US Supreme Court denies motion of Kazakhstan on review of ruling on Stati case
Astana. October 16. KazTAG - The U.S. Supreme Court (SCT) denied all of the 222 petitions for review that it considered in this period, including the Republic of Kazakhstan’s petition for review of the decision of the U.S. Court of Appeals for the District of Columbia, reports the Ministry of Justice of Kazakhstan.
The SCT has made clear that such a denial implies nothing about the Court’s view of the correctness of the challenged ruling or the arguments made in favor of the petition for review. As the SCT has “rigorously insisted,” denials of review carry with them “no implication whatever regarding the Court’s views on the merits of a case.”
"Despite the very low probability of the SCT granting review of any lower court decision in any case – regardless of the merits – the Republic exercised its right to seek SCT review in this case because the lower courts’ decisions denied the Republic the opportunity to present its defenses based on the fraud of Anatolie Stati and his co-conspirators," said the message.
"The Stati fraud has been confirmed by recently obtained evidence, including the 21 August 2019 decision by KPMG to withdraw the validity of all of its audit reports for the Stati company financial statements – eighteen audit reports over a period of three years. KPMG issued this decision after reviewing material that showed Stati inflated the costs of his alleged investments in Kazakhstan by hundreds of millions of dollars, through sham undisclosed related-party transactions. The material reviewed by KPMG also included the sworn testimony of Stati’s former CFO, Mr. Artur Lungu, obtained by the Republic in April 2019, in which Mr. Lungu admitted that Stati made a series of materially false misrepresentations to KPMG in connection with its audit of the financial statements, and that these financial statements were materially misstated. This new evidence was not part of the court record considered by the SCT or lower courts," reads the statement.
"The Republic will continue to take actions to protect foreign investment in Kazakhstan, including bringing to light the actions of parties such as Stati that abuse and manipulate the ISDS system for their own fraudulent ends," reads the statement.
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