Ongoing investigations reveal new evidence of Maximov’s fraudulent actions against NLMK, as well as court authorities.
Nikolay Maximov’s press announcements state that at the end of 2007, Maxi-Group was experiencing a heavy financial deficit due to a sudden “cash gap” caused by the refusal of creditor banks to refinance the company’s loans.
A financial audit of Maxi-Group’s activities carried out in 2008-2010 revealed that the Company’s financial difficulties were largely determined by the inadequate quality of its turnover assets formed mainly by the receivables of companies associated with Maximov. After NLMK acquired Maxi-Group shares, all the main debtor companies resolved to self-liquidation and bankruptcy with administrative and financial support from Maximov.  At the same time, a number of law suits were instigated against the Group companies with claims of recovering artificial payables to Maximov-affiliated companies.  During the proceedings, Maximov’s representatives denied his affiliation to the said companies, misleading NLMK and the court.
In relation to criminal proceedings against Maximov, PriceWaterhouseCoopers, Maxi-Group’s auditor, presented, upon a formal request, a letter of representation from the company management confirming the accuracy of information submitted to the auditor. This letter of representation, dated August 16, 2007, is signed by Maximov-controlled management, including Mr Alexander Loginovikh, Maxi-Group CEO. The letter clearly lists all the debtor-companies directly subordinate to and controlled by Mr Maximov as Maxi-Group’s main shareholder. The letter is in direct contradiction to claims made by Maximov’s representatives that there was no affiliation between Maximov and the said companies.
PriceWaterhouseCoopers also submitted its Auditor Report on the 2006 reporting, that states the presence of “material uncertainties that could lead to substantial doubt as to the Group’s ability to pursue its activities uninterrupted.” This reservation is in fact a testimony of the auditor’s doubts in regard to the company’s solvency. In breach of his warranties and representations made in relation to the transaction, Mr Maximov concealed this fact from NLMK.
Documents provided by PriceWaterhouseCoopers serve as clear evidence of deliberate deception of the court on the part of Maximov, and confirm that in 2006 Maxi-Group was already suffering from grave financial difficulties and displaying signs of insolvency.