The English High Court has ruled in favor of Lev Leviev against Arcadi Gaydamak, in the latter's second claim over $2 billion in profits from an Angolan diamond venture, Angola Selling Corporation (Ascorp), which had an export license from the government.
In June 2012, High Court Judge Geoffrey Vos ruled that Gaydamak was not reliable and not eligible for the profits he claimed, and rejected his claim that he had been duped into signing the settlement agreement under false pretenses. In late 2013, Gaydamak filed a second claim with the High Court, claiming that Leviev had breached the trust in which he was held from the original 2001 deal. Justice Sir George Mann dismissed the claim, holding that the settlement agreement still stood.
In the original case, Gaydamak claimed that, in 2001, he and Leviev set up Ascorp for a 50% stake in the business, which would be kept secret, and that they would share in the profits. He claims that he received his share of the profits until early 2005, at which point Leviev stopped the transfers. He also claims that he paid Leviev $2-3 million a month, for a total of $100-150 million, under the agreement.
"Under my agreement with Leviev, I am eligible for half of the profits of our export company. I built Ascorp, and I invited Leviev to join me and be my partner," testified Gaydamak in court. "The agreement was made right at the beginning of our acquaintanceship and formally signed in December 2001, but we had a previous verbal agreement long before, which was quite clear to me: I brought Leviev to the Angolan operations. I told him that we'd have a 50:50 share in the profits and responsibility for the company's operations."
Leviev denied that there was any agreement with Gaydamak, saying that Gaydamak had waived his rights in 2011, without compensation, as part of their separation arrangement.
Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2014
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