The sentencing of Sergiy Groza and Volodymyr Naumenko to 21 months in prison by the English High Court marks a significant moment in international business law, underscoring the imperative of adhering to court orders. This ruling, delivered by Mr. Justice Bryan on October 4, 2024, follows the businessmen's contempt of court for not complying with a worldwide freezing order (WFO) and a subsequent asset disclosure order related to their Ukrainian import-export business, GN Terminal Enterprises (GNT).
The case originated from a US$118 million WFO imposed on Groza and Naumenko's assets in January 2023, initiated by Madison Pacific Trust Limited on behalf of GNT's secured lenders, Argentem Creek Partners (ACP) and Innovatus Capital Partners. Despite an unsuccessful challenge by the defendants in February 2024, an additional disclosure order was issued in April 2024, demanding detailed information about US$97 million in dividends received over ten years, among other assets.
The defendants' refusal to comply led to a committal hearing on August 30, where they were found in contempt of court. Groza attended remotely but remained silent during the sentencing hearing, while Naumenko did not appear. Mr. Justice Bryan issued warrants for their arrest upon entering the UK, emphasizing the ongoing prejudice to the claimant due to their non-compliance.
This legal action is part of a broader dispute involving loans to GNT Group, including a US$75 million loan from ACP in 2019 and a US$20 million facility from Innovatus in January 2021. Investigations into GNT's failure to repay these loans revealed an alleged asset dissipation scheme. Daniel Chapman of ACP and Ana Firmato of Innovatus have both commented on the case, with Firmato noting the sentencing as accountability for repeated wrongdoing.
Separate from the UK sentencing, ongoing criminal investigations into alleged fraud and asset stripping by Groza, Naumenko, and associates continue, including a civil fraud case in New York involving Serbian Dusan Denic. This case serves as a cautionary tale about the repercussions of disregarding court orders in international business disputes.
