| Russia
Sanctions Leave VTB Without Counsel In
SDNY as US Bank Refuses To Process Wire
By Matthew
Russell Lee, Patreon Maxwell
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SDNY COURTHOUSE,
June 23 – Sanctions on Russia
have an unnamed US financial
institution unwilling to
process a wire transfer to pay
the Brafman & Associates
law firm to represented VTB
Bank in the case Schansman et
al v. Sberbank of Russia PJSC
et al.
On June 23
Brafman & Associates' Zach
Intrater filed an affidavit
about his efforts with U.S.
District Court for the
Southern District of New York
Magistrate Judge Gabriel W.
Gorenstein, now on Patreon here:
"Zach Intrater,
being duly sworn, deposes and
says: 1. I am an
attorney licensed in the state
of New York. 2. I
currently am employed as Of
Counsel at Brafman &
Associates, P.C., a law
firm in New York. 3. I
am familiar with the facts set
forth in this affidavit.
4. This affidavit
incorporates the facts set
forth in an affidavit I signed
on June 15, 2022, which
was included as part of Docket
No. 358 in this
matter.
5. The Court’s
June 16, 2022 Order (Dkt. No.
360) granted an extension
of time for VTB Bank to
obtain new counsel, but
ordered that no further
extensions would be granted
absent a sworn statement from
someone with personal
knowledge that provides a
daily log of the efforts to
arrange for a new
attorney to file a notice of
appearance. (See Dkt. No.
360.). This affidavit
will detail those daily
efforts.
6. On Wednesday,
June 15, 2022, I spoke with a
representative from OFAC
regarding my firm’s
interpretation of the
applicable federal
regulations governing
payments to attorneys by
blocked entities.
7. On Thursday,
June 16, 2022, I participated
in phone calls with
representatives of VTB Bank
regarding the retention issue.
I also communicated, via
e-mail and phone, with a
representative of the
financial institution (“the
Financial Institution”) at
which my firm maintains
its attorney trust account. I
described to the
representative of the
Financial Institution my June
15, 2022 phone call with the
OFAC representative. I
also explained our
interpretation of the
applicable federal
regulations...On Monday, June
20, 2022, notwithstanding the
federal holiday on which
the banks were closed, I
communicated, via email,
with representatives of
VTB Bank regarding this issue,
in a continued effort to
find a way, consistent with
all laws and regulations, to
allow my firm to enter
an appearance in this matter.
At 12:32 pm, the
representative of the
Financial Institution sent an
email on which I was copied.
The email stated, in
substance, that the
representative had met with
other employees of the
Financial Institution in an
effort to resolve the
issue. The email further
stated that, although the
payment of funds by VTB
Bank was legal, the Financial
Institution would not accept a
wire transfer from
Russia because it was outside
the Financial Institution’s
“risk framework.”
14. On Tuesday,
June 21, 2022, I participated
in communications, via
email and phone, with members
of my firm and by email
with representatives of
VTB Bank in a continued effort
to figure out a solution
to this issue.
15. On Wednesday,
June 22, 2022, I participated
in communications, via
email and phone, with members
of my firm and by email
with representatives of
VTB Bank.
16. Today, June
23, 2022, our firm initiated
discussions with another
financial institution to
receive the payment that has
been made by VTB Bank.
That financial institution has
indicated that it will have an
answer for us by early
next week – the week of June
27, 2022.
17. As of today,
my firm is still unable to
receive payment of any funds
as a retainer in this matter.
This is so notwithstanding
that the payment would
be legal pursuant to the
applicable federal regulations
and statutes, and
notwithstanding the continued
best efforts of
representatives of VTB Bank to
figure out a way to have new
counsel (our firm)
represent them in this
matter." Inner City Press will
continue to cover this.
The case is
Schansman et al v. Sberbank of
Russia PJSC et al., 19-cv-2985
(Carter / Gorenstein)
***
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