How Russian investors in London real estate were deceived

In a London court, former top managers of VTB, MDM Bank and Renaissance Investment were actually accused of exerting pressure, while in Russia they collect money from gullible investors.
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The London court returned to reconsideration of the Regency Project Management (RPM) case against the British developer Frank Mountain for personal bankruptcy. Previously, RPM Managing Director Danilo Latsmanovich, who lost more than £ 30 million of the Russian investors who trusted him on this project, said that he had won the case against the developer who had violated its obligations.

However, it turned out that the case was not closed, since at a court hearing Frank Mountain said approximately that he signed an amicable agreement on the loss of 32 million pounds by investors through IV Fund Limited SAC under pressure, and from the words of the Developer's lawyer it is possible to conclude that upon signing the agreement FM did not receive the obligatory legal advice that is required when signing this document, and also notified the representatives of the plaintiff that he was sick. And apparently, this pressure was exerted by Latsmanovich.

There was also information that he demanded to invalidate the signed first settlement agreement. The fund was founded in Great Britain by the former Deputy Chairman of the Management Board of MDM Bank Roman Mikhailenko, Deputy Chairman of the Management Board of VTB North-West Bank Evgeny Novikov and Director of Renaissance Investment Management Danilo Latsmanovich.

This means a new round of litigation for the affected investors, to whom Latsmanovich has guaranteed reliable investments in English real estate with good returns.

But the loss of investors' money and a series of litigations in England in no way prevent Danilo Latsmanovich from finding new gullible investors in Moscow - this time he attracts them not with real estate, but with highly profitable investments in the Chinese yuan.

Yesterday Latsmanovich, in his new capacity as a senior partner of another fund, FP Wealth Solutions, held a presentation of another win-win product in Moscow. This time, investors were offered bonds in yuan with a higher return on investment, and a portfolio consisting of the same issuers as the conservative dollar for Chinese companies.

Hooks for attracting investors and building confidence in the fund's competencies were not only the promised highly profitable product, but also the RBC brand - the event was held under the auspices of the RBC Conference.

The business breakfast at the Lotte Plaza went according to a quite respectable scenario, pleasant for investors - banquet seating and white tablecloths, at the tables are representatives of banks, state companies and even the State Duma apparatus.

Three partners of the FP Wealth Solutions Foundation - Danilo Latsmanovich, Yuri Emelin and Alexander Varyushkin - talked about current economic trends, comparing current trends with the trends of the 30s, and the guests, in respect of the often-mentioned President Roosevelt, tried not to bang their plates too loudly. A slight awkwardness arose only at the moment when Vasily Tkachev, associate professor of the Department of International Finance and the scientific director of the MBA program at MGIMO, caught Alexander Varyushkin on inconsistencies in reasoning in macroeconomic processes, but then everyone returned to meditative gazing at graphs and tables.

The storm erupted at the moment when, at the end of the speech, we asked Danila Latsmanovich a quite natural question - is he going to be responsible for the loss of 32 million pounds of investors in England and whether he considers it ethical to advise on investments at the time when a lawsuit was filed against him about loss of investor money.

The response to the question was unexpected. The microphone was immediately taken away from the journalist, and Latsmanovich, with the close attention of surprised investors, plunged into vague discussions about who stole the spoons from whom and why the loss of investors' money was not at all his fault.

How the London court will end and whether the defrauded investors will receive their money - the question remains open. In the meantime, we will see if, after yesterday's scandal, Latsmanovich will decide to continue touring Russia with presentations of his new super-profitable products for investors.

How investors were deceived in London

In a London court, two cases are being heard simultaneously on possible fraud in Fund IV Fund Limited SAC, as a result of which Russian investors may lose 32 million pounds.

As Profil magazine writes, IV Fund Limited SAC was founded in 2014 with the aim of investing Russian money in development projects in the UK. The fund is headed by the chairman of the board of directors of Regency Project Management Danilo Latsmanovich, one of the founders of the international group Third Rome and the former director of Renaissance Investment Management. Regency Project Management, a joint company of Latsmanovich, Novikov and Mikhailenko, became the fund's management company.

Against the background of the interest of Russian investors in London real estate, the Fund has attracted about 100 million pounds in investments over five years. The funds were attracted for the simplest and most understandable product for a Russian investor - the construction of small facilities outside London. Presumably, the main investors were former clients and partners in their previous line of business in VTB and MDM banks. Representatives of banks and companies from the sanctioned list that did not have access to foreign direct investment could invest through the Latsmanovich IV Fund Limited SAC under guarantees of non-disclosure of their participation as investors.

Investors were guaranteed full legal and financial security. On the one hand, all transactions were carried out by leading London law firms, and on the other hand, the very scheme of the passage of investment money was arranged approximately in such a way that the developer did not have direct access to them and could not use the funds of the fund's investors to implement other projects.

But none of these conditions were met, “Profile” writes. In violation of all agreements, the fund directly sent 32 million pounds to the account of a joint venture with a representative of the developer.

In the fall of 2019, these violations became known, and British law enforcement officers began to check the activities of the fund on suspicion of illegal actions.