By Matthew Russell Lee
SDNY COURTHOUSE, August 16 –The City of Almaty in Kazakhstan is active in the U.S. District Court for the Southern District of New York, with at least two case before SDNY Magistrate Judge Katharine H. Parker.
Inner City Press has covered the litigation with Felix Sater, with another proceeding coming up on August 23, 2022.
On August 16 in a related case, cross defendant Mukhtar Ablyazov was being described as a scoff law with some sort of asylum in France. He was, in fact, on the line; he described himself at the number one political opposition leader in Kazakhstan. His adversary chided him for using the proceeding to make political speeches.
This case is City of Almaty, Kazahkstan, et al. v. Mukhtar Ablyazov, et al., 15-cv-5345 (Koeltl / Parker)
Previously before Judge Parker, Felix Sater was asked if he remembered election day 2016 as a notable day.
It was "a notable day for all Americans," Sater replied, smiling. Moments later when the same lawyer, Matthew Lane Schwartz of Boies Schiller Flexner LLP began a question about Sater knowing it is a felony to lie, Sater shot back, YOU know it is a felony - until Judge Parker cut it off.
Jump cut to March 24, 2022 when Sater had filed motions to extend discovery and to join Arcanum and the Republic of Kazakhstan. Judge Parker convened the parties in her 17th floor courtroom and Inner City Press was there.
Sater's lawyer said his client had initially thought this was just a garden variety commercial case.
Judge Parker said, But it's about money laundering. Is that garden variety commercial?
Sater's lawyer emphasized that Arcanum was hired to find dirt, and that should not be covered by sovereign immunity. It emerged Sater has filed discovery requests about Robert Mueller.
Almaty, Kazakhstan through Boies Flexner said Sater had been on notice and it is too late. Judge Parker took the motions under advisement.
On May 9 the (re-) assigned District Judge John G. Koeltl adopted the report by Magistrate Judge Parker denying Sater's request to amend and add claims against Kazakhstan and Arcanum: " The plaintiffs allege that Sater and Ridloff assisted Mukhtar Ablyazov, the former chair of BTA, and Viktor Khrapunov, the former mayor of the City of Almaty, Kazakhstan, launder money that Ablyazov and Khrapunov stole from the plaintiffs. .. Sater now moves to amend his responsive pleading to assert claims for defamation, breach of fiduciary duty, fraudulent 1 Case 1:19-cv-02645-JGK-KHP Document 392 Filed 05/06/22 Page 1 of 12 misrepresentation, and breach of professional ethics against the plaintiffs, and two new proposed third party defendants, Arcanum Limited ("Arcanum") and the Republic of Kazakhstan..Magistrate Judge Parker's recommendation that joinder be denied was not an abuse of discretion, and Sater's objection is overruled. Sater's unsolicited recommendation that the Court alternatively deny this motion without prejudice so that Sater may take discovery on the issues is also rejected. Such a ruling would encourage discovery on issues that are not part of the current case, and would lead to prejudicial delay. Sater's inability to sue Arcanum and Kazakhstan in this action does not prevent him from asserting such claims in another action against those parties if he has viable claims to assert." Full order on Patreon here.
Back on October 7, 2020 Judge Parker held another discovery conference in the case. Inner City Press covered it. It emerged that a September 30 deposition of Sater had to be called off when he traveled to Guyana and said he had no Internet there.
On November 23 Judge Parker held another proceeding, and Inner City Press again covered it. The Kazakh entities, including BTA Bank, say that while Sater was set to be deposed on November 30, he had not produced documents due to them.
Judge Parker ordered that the parties meet and confer regarding a schedule for document production and a new date for Sater's deposition.
Now on April 29, 2021, Judge Parker held another proceeding, and Inner City Press again covered it. The parties said that Sater has not been deposed. The docket has a letter from him contesting everything, and arguing that Almaty's April 8 letter "should not be considered by the Court." Watch this site.
On December 4 the lawyers for Almaty wrote to Judge Nathan that they intend to move for default judgment against Ferrari Holdings LLC by January 15. They are discussing things with the owner of MeM Energy Partners LLC - with the intention to file by February 26, 2021 or earlier.
Back on April 30, 2020, Judge Parker held a telephone conference in the case amid the COVID-19 pandemic. Inner City Press covered this as well.
The first issue was, has Ferrari Holdings LLC retained counsel?
Judge Parker said she gave them 60 days. Bigger picture, Judge Parker said she expects social distancing to continue in New York into the summer, so plans for the Sater case should take that into account.
Talk turned to subpoenas to banks, production on a rolling basis. Subpoenas to law firms, too - a firm says it has objections.
Judge Parker said, With these discovery issues, the next conference should be in 45 days. She said, "I started scheduling in-person conferences for June --"
A lawyer, seemingly Jill Levy for Sater, called that "pretty aggressive."
Judge Parker said, Let's do it by phone in June. Inner City Press will "be" there, in person or virtually. Watch this site. The case is City of Almaty, Kazakhstan et al v. Sater et al.,
19-cv-02645 (Nathan / Parker).
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