Dear Lord, what scummy little bastards

Mr Lisitsin was approached by Alexander Shadrin and his company Eco3 Capital to provide funding for the deal. The Russian businessmen knew each other through their membership of the Russian Orthodox Church. Mr Lisitsin backed the scheme on the understanding he would provide £2m as equity to help buy the land for £12.3m.

Unbeknown to Mr Lisitsin, the three defendants – helped by their agent and co-defendant in the case, Alexander Shadrin – used his money to buy the land for £9.3m before immediately selling it on to Mr Lisitsin for the higher price.

This is, well, at risk of libel I\’ll simply quote:

Between them, Mr Balfour, Mr Maggs and Mr Shadrin, shared over £1.5m of the profit that resulted from the “turn”. Mr Mellor was paid a £500,000 consultancy fee. Not only did the presiding judge, Mrs Justice Rose, find the defendants were complicit in fraudulent misrepresentation, she also called into question the evidence they presented.

Mellor wasn\’t being sued.

But really, that is just total scumbag behaviour.

The most important part of the story though is this:

Speaking after the case Mr Lisitsin said he welcomed the decision.

He said: “I welcome the ethical and professional standard of the English judicial system. It is a reason to do business in this country.”

Another phrase for this is \”the rule of law\”. Whosoever you may be, however high and mighty, you really do face the same strictures as everyone else. And that, of course, is one of the things which is worth defending in our current society. Rather than, you know, replacing it with the spirit of the law as to be decided by whichever fuckwit manages to gain political power……

5 thoughts on “Dear Lord, what scummy little bastards”

  1. Reminds me of an “anekdot” which ably describes doing business in Russia.

    Somebody wants a bridge built, and asks three contractors to quote: a Turkish company, a German company, and a Russian company.

    The Turkish company says it will cost $100m.

    The German company says it will cost $200m but the quality will be excellent.

    The Russian company says it will cost $300m.

    “Jesus, $300m!” says the Client “why so damned much?”

    The Russian contractor replies: “$100m for me, $100m for you, and $100m for the Turkish contractor.”

  2. I was thinking “is it the Mr Mellor?”

    It is.

    Someone, probably Matthew Parris, wrote o the dying days of the Major government that you knew it was going wrong when you saw Mr Mellor and remembered that he was a Cabinet Minister.

  3. This is weird. If the Russian thought the land was worth $12.3M before he bought it, he’s not the victim, is he?
    The chap who’s been ripped off is the original owner who sold at £9M when there was a market at £12M.
    I thought it was illegal to make a turn like this, but maybe only for estate agents.

    Maybe Mellor did something for his £500K, like get detailed Planning, drains, etc which could bump up the value?

    I suspect this saga has some way to run yet…

  4. Nowt wrong with selling him land for more than you think it’s worth.

    But asking him to come in on a deal to buy it from the original owner for £12m, when you’ve already done that deal for £9m, that’s fraud.

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