Criminal Investigation Martin Russo

Supreme Court Judge Refers Inna Gudavadze's Lawyer Martin Russo for Criminal Investigation

On April 2, 2010, Manhattan Judge Bernard Fried signed an order referring Gudavadze's lawyer Martin Russo and her associate, French national Jean-Yves Haouzi, to Manhattan District Attorney's Office for investigation.

On March 31, 2010, Russo and Haouzi, accompanied by approximately 20 armed men, invaded the premises of Ajna Bar by physical force, threatened the employees and locked out the Ajna's officers and management, according to documents filed in court by Ajna president, Nina Zajic. Ajna Bar (formerly Buddha Bar NYC) is an internationally acclaimed dining and entertainment establishment, regularly featured in major international media, including New York Times, New York Post, USA Today, Bloomberg News, Newsday; and others.

Haouzi and Russo, in a gangland manner, endeavored an apparently long-planned raid upon Ajna's premises, ransacking the premises and locking out its legitimate management... broke into the safe and removed over $50,000 in cash" according to the Zajic affidavit. MT has learned that approximately 25 employees of Ajna, who witnessed the event, have signed affidavits describing the raid. "I have never seen anything like this" said Judge Fried, at the court hearing on April 1, 2010. Judges in civil cases rarely resort to referring lawyers for criminal investigations. It is believed that the raid was ordered by Gudavadze and her Liechtenstein proxy, Andrew Baker. When Police arrived on the scene, Russo showed the officers copies of "resolutions" signed by Baker.

Gudavadze was recently named defendant in the wrongful death lawsuit, which alleges that she, in conspiracy with former Russian "oligarch" Boris Berezovsky, murdered her husband, Georgian billionaire and philanthropist Badri Patarkatsishvili, in order to seize his fortune (See: Gudavadze, Berezovsky, Implicated in Death of Badri Patarkatsishvili, Lawsuit Alleges (MT)).

Justice Fried, was appointed a Judge of the Criminal Court of the City of New York in 1980 and designated in 1984 as an Acting Justice of the Criminal Branch of the Supreme Court, but also presided in civil matters. Last month, Judge Fried handed down a critical decision in a much featured in the media case of U.S. Bank NA v. GreenPoint Mortgage Funding Inc., granting GreenPoint’s motion to dismiss a complaint by the insurers over the quality of $1.8 billion of home-equity loans used to back bonds they guaranteed, Reuters reported. Manhattan DA's Office apparently has not yet received Justice Fried's referral order.

Ms. Zajic and Mr. Haouzi were not immediately available for comment.

Martin Russo ? "Attorneys for" Buddha Bar ?!?!?!

Judge Orders Baker's Lawyers to Cease Calling Themselves "Attorneys for" Buddha Bar

July 1, 2010
New York

On June 29, 2010, Manhattan Judge ordered law firm Gusrae, Kaplan, Bruno & Nusbaum to stop referring to themselves as "attorneys for Little Rest Twelve, Inc." Little Rest Twelve is a holding company of Ajna Bar, a world renowned New York restaurant, formerly Buddha Bar NYC. Buddha Bar had changed its name to "Ajna" in late 2008 but many still refer to it by its original name.

Gusrae Kaplan, a small Wall Street firm specializing in securities quarrels, is defending Inna Gudavadze against allegations that she murdered her husband, Georgian billionaire and philanthropist to grab his fortune and out of jealousy for another woman. (Gudavadze, Berezovsky, Implicated in Death of Badri Patarkatsishvili, Lawsuit Alleges, MT-Newswire, 1/22/10).

As was widely reported, on March 31, 2010, lawyer Martin Russo a member of Gusrae Kaplan, leading a pack of 20 armed men raided premises of Ajna Bar, threatened employees and locked out Ajna's management. When police arrived at the scene, Russo managed to persuade them to leave by representing himself as "lawyer" for the landmark restaurant. Russo also fooled the cops by alluding that he had "court order" permitting him to raid the place, according to court documents. On April 2, 2010, the judge of New York Supreme Court signed an order referring Russo and his associate, French national Jean-Yves Haouzi, to Manhattan District Attorney's Office for investigation. (See: Supreme Court Judge Refers Inna Gudavadze's Lawyer for Criminal Investigation).

Nonetheless, Russo and other Gusrae lawyers kept on filing papers in court referring to themselves as "lawyers for Little Rest Twelve" and claiming that Ajna/Buddha Bar now belongs to Gudavadze's proxy, Andrew Baker, a Liechtenstein self-styled financial advisor. Gudavadze, one of two Badri's "official" widows, has claimed ownership of Buddha Bar as part of Badri's estate, since his mysterious death.

Martin Kaplan Gudavadze's Lawyer

In his order dated June 29, 2010, the judge wrote: "It has come to my attention that Gusrae Kaplan has nevertheless continued to file motion papers in this action on behalf of plaintiff Little Rest Twelve, Inc., which has led to considerable confusion in the docket." Judge ordered that Gusrae Kaplan's lawyers immediately cease referring to themselves as attorneys for Little Rest Twelve and referring to Buddha's real attorneys of record as "former attorneys".

The court order is the latest in a series of Gudavadze's setbacks in courts in New York, Miami and overseas in her and her two daughters' bitter struggle for the share of the estate of the late businessman.

Inna's pledge: "I won't spare resources and take back every cent!"

According to papers which Gudavadze recently filed in UK court, in the past two years she had spent nearly £18 million (US$25 million) in legal fees and related expenses.Gudavadze claims she has no more money to fight for her ex's inheritance.

"Inna's lawyers are having a field day" says Sophie Kay, former wife of Joseph Kay "but I know Joe like no one else, he need not spend millions on lawyers because he's very smart and very ruthless, Inna will get nothing, take my word for it" she said in a recent TV interview.

Martin Russo Suborning Perjury

Witness Accuses Gudavadze's Lawyers of Suborning Perjury

At the hearing held in New York Supreme Court on December 5, 2010, a non-party witness Robert Mingles testified that Marting Russo and Marlen Kruzhkov of New York law firm Gusrae Kaplan, Bruno & Nussbaum, asked him to lie under oath and destroy evidence. Russo tried to discredit Mingles on cross-examination but unsuccessfully. Mingles looking straight in Russo’s eyes repeated: "Mr. Russo, you told me to lie under oath."

Gusrae Kaplan, a small Wall Street firm specializing in securities quarrels, is defending Inna Gudavadze against allegations that she murdered her husband, Georgian billionaire and philanthropist to grab his fortune and out of jealousy for another woman. (Gudavadze, Berezovsky, Implicated in Death of Badri Patarkatsishvili, Lawsuit Alleges, MT-Newswire, 1/22/10).

Recently, a U.S. District Court Judge David Homer has held Gusrae Kaplan's and Marting Russo's client Timothy McGinn in contempt for his involvement with a new financial firm, in violation of his preliminary injunction, as reported by The Business Review (Judge Holds McGinn in Contempt).

Judge, who is hearing the SEC’s civil suit against McGinn and former McGinn Smith & Co. Inc. partner David Smith, said McGinn violated a preliminary injunction when he set out to raise $543,000 through Rensselaer-based Security Alarm Credit. Homer enjoined McGinn from taking part in the note offering and from participating in any securities sales without prior court approval. He also froze Security Alarm’s assets and ordered McGinn to return any funds that may have been collected from investors.

Presiding judge Bernard Fried appeared to be somewhat bewildered by Mingel’s testimony. In the preceding week, Fried was clearly signaling that he was leaning towards Gusrae Kaplan repeatedly scolding Little Rest Twelve’s lawyers. Little Rest Twelve is a holding company of Ajna Bar, a world renowned New York restaurant, formerly Buddha Bar NYC. Buddha Bar had changed its name to "Ajna" in late 2008 but many still refer to it by its original name.

Mingel’s blistering testimony comes on the heels of a testimony of Gusrae Kaplan's Joseph Gil, a former controller of Buddha Bar. On direct examination by Russo, Gil’s testimony appeared to be fatal to the defenders of the current owners of Little Rest Twelve. However, on cross-examination, vigorously questioned by Little Rest Twelve’s lawyers Emanuel Zeltser and Bruce Katz, Gil admitted that he lied regarding almost all critical points of his direct testimony. "So you swore to God that you were telling the truth?" - Katz demanded. "Yes" Gil softly replied. Judge Fried on several occasions instructed Gil to keep his voice up. To repeated questions, why Gil made false statement during his direct testimony, Gil by and large replied "I don’t know".

Gil admitted that prior to his testimony, he entered into a secret agreement with Gusrae Kaplan. Russo then presented this agreement to the court. The agreement essentially provided that Gil must testify in accordance with the affidavit attached to the agreement in exchange for approximately $17,000 in cash and consulting agreement with Buddha Bar providing for the payment to Gil of$150 an hour for "consulting services".

Mingles testified that Gil spoke to him about his forthcoming testimony and said that he was asked to lie by Gusrae Kaplan’s lawyers. Mingles told him not to do that.

Prior to Gil’s testimony, Gusrae Kaplan called their own client Jean-Yves Haouzi. As Gil, Haouzi appeared confident on direct questioning by Russo. He testified that he was the "sole director" of Little Rest Twelve since its inception and that Buddha’s current CEO Nina Zajic has never been a director of the company. On cross-examination however, Buddha’s lawyers got Haouzi to admit that in 2008, signed and swore to the truth of a counterclaim where Haouzi alleged that in reality Zajic was a director of the company. Asked by judge Fried to explain these inconsistencies Haouzi said "You would have to ask my attorney" and "I mean I don’t know exactly ... Because I have to speak with my lawyers" referring to Gusrae Kaplan.

As reported here, on March 31, 2010, Marting Russo a member of Gusrae Kaplan, leading a pack of 20 armed men raided premises of Ajna Bar, threatened employees and locked out Ajna's management. When police arrived at the scene, Russo managed to persuade them to leave by representing himself as "lawyer" for the landmark restaurant. Russo also fooled the cops by alluding that he had "court order" permitting him to raid the place, according to court documents. On April 2, 2010, judge Fried signed an order referring Russo and Haouzi to Manhattan District Attorney's Office for investigation (See: Supreme Court Judge Refers Inna Gudavadze's Lawyer for Criminal Investigation).

Judge Fried has a difficult task. Suborning perjury by a lawyer is grave offense and may have significant consequences on lawyer's career. "The allegations made in the open court by Mingles, combined with the preceding testimonies of Haouzi and Gil, present serious and credible evidence requiring the judge at least to hold an immediate hearing on the matter" said one observer - - we’ll just need to wait and see what he does.

Gusrae Kaplan did not immediately reply to our calls for comment. Mr. Zeltser’s said through his secretary that he could not comment on ongoing court proceedings.