Usmonov Sues UBS Europe Bank

Alisher Usmonov, the founder of USM Holdings, initiated legal action against UBS Europe SE (formerly UBS Deutschland AG) at the Frankfurt-Main Regional Court on June 7, 2024. This information was disclosed by Stephanie Rabenau, the businessman's attorney.

Usmonov claims that between 2018 and 2022, the bank sent multiple unjustified reports to German financial authorities, suggesting the involvement of suspicious financial activities. These reports allegedly triggered political inquiries against him.

Lawyer Rabenau stated that UBS sent over a dozen baseless reports to the German customs office’s financial monitoring department. These reports included allegations of cash withdrawals and money laundering related to rental payments. Rabenau emphasized that the bank failed to provide any evidence to substantiate these claims.

Furthermore, in 2022, UBS's reports led to an investigation against Usmonov in Germany. This investigation resulted in searches of various properties across the country, including real estate in Bavaria and the yacht "Dilbar," which was incorrectly believed to belong to Usmonov. The media extensively covered these investigations and searches, which contributed to the expansion of sanctions against him.

Rabenau asserted, "UBS violated the confidentiality of customer information, made false statements, and grossly infringed on privacy rights, contrary to the banking services agreement and bank secrecy rules. The bank's breach of contract caused significant financial losses and damage to Usmanov's reputation. Essentially, UBS became an accomplice in the illegal persecution of an innocent individual, leading to sanctions against our client."

Usmanov's representative, Peter Gauweiler, remarked that the extent of the damage is currently incalculable, likening the repercussions for UBS to those of a tsunami.

The European Union (EU) sanctioned Alisher Usmonov in February 2022. Later that year, the Munich prosecutor's office reported that Usmonov had violated EU restrictions by hiring a security company to oversee his property in Germany. This led to searches of all his real estate properties in various German cities. In May 2023, the Frankfurt-Main regional court ruled that these searches, conducted based on unreasonable expectations, were illegal. An investigation into the unlawful searches began in March 2024, implicating an employee of the General Prosecutor's Office and a senior prosecutor in obstructing justice and persecuting an innocent person.

Lawyers describe Usmonov's lawsuit against UBS as an unprecedented case, potentially setting a legal precedent for the German banking system. They likened it to Leo Kirch's lawsuit against Deutsche Bank, where Kirch alleged that the bank's representatives' statements undermined investor confidence in Kirch Gruppe, leading to its bankruptcy.

The lengthy trial concluded in early 2014 when Deutsche Bank settled with Kirch's heirs, paying 775 million euros. Notably, Peter Gauweiler, who represented the Kirch family then, is now assisting Usmonov.

It is worth mentioning that a German court had previously ruled in favor of Usmanov. Additionally, reports indicate that the billionaire is attempting to distance himself from "Putin's Russia.”