Kazakh bank says Chetrit helped launder $40M through real estate deals

BTA Bank, City of Almaty claim developer hid cash in Flatotel and Cabrini condo conversions

New York /
Oct.October 15, 2015 09:08 AM

The Chetrit Group’s Joe Chetrit has been accused of participating in an international money laundering scheme, allegedly helping two corrupt Kazhak bigwigs hide $40 million in New York real estate.

Kazakhstan’s former capital, Almaty, and BTA Bank JSC, based in the city, made the accusations in claims filed in Manhattan Federal Court Monday.

The accusations center around the former chairman of BTA, Mukhtar Ablyazov, and the former mayor of Almaty, Victor Khrapunov.They allegedly stole over $4 billion through embezzlement and corrupt deals, and then fled the Central Asian nation, Bloomberg reported.




Behind the story:

Chetrit Group

Using a shell company, the pair invested a small part of that money, relatively speaking, in condo conversions at the Chetrit Group and Clipper Equity’s Flatotel at 135 West 52nd Street, and Cabrini Medical Center at 227 East 19th Street, with Chetrit’s help, according to the filing.

The accusations were filed in response to a suit by the Chetrit Group, which asked a judge whether it should pay $21 million to Ablyazov and Khrapunov’s company, or to the city of Almaty, Bloomberg reported.

The Chetrit Group is one of the city’s top developers and investors. The company bought 550 Madison, Sony Corp’s U.S. headquarters, for $1.1 billion in 2013. It also co-owned the Willis Tower in Chicago, before the Blackstone Group bought it for $1.3 billion earlier this year. [Bloomberg]Ariel Stulberg

 
 

Related Articles

arrow_forward_ios
Joseph Chetrit with the Tides Hotel  (Getty, Tides via Facebook)
Chetrit’s lender alleges it stole $2M insurance payout for South Beach hotel damage
Chetrit’s lender alleges it stole $2M insurance payout for South Beach hotel damage
(Moinian Group, CVS)
CVS signs lease for 512 7th Avenue store
CVS signs lease for 512 7th Avenue store
Joseph Chetrit with 427 and 459 (left) Broadway (Getty, Beyond My Ken/Wikimedia)
Chetrit Group falls behind on Soho portfolio mortgage
Chetrit Group falls behind on Soho portfolio mortgage
Joseph Chetrit, Jordan Slone (Getty, NADLAN)
Harbor buys nearly 5,500-unit portfolio from Chetrit for $390M
Harbor buys nearly 5,500-unit portfolio from Chetrit for $390M
315 West 35th Street with Isaac Chetrit and DJ Dashti (Google Maps, Linkedin, iStock)
Chetrit to open flex-office location near Penn Station
Chetrit to open flex-office location near Penn Station
261 Madison Avenue and 205 East 42nd Street are among the closed locations. (Sapir, Durst, WeWork)
WeWork dumps several Manhattan locations
WeWork dumps several Manhattan locations
From left:  Joseph Chetrit, 404 Fifth Avenue and WeWork CEO Sandeep Mathrani (Photos via Wikipedia Commons; Google Maps)
WeWork battles Chetrit Group over Midtown lease
WeWork battles Chetrit Group over Midtown lease
Joseph Chetrit and 49 Chambers (Getty, 49 Chambers)
Chetrit lands $90M inventory loans for Tribeca condo conversion
Chetrit lands $90M inventory loans for Tribeca condo conversion
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...