“Kazakh Madoff” Case

A former Head of the biggest bank in Kazakhstan was accused of billions fraud deals and stays in London, where his bank accounts are blocked and his extradition is expected, as well as additional accusations of severe crimes. By analogy with financial “juggler” and billion deals cheat from New-York Bernard Madoff, he is called “Kazakh Madoff”. The prehistory: experiencing the stage of an acute financial crisis, Kazakh banks faced huge problems. Only the interference of the state allowed these banks to survive. In 2008 the debt of Kazakh bank BTA-bank comprised about 12 billion USD. 74% of advances portfolio was lost. In order to prevent the collapse of the bank the Kazakhstani Government decided in 2009 to invest a billion, and as a result, gained control and management of the bank. Due to this, the Government got access to confidential information of BTA-bank and experienced, kindly speaking unpleasant surprises. Then the Head of the BTA-bank, Muhtar Abliasov, obviously provided Kazakh investors with the means of Western credits granting. Because of the high rating of the bank within international market he was able to get a huge credit from West. A part of the credit received disappeared, including also for realty estate, the prices on which reduced urgently, the same as occurred with Russian entrepreneurs. Each day the list of losses extended and became more expensive.

“Terrorist of financial system”

American financial manager Bernard Madoff with his system of pyramids is observed as one of the greatest frauds of recent years. Having committed a fraud for billions, Madoff harmed 3 million people and was sentenced to 150 years of detention. As the telegraph agency “Novosti Kazakhstana” reported, that the President of National bank Grigori Marchenko named the former Head of BTA-Bank, Abiliasov one of the biggest financial cheats within the whole history. In other words: Madoff in Kazakh way. Marchenko called him “the terrorist of financial system” during the press-conference. Abliasov spent the equivalent about 10% of the GDP of Kazakhstan. The best financial analysts and criminalists in the world were involved into the investigation of his machinations. However, the Chief of BTA-bank is not the only one blamed in fraud. Also the former Minister of energy, industry and trade also spent state funds. In 2002 he was convicted for abuse and participation in illegal business actions and was sentenced to 6 years of prison. A year later he was remitted and proceeded with business. Heading the biggest bank in the country in 2005 he caused unprecedented losses with the gravest consequences and due to this probably benefited greatly. At that moment he was at the edge of criminal-legal responsibility, the banker left for London. He has lived there for one and a half year. From the very beginning he has threaten with severe actions to famous people in Kazakhstan. It was obvious that with his actions he wanted to distract public focus from his manipulations. But his deeds become immediately evident and were defined as political blackmailing (fraud) and speculations. When his actions failed to achieve the goal set, he took attempts to undermine social stability of Kazakhstan and arrange upheaval following the example of Kyrgyzstan. He was one of the main sponsors of three oppositional parties “Alga!, which in Kazakh language means “Go ahead!”. As a political line of these parties faced fiasco, he started to teeter from one extremity to another one, from flirting with Communists up to contacting closely with nationalists. The activity of his parties limited with only few provocations.

More Crimes Go Public

Meanwhile, more crimes become known. The tracks of Abliasov’s crimes were detected in Switzerland. One of the cases is also considered in Great Britain. In 2010 Russian bodies issued an international order to perform arrest for the acquisition of state funds. According to the revealed circumstances Abliazov and his deputy in BTA-bank spent huge amounts of billions. The only arguments, on which his defense grounded, was political motivation of accusation. It was obvious that that he didn’t suppose that his machinations become known in the world.

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