MICHAEL CHERNEY 311.
(photo credit: Courtesy)
LONDON – Israeli businessman Michael Cherney began proceedings against a former
business partner in the High Court of Justice in London last week The five-day
trial is set to end on Tuesday.
The Russian-born billionaire says that US
businessman Frank Neuman reneged on business arrangements in which Cherney would
acquire prime real estate in the UK with Neuman taking legal possession of the
Cherney accuses Neuman of selling the portfolio of properties
without his consent, and though the American businessman repaid the amount
Cherney paid for the property, of keeping the profits, said to be around $10
The properties are said to include a renovated former hotel
known as Draycott House, near the prestigious Sloane Square area of London, and
a development on Arlington Street, close to the Ritz Hotel in Piccadilly,
Neuman says that as the legal owner of the properties, he
had the right to sell them. More so, he maintains that Cherney loaned him the
money and that he paid him back the full amount.
The American businessman
accuses Cherney of using information obtained in the case for purposes other
than for the proceedings.
Before the trial, the judge imposed a
proprietary injunction on Neuman and ordered him to disclose details on the
funds relating to the properties.
Estates Gazette, a weekly commercial
property publication, said that Neuman submitted the relevant documents to the
court and later claimed that an anonymous letter he received from Spanish
judicial authorities included some of the documents he handed in.
accuses Cherney of disclosing the documents.
Neuman’s lawyer, Thomas
Beazley, Queen’s Council, said the application against his client was “an
exercise in brazen nerve” and accused Cherney of “absolutely blatant abuse of
documents received pursuant to a disclosure order.”
Philip Jones QC, accused Neuman of “deliberately dragging his heels” in
disclosing information relevant to the dispute and putting forward a “simply
incredible” story as to where assets had gone.
He added that any breach
of court procedure by Cherney was not done intentionally and concerned “entirely
peripheral and irrelevant” matters.
Cherney is giving evidence via video
link from Israel, as he is subject to a European arrest warrant issued in Spain
in May 2009.
The warrant would force police to arrest Cherney if he came
to the UK.