LOS ANGELES — An investor who attempted to invest in a real estate development in Russia and suffered losses due to allegedly wrongful action has been awarded damages in court.
U.S. District Judge John Walter, on the bench of the U.S. District Court for the Central District of California, issued an 11-page ruling on Dec. 21, awarding damages in the lawsuit filed by Kristina Chiteishvili against Vertifx LLC, Eduard Akopian, Gayane Ovsepyan, Anaida Ovsepyan, Vertifx Ltd, and Kevin Kachaturian.
The court awarded Chiteishvili a total of $7,683,207.20 in punitive, consequential, and benefit-of-the-bargain damages, as well as prejudgment interest.
Chiteishvili sued the companies and the individuals alleging that the companies did not provide with a return on the money she invested in the development of an apartment complex that was under construction in Dmitrov, Russia. She claimed the companies violated the Securities Exchange Act and other laws.
"On Feb. 24, 2014, in Moscow, Russia, Plaintiff founded MTWGroup, LLC, for the purpose of developing" the building, and Chiteishvili was "the 100% shareholder of MTWGroup LLC," the ruling said.
For nine months in 2014, a company named Irvi LLC obtained an order of execution against Chiteishvili, on a personal judgment.
Chiteishvili negotiated a deal with Irvi.
"In mid-April 2016, after receiving a signed copy of the 'Vertiforex Asset Management Agreement' from Akopian, Irvi LLC and Plaintiff entered into an agreement whereby Irvi LLC agreed to postpone execution on Plaintiff’s assets, including her interest in MTW-Group LLC, in exchange for Plaintiff’s payment to Irvi LLC which was based on 10% of the net return, or $60,000, that Plaintiff was supposed to receive on the 'Vertiforex' investment," the ruling said.
Even though Akopian was aware of the agreement made, Chiteishvili did not get any return from her investments.
"When Plaintiff did not receive either the return of her $1,000,000.00 initial investment in “Vertiforex” or the promised $600,000.00 return on her investment, Irvi LLC liquidated Plaintiff’s assets by initiating involuntary bankruptcy proceedings against Plaintiff in Moscow, Russia. As a result of the wrongful actions of Akopian, Gayane, Kachaturian, Vertifx LLC, and Vertifx Limited, including their failure to return Plaintiff’s $1,000,000 investment with the promised $600,000.00 return-on-investment, Plaintiff was unable to pay her debt to Irvi LLC, and she lost 100% of her ownership interest, including her capital contributions of 45,200,000 Rubles, or $964,483.00 (at the 2014 exchange rate) in MTW-Group LLC," the ruling stated.
In his ruling, Judge Walter awarded $1 million in actual damages, $600,000 for "benefit-of-the-bargain" damages, $118,724.20 in prejudgment interest, $964,483 of consequential damages, and $5 million in punitive damages.
Walter also stated that "the Court finds in favor of Plaintiff and against all of the Defendants and awards damages as set forth herein on each of the claims alleged against them in the First Amended Complaint," and that Chiteishvili "shall prepare a proposed Judgment consistent with the Court’s Findings of Fact and Conclusions of Law."
The proposed judgment is scheduled to Dec. 28.
U.S. District Court for the Central District of California Case number 2:17-cv-08711-JFW-RAO