Russian banker says signing bonuses were all meant for him

MOSCOW. May 13. KAZINFORM George Urumov, a Russian banker accused by his former employer of embezzling $23 million in signing bonuses intended for colleagues, says the money was paid to him to distribute at his discretion.

Otkritie Financial Capital, a bank part-owned by Russia 's VTB Group, is suing Urumov, his wife, Yulia Balk, and affiliated companies in London over an alleged $183 million fraud involving Argentine warrants and bonuses for colleagues, according to a court filing by Otkritie. Urumov denies the charges and says he had an October 2010 agreement with Otkritie to pay him $25 million to distribute as he saw fit, according to defense documents filed with the High Court in London on April 26.

The case is based on "a single e-mail" sent by Urumov to Roman Lokhov, then chief executive officer of Otkritie Capital, the group's investment banking unit, agreeing to $5 million for each banker Urumov recruited to the Moscow-based firm, according to Urumov's filing. "Yes, 5 for everyone," the e-mail said, according to the filing. The e-mail acknowledged that Urumov agreed to "administrative arrangements" suggested by Lokhov for documenting the payments, the filing said, Kazinform cites Bloomberg.

London police arrested Urumov in October; no charges have been filed. According to a civil lawsuit filed in London on Oct. 6, 2011, the bank said Urumov offered to recruit four colleagues from Knight Capital Group Inc., a U.S. bank , if each received $5 million in hiring bonuses, or "golden hellos." Instead, Urumov made three payments of $500,000, $750,000 and $1 million and kept the remainder of the $25 million, according to lawsuit.

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