A joint investigation alleges that Deloitte Cyprus and MeritServus falsified documents to help billionaire Roman Abramovich conceal billions in assets and avoid taxes.
Key facts
- •A joint investigation claims Deloitte Cyprus falsified at least 1,000 corporate documents for billionaire Roman Abramovich.
- •The schemes allegedly helped conceal more than $10 billion in assets and avoid millions in taxes.
- •Draft accounts for Amiscan Investments dropped reported assets from over $600 million down to about €65,000 after asset transfers were backdated.
- •Cyprus's public audit oversight board stated it is taking action following the published allegations.
- •The investigation implicated Deloitte Cyprus, MeritServus, and individuals including Eugene Tenenbaum and Demetris Ioannides.
A joint media investigation alleges that accounting firm Deloitte Cyprus and its spin-off MeritServus falsified corporate documents to help Russian billionaire Roman Abramovich conceal assets worth more than $10 billion and avoid taxes. The findings, based on leaked emails and documents, have prompted Cyprus's public audit oversight board to take action.
By the numbers
Allegations of Backdated Documents and Hidden Assets
According to the investigation by the Bureau of Investigative Journalism, BBC Panorama, The Guardian, and the Organised Crime and Corruption Reporting Project (OCCRP), Deloitte Cyprus and MeritServus backdated at least 1,000 corporate documents by as much as five years. Deloitte subsequently approved the accounts in its capacity as an independent auditor. The investigation details specific cases, including the Cyprus-registered company Amiscan Investments Ltd., whose draft accounts for 2003 listed assets valued at more than $600 million (or about €578 million), including luxury properties in Britain and France, yachts, and aircraft. An agreement prepared in 2006 but backdated to January 4, 2003, transferred subsidiaries to a British Virgin Islands firm, leading to officially published accounts reporting assets of about €65,000.
Involved Companies and Regulatory Response
Other central cases cited in the reports involved Kravin Investments and Electus Investments. Kravin received billions following the 2003 sale of Abramovich's Sibneft shares, with associates later creating backdated paperwork to avoid taxes on interest income. Electus Investments, associated with assets exceeding €8.6 billion, similarly transferred assets to a British Virgin Islands firm with a transaction date set years prior to actual planning correspondence. In response to the publications, Panos Prodromitis, director general of Cyprus's public audit oversight board, stated that the authority has been informed and is taking necessary actions within its legal responsibilities to serve the public interest.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by The Insider (Russia), Cyprus Mail.
