Posted on 02/24/2003 9:53:12 AM PST by NativeNewYorker
LEHMAN BROTHERS used former KGB agents to collect bad debts arising from Russia’s 1998 financial crisis, the High Court was told yesterday.
Kerim Derhalli, who earned $6 million (£3.8 million) in three and a half years with the bank, said that Lehman’s legal department had hired “so-called risk consultants, in other words, spies” to help with Russian recoveries. He said: “The people they engaged in Russia were typically former KGB operatives.” Mr Derhalli went on to claim that “even they were scared to talk about the people involved” and advised Lehman to drop its claims.
Mr Derhalli said Russian bankers thought nothing of eliminating creditors to avoid paying debts. He declined the offer of a bodyguard, saying: “If someone is going to kill you, they will kill you anyway.”
Mr Derhalli claims Lehman reneged on an agreement to pay him a cut of the money recovered from Russia. He says he is owed $16.5 million. He criticised Lehman’s culture, claiming that once, upon his disagreeing with a press release on the bank’s credit exposure, an internal lawyer had said he “could help me find a way to tell a version of the truth supportive of the firm”.
Mr Derhalli is suing Lehman for constructive dismissal and breach of contract.
Lehman’s counsel, Nicholas Underhill, QC, accused Mr Derhalli of seeking to inflict “as much collateral damage to Lehman as possible”. He criticised Mr Derhalli’s use of a public relations firm, saying: “Is it not your wish to get as much publicity for your allegations against Lehman as possible?” Mr Derhalli replied: “My wish is to get the sums to which I am justly entitled.”
The hearing was adjourned until Monday.
I'm rather surprised the ex-KGB agent went to court.
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