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

TRD 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 and 98 Montague Street in Downtown Brooklyn (Credit: Getty Images and Google Maps)

Chetrit Group lands $112M refi for Hotel Bossert project

Joseph Chetrit and a rendering of 150-13 89th Avenue (Credit: Getty Images)

Chetrit nabs $200M refi for huge Jamaica project

Renderings of Brookfield's Bankside in the South Bronx (Credit: ArX Solutions)

This is what Brookfield’s South Bronx megaproject will look like

Chetrit buys national portfolio of 10K+ rental units

Chetrit buys national portfolio of 10K+ rental units

Joseph Chetrit and 500 Metropolitan Avenue

Chetrit Group lands $133M refi for Williamsburg resi, hotel project

According to the lawsuit, the water is damaging the home of the developer's downstairs neighbor

Jacob Chetrit’s UES penthouse is leaking dirty water into his downstairs neighbor’s home: lawsuit

Chetrit Group just bagged a $152M refi for historic FiDi office building

Chetrit Group just bagged a $152M refi for historic FiDi office building

60 Guilders, RCG Longview team up to buy UES dorm for $200M-plus

60 Guilders, RCG Longview team up to buy UES dorm for $200M-plus

arrow_forward_ios