17 March 2022

Fraud: Business Control (Schweiz) v. Shibalova

Conviction in an Italian court for a US$10 million dollar fraud has its denouement in a New Zealand court with a disputed claim for US$3.36 million as commission for recovery of the funds.

In 2012, Andrey Ivanov was convicted in Italy of embezzling almost US$10 million from his then partner, Inna Shibalova.  Previously, Ms Shibalova signed a contract with Australian investigators MPOL Group agreeing to pay 35 per cent commission on all money recovered.  Following Ivanov’s conviction, seven million euro frozen in an Italian bank account was ordered returned.  Swiss company Business Control (Schweiz) AG claims MPOL’s commission contract was assigned to it and that it is entitled to payment of US$3.36.

Round one was fought out in the High Court at Auckland.

Ms Shipalova says she is not liable to pay any commission.  She never received the money she says.  It was paid to her father, she claims.  She also claims Business Control (Schweiz) has no right to sue.  The assignment of MPOL’s rights to Business Control is a fiction and never took place, she alleges.  

Business Control in turn wants access to Ms Shipalova’s financial records.  It alleges the recovered funds were eventually returned to her and suspect they were used to buy property in Auckland and Taipa.  The High Court ordered disclosure of Shipalova’s bank statements for the eight year period commencing 2012 and further ordered disclosure of source of funds used to buy the two properties.

Business Control was ordered to pay into court before trial a total of $40,000 as security for Ms Shipalova’s legal costs should she be successful after a full court hearing.

Business Control (Schweiz) AG v. Shibalova – High Court (17.03.22)

22.061