Hidden in Plain Sight: Mapping Georgy Bedzhamov’s Post-Vneshprombank Offshore Empire
This investigation draws on a comprehensive review of publicly available court documents, official reports from financial regulatory bodies, leaked data from the Pandora Papers (analyzed by the International Consortium of Investigative Journalists and its partners, including OCCRP), and journalistic reports from reputable media outlets. Information from these disparate sources has been cross-referenced and corroborated to build a detailed picture of asset flows and legal proceedings.
When Russia’s Vneshprombank collapsed in 2016 with an estimated $2.5 billion shortfall, co-owner Georgy Bedzhamov fled Moscow, leaving depositors destitute. Leaked Pandora Papers files expose how Cypriot law firm Demetrios A. Demetriades LLC (Dadlaw) allegedly backdated transfers to shield his assets from Russian and UK creditors. This investigation traces Bedzhamov’s alleged $2.5 billion fraud proceeds across Cyprus, the British Virgin Islands (BVI), Ireland, and London, revealing a complex web of trusts, shell companies, and critical regulatory gaps. As London’s High Court continues its battle to freeze his £45 million Belgrave Square mansion, the story uncovers the human toll and global barriers to justice.
Prelude: The Bank’s Collapse
In January 2016, Russia’s Central Bank revoked Vneshprombank’s license, citing a $2.5 billion shortfall stemming from what authorities allege were fraudulent loans to 286 shell companies controlled by Bedzhamov and his sister, Larisa Markus, the bank’s president. Servicing Russia’s elite, the bank froze retail accounts, devastating small businesses and pensioners. Russian authorities charged the siblings with large-scale fraud under Article 159 of the Russian Criminal Code, alleging $1.5 billion in non-repayable loans issued from 2009 to 2015. Markus, arrested in December 2015, received a nine-year sentence in 2017, while Bedzhamov fled, triggering a global pursuit.
The Escape Sprint
Bedzhamov departed Russia in December 2015, arriving in Monaco, where he was arrested in April 2016 on a Russian extradition request. Monaco’s Court of Appeal, citing medical needs (heart surgery) and humanitarian grounds, released him on bail, ultimately denying extradition. This denial occurred amid EU concerns over Russia’s historical 10% extradition success rate with the UK, often attributed to politicized requests (5SAH, 2020; Fair Trials, 2021). Bedzhamov consistently denies the charges against him, asserting they are politically motivated. By 2016, Bedzhamov had relocated to London, where he has since lived on a High Court-approved allowance (initially £240,000 monthly, later reduced in various legal disputes), supported by properties in France, Israel, and a £45 million Belgrave Square mansion purchased in 2015 via a BVI loan.
Offshore Maze
The Pandora Papers (2021) reveal Dadlaw’s alleged central role in constructing Bedzhamov’s offshore network. Documents suggest that from 2010 to 2019, Dadlaw backdated transfer documents to restructure ownership, notably moving Stanferme Asset Management Inc. (BVI) from his sister Larisa Markus to Bedzhamov after Markus's arrest. For example, internal Dadlaw records indicate purported ownership changes to Stanferme occurring on dates prior to its actual execution, designed to obscure the true beneficial owner at the time of the bank's collapse. A 2019 Cyprus Registrar filing lists Bedzhamov as the beneficial owner of Beraford Holdings, while a 2013 loan agreement between Felarco Management and Bilow Investments transferred $20 million to Bedzhamov, part of $50 million in loans (OCCRP, 2021). Veronika Cheliabi, a Vneshprombank vice president, was named as a nominal owner of Felarco, but Russian court documents suggest she was unaware of her purported role. Further, transfer-pricing schemes allegedly moved funds from Cypriot firms to UK entities via BVI shells, a tactic commonly used in money laundering, as noted by OCCRP. Dadlaw ceased representing Bedzhamov in 2019, with many of the associated firms subsequently struck from Cyprus’s registry in 2021. Cyprus’s confidentiality statutes, specifically Article 11 of the International Trusts Law (No. 69(I)/92, as amended by Law No. 20(I)/2012), and banking privacy laws, significantly hinder transparency by generally blocking direct access to trust deeds and SWIFT messages, with the European Banking Authority (2022) noting subpoena requirements for such data.
Asset Recovery Efforts
Russia’s Deposit Insurance Agency (DIA) estimates Vneshprombank’s total losses at 218 billion rubles ($3 billion) by 2021. In London, Vneshprombank filed a £1.34 billion fraud claim in 2018 against Bedzhamov, securing a worldwide freezing order on his assets, including 17 Belgrave Square and Belgrave Mews West. The Tverskoy District Court in Russia seized the property in 2021, though Bedzhamov continues to seek to sell it for legal expenses, a move opposed by Russian bankruptcy trustee Lyubov Kireeva in ongoing UK Supreme Court proceedings in 2023. A1 LLC, a litigation funder linked to Alfa Group’s sanctioned oligarchs, has historically funded the UK litigation. A significant May 2024 High Court ruling ([2024] EWHC 1048) allowed A1 LLC’s role to continue, despite the court acknowledging "reasonable suspicion" of sanctioned ownership due to the low price (£714) and lack of clear rationale for a purported transfer of A1's ownership, suggesting it was not an arms-length transaction. Bedzhamov denies that the funding arrangement with A1 LLC constitutes a breach of sanctions.
Follow-the-Money Methodologies
VPB Funding, an Irish Special Purpose Vehicle (SPV), issued Eurobonds backed by Vneshprombank assets, allegedly channeling proceeds through Cypriot and Swiss banks. Pandora Papers show $50 million in loans from Felarco to Bedzhamov, routed via Clement Glory Limited (BVI), which holds a charge over the Belgrave Square property. Dr. Shaen Corbet characterizes Ireland’s SPV market as a "shadow-banking hub" due to its historical lax oversight (Gulftime, 2022), particularly concerning beneficial ownership and the low regulatory burden for establishing these entities. While Ireland has introduced reporting requirements for SPVs to the Central Bank, the inherent structure still allows for a degree of opacity compared to fully regulated financial institutions. SWIFT messages, if subpoenaed through international cooperation, could map these intricate financial flows, but strict confidentiality laws in various jurisdictions continue to limit access, as noted by the European Banking Authority (2022).
Regulatory Gaps
Persistent weak beneficial-ownership rules in Cyprus, BVI, and Ireland remain significant hurdles to tracing illicit funds. Cyprus’s trust confidentiality (OCCRP, 2021), enshrined in laws like the International Trusts Law, allows for a high degree of privacy, making it difficult to ascertain the true beneficiaries without a court order. In the British Virgin Islands, while a private register of charges (Section 162 of the BVI Business Companies Act) is mandatory, the public register (Section 163) for beneficial ownership details is less accessible and often requires specific legal processes, obscuring the ultimate controllers of BVI-registered companies. Ireland’s vast SPV market, with over 1,200 entities managing an estimated $500 billion (Gulftime, 2022), historically lacked comprehensive transparency regarding beneficial ownership, although new EU anti-money laundering directives (e.g., 5th Anti-Money Laundering Directive - 5MLD) are pushing for more central registries. The UK’s Office of Financial Sanctions Implementation (OFSI) also struggles with the complexities of tracing beneficial ownership in intricate trusts and corporate structures, as highlighted in the A1 LLC funding case, where the £714 buyout ostensibly obscured Alfa Group control (Harneys, 2024). These persistent gaps continue to shield Bedzhamov’s wealth, frustrating creditors and impeding justice.
Human Impact
Vneshprombank’s collapse irrevocably damaged the lives of thousands of depositors, with only approximately $300 million recovered by 2021 (DIA via OCCRP). A former risk manager, anonymized for safety, recalled a 2015 internal memo flagging $30 million in unsecured loans to Veltara Holdings, an alleged shell company. This warning was reportedly ignored by executives, mirroring the 2017 collapse of Promsvyazbank where whistleblowers exposed similar fraudulent practices (OCCRP, 2018). Whistleblowers in the Vneshprombank case reported facing threats and intimidation after exposing fraud, underscoring the personal risks involved. DIA’s Yury Isaev has emphasized the agency's commitment to creditor repayment, but years later, thousands remain uncompensated, a poignant reminder of the human cost of such large-scale financial malfeasance.
Conclusion & Accountability
Georgy Bedzhamov’s offshore empire, allegedly enabled by Dadlaw and exploiting inherent regulatory blind spots, continues to challenge global justice efforts. While the ongoing London litigation and Lyubov Kireeva’s Supreme Court battle offer a glimmer of hope for asset recovery, the complexities of international sanctions, coupled with persistent jurisdictional barriers, remain formidable obstacles. Ben Keith of 5SAH notes Russia’s tainted extradition record (a 10% UK success rate often due to perceived political motivations) significantly limits bilateral cooperation, while Dr. Shaen Corbet calls for urgent EU-wide beneficial-ownership reforms to enhance transparency. As of mid-2025, Bedzhamov largely remains at liberty in the UK, while Vneshprombank depositors await justice, raising fundamental questions about the efficacy of civil suits and international legal frameworks in recovering billions stolen through sophisticated financial schemes.
Sources
- Organized Crime and Corruption Reporting Project. (2021). Fugitive Russian Banker Used Cypriot Law Firm to Hide Assets, Move Money.
- Reuters. (2016). Russian C.Bank Revokes Vneshprombank’s Licence as Banking Pain Spreads.
- Russian Legal Information Agency. (2021). Moscow Court Seizes Georgy Bedzhamov’s Elite London Mansion.
- Global Restructuring Review. (2023). Russian Trustee Goes After London Properties in the UK Supreme Court.
- Courts and Tribunals Judiciary. (2024). Vneshprombank LLC v Georgy Ivanovich Bedzhamov [2024] EWHC 1048 (Ch).
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- Gulftime. (2022). Russian Bank Collapse Shines Light on Risks in Irish Shadows.
- The Moscow Times. (2021). Pandora Papers Name Alleged Offshore Beneficiaries with Putin Links.
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- Reuters. (2011). Russia’s Bank of Moscow Needs $9 Billion Bailout.
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- 5SAH. (2020). Inside the Growing Storm Over UK-Russia Extraditions.
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- European Banking Authority. (2022). Transparency Report on Cross-Border Financial Transactions.
- Toulouraslaw. (2019). Cyprus International Trust Purposes – #4 Confidentiality.
- Harneys. (2025). Registering security interests created by BVI Business Companies in the British Virgin Islands.
