| Revision as of 11:10, 15 January 2010 editSpitzl (talk | contribs)Extended confirmed users2,449 edits major parts of this article are taken from cherney's website without references← Previous edit | Revision as of 13:17, 15 January 2010 edit undoSpitzl (talk | contribs)Extended confirmed users2,449 edits deleted all uncited statements from cherney's own website + added more scandalsNext edit → | ||
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| '''Michael Cherney''' ({{lang-he|מיכאל צ'רנוי}}, also '''Mikhail Chernoy''' or '''Mikhail Chorny'''; born January 16, 1952) is a Uzbekistan-born ]i entrepreneur and industrialist. He is known for his business ventures and for founding the ]. Michael Cherney is wanted by ] for <ref></ref> | '''Michael Cherney''' ({{lang-he|מיכאל צ'רנוי}}, also '''Mikhail Chernoy''' or '''Mikhail Chorny'''; born January 16, 1952) is a Uzbekistan-born ]i entrepreneur and industrialist. He is known for his business ventures and for founding the ]. Michael Cherney is wanted by ] for <ref></ref> | ||
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| ] | ] | ||
| ==Biography== | |||
| ==== | |||
| ⚫ | Cherney grew up in ] ] in a family whose father was a book-keeper and an engineer, the oldest of three sons. At the age of fourteen, Cherney started working, as he joined his father on moonlighting jobs. After ], he was drafted into the ] and attended a technical college. Later, his athletic pursuits – boxing and football – led to employment in sports administration.{{fact|date=September 2009}} | ||
| ⚫ | Spain's Supreme Court (JUZGADO CENTRAL DE INSTRUCCION N. 4 DE LA AUDIENCIA NACIONA) in May 2009 issued a detention order against Michael Cherney. He is suspected for laundering money obtained from the activity of the Ismailova crime organization. The Spanish authorities claim they succeeded in tracing the organization's complicated money laundering track, including Cherney's alleged participation. Cherney’s name has been put on the list of fugitives wanted by Interpol. Categories of offences include money laundering, organized crime / transnational crime, the Interpol official website says |
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| Michael Cherney immigrated to ] in 1994.{{fact|date=September 2009}} | |||
| ⚫ | == |
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| ⚫ | Cherney grew up in ] ] in a family whose father was a book-keeper and an engineer, the oldest of three sons. At the age of fourteen, Cherney started working, as he joined his father on moonlighting jobs. After ], he was drafted into the ] and attended a technical college. Later, his athletic pursuits – boxing and football – led to employment in sports administration. |
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| ==Business interests== | |||
| ==Early business pursuits== | |||
| Cherney went into business in the 1980s as a pioneer in the cooperative movement. With his brothers, he rented plastic-making factories, bought raw supplies, ordered stamping equipment, and produced various household goods that sold well. {{fact|date=September 2009}} In 1987, Cherney relocated to ], where he quickly entered into business. {{fact|date=September 2009}} As '']'' gathered momentum, Cherney ventured into bigger things. He joined forces with Sam Kislin, an ]-born ] businessman, whose company, '''TransCommodities''', sold a wide variety of manufactured goods in Russia.{{fact|date=September 2009}} | |||
| ⚫ | ===BulgarTabac=== | ||
| Later, Cherney moved on to manufacturing. By 1991, the centralized Soviet system of industrial supplies and deliveries had unraveled, leaving whole industries in a state of collapse. TransCommodities stepped into the breach, supplanting the government; Cherney was bartering cars for ] directly from miners and supplying it to plants outside the Soviet Union. Soon TransCommodities became a major ] supplier, grossing $200 million. {{fact|date=September 2009}} | |||
| ⚫ | In 2002, 80% of the capital in the Bulgarian State-owned tobacco company, ], was placed on the market. Cherney put together a three-partner consortium to bid for Bulgartabac. He planned to purchase Bulgartabac by establishing the Metatabac Consortium, which was created in April 2002. Ownership was structured between three groups: the Russian firm Soyuzcontracttabac, which owned 35%, MCG Holdings, a firm owned by Cherney, which owned 35%, and another 30% held by a ] company named Metacontact Ltd.{{fact|date=January 2010}} | ||
| ==Criminal investigations== | |||
| Cherney recalls that his first hundred thousand dollars were the toughest ones to make.<blockquote>I worked for two or three years, and I still couldn't make it. I would look at the books at the end of the year - still in the red, more expenses than profits. I liked traveling, I went all over the Soviet Union, and I was helping out with sports activities a lot.</blockquote> | |||
| Cherney has been accused of numerous criminal actions, including corruption, money laundering and organized crime. | |||
| ===Bez affair=== | |||
| ==1989-1993: The Starting Capital== | |||
| ⚫ | In 2001 Cherney was accused of concealing an attempt to purchase the Israeli state-owned telecom company ], a charge he denies. In this affair, Cherney allegedly arranged to have Israeli businessman ] purchase 20% of the Israeli telecom using money provided by Cherney.<ref></ref> | ||
| After two or three years, the Cherney brothers company employed between 300 and 500 people. To make business grow, Michael traveled to Moscow and revived his old sports contacts. There in 1989 he met an American businessman, originally from ], Sam Kislin, who offered him a business partnership. In his first year as Kislin's partner Cherney made two million dollars. Cherney suggested that Kislin and he find an idling factory, get it running, and sell its product in the West. Kislin went to ] and landed a contract to supply three million tons of ]. In turn, Cherney was told of ] in ] and ] that were dying out without supplies. Cherney flew down to Kemerovo, in an area called ] in Central ]. Once he figured out what was what, he had an idea. The partners begin bartering cars and consumer electric appliances for coal directly from miners; then they supplied it to coke and coal concentrate manufacturers, and then supplied their product to plants in ] and ]. {{fact|date=September 2009}} | |||
| ⚫ | ===Mobiltel deal=== | ||
| In late 1991, the partners decided to manufacture coke on their own, and they were producing a million tons a year. Cherney and Kislin not only exported it abroad, but also sold it to smelters in Russia and Ukraine who needed it. In exchange, they would take metals that they could sell in the West. Out of consumer-goods trader, '''TransCommodities''' became a major metals supplier grossing $200 million a year. {{fact|date=September 2009}} As Cherney put it, | |||
| Cherney was also involved in the supposably corrupt selling-on of the ]n mobile provider ]. In 2002 Cherney bought the company together with Austrian business men ] (under corruption charges), former minster of the ] ], and financial expert ]. The 768 millionen Euro deal was financed by ], a bank known for its criminal role in connection with the ]. 2005 Mobiltel was sold for 1,6 billion Euros to ] with a huge profit of 830 millionen Euros.<ref></ref> | |||
| <blockquote>In those days... anyone who had his head screwed on right, who had drive and took risks, could make millions, just like European traders in America centuries ago. Every country in the West has gone through a similar privatization.</blockquote> | |||
| ===Wanted for money laundering and organized crime=== | |||
| ==1993-1996: Privatization== | |||
| ⚫ | Spain's Supreme Court (JUZGADO CENTRAL DE INSTRUCCION N. 4 DE LA AUDIENCIA NACIONA) in May 2009 issued a detention order against Michael Cherney. He is suspected for laundering money obtained from the activity of the Ismailova crime organization. The Spanish authorities claim they succeeded in tracing the organization's complicated money laundering track, including Cherney's alleged participation. Cherney’s name has been put on the list of fugitives wanted by ]. Categories of offences include money laundering, organized crime / transnational crime, the Interpol official website says.<ref></ref> | ||
| By the time privatization started in 1993, Cherney had become one of the largest manufacturers and exporters of coal, ], fuel, and ]. He entered a partnership with his younger brother Lev. | |||
| Cherney invested tens of millions of dollars, as well as the connections in the ministries and the industries he had cultivated in four years. {{fact|date=September 2009}} Lev Cherney brought in the Reuben brothers of TransWorld Group, a metal trading company. The Reubens offered Lev, who in turn offered Michael, to become partners in developing Russian ] industry. | |||
| ⚫ | ==Lawsuit against Oleg Deripaska== | ||
| In the ], alumina, the raw material for aluminum production, was purchased in ] and ]. Most of the product, 75 percent, was consumed domestically, by the military-industrial complex. As the market era dawned, the Military-Industrial complex reduced orders, the hard currency for alumina vanished, the smelters came to the point of stoppage, and the workers went for months unpaid. The Cherney brothers with their Western partners offered the new Russian government a plan to prevent the stoppage: ''"We will buy alumina, we will deliver it to smelters, we will pay wages, we will pay electricity and all other production expenses. Our conditions: your surplus product will be sold exclusively through us and at the price that will take into account our expenses."'' This system was called "tolling". Russia benefited from it, and the government gave a green light. Soon, the partners' net profits amounted to 30 percent from metals' cost. {{fact|date=September 2009}} | |||
| ⚫ | On November 24, 2006, Cherney filed a suit against ], a Russian billionaire who owns the huge Russian aluminum company, ], in the Commercial Court of London's High Court. Cherney sought a Court declaration affirming that Deripaska holds 20% of the ] shares on behalf of Cherney or damages for breach of Deripaska's agreement to dispose of the shares and to account to Cherney for the proceeds. The claims are based on a written agreement between the two businessmen that was signed in London in March 2001. As of December 2006 RusAl was in the final stages of negotiating a takeover of domestic rival SuAl and the aluminum assets of ], a major ] commodities trader, which could create a new company valued at up to $30 billion. According to this estimate, Cherney's 20 percent stake in ] could be worth as much as $3 billion.<ref></ref> On July 3, 2008, a British judge ruled that Cherney had the right to sue Deripaska for $4 billion (₤2 billion). The High Court's Mr Justice Christopher Clarke ruled that Cherney might be assassinated or held on trumped-up charges if he tried to bring the case in Russia.<ref></ref> | ||
| ⚫ | ==Personal life== | ||
| ], one of the ideologists of ] and Russia's former ambassador to Israel recalls saying once at a government meeting, ''"All you need is a couple more Cherney brothers, and you would reconstruct the entire heavy industry."'' In 1993, privatization started: ]'s reformist government developed a voucher system. A number of foreign companies had already come to the Russian market. They bought up Russian product at low cost, but they could not believe they could buy companies for vouchers. The Cherney brothers found their bearings fast. They believed in privatization, in Russia's democratic reform, earlier than others did. People were suspicious of vouchers and were ready to sell them. The Cherneys were buying them out through their investment companies. {{fact|date=September 2009}} | |||
| Vouchers turned into shares, and the Cherneys began buying stock in ferrous and nonferrous companies. In three or four years they, along with their partners, came to buy a controlling majority in Russia's largest smelters: ], ], ], and ]. | |||
| ⚫ | Cherney established the ], which addresses concerns of Israel's security and international terrorism. | ||
| <blockquote>In privatization, we were outsiders, not linked to either Party bosses or gangsters or security services ... I suspect this is why they fought us. In 1994-97, they were not striking against the hustlers who built financial pyramids, but those who wanted to build up industries and create jobs. Nobody needed those companies. The Soviet Gossnab that had provided money and raw materials and had marketed the product now collapsed. All the factories were gradually going down the tubes. The foreigners were not interested in saving them - then they would have to stop their own factories. Besides, they still remembered ], the Soviet 1920s capitalist experiment, when at first private capital was allowed in, and then the profits were taken away. But in 1994, if it had not been for privatization, in two years the factories would have turned to scrap metal. They served as quiet little troughs for local authorities. And suddenly here we come - not Party functionaries, but simple Jewish boys. Basically, earning ten dollars today, borrowing another twenty, investing another thirty, and collecting a profit of three hundred. Which makes a lot of people envious. But what happens at State-owned factories that no one bought? Nothing works, and no one pays the wages.</blockquote> | |||
| ⚫ | He published a book on the victims of the Dolphinarium terror attack in Tel Aviv. The book was published and presented on May 30, 2002. The Russian-language edition was to be presented in Moscow on June 6. The speakers at the presentation in Tel Aviv included Ms Dalia Rabin Filosof, Israel's Deputy Defense Ministry; Dov Wiseglass from the Israel's Prime Minister's office; Knesset members and leaders of Russian communities throughout the Diaspora.{{fact|date=January 2010}} | ||
| While the Soviet military-industrial complex still functioned, most of the 3.5 million tons of aluminium manufactured a year was consumed domestically. After the collapse of the Soviet Union, the Western companies expected the Russian smelters to stop and the prices to go up. But after a couple of years industrialists like Cherney brothers and their partners began reviving the industry and learned how to compete with Western monopolies and give them a run for their money on the market. Now Russia consumed 400,000 tons, and 3 million went for export. Naturally, Western monopolies went to war against the Russian newcomers. Following the repatriation to Israel, Cherney maintains his business interests in Russia and post-Soviet states, while developing new business contacts between Russia, on the one hand, and Europe, Israel, and the US, on the other. {{fact|date=September 2009}} | |||
| ⚫ | Cherney is a major shareholder in Bulgarian football club ].{{fact|date=January 2010}} | ||
| In Israel, Cherney spends much effort on ] work and humanitarian projects that reinforce cooperation between Israel and Russia in fighting terror. Cherney and his family live in a suburb of ]. | |||
| ==The Trans-World Years== | |||
| In 1992, Michael and Lev Cherney forged a partnership with ] to establish the Trans World Group. In the early 1990s, Trans World invested heavily in Russia and the former Soviet Union. Trans World acquired a number of ] factories. Designed to encourage investment and revive the aluminum sector, Russian authorities approved a system in which individuals could essentially rent factories. Raw materials were imported, processed, shipped, and sold overseas without having to pay any taxes. In exchange for facilities and cheap labor, the plants received payments to sustain the labor force.{{fact|date=September 2009}} | |||
| ⚫ | ==Mobiltel== | ||
| Beginning in 1998, Cherney invested in ] by creating the ] Company, which quickly became the leading ] in the country. In 2000, the Bulgarian government launched an inquiry to determine who the shareholders in Mobiltel were and what proportion of the shares they owned. The government investigation revealed that Cherney owned 95% of Mobiltel through an off-shore investment fund called Eastern Telecom Market Fund. The government, allegedly attempting to extort a bribe from Cherney which he refused to pay, forced him to sell his controlling stake in the company or have his operating license stripped. {{fact|date=September 2009}} | |||
| ==Fighting Terrorism in Israel== | |||
| ⚫ | |||
| The guests were also greeted by letters from Israel's Prime Minister Ariel Sharon and Knesset Chairman Avrom Burg. "3,000 years ago Israel was fighting against Philistines who sacrificed their children to their gods", said ], the leader of Our Home Israel. ''"This book confirms that once again Israel has encountered the ancient evil: we are fighting Palestinians who sacrifice children - both theirs and ours - on the altar of jihad."'' | |||
| ⚫ | ==BulgarTabac== | ||
| ⚫ | In 2002, 80% of the capital in the Bulgarian State-owned tobacco company, ], was placed on the market. Cherney put together a three-partner consortium to bid for Bulgartabac. He planned to purchase Bulgartabac by establishing the Metatabac Consortium, which was created in April 2002. Ownership was structured between three groups: the Russian firm Soyuzcontracttabac, which owned 35%, MCG Holdings, a firm owned by Cherney, which owned 35%, and another 30% held by a ] company named Metacontact Ltd. | ||
| ==Ban Revoked== | |||
| In May 2003, Michael Cherney succeeded in having the Mobiltel-related ban revoked by the ] City Court. That October, it was reinstated after an appeal by Chief Secretary of the Ministry, general ] and Director of the National Security Service, Ivan Chobanov. On January 16, 2004, the ban was once again rescinded by the ].{{fact|date=September 2009}} | |||
| ==Israel== | |||
| ⚫ | |||
| After the ] scandal, Israeli authorities launched an investigation into Cherney's activities in Israel. The investigation was dropped as a result of no evidence being found of any wrong doing by Cherney. The police officer responsible for conducting the investigation on Cherney was reportedly dismissed from the police force on charges of harassment. {{fact|date=September 2009}} | |||
| ==Cherney's Business Contributions== | |||
| ⚫ | |||
| ⚫ | == |
||
| ⚫ | On November 24, 2006, Cherney filed a suit against ], a Russian billionaire who owns the huge Russian aluminum company, ], in the Commercial Court of London's High Court. Cherney sought a Court declaration affirming that Deripaska holds 20% of the ] shares on behalf of Cherney or damages for breach of Deripaska's agreement to dispose of the shares and to account to Cherney for the proceeds. The claims are based on a written agreement between the two businessmen that was signed in London in March 2001. As of December 2006 RusAl was in the final stages of negotiating a takeover of domestic rival SuAl and the aluminum assets of ], a major ] commodities trader, which could create a new company valued at up to $30 billion. According to this estimate, Cherney's 20 percent stake in ] could be worth as much as $3 billion.<ref></ref> On July 3, 2008, a British judge ruled that Cherney had the right to sue Deripaska for $4 billion (₤2 billion). The High Court's Mr Justice Christopher Clarke ruled that Cherney might be assassinated or held on trumped-up charges if he tried to bring the case in Russia.<ref></ref> | ||
| Cherney and his family live in a suburb of ].{{fact|date=January 2010}} | |||
| ==Football== | |||
| ⚫ | |||
| ==References== | ==References== | ||
Revision as of 13:17, 15 January 2010
 | This article includes a list of references, related reading, or external links, but its sources remain unclear because it lacks inline citations. Please help improve this article by introducing more precise citations. (September 2009) (Learn how and when to remove this message) |
Michael Cherney (Template:Lang-he, also Mikhail Chernoy or Mikhail Chorny; born January 16, 1952) is a Uzbekistan-born Israeli entrepreneur and industrialist. He is known for his business ventures and for founding the Michael Cherney Foundation. Michael Cherney is wanted by Interpol for "money laundering" and "organized crime"
Biography
Cherney grew up in Tashkent Uzbek SSR in a family whose father was a book-keeper and an engineer, the oldest of three sons. At the age of fourteen, Cherney started working, as he joined his father on moonlighting jobs. After high school, he was drafted into the Soviet Army and attended a technical college. Later, his athletic pursuits – boxing and football – led to employment in sports administration.
Michael Cherney immigrated to Israel in 1994.
Business interests
BulgarTabac
In 2002, 80% of the capital in the Bulgarian State-owned tobacco company, Bulgartabac, was placed on the market. Cherney put together a three-partner consortium to bid for Bulgartabac. He planned to purchase Bulgartabac by establishing the Metatabac Consortium, which was created in April 2002. Ownership was structured between three groups: the Russian firm Soyuzcontracttabac, which owned 35%, MCG Holdings, a firm owned by Cherney, which owned 35%, and another 30% held by a Cypriot company named Metacontact Ltd.
Criminal investigations
Cherney has been accused of numerous criminal actions, including corruption, money laundering and organized crime.
Bez affair
In 2001 Cherney was accused of concealing an attempt to purchase the Israeli state-owned telecom company Bezeq, a charge he denies. In this affair, Cherney allegedly arranged to have Israeli businessman Gad Zeevi purchase 20% of the Israeli telecom using money provided by Cherney.
Mobiltel deal
Cherney was also involved in the supposably corrupt selling-on of the Bulgarian mobile provider Mobiltel. In 2002 Cherney bought the company together with Austrian business men Martin Schlaff (under corruption charges), former minster of the Austrian People's Party Josef Taus, and financial expert Herbert Cordt. The 768 millionen Euro deal was financed by BAWAG_P.S.K., a bank known for its criminal role in connection with the Refco Scandal. 2005 Mobiltel was sold for 1,6 billion Euros to Mobilkom Austria Group with a huge profit of 830 millionen Euros.
Wanted for money laundering and organized crime
Spain's Supreme Court (JUZGADO CENTRAL DE INSTRUCCION N. 4 DE LA AUDIENCIA NACIONA) in May 2009 issued a detention order against Michael Cherney. He is suspected for laundering money obtained from the activity of the Ismailova crime organization. The Spanish authorities claim they succeeded in tracing the organization's complicated money laundering track, including Cherney's alleged participation. Cherney’s name has been put on the list of fugitives wanted by Interpol. Categories of offences include money laundering, organized crime / transnational crime, the Interpol official website says.
Lawsuit against Oleg Deripaska
On November 24, 2006, Cherney filed a suit against Oleg Deripaska, a Russian billionaire who owns the huge Russian aluminum company, RusAl, in the Commercial Court of London's High Court. Cherney sought a Court declaration affirming that Deripaska holds 20% of the RusAl shares on behalf of Cherney or damages for breach of Deripaska's agreement to dispose of the shares and to account to Cherney for the proceeds. The claims are based on a written agreement between the two businessmen that was signed in London in March 2001. As of December 2006 RusAl was in the final stages of negotiating a takeover of domestic rival SuAl and the aluminum assets of Glencore, a major Swiss commodities trader, which could create a new company valued at up to $30 billion. According to this estimate, Cherney's 20 percent stake in RusAl could be worth as much as $3 billion. On July 3, 2008, a British judge ruled that Cherney had the right to sue Deripaska for $4 billion (₤2 billion). The High Court's Mr Justice Christopher Clarke ruled that Cherney might be assassinated or held on trumped-up charges if he tried to bring the case in Russia.
Personal life
Cherney established the Michael Cherney Foundation, which addresses concerns of Israel's security and international terrorism.
He published a book on the victims of the Dolphinarium terror attack in Tel Aviv. The book was published and presented on May 30, 2002. The Russian-language edition was to be presented in Moscow on June 6. The speakers at the presentation in Tel Aviv included Ms Dalia Rabin Filosof, Israel's Deputy Defense Ministry; Dov Wiseglass from the Israel's Prime Minister's office; Knesset members and leaders of Russian communities throughout the Diaspora.
Cherney is a major shareholder in Bulgarian football club PFC Levski Sofia.
Cherney and his family live in a suburb of Tel Aviv.
References
- Michael Cherney is wanted by Interpol
- Relocation to Israel
- Schlaff, Elsner, Birdie und Telekom
- Michael Cherney is wanted by Interpol
- MSNBC report on lawsuit against Deripaska
- High Court allows Cherney lawsuit against Deripaska to proceed in the UK
External links
- Financial Times
- The Daily Mail
- Reuters
- International Business Times
- The Guardian
- Human Events
- MineWeb
- The Standart News
- The Committee for the Defense of Human Rights
- The Framing of Michael Cherney - The Intelligence Summit
- Kommersant
- Front Page
- The Jerusalem Post
- Michael Cherney/Mikhail Chernoy website