ontarioguy
07-08-2003, 15:49
[SOURCE TORONTO STAR]
NEW YORK—A U.S. federal judge yesterday ordered a wealthy Turkish family to pay more than $4 billion (U.S.) to a division of Motorola Inc. after finding that the family bilked the telecommunications giant with an "almost endless series of lies."
U.S. District Judge Jed Rakoff, ruling on a civil lawsuit, also ordered the arrest of five leading members of the Uzan family if they set foot in the United States.
One of the five is Cem Uzan, considered a leading challenger to Turkish Prime Minister Recep Tayyip Erdogan.
Motorola Credit Corp. and Nokia Corp. had accused the Uzans of borrowing money to build a next-generation wireless network — with no intention of paying back the money.
From 1998 to 2000, Motorola and Nokia transferred $2.7 billion in loans to the Uzan-controlled telecom company, Telsim. The family diverted at least $1 billion of that to their own pockets and other entities, the judge found.
Since then, "they have sought to advance and conceal their scheme through an almost endless series of lies, threats and chicanery," Rakoff wrote.
The judge also ordered the Uzans to transfer a massive amount of Telsim stock to Nokia within one week — or be ordered by the court to pay Nokia more than $853 million.
In a statement, Telsim chief executive Hakan Uzan — one of the defendants — urged Motorola and Nokia to meet his company in arbitration in Switzerland to agree on a new schedule for paying back the money.
The Swiss arbitration provision was part of the contract between Telsim and the two telecom companies, he said, adding: "This dispute has nothing to do with the U.S. courts.''
He also promised an appeal of Rakoff's ruling to the second U.S. Circuit Court of Appeals.
A spokesperson for Motorola said company lawyers were still reading the opinion and had no immediate comment.
The Uzan family, listed in February on the Forbes list of the world's richest with $1.3 billion, built its fortune from a small construction company in the 1950s.
The family wealth grew to include construction and power companies, as well as six TV channels, two radio stations and two newspapers.
Cem Uzan is in Turkey, as are most of his family members. But the family is believed to own property in New York City, including apartments on Park Ave. and at United Nations Plaza, and to make frequent visits to New York.
Cem Uzan formed his own political party, the Youth Party, last year. He said he has left the management of his assets to his father, Kemal, also a defendant in the Motorola case, and brother, Hakan.
Uzan has been critical of Erdogan since the government in June took control of two power facilities belonging to his family.
The energy ministry cited continuous breaches of regulations, but Uzan's supporters believe the move was a political manoeuvre.
Later in the month, banking regulators took over the family's flagship bank, Imar Bankasi, citing unsafe banking activities. That decision meant the Uzans had to give up control of their other bank, Adabank.
Authorities have said they have not been able to find records of Imar's accounts.
Cem Uzan, his father and another relative, Yavuz, are banned from travelling abroad over the irregularities.
NEW YORK—A U.S. federal judge yesterday ordered a wealthy Turkish family to pay more than $4 billion (U.S.) to a division of Motorola Inc. after finding that the family bilked the telecommunications giant with an "almost endless series of lies."
U.S. District Judge Jed Rakoff, ruling on a civil lawsuit, also ordered the arrest of five leading members of the Uzan family if they set foot in the United States.
One of the five is Cem Uzan, considered a leading challenger to Turkish Prime Minister Recep Tayyip Erdogan.
Motorola Credit Corp. and Nokia Corp. had accused the Uzans of borrowing money to build a next-generation wireless network — with no intention of paying back the money.
From 1998 to 2000, Motorola and Nokia transferred $2.7 billion in loans to the Uzan-controlled telecom company, Telsim. The family diverted at least $1 billion of that to their own pockets and other entities, the judge found.
Since then, "they have sought to advance and conceal their scheme through an almost endless series of lies, threats and chicanery," Rakoff wrote.
The judge also ordered the Uzans to transfer a massive amount of Telsim stock to Nokia within one week — or be ordered by the court to pay Nokia more than $853 million.
In a statement, Telsim chief executive Hakan Uzan — one of the defendants — urged Motorola and Nokia to meet his company in arbitration in Switzerland to agree on a new schedule for paying back the money.
The Swiss arbitration provision was part of the contract between Telsim and the two telecom companies, he said, adding: "This dispute has nothing to do with the U.S. courts.''
He also promised an appeal of Rakoff's ruling to the second U.S. Circuit Court of Appeals.
A spokesperson for Motorola said company lawyers were still reading the opinion and had no immediate comment.
The Uzan family, listed in February on the Forbes list of the world's richest with $1.3 billion, built its fortune from a small construction company in the 1950s.
The family wealth grew to include construction and power companies, as well as six TV channels, two radio stations and two newspapers.
Cem Uzan is in Turkey, as are most of his family members. But the family is believed to own property in New York City, including apartments on Park Ave. and at United Nations Plaza, and to make frequent visits to New York.
Cem Uzan formed his own political party, the Youth Party, last year. He said he has left the management of his assets to his father, Kemal, also a defendant in the Motorola case, and brother, Hakan.
Uzan has been critical of Erdogan since the government in June took control of two power facilities belonging to his family.
The energy ministry cited continuous breaches of regulations, but Uzan's supporters believe the move was a political manoeuvre.
Later in the month, banking regulators took over the family's flagship bank, Imar Bankasi, citing unsafe banking activities. That decision meant the Uzans had to give up control of their other bank, Adabank.
Authorities have said they have not been able to find records of Imar's accounts.
Cem Uzan, his father and another relative, Yavuz, are banned from travelling abroad over the irregularities.