Mining Magnates Hired Black Cube for Evidence on Former Lawyer
Billionaire mining magnates hired private intelligence firm
Black Cube for a surveillance operation on their former U.K. criminal lawyer as
they continued their attempt to stifle one of the country’s biggest bribery
investigations.
Eurasian Natural Resources Corp., which is owned by a trio
of eastern European billionaires, said it asked Black Cube to gather
information to help it prepare a lawsuit against its former criminal attorney,
Neil Gerrard. He is the global co-head of Dechert LLP’s white collar and
securities litigation practice and the company accused him of leaking
confidential material to prosecutors.
The revelation lifts the curtain on ENRC’s use of private
eyes as it tries to insulate itself from a seven-year bribery investigation by
the U.K. Serious Fraud Office. The agency is looking into allegations that the
firm paid bribes to obtain valuable mining operations in Democratic Republic of
Congo. ENRC has filed lawsuits against the SFO, Gerrard, Dechert and others as
it tries to stymie the probe, alleging it is the result of collusion between
Gerrard and the SFO.
Shares of ENRC, once among the 100 most-valuable companies
on the London Stock Exchange, plummeted after the SFO probe was announced in
2013. The owners took private and moved its mines into a separate company
called Eurasian Resources Group, which isn’t under investigation. Gerrard and
Dechert say they uncovered evidence of fraud and corruption at ENRC, and say
that’s why ENRC took an aggressive approach.
The mining firm, owned by Alexander Machkevitch, Alijan
Ibragimov and Patokh Chodiev, denies any wrongdoing.
Black Cube is run by former Israeli spies and allegedly
followed journalists looking into film producer Harvey Weinstein.
ENRC admitted to hiring the firm in its Jan. 20 defense
against harassment allegations Gerrard filed last October. Gerrard alleges that
ENRC harassed him and his wife by getting private eyes to watch them. ENRC also
said it hired Diligence International, a company similar to Black Cube.
Spokespeople for Diligence, Dechert and Gerrard declined to
comment. A Black Cube employee declined to comment. A spokesman for ENRC didn’t
immediately respond to a voicemail seeking comment.
Gerrard alleged that Diligence operatives followed him on a
holiday to a private island in St. Lucia, installed a motion-triggered camera
monitoring his home near London and spied on him during a lunch meeting close
to his office.
ENRC and Diligence, which also filed its defense to
Gerrard’s claim, said they wouldn’t givei details of their operations, because
they were subject to legal privilege and might feed into a ENRC’s lawsuit
against Dechert and Gerrard. Both deny breaking the law.
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