Deloitte Cyprus Helped Abramovich Hide Offshore Assets

Leaked documents reviewed by the Bureau and partners in the Cyprus Confidential investigation allege that Deloitte Cyprus and Meritservus falsified corporate records for Roman Abramovich, helping conceal at least $10bn in assets and reduce tax liabilities through offshore structures.

According to the investigation, more than 1,000 corporate records involving over 100 companies were backdated between 1999 and 2013, sometimes by as many as five years. The documents included contracts, payment orders and correspondence.

The investigation found Deloitte Cyprus later signed off accounts as "true and fair" after relying in some cases on documents it had helped create. The firm also acted as an "independent auditor" for some companies connected to Abramovich.

The findings were published by the Bureau of Investigative Journalism, BBC Panorama, the Guardian and the Organized Crime and Corruption Reporting Project as part of the Cyprus Confidential project.

A leading financial crime expert who reviewed the findings described the alleged conduct as "straightforward and blatant" tax evasion.

Deloitte Cyprus said it could not comment on specific matters because it did not have access to correspondence "from more than 20 years ago".

"Deloitte Cyprus acts in compliance with applicable laws," Deloitte Cyprus said.

Andrew Mitchell KC, a financial crime barrister who reviewed the findings, said the documents raised concerns about professionals assisting in the creation of false records.

"What you take away from it is that there are professionals who are prepared to bend and break the rules of their profession and therefore the law," said Andrew Mitchell KC.

"And it looks that they will stop literally at nothing in terms of creating documents," said Andrew Mitchell KC.

The investigation traced the offshore arrangements to Abramovich's wealth from Sibneft, the Russian oil company he acquired in the 1990s and later sold shares in by 2005 for more than $16bn.

Abramovich's lawyers denied that he knew about or participated in "unlawful backdating" and rejected claims that he concealed assets or evaded tax. They said his companies relied on advisers including "Deloitte, one of the ‘Big Four’ accounting firms".

Documents reviewed by investigators showed Abramovich signed at least one set of agreements that had been backdated, although his lawyers said he was unaware of improper practices.