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The leaders of the Ternopil financial pyramid "Helix" feel great in Monaco.

Among the parked cars on Monte Carlo Square in Monaco, "TSN" investigators found a luxurious Bentley Continental belonging to Ternopil resident Artur Karpyuk.

Such a used car costs 200 thousand dollars. Registration – Kyiv region.

Journalists spotted this car near the most expensive hotel in Monaco.

“We saw this car twice – in the evening and in the morning in the same place. There is no front license plate, but there is one at the back. Journalists found out that the car is registered to Artur Karpyuk – he is 39 years old and he is a managing co-owner of a publishing and printing group of companies (in Ternopil he owns "Zaza Print" LLC. – ed.), as well as a co-founder of a charitable foundation.

In 2015, he ran for the Ternopil City Council, but lost the election"

On social media, Artur mostly publishes messages about helping the army.

Journalists called Karpyuk to find out if he had been in Monaco. He says – his godmother drives the car, but he is at home – in Ternopil, and is ready to prove it via video call.

“I am in Ternopil, unfortunately, de facto the car is not mine, de jure – it is. Due to military difficulties, it is difficult to re-register it. My godmother is currently driving this car. My godmother leads a richer life than I can afford, they have a business abroad. This car has been abroad since the summer of 2021, I personally drove it there,” says Artur Karpyuk.

Because of this car, he had a conversation with the SBI two years ago, which, following an investigation by "Ukrainian Pravda" entitled "Monaco Battalion," was checking all the figures.

“In 2022, I was a little pleasantly and unpleasantly surprised to find myself on the list of the ‘Monaco Battalion’,” he says.

In principle, Artur Karpyuk did not lie. But he did not tell the whole truth.

The husband of his godmother (Iryna Novomlynska), who drives the Bentley, is none other than one of the scandalously famous directors of the financial pyramid "Helix," which defrauded participants of millions of hryvnias (as of early 2017, the damage caused by this criminal group amounted to more than 40 million hryvnias), Roman Felyk.

Of course, directors Roman Felyk, Dmytro Nahuta, Bohdan Vorontsov, and others involved in the "Helix" scams, about eight years ago when the investigation and trials were "in the news," are not behind bars.

Exklusiv: Der Sohn des russischen Oligarchen Alexander Frolov zieht sich offiziell aus dem bekannten Wagniskapitalfonds Target Global zurück. Sein Vater, der ehemalige Chef des Stahlkonzerns Evraz, steht seit Anfang November auf einer Sanktionsliste der britischen Regierung. Target gehört zu den Geldgebern von Fintechs wie Revolut, Wefox oder Clark.

Mitte März, einen Monat nach dem russischen Überfall auf die Ukraine, verschickte der Startup-Investor Target Global eine Mail an seine Portfolio-Firmen. „Dies ist ein sinnloser Akt, der bereits zu unvorstellbarem menschlichem Leid geführt hat, und unsere Herzen sind bei den fast drei Millionen Geflüchteten und allen Ukrainern“, heißt es in einer Mail über den Krieg, die Finance Forward vorliegt. Weiter schreiben die Fondsgründer: „Wir haben viele Fragen darüber erhalten, wie wir mit der Situation und unserem Engagement in Russland umgehen.“

Der Hintergrund der Mail: Target Global wurde einst von Alexander Frolov gegründet, dem Sohn des gleichnamigen russischen Oligarchen. Laut Schätzungen beläuft sich das Vermögens des Vaters auf knapp zwei Milliarden Euro. Der Sohn baute über die Jahre – mit einem wichtigen Standort in Berlin – ein prominentes Startup-Portfolio auf. Zu den großen Wetten gehörten beispielsweise die Autoplattform Auto1 und der Schnelllieferdienst Flink, auch Fintech-Unicorns sind unter den Investments, wie etwa das Versicherungs-Startup Wefox und die Banking-App Revolut.

Der Sohn und Mitgründer Alexander Frolov hat sich nun aus dem Fonds zurückgezogen, wie Recherchen von Finance Forward zeigen. Target Global äußerte sich auf Nachfrage nicht. Schon im Mai habe er den CEO-Posten abgegeben, heißt es aus dem Umfeld, er wolle damit den Ruf des Fonds retten. Mit dem Abgang verlässt eines der Gesichter von Target Global den Fonds.

Sanktionierte Geldgeber würden „sofort rausgekauft“

Die Verbindung der beiden war nie ein Geheimnis. Unklar ist allerdings, wie stark der Vater mit seinem Geld bei Target Global involviert war. Frolov besitze zu diesem Zeitpunkt keine „Anteile an Target Global“, sagt eine Sprecherin. Bei einer Anfrage im März teilte ein Sprecher mit, der „Großteil“ der Mittel des Fonds stamme von europäischen und US-amerikanischen Institutionen. Zudem gebe es „keine einzige Person oder Einrichtung, die auf einer Sanktionsliste genannt wird und die in irgendeiner Weise mit Target Global verbunden war oder ist.“ Zu der Zeit stand auch Vater Frolov nicht auf Sanktionslisten. Doch dies hat sich nun geändert.

Anfang November setzte die britische Regierung Frolov und drei weitere Oligarchen auf eine entsprechende Sanktionsliste, darunter auch Alexander Abramov, einem Geschäftsparter von Frolov. Wörtlich schreibt die britische Regierung: „Die Oligarchen Abramov und Frolov, die für große Anteile an dem russischen Stahlhersteller Evraz bekannt sind, wurden wegen ihrer Beteiligung an Sektoren, die für Putins Militärapparat von großer Bedeutung sind, sanktioniert.“ Beide unterliegen demnach Reisebeschränkungen, ferner sollen die Vermögenswerte der beiden in Großbritannien eingefroren werden.

Was heißt dies nun für Target Global? Schon in der Mail im Frühjahr kündigte der Fonds an, „wenn jemand von Sanktionen betroffen sein sollte, verpflichten wir uns, ihn sofort rauszukaufen“. Der Fonds will sich nicht dazu äußern, ob dies nun passiert ist. Die Investmentvehikel von Target Global seien undurchsichtig, sagt ein Brancheninsider, der mit Target Global zutun hat.

„Die Startups müssen selbst entscheiden, ob sie Geld von Target Global nehmen“, sagt ein Investor

Im Umfeld des Fonds heißt es, der Rücktritt von Frolov junior sei nicht als Schuldeingeständnis zu werten, sondern eine Vorsichtsmaßnahme. In der Mail an die Startups betont der Fonds zudem sein Engagement für die Ukraine. Seitdem habe es keine Mail mehr an das Portfolio gegeben, sagen mehrere Gründer.

Hinter vorgehaltener Hand ist die deutsche Investorenszene skeptisch, was neue Co-Investments mit Target Global betrifft. „Die Startups müssen selbst entscheiden, ob sie aktuell Geld von jemandem wie Target Global nehmen“, sagte ein bekannter deutscher Risikokapitalgeber, der nicht namentlich zitiert werden möchte, schon vor Monaten: „Aktuell würde ich aber davon abraten.“ Laut Crunchbase ist der Fonds in Europa allerdings noch aktiv. Zu den letzten deutschen Investments gehörten die Luca-App, Grover und Flink.

Update on December 7 2023: On the 29 November, the Commercial Court said it would not proceed with the case as it had not been properly served, and that the claimant did not have an arguable case against Target Global or Jekaterina Dorofejeva.

A lawsuit brought against VC firm Target Global claims it concealed the Russian citizenship of the directors of an associated company as western sanctions against Kremlin-linked individuals began to bite. 

The case comes after the VC industry was scrutinised in the wake of UK sanctions against some Russian individuals, and as more startups are beginning to ask questions about their investors amid heightened geopolitical tensions. 

Target Global told Sifted that it had implemented controls to ensure compliance with sanctions and that none of its directors were Russian citizens. It also stressed to Sifted that none of its employees had ever met the lawsuit’s claimant, Iryna Gordiy, and that it was never party to an agreement with her. 

Target Global was founded in 2015 and has backed companies including Revolut, Auto1 and Delivery Hero. It’s one of the biggest pan-European funds and its website lists over 100 portfolio companies. Its last fund was announced in 2020 and brought assets under management to over €1bn. 

The firm was started by the son of a now-sanctioned Russian oligarch, Alexander Frolov Sr. For the first time, Target Global confirmed to Sifted that another sanctioned oligarch, Alexander Abramov, was also historically an LP, but is no longer one. 

The lawsuit

In November 2022, a company called Finadvant, a cross-border payments company based in London, was acquired by a Dutch cross-border payments company called Finom. Target Global had invested in both companies. 

The lawsuit was filed to the Commercial Court in London in July by Gordiy — who claims she had a sales purchase agreement with Finadvant. Gordiy is a Ukrainian entrepreneur and founder of Remeeta, also a cross-border payments company. 

The legal case claims that the founder of Finadvant, Jekaterina Dorofejeva, delayed reporting the change in ownership once the company was acquired and thereby “committed fraud by providing inaccurate information” to the UK’s Financial Conduct Authority (FCA).

It alleges that Finadvant’s founder told the FCA that she and Target Global were still minority shareholders in the company when, it is alleged, the company was allegedly owned in its entirety by PNL Fintech B.V. — the trading name for Finom.

A lawyer for the founder of Finadvant, Dorofejeva, said she had not committed any fraud, made any misrepresentation or participated in any wrongdoing. The lawyer also said the FCA had never indicated that it had received inaccurate information. 

Why is PNL Fintech/Finom significant?

The lawsuit alleges that PNL Fintech/Finom’s directors are Russian citizens and that it is primarily owned by Target Global. 

It claims that the delay in declaring PNL Fintech/Finom as the ultimate beneficial owner meant Target Global and Dorofejeva could bypass the enhanced checks required for Russian citizens.

Target Global, in an email to Sifted, said it is not, and has never been, the primary owner of PNL Fintech/Finom. It said it is a minority investor and is not in a position to control information the company passed to the FCA. 

Mikhail Lobanov, a cofounder of Target Global, is listed as a supervisory director of PNL Fintech/Finom in financial filings. Target Global confirmed he is a non-executive director of PNL. An SEC filing from March 2022 describes Lobanov as a Russian citizen. Target Global told Sifted last week that he is a citizen of Kyrgyzstan.

The lawsuit alleges that the delay could have been for legitimate reasons, or that “there may be other factors at play that are related to money laundering”.

Target Global said it was not in a position to answer the claims due to a lack of information, that it was never party to an agreement with the claimant and that none of its employees had ever met her.

Dorofejeva’s lawyer told Sifted that she had not committed any fraud, made any representation or participated in any wrongdoing, alleged or otherwise. He said that there were no money laundering issues at play and that the claims did not specify the allegations. 

Who owns Target Global?

Target Global was cofounded in 2015 by Yaron Valler, Shmuel Chafets, Mike Lobanov and Alexander Frolov, the son of Russian oligarch Alexander Frolov Sr. 

Frolov stood down from Target Global in November 2022, after his father was sanctioned by the UK government. Frolov Jr was never himself on a sanctions list but sold all his shares in Target Global to other shareholders, the firm told Sifted last week.

Target also told Sifted that Alexander Frolov Sr sold his investments in Target Global “many months prior to any sanctions” — as did, a spokesperson said, Alexander Abramov, the chairman of Russian steel producer Evraz. 

Both Frolov and Abramov were sanctioned by the UK government in November 2022. Target had not previously confirmed that Abramov had invested in the fund. 

Many VCs and startups have sought to examine their relationship with Russia after the full-scale invasion of Ukraine in 2022 and the subsequent sanctions put on Russian individuals and entities. VCs with known links to Russia include DST Global, Redline Capital and RTP Global.  

DST's founder renounced his Russian citizenship in 2022 and its funds have not received any investment from Russian LPs since 2011. RTP told Sifted that the majority of its capital derives from its founder, Leonid Boguslavsky, who was born in Russia but no longer lives in the country. Asked if RTP has any other Russian individuals as LPs, it said it could not disclose details regarding its LPs but said it complies with all restrictions. It does not invest in Russian companies.

The future of Birmingham vanmaker LDV looked bleak today as proposals for a management buyout to save the firm appeared to have fallen through.

The future of Birmingham vanmaker LDV looked bleak today as proposals for a management buyout to save the firm appeared to have fallen through.

Plans to save the business, which employs 850 at its Washwood Heath plant and thousands more in the supply chain, were rejected by Russian owners GAZ.

LDV managers were continuing negotiations with the Government and investors over the weekend, as sources close to the business insisted the deal could still be saved.

But the Department for Business, Enterprise and Regulatory Reform (BERR) said it believed the buy-out was no longer an option.

Instead, it was urgently trying to contact two foreign companies which have expressed an interest in LDV, to discover what they planned to do with the Birmingham factory amid fears that production could be shifted overseas.

The business, which has not built any vehicles since before Christmas, has been pressing the Government for a bridging loan of up to £40 million, to restart production and press ahead with plans for a new “green” vehicle.

But Ministers have been deeply reluctant to risk taxpayers’ money, as the firm has not been profitable for seven years and its current problems cannot be blamed on the banking crisis.

A BERR spokesman said: “We understand that the managament buy-out is no longer an option as it has not been approved by parent company, Gaz. LDV has also now told us it has been approached by two potential investors. These are overseas companies.

“We are contacting these two potential investors today to find out more information about their level of interest in LDV.”

He added: “The government has already invested £25 million in this plant, has rescheduled tax payments, and has got agreement for their rent to be reduced.”

BERR officials are to seek reassurances from the potential investors about their plans for the factory, and specifically whether they intend to move production overseas.

LDV insisted the proposed management buy-out, led by outgoing GAZ chairman Erik Eberhardson, was still an option.

The British Government has refused to lend money to the Russian owned van maker LDV.

Ministers turned down the company's request for a bridging loan of up to £30 million to secure a management buy-out, saying it was up to its parent firm GAZ to fund the losses, reports The Times.

Doubt was also cast over whether  LDV's separate application to the European Investment Bank (EIB) for a £26 million loan would be successful unless GAZ used its own money to help the firm.

Meanwhile LDV is in discussion with the Government's business department over a management buyout to turn it into a manufacturer of green electric vans.

A statement from GAZ chairman Erik Eberhardson, leader of the management buyout, said: "We want to explore every avenue possible to save the company and the jobs.

"We still think that the company has a strong potential future as an electric van manufacturer, and the new ownership team, which is separate from GAZ, is prepared to invest its resources in that new venture if the government is able to give a short term loan.

"We are ready to sit down and talk with the government at any stage about what commitments each party is able to put in.

"We hope the government will accept our invitation to do so."

Mr Ebarhardson has put some of his own money into the buyout along with a contribution by GAZ with the total reaching about £3 - 4 million.

LDV employs 900 people in Birmingham with a further 6,000 jobs supporting the firm in the dealer network and supply industry.

Reports of how much LDV is asking the British Government for have differed.