Zoran Bećirović Lawsuit Against Media Highlights a Controversial Deals
Zoran Bećirović says he’s an ordinary property developer, and he’s suing Montenegro’s two biggest newspapers and a civil society organization for years of reporting “baseless claims” against him in their coverage of his high-profile land deals and connections to political elites.
But leaked bank records and other documents uncovered by
OCCRP and its partner in Montenegro, the civil society group MANS, reveal a
decade-and-a-half long trail of suspicious business –– including transactions
with a firm and two banks involved in Russian money laundering operations.
Separate documents expose details of a complicated land deal
for a privatized former military complex that a financial compliance expert
described as being “littered with money laundering red flags.”
“My client always complied with the law and regulations in
any country,” Bećirović’s lawyer said in response to questions about those
deals.
Bećirović’s dealings also highlight his connections to
members of Montenegro’s political, legal, and business elite. His associates
include family members of President Milo Đukanović, as well as the country’s
former top judge, government ally Vesna Medenica.
She vacated her post as head of the Supreme Court while
serving a controversial third term that was criticized by the European Union
and others for violating the constitutional limit of two appointments to the
position. Her final year was also marred by allegations of corruption following
her sale of a plot of land to Bećirović –– the deal at the heart of his
lawsuit.
Journalists at MANS filed freedom-of-information requests
and discovered that Bećirović bought a parcel of land from Medenica for 139,000
euros in 2015. The country’s tax office estimated the land’s value as 10 times
lower. And Medenica failed to report the sale, as required by law.
MANS published that information online and on television in
late 2019, along with the newspapers DAN and Vijesti. Bećirović then sued all
three organizations for libel, and the case is ongoing. His lawyer, Branko
Čolović, said the suit was a response to years of unfair reporting about
Bećirović.
“The lawsuit is not the consequence of my client’s caprice
or personal animosity, but a real need for protection of his business interests
and reputation jeopardized by politically motivated activities and the
aggressive unfounded campaign the opposite side is continuously directing
against him,” Čolović said in an email, accusing the three organizations of
publishing “baseless claims.”
But further investigation of Bećirović companies, including
one involved in the purchase of land from Medenica, reveal even more suspicious
dealings.
When Bećirović purchased the former judge’s land, the
company he used was a subsidiary of the Cyprus-registered Caldero Trading
Limited , which he founded and is a director of. Leaked bank records show that
Caldero Trading has conducted transactions with an offshore firm and Baltic
banks at the center of two networks that laundered huge amounts of money out of
Russia.
In 2006 and 2007, Caldero Trading received $3.4 million from
an offshore company called Industrial Trade Corp. The purpose of each of the
four transactions that made up this total was listed as “computer equipment,”
though Caldero Trading is not known to trade in technology, and annual reports
available in later years list it as an “investment holding company.”
While the reasons behind the transfers are unknown, they are
noteworthy because they fit a larger pattern: Through similarly suspicious transactions,
Industrial Trade channelled hundreds of millions of euros out of Russia through
accounts at Lithuania’s Ukio Bankas between 2006 and 2013.
These operations placed Industrial Trade at the heart of a
massive money movement scheme uncovered by OCCRP in 2019. Called the Troika
Laundromat because it was set up by Troika Dialog, once Russia’s largest
investment bank, the system laundered vast quantities of money across the
world.
Ukio Bankas records also show that Industrial Trade paid
Bećirović’s lawyer, Branko Čolović, about 26,000 euros in legal fees in 2007
and 2008. Čolović declined to comment on the matter, citing attorney-client
privilege.
Bećirović did not directly answer questions about those
transfers or others made through institutions involved in money laundering, but
Čolović rejected assertions that they implicated his client.
“Please note that my client doesn’t have a legal obligation
to keep records of 15 years old business deals, but he is confident that he has
never been involved in any kind of money laundering scheme,” said Čolović.
There is another property deal linked to the Troika
Laundromat that involves close associates of Bećirović. Leaked Ukio Bankas
records show that another Cyprus-registered company used Industrial Trade to
transfer funds of unknown origin when it purchased land in Budva, a city on
Montenegro’s Adriatic coast.
The company, called Danebrook Limited, bought the piece of
land from the municipality in July 2006. The purchasing contract for the prime
waterfront location listed a price of 4.6 million euros, to be paid in two
installments. However, leaked bank records show that both transfers were made
to the municipality not by Danebrook, but by Industrial Trade on its behalf.
Throughout 2006 and 2007, Danebrook continued buying land in
Budva, this time from private owners. The 9.4 million euros it paid for several
parcels were again sent by Industrial Trade.
The following year, Danebrook transferred ownership of all
of its Budva purchases to a subsidiary called DL Montenegro. In the process,
the total value — at least on paper — shot up from about 14 million to 96
million euros.
Because its shares were transferred among shell firms, the
owners of the Cyprus-registered Danebrook are hidden.
Čolović had signed the purchase agreement for the
4.6-million-euro-waterfront property on behalf of Danebrook. He did not comment
on the origin of the funds, or the reason for the dramatic, sudden increase in
the value of the properties Danebrook purchased. He said Bećirović was not
involved, but he declined to identify the individuals behind Danebrook.
“Mr. Bećirović has never been a part of either the ownership
or the management structure of the company Danebrook Limited,” Čolović said. “I
no longer represent that company and have no authorization whatsoever to
provide information on its business operations to anyone.”
Aside from Bećirović’s lawyer, another close associate of
his was involved in the transfer of Budva properties from Danebrook to DL
Montenegro.
The executive director of DL Montenegro was Vukota Popović,
who is now a director of several companies ultimately owned by Caldero Trading
–– the same Bećirović company involved in his purchase of land from
Montenegro’s former top judge. DL Montenegro did not respond to a request for
comment.
Bećirović bought the Avala hotel in Budva in a controversial
deal in 2004
DL Montenegro listed its headquarters as the Avala, a hotel
in Budva acquired by Bećirović and at least one Russian partner when the
government privatized it in 2004.
Bećirović’s purchase of the Avala was mired in controversy
and became the subject of a legal dispute that was resolved in his favor by
Đukanović and his sister.
Bećirović and a Russian national named Igor Lazurenko
managed to acquire it from the government for 3.2 million euros. But a Dutch
hospitality company filed a complaint, as it had made an offer more than twice
as high.
The dispute was settled by the Council of the Montenegrin
Supreme Court, which included Ana Kolarević, the sister of President Đukanović.
The deal was then formally approved by the country’s privatization council,
which was chaired by Đukanović, who was at the time serving as prime minister.
After the deal was finalized, Kolarević left the council and
started her own law firm. The British company that was controlled by Bećirović,
and had bought the Avala, became one of her first clients.
Caldero Trading also took part in another series of
suspicious transactions when it acquired and quickly sold a plot of land on
Montenegro’s coast at a huge markup in 2007.
The former military complex had been privatized by the
government and acquired by Russian investors two years earlier via their
Montenegrin company, Spartak. But though the Russians had paid just 2.3 million
euros, Bećirović’s Caldero Trading spent 14.2 million to acquire their company,
which held the land as its only asset.
Caldero Trading transferred the funds into an account
Spartak’s owners held with Trasta Komercbanka. The Latvian bank was one of the
financial institutions at the heart of another money-laundering system
uncovered by OCCRP called the Russian Laundromat. The network laundered $20.8
billion in Russian funds between January 2011 and October 2014.
That purchase represented a 500-percent increase in the
land’s value in just two years –– but just days later, it would nearly triple
once again. A week after buying the land, Bećirović sold it once more. On September
6, 2007, Caldero Trading received 41.7 million euros for the property from a
firm registered in the British Virgin Islands (BVI) called Montenegro Real
Estate Investment Company Limited.
The sales contract was signed by the BVI firm’s legal representative
— Đukanović’s sister Kolarević, who had previously helped resolve the Avala
hotel dispute in Bećirović’s favor. The BVI company had been incorporated on
August 30, 2007, one day before Caldero Trading agreed to purchase Spartak and
its land from the Russians.
Ray Blake, a U.K.-based financial compliance expert, said
the series of transactions involving the property was “littered with money
laundering red flags.”
Warning signs included the “large increase in apparent value
of an asset without a clear reason why, and the opaque corporate/legal
structures employed — again without a clear reason why other than to obscure
the identity of individuals.”
“The rapidity of transactions that could have been
consolidated” should also have raised alarms, Blake wrote in an email.
Čolović did not comment on the large property value increase
or the origin of the funds used to make the purchase, but said: “Obviously, my
client has nothing to do with the seller’s choice of the bank hosting their
bank account to which they requested the payment to be made.”
The true owners of the BVI company that bought the land from
Caldero Trading are unknown. But its director was listed as Mohamed Borhan
Rachid, a Canadian passport holder who appears to be the same man convicted in
2012 of large-scale corruption in Palestine.
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