As part of the company’s bankruptcy case, the bankruptcy trustee established grounds for bringing the company’s CEO and sole member to vicarious liability. Having joined the case, KIAP associates also identified a bunch of transactions and circumstances proving existence of another person controlling the debtor - the CEO’s wife, who was later engaged in as a co-defendant.
KIAP associates managed to prove that the company was driven into bankruptcy by fraudulent actions of these persons, namely, by withdrawing the assets worth more than RUB 55 million when the company’s debts to third parties were growing, as well as by issuing unsecured promissory notes worth more than RUB 50 million to themselves. Likewise, it was proved that the CEO’s wife, apart from directly receiving the money into her accounts, benefited from her spouse’s fraudulent behavior, inter alia by obtaining ownership of land plots acquired immediately after the relevant money was withdrawn from the company’s accounts.
As a result, both beneficiaries were brought to vicarious liability for the entire amount of the register of creditors’ claims, which made more than RUB 330 million. And, bringing the CEO’s spouse to vicarious liability enabled the Firm’s Principal to increase the chances for repaying the debt owed to him, since a substantial part of the debtor’s assets was registered to this person.
Team members:
Ilya Ischuk, Daniil Zherdev