Ex-Rosneft CEO Says Rothschild Drained His Funds Via Kickbacks | WHAT REALLY HAPPENED X-Frame-Options: DENY X-Frame-Options: SAMEORIGIN

Ex-Rosneft CEO Says Rothschild Drained His Funds Via Kickbacks

A former chief executive of Russian oil company Rosneft has accused one of Europe’s oldest banks of conspiring with New York brokers in a kickback scheme that caused him to lose more than half of his $150 million investment portfolio.

Sergei Bogdanchikov accused banking group Edmond de Rothschild of steering his funds to a pair of New York firms that he says lost money on bad investments and charged inflated fees to kick commissions back to the bank. The bank also used the now-defunct Panamanian law firm Mossack Fonseca to form shell companies to hide the scheme, according to a lawsuit Bogdanchikov filed in New York state court on Wednesday.

Rothschild issued falsified account statements to Bogdanchikov showing the value of his assets growing, papering over tens of millions of dollars in losses from inflated commissions and wrong-way bets, including one on a convertible bond for an Indian company that went bankrupt, according to the complaint. In all, Bogdanchikov claims he lost $81 million of his original principal.