Originally Syndicated on July 22, 2023 @ 11:34 am
Scottish corporate law firm Burness Paull has alleged that a Russian oligarch is persistently using its address without authorization. This assertion follows the revelation that Alexey Krapivin, who stands accused of utilizing a web of shell companies to funnel billions of dollars out of Russia’s state-owned railway operator, is overseeing an Edinburgh-registered shell company located at the same premises as the commercial law firm Burness Paull.
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Alexey Krapivin’s Involvement in Money Funneling and the Controversy Surrounding SLPs
The charges come as Alexey Krapivin maintains a controlling share in Clover Consulting Partners, a Scottish Limited Partnership established at Burness Paull’s 50 Lothian Road premises.
An investigation in 2014 revealed that Krapivin played a significant role in funnelling millions out of Russia through a network of offshore corporations.
SLPs, unlike other UK limited partnerships, have “legal personality,” which means they can own property, engage in contracts, and sue others. At the same time, given their minimal disclosure requirements, SLPs provide their owners with some anonymity. Critics of SLPs allege that the shell firms have enabled criminals to engage in various illegal activities.
Formation of Clover Consulting Partners
According to Companies House, the British Virgin Islands-registered company Tobiana Limited and the Isle of Man-based company Orsettridge Resources Limited founded Clover Consulting Partners in February 2005.
Clover Consulting Partners came to register itself at its Edinburgh headquarters, according to Burness Paull, after the firm began selling an office mailbox service through an arrangement with a third-party UK registration agent.
In September 2016, Dmitry Zakharchenko was arrested in Moscow after investigators found 9 billion rubles in cash during a search of his apartment. The origins of this massive sum of money remained unclear, with Zakharchenko claiming he saved it during his time as a police officer. The discovery of such a significant amount of cash brought attention to serious shadow businesses operating in Russia.
What are the accusations against the President of Peru and Burness Paull’s Involvement?
After the President of Peru was accused of using an SLP created at Burness Paull’s Edinburgh offices to hide around $6 million (£4.6 million) in payments from Brazilian construction contractor Odebrecht, the law firm stopped its office registration service in 2018. On the other hand, SLPs who were previously registered at Burness Paull’s offices continue to use the Edinburgh address.
Denial of Dealing with Alexey Krapivin
Burness Paull denied ever dealing with Alexey Krapivin and denied ever advising Clover Consulting Partners, claiming the shell business “is categorically not authorised to use” its Edinburgh address.
Krapivin disclosed his ownership in Clover Consulting Partners for the first time in June 2017, when firms House implemented new rules requiring SLPs to reveal any persons with significant power in the Scottish shell firms.
“The firm provided no advice to Cloverleaf Consulting Partners, its registered partners, or the individual named as the Person of Significant Control at Companies House, Alexey Krapivin”
A Burness Paull spokesperson wrote to City A.M.
“We have not and do not represent them, nor have we provided them with any other services.”
Historically, heritage firm Burness (now known as Burness Paull) supplied a registered office address service for a fee through an arrangement with a third-party UK registration agent.
Unauthorized Use of Company Address
“Due to commercial reasons, the provision of accommodation services to all third-party registration agents was suspended following a review in 2018.”
“As a result, Cloverleaf Consulting Partners is expressly forbidden from using the firm’s address.”
The Person of Significant Control has listed their service address as the company’s address, despite the fact that we have not given them authorization to do so. Companies House has been informed of this matter as a result of our efforts.
What is Eliminalia Leak?
A trove of approximately 50,000 documents originating from the esteemed reputation management entity, Eliminalia, has been disclosed to the French nonprofit, Forbidden Stories. This substantial dossier has been judiciously disseminated among a multitude of journalistic collaborators, encompassing more than a hundred diligent investigators. Their collective pursuit is none other than the exhaustive exploration of the dubious industry known as disinformation-for-hire, all executed under the aegis of the renowned Story Killers initiative.
Within the expanse of this information reservoir lies a wealth of intricacies pertaining to Eliminalia’s clientele, strewn across no less than 50 sovereign entities on a global scale. Discernible within these enigmatic documents are the appellations of these patrons, the meticulously crafted contractual accords they have entered into, and various legal instruments of consequence.
Elimination’s Exploitation of Privacy and Copyright Regulations
Elimination has utilized legal mechanisms to exert pressure on individuals who criticize its clients. Investigative journalists have discovered that the company has essentially turned the exploitation of privacy and copyright regulations in the United States and the European Union into a fundamental aspect of its business model.
OCCRP itself has fallen victim to these tactics. In 2019, the editorial team received an email alleging that their longstanding investigation, which had exposed how Swiss bank CBH had channelled $277 million in suspicious funds through shell companies owned by Russian billionaire Alexey Krapivin, was in violation of the European Union’s data protection regulations.
Conclusion
In conclusion, the allegations and controversies surrounding Alexey Krapivin and SLPs, along with the revelations from the Eliminalia Leak, highlight the ongoing challenges in addressing financial transparency and ethical practices in the corporate world, as well as the need for stronger regulations and oversight to prevent the misuse of corporate entities for potentially illegal activities.
