The Complicated Legal Battle Involving Swiss and Brazilian Parties
In a complex legal dispute involving Switzerland and Brazil, a state law suit is currently underway, with Brazilian footballers seeking compensation from the Swiss government. This lawsuit is just one of the many legal proceedings stemming from the case of Gulnara Karimova, the former Uzbek UN diplomat and socialite. The Swiss Federal Prosecutor’s Office is conducting a criminal investigation into allegations of money laundering, bribery, and organized crime, which has led to additional legal actions.
The Role of Zeromax GmbH
One key player in this legal saga is the Zeromax GmbH, a shell company based in the canton of Zug. During the 2000s, Zeromax GmbH played a significant role in facilitating Uzbekistan’s foreign trade. However, the true extent of the company’s operations only became apparent when it declared bankruptcy in 2010, with creditors claiming debts amounting to 5.6 billion Swiss francs. This bankruptcy marked the largest economic collapse in Switzerland since the demise of Swissair.
The bankruptcy proceedings implicated Gulnara Karimova in allegations of mismanagement and embezzlement. She was accused of misappropriating assets of Zeromax GmbH, resulting in losses exceeding half a billion Swiss francs. While initially involved as a private plaintiff in Karimova’s case, the Swiss Federal Prosecutor’s Office later excluded the Zeromax bankruptcy estate from the proceedings in 2017, a decision subsequently upheld by the Swiss Federal Criminal Court.
Legal Claims by Brazilian Footballers and Other Creditors
Represented by Zurich-based lawyers, creditors including German construction firms left unpaid for work on the Congress Palace in Tashkent, as well as Brazilian footballers who played for Bunyodkor Tashkent, are still pursuing their claims. These creditors have filed a state liability lawsuit against Switzerland, seeking at least 600 million Swiss francs. Their legal action alleges that the Swiss government engaged in a quid pro quo agreement with Uzbekistan, resulting in liability claims due to the repayment of Karimova-related funds.
Despite official denials by Swiss authorities of any such connection, the lawsuit remains pending before the Federal Administrative Court.
Zeromax’s Role in a Legal Dispute with EY Switzerland
Zeromax also features prominently in a legal battle between an American hedge fund and the auditing firm EY Switzerland. The hedge fund accuses EY Switzerland of turning a blind eye to suspicious transactions by Zeromax, certifying financial statements for 2005/06 and 2007 despite knowledge of irregularities, thereby breaching its duties as an auditor. While the claimants have achieved some success in obtaining court orders for the disclosure of EY Switzerland’s documents, the auditing firm has appealed a recent ruling by the Zug High Court to the Swiss Federal Court.
Allegations of Alleged Bribery
Another offshoot of the Karimova case involves allegations of bribery by the Winterthur-based textile machinery company, Rieter, in Uzbekistan. The Swiss Federal Prosecutor’s Office uncovered a payment by Rieter to a company associated with Karimova, with no apparent legitimate purpose. This discovery prompted a criminal investigation in June 2018, leading to a search of Rieter’s premises. The company subsequently requested the sealing of seized documents.
Following a legal battle, the Swiss Federal Court ruled in favor of the Prosecutor’s Office, ordering a reevaluation by the sealing judges. However, as of the latest update, a decision from the Bern Sealing Court is still pending, causing further delays in the proceedings.
Conclusion
The legal entanglements arising from the Gulnara Karimova case have embroiled multiple parties in a complex web of allegations, lawsuits, and investigations. From state liability claims by Brazilian footballers to disputes between auditing firms and hedge funds, the repercussions of this case continue to reverberate in Swiss legal circles.
FAQs
What is the significance of the Zeromax GmbH bankruptcy?
- The bankruptcy of Zeromax GmbH in 2010 marked the largest economic collapse in Switzerland since the Swissair crisis, revealing the extent of financial mismanagement and embezzlement.
Why are Brazilian footballers suing the Swiss government?
- Brazilian footballers, along with other creditors, are seeking compensation from Switzerland in a state liability lawsuit, alleging a connection between the Swiss government’s actions and the repayment of Karimova-related funds.
What are the allegations against EY Switzerland in relation to Zeromax?
- An American hedge fund has accused EY Switzerland of failing to detect suspicious transactions by Zeromax and certifying financial statements despite knowledge of irregularities, leading to a legal dispute between the two parties.