains numerous paragraphs about Mr. Cherney's "alleged criminality," including his use of false passports and his detention by Swiss police in 1994 for using a false identity (Mr. Cherney has been convicted of no crime).

It would have been a miracle if Mr. Deripaska's rise to a position of incredible wealth and power by age 40 had hit no speed bumps. But he just hit a big one in the form of Mr. Cherney.

The success, or lack thereof, of Mr. Deripaska's appeal could determine whether Russia's top oligarch can keep building on his momentum.

News from the Michael Cherney Foundation: Educational Grants

2008-06-07T15:59:00.000-07:00

Evgeniy P. received a grant to finish his studies at Braude College in Carmiel, Israel.

Even though the criteria for grants has not been changed and Evgeniy doesn’t exactly fit into it -as an exception, the Michael Cherney Foundation Committee decided to help the student out.

In other news, Irena was accepted into the MA program at Bar Ilan University for media and journalism studies.
The Michael Cherney Foundation supports students studying in these particular fields but only for BA. In Irena’s case there was an exception made because of extenuating circumstances.

From her letter: “ All the above disasters and loses that fell upon our family did not break us or me. I am absolutely convinced that my calling is journalism and media - this is my dream.”

The Michael Cherney Foundation is delighted that our assistance will bring Irena closer to fulfilling her dream.

Michael Cherney Foundation News: Help to a Father of 4

2008-06-07T15:53:00.000-07:00

SOS to Father of Four Children

Igor Sh. is an Israeli father of 4 children, ages 5-17 and is now caught in an absurd hardship.

While receiving allowance from the Israel National Insurance Institution (Bituah Leaumi) he started a leadership course in Seminar Ha’Kibutzim, which led to cancellation of the payment from National Insurance Institution and a 7,000 NIS penalty fee for studying while receiving the allowance.

As of today, his family survives on 1000 NIS from Israel Ministry of Development and 1000 NIS for his children from the National Insurance Institution -out of which they deduct 500 NIS for penalty payment.

In contrast to this harmful policy of bureaucrats from the National Insurance Institution, the Michael Cherney Foundation rendered financial assistance to this family so that they could buy food, pay their electric and telephone bills.

News from the Michael Cherney Foundation: Helping Terror Victims in Sderot

2008-06-07T15:46:00.000-07:00

The Michael Cherney Foundation Comes to the Rescue of the Wounded in Sderot, Israel.

Boris Zinger from Sderot, Israel was making ends meet by teaching Yidish in a pensioner’s club.

On December 24th he was wounded by shrapnel from Qassam missiles launched by the terror group Hamas in Gaza that fell next to his house. As a result of injuries to his face, his hearing was severely damaged-to the point him needing a hearing aid.

The Michael Cherney Foundation allocated funds for his medical treatment, which included a hearing aid device.

Michael Cherney Foundation News: "In the Hot Climate of Events"

2008-06-07T15:40:00.000-07:00

The Michael Cherney Foundation has assisted in publishing: “In the hot climate of events” .

A new book, (in Russian only) placed into ink with assistance from Michael Cherney Foundation, by Alexander Voronel.

“In the Hot Climate of Events” was published in April of 2008.

This book is a collection of philosophical assays on the events in our region by an extraordinary writer.

Michael Cherney: News from the International Business Times

2008-06-06T05:24:00.000-07:00

Russian aluminium defence bends under pressure

By John Helmer

In what is shaping up as the most significant case against Russian business oligarchy ever argued in an international court, OlegDeripaska, Russia's richest man, has told the UK High Court, in his defence,that he didn't have a business partnership with Michael Cherney (MikhailChernoy), but he did sign an agreement with him in London, and he did pay him about $250 million.

Missed by newspapers and wire services, which failed to readthe transcripts and several thousand pages of evidence presented in the High Court during two days of hearings on April 30 and May 1, Deripaska's newdefence strategy is the ancient one of the pot calling the kettle black.

Deripaska is claiming that Cherney extorted his signature,plus the payoff, in return for protection. No evidence was presented to substantiate this claim, except for references to a purported Russian gangster named Anton Malevsky. A parachute enthusiast, Malevsky was killed in a jumping accident in South Africa on November 6, 2001.

Mineweb has verified the cause of Malevsky's death, according to SA PoliceInspector H.J. van Wyk, and an Interpol telecopy from Pretoria: "on approaching the landing site, the wind whirled the parachute out of control and caused the landing to befatal."

This was just seven months after Deripaska - according to his lawyer's presentation to the High Court - claims he agreed with Cherney, under pressure from Malevsky.

Dead men don't tell tales, but in this case their widows can. Malevsky's wife was reported in the High Court testimony to have said that Malevsky was Deripaska's friend and associate as well as Cherney's.

According to the High Court transcript of proceedings forApril 30, Geoffrey Vos QC, acting for Cherney, explained that, regarding Malevsky "Deripaska said, 'I know this person only by name, I have seen his name in the press'."

Michael Cherney describes this as a blatant lie and he does so because of the evidence; apart from Mr Cherney's own knowledge that they were friends, that is Mr Malevsky and Mr Deripaska, because of the I would say uncontradicted and uncontradictable evidence of Mrs Malevskaya, Malevsky'swidow, at tab 34, where she says they were friends, Mr Deripaska let him have a house in Moscow, they used to play pool together, they had lunches,dinners and social events and she saw Deripaska only recently at a birthday party in Moscow, and he sat down at the table for 20 minutes."

Readers with an interest in knowing exactly how close Deripaska is to the Malevsky family, may read this:
http://johnhelmer.net/wp-content/uploads/2008/05/jmalevskaya-ws.pdf

As Cherney's advocate told Lord Clarke on the bench: "The whole thing is extraordinary, and demonstrates that Mr Deripaska is not a man who can easily be believed."

More categorical than Malevsky's windfall, however, is a ruling on the evidence issued on January 9, this year, by a three-judge panelof the Federal Supreme Court of Switzerland. This judgement ends a 12-year process of Swiss police, intelligence agency, and prosecutor investigation of criminal allegations against Cherney - and it ends with Cherney's exoneration.

The link with Malevsky, which Deripaska is now alleging in his case againstCherney in the London court, is dismissed by the appellate panel in Geneva.

The origins of the criminal investigation by the Swiss go back to 1996, when Cherney was accused of being a member of a criminalorganization headed by Malevsky, and known in Moscow as the Izmailovo gang. Then three years later, in June 1999, the London based Trans World Metals group,owned by the Reuben brothers, asked the Swiss prosecutor to investigate theircharge that Deripaska, and two associates, Joseph Karam and Walter Niggli, wereengaged in fraud, mismanagement and breach of trust.

Rulings by the Swiss investigators that there was insufficient evidence to proceed with either anarrest or a criminal trial were appealed by the Geneva prosecutor's office, which kept thecase going over the decade.

A settlement between Deripaska and the Trans World group isreported in June of 2005, ending the Reuben claim with a sizeable payoutfrom Deripaska. But Cherney and Karam appealed, claiming they wanted the caseand allegations definitively quashed, and not merely dropped. Exoneration wasthen sought by the appeal to the federal Swiss court, comprising judgesSchneider, Wiprachtiger, and Ferrari.

Their ruling explains that the allegations of criminalityagainst Cherney originated in claims involving Malevsky and Iskander Makhmudov- a Russian copper oligarch - which first appeared in a Swiss police report,dated August 16, 1997. Subsequently, the Swiss judgesruled, "the [Geneva] Appeal Court does not appear to have tried toestablish the existence of substantial signs that the group of companiescontrolled by the appellant [Cherney] did in itself constitute a criminalorganisation...".

"There is no real knowledge of the vague suspicionsmentioned in that document [court ruling of February 2007]. Reference is simplymade there to a previous report by the Federal Police Department, dated 16 August 1997,which does not provide any more specific details, and to future reports theultimate existence of which is unknown...." Referring to a fresh Swiss policereport of August 10, 2000, the judges dismiss its value."

That report...cannot therefore, by referring to itself, back up those verysuspicions that are intended to be confirmed."

On such flimsy evidence - "which do not provide any tangible element of proof to support the allegations made therein" - now rests Deripaska's defence against Cherney's London claim for his trust stake in Rusal. According to the Swiss panel, the entire Swiss investigation of Cherney"inferred untenable conclusions [and] succumbed to arbitrariness."

The Geneva ruling ends on a note ofvindication. "Michael Cherney is successful." The court also awarded him costs.

An implication from the ruling is that, according toevidence reviewed by the Swiss courts and prosecutors regarding an aluminiumtrading company called Bluzwed, Deripaska used Malevsky as a businesspartner.

The full texts of the official French language and Englishtranslation of the Swiss court ruling can be read at:
http://johnhelmer.net/wp-content/uploads/2008/05/swissfedcourtdecision090108.pdf
http://johnhelmer.net/wp-content/uploads/2008/05/swissjudgment_january08.pdf

With the current price of aluminium rising again to the$3,000 threshold, but Deripaska's prime asset United Company Rusal mired in uncertainty, the Cherney challenge is the first transparent due diligence Deripaska has ever faced. The documents in evidence included lists of company names; diagrams of cash flow schemes and tax minimization; even expert reports on Deripaska's pen and handwriting.

According to Vos, for Cherney, "Deripaska became an express and implied or an inferred trustee of 20per cent of Rusal for Cherney; Deripaska then converted the shares that he held for Mr Cherney in Rusal to shares in UCR [United Company Rusal], and as we plead, Deripaska therefore held 20 per cent of 66 per cent of UCR on trust forCherney, and that actually makes, if you do the maths, 13.2 per cent of UCR that he held after March 2007 for Cherney."

Stewart, Deripaska's advocate, described the Cherney-Deripaska documents of agreement as "ratherstrange".

Responding, Justice Clarke said: "They are rather strange on any view, particularly strange on your client's [Deripaska's] explanation,which is that these are all - your client's explanation as I understand it is that it's simply a way of paying some protection money - paying off some protection money, it has nothing to do with Sibal or Rusal."

Stewart, for Deripaska, then told the judge: "My Lord, so there is no mystery about it, my client's case in this respect is that we were never partners. The allegation, the documents - you will look in vain throughout the 18 files to see a single rouble passing from Mr Cherney to Mr Deripaska."

The judge was apparently less than convinced: "Wait a moment. Just sticking on what we were on, I made the aside remark that the agreement was very odd from your client's pointof view as well because if this is a payment of protection money, why is it dressed up as a sale of shares which the defendant [Deripaska] didn't own to somebody who was not bound to buy them?"

Deripaska's defence,replied Stewart, is complicated: "If it is the case that we are vulnerable toan accusation because we have been paying money to Mr Cherney for a period oftime, and although Mr Cherney can't produce a partnership deed and can't showthat he produced any money, he can produce some various documents showing thatvarious payments have passed through Liechtenstein and other places and we seekto pay him off, it's scarcely surprising in those circumstances that one should have an agreement which looks a little odd."

"I would submit, withrespect, that the existence of an odd agreement in those circumstances is farmore consistent with the true position than the existence of an agreement where apparently there is a genuine partnership between partners but doesn't actuallyrefer to the right bits. I accept proposition that these agreements are odd,butI don't accept that they are any odder on my client's case than on my learnedfriend's case."

After listening to both lawyers, Lord Clarke noted: "Well, something happened. One may be left dealing with which is theleast improbable in order to decide which is much the better of the argumentout of two improbable stories." The Swiss appeals court judgement suggests theanswer.

Whatever the High Courtruling to come in a few weeks' time, Deripaska appears to have already lost a key test of credibility, on which depends the veracity of covenants relating to Cherney which he has signed to the European Bank for Reconstruction andDevelopment; and of undertakings he would be obliged to sign, if the FinancialServices Authority (FSA), the London listing regulator, is to find him a fitperson to occupy a director's seat on a London Stock Exchange listed company. Moving a Rusal listing to Hong Kong, which has been intimated by some Rusal officials, compounds the credibility problem, without reinforcing the security of Rusal's share holding.

The outcome in London is now so uncertain for Deripaskathat he is reluctant to enter the UK personally to testify; although allhis former partners in the Rusal business - Cherney, Boris Berezovsky, Roman Abramovich - have no comparable qualms. Berezovsky is suing Abramovich inthe High Court for cheating him of a multi-billion dollar stake in the assetsthat were merged into Rusal in 2000.

Whether Deripaska appears in person or not, Lord Clarke must now pore through the transcripts of lawyers'presentations, and the evidence, to determine whether an arguable case has beenmade that Deripaska made a contract in London on March 10, 2001, with Cherney,and now owes him proceeds amounting to at least $4 billion. The second part ofthe judge's task is to determine whether that contract, negotiated and written down in Russian, brings the two into the jurisdiction of UK law, and the UK courts.

The Financial Times report of the proceedings mentioned that Deripaska "denies any obligation to MrCherney", and then spelled out the criminal allegation. Strangely, though ithad been explicitly referred to in the testimony, the FT's version omittedto report the Swiss court ruling of January 9.

Since then, this claim against Cherney becomes actionable.And so Cherney has issued writs for defamation. These name Deripaska and agroup of alleged associates, and they appear in a court claim, case no 1191/08,dated February 14, in the Tel Aviv court in Israel. Among Deripaska's allegedassociates, most of whom appear to be Israelis of Russian origin, there is Andrei Kalitin. He is a Moscow-based journalist, and author of a book recentlypublished in Russian, called Vremya Ch ("Time of Ch[ernoy]").

The allegations in theIsrael court documents are that Deripaska engaged a group of private detectives, PR men, lobbyists, and reporters to blacken Cherney's reputation; undermine his credibility before the UK High Court; and lobby the Israel government to revoke Cherney's citizenship and residency. It is also alleged inthe court claim that the group arranged through Kalitin to penetrate computerfiles of a Cherney aide.

One of the defendants accused, an Israel private detective named Aviv Mor, admitted in his defence, submitted to the court on April 8,that he had been working for Deripaska. According to Mor's submission to the court, "as a part [of] his professional and ethical commitment Defendant 5 [Mor]does not disclose the identity of his clients, the targets and the objects of his investigations or his work methods.

However, since such information had already been disclosed during the aforesaid police investigation, the Defendant5 will state that he indeed carried out private investigation for the Defendant1 [Deripaska], although everything was done in compliance with the rules, thelicense and in the framework of law. The police did not prove otherwise and thepolice investigation did not bring any results."

Something strange then followed in Israel. Eight days after Mor signed his defence statement, on April 16 he sent a fresh statement to the court, claiminghe had made a mistake, and had not meant to implicate Deripaska. "The Defendant5 is hereby honored to inform the Honorable Court that a clerical erroroccurred in clauses 16 and 19 of the Statement of Defense filed on his behalfin the above mentioned case on 08.04.2008. The error is as follows: in anyplace in the above clauses where the Defendant 1 is mentioned, Defendant 3 wasmeant." Defendant 1 is Deripaska; defendant 3 is Avigdor Eskin.

Lord Clarke isexpected to give judgement before the autumn.

Welcome to the Michael Cherney Blog

2008-06-01T12:16:00.000-07:00

Hello and Shalom - Welcome to the Michael Cherney Blog

It is a personal pleasure to welcome you to my Internet blog.

I have traveled a long way from building industries in Russia to helping the victims of terror attacks here in Israel to now .... having a Web 2.0 presence on the Net.

You may have heard my name is connection to the rumors about "Russian Mafia".
If you want to know the truth, please read an investigative report by the former U.S. Federal Prosecutor, Attn. John Loftus which unveils how competitors and corrupt officials have manipulated the law enforcement to take revenge on me:
http://www.intelligencesummit.org/cherney/

Or read the Judgment of the Court in Switzerland which totally exonerates me from any ties to the organized crime. It was widely quoted in the media and can be accessed for example at:
http://johnhelmer.net/wp-content/uploads/2008/05/swissfedcourtdecision090108.pdf http://johnhelmer.net/wp-content/uploads/2008/05/swissjudgment_january08.pdf

You may also be interested in knowing more about the high profile law suit which I have filed against my partner Oleg Deripaska.

You can read my Witness Statement at:

http://www.ibtimes.com/articles/20080513/russian-aluminium-defence-bends-under-pressure.htm

If you are interested to know about my charities, please, visit The Michael Cherney Foundation which I have created to help terror victims and to defend Judeo-Christian values in the information war against radical Islam:
www.cherfund.org

Some of the latest media reports about me and my business are available at:
http://www.guardian.co.uk/business/2007/jun/03/russia
http://www.ft.com/cms/s/0/c5d734dc-c954-11dc-9807-000077b07658.html?nclick_check=1
http://www.bloomberg.com/apps/news?pid=20601109&sid=aedX46BwoyfQ&refer=home

If you are interested to know more about Russia business, was on terror or just about my humble person, I encourage you to click on the links above and to make your own educated judgment.

If we can communicate, we can understand. If we can understand we can then transcend cross cultural divides and dismantle the old myths and stale libels.