Latest news with #FrancescoMazzagatti
Yahoo
a day ago
- Business
- Yahoo
Tycoon buying up North Sea fighting fresh fraud claims
An energy tycoon in talks to buy 5pc of Britain's North Sea gas production is facing new claims of fraud, The Telegraph can reveal. Francesco Mazzagatti has been accused of stealing £23.5m from his former employer to help fund a deal for a London-listed energy producer, according to recently submitted court documents. It is claimed that the oil trader extracted funds from Alliance Petrochemical Investment (API), a Singaporean trading company he previously worked for, to purchase RockRose Energy in 2020. The acquisition established Mr Mazzagatti as a key player in the UK energy market. He is now racing to expand his empire by acquiring 11 North Sea gas fields owned by Shell and ExxonMobil for £403m. Shell hopes to complete the deal by the end of this year, although it is still awaiting sign-off from the UK Government. The planned acquisition would hand Mr Mazzagatti control of 5pc of Britain's total gas production, making him critical to the country's long-term energy security. However, the transaction has been overshadowed by claims made against Mr Mazzagatti of fraud and theft. API is already fighting a High Court battle against Mr Mazzagatti in the UK and has launched separate proceedings in Singapore. Recently submitted court documents in the Singaporean case claim to show how Mr Mazzagatti syphoned funds to himself, allegations he denies. Ngoo Sin Hung Justin, an API director, has sworn an affidavit accusing Mr Mazzagatti of stealing at least £23.5m from API and its subsidiary APT. He is alleged to have done so via Petrochemical Industries Ltd (PIL), a company he controlled. In his affidavit, Mr Ngoo Justin alleges Mr Mazzagatti controlled APT's finances for his own benefit and made unexplained transactions to third-party entities. He said: 'Mazzagatti has deliberately withheld documents pertaining to APT, including the bank statements of all bank accounts held in its name, so as to conceal his misappropriation of funds from APT.' As part of its lawsuit, API claims to have obtained Mr Mazzagatti's bank statements. 'Mazzagatti's bank statements show that considerable sums were transferred from the accounts of API and APT to Petrochemical Industries and subsequently to Mazzagatti,' court papers said. 'The evidence of Mazzagatti's bank statements is damning and clearly shows direct misappropriation of funds from API by Mazzagatti through PIL.' Copies of Mr Mazzagatti's bank statements were included in the court filings in Singapore, allegedly showing the flow of funds from API to Mr Mazzagatti and onwards to other entities. The alleged transactions are set out in a range of currencies, underlining the global nature of the claimed fraud. For example, on Nov 19 2020, €15.5m (£13.2m) was allegedly transferred from API to Mr Mazzagatti before another €3.2m allegedly landed in his account a month later. In one transaction, Mr Mazzagatti allegedly transferred £2.9m of API's funds directly to RockRose Energy. Another alleged $6.3m transaction is also referenced. In his response to the latest claims regarding his bank statements, Mr Mazzagatti said it was a 'contrived and disingenuous' attempt to accuse him of wrongdoing. The energy tycoon denies the allegations and claims they are part of a 'vexatious campaign of defamation, harassment and extortion'. He also denies deliberately failing to disclose relevant documents in the case to conceal his alleged wrongdoings. The latest allegations follow previous claims in the English High Court by API that Mr Mazzagatti faked bank statements, forged documents and misappropriated a total of €143m. The API lodged its UK claim last October, just three months after Shell announced the sale of its Southern North Sea assets to Viaro, Mr Mazzagatti's start-up energy company. In his reply to the affidavit filed in Singapore, Mr Mazzagatti strenuously denied any wrongdoing and said the issue of the misappropriated funds has 'not yet been determined by the UK court'. An earlier defence submitted to the High Court in England also attacked the 'false' fraud claims, as he stressed that he was 'not responsible for any unlawful payments'. According to his defence, 'it is denied that Mr Mazzagatti misappropriated any sums from API' or that he 'made any false representations to the board of API'. His defence also claims that he 'was not responsible for overseeing or making payments, and did not control API's affairs'. In the months after his takeover of RockRose, Mr Mazzagatti rapidly expanded his assets in the North Sea, notably purchasing SSE's portfolio of gas exploration and production assets for £120m. Shell is proceeding with its plans to sell 11 gas fields to Mr Mazzagatti's Viaro Energy despite the fraud allegations. Viaro said the deal would hand it control of 'the backbone of the UK's energy production and security'. A source close to Mr Mazzagatti has said the lawsuits will have no bearing on the North Sea deal with Shell. They also claimed that 'there is not a single piece of credible evidence' to support the claims. Joe Robertson, Conservative MP, urged the Energy Secretary to scrutinise the deal. He said: 'Ed Miliband should look very carefully at these proposed plans to offload 5pc of Britain's North Sea gas production to a man currently accused of fraud in the High Court.' Lawyers for Mr Mazzagatti pointed to a recent court ruling in the UAE where there was no finding against him regarding claims of embezzlement. An allegation of forgery was also dismissed. A Shell spokesman said: 'The sale of Shell's offshore gas assets in the UK Southern North Sea to Viaro Energy has received a number of regulatory approvals and is expected to complete this year. 'We have a well-established due diligence process and continue to work with all relevant regulators, including the North Sea Transition Authority.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Telegraph
a day ago
- Business
- Telegraph
Tycoon buying up North Sea fighting fresh fraud claims
An energy tycoon in talks to buy 5pc of Britain's North Sea gas production is facing new claims of fraud, The Telegraph can reveal. Francesco Mazzagatti has been accused of stealing £23.5m from his former employer to help fund a deal for a London-listed energy producer, according to recently submitted court documents. It is claimed that the oil trader extracted funds from Alliance Petrochemical Investment (API), a Singaporean trading company he previously worked for, to purchase RockRose Energy in 2020. The acquisition established Mr Mazzagatti as a key player in the UK energy market. He is now racing to expand his empire by acquiring 11 North Sea gas fields owned by Shell and ExxonMobil for £403m. Shell hopes to complete the deal by the end of this year, although it is still awaiting sign-off from the UK Government. The planned acquisition would hand Mr Mazzagatti control of 5pc of Britain's total gas production, making him critical to the country's long-term energy security. However, the transaction has been overshadowed by claims made against Mr Mazzagatti of fraud and theft. Theft accusations API is already fighting a High Court battle against Mr Mazzagatti in the UK and has launched separate proceedings in Singapore. Recently submitted court documents in the Singaporean case claim to show how Mr Mazzagatti syphoned funds to himself, allegations he denies. Ngoo Sin Hung Justin, an API director, has sworn an affidavit accusing Mr Mazzagatti of stealing at least £23.5m from API and its subsidiary APT. He is alleged to have done so via Petrochemical Industries Ltd (PIL), a company he controlled. In his affidavit, Mr Ngoo Justin alleges Mr Mazzagatti controlled APT's finances for his own benefit and made unexplained transactions to third-party entities. He said: 'Mazzagatti has deliberately withheld documents pertaining to APT, including the bank statements of all bank accounts held in its name, so as to conceal his misappropriation of funds from APT.' As part of its lawsuit, API claims to have obtained Mr Mazzagatti's bank statements. 'Mazzagatti's bank statements show that considerable sums were transferred from the accounts of API and APT to Petrochemical Industries and subsequently to Mazzagatti,' court papers said. 'The evidence of Mazzagatti's bank statements is damning and clearly shows direct misappropriation of funds from API by Mazzagatti through PIL.' Copies of Mr Mazzagatti's bank statements were included in the court filings in Singapore, allegedly showing the flow of funds from API to Mr Mazzagatti and onwards to other entities. The alleged transactions are set out in a range of currencies, underlining the global nature of the claimed fraud. For example, on Nov 19 2020, €15.5m (£13.2m) was allegedly transferred from API to Mr Mazzagatti before another €3.2m allegedly landed in his account a month later. In one transaction, Mr Mazzagatti allegedly transferred £2.9m of API's funds directly to RockRose Energy. Another alleged $6.3m transaction is also referenced. 'Contrived and disingenuous' In his response to the latest claims regarding his bank statements, Mr Mazzagatti said it was a 'contrived and disingenuous' attempt to accuse him of wrongdoing. The energy tycoon denies the allegations and claims they are part of a 'vexatious campaign of defamation, harassment and extortion'. He also denies deliberately failing to disclose relevant documents in the case to conceal his alleged wrongdoings. The latest allegations follow previous claims in the English High Court by API that Mr Mazzagatti faked bank statements, forged documents and misappropriated a total of €143m. The API lodged its UK claim last October, just three months after Shell announced the sale of its Southern North Sea assets to Viaro, Mr Mazzagatti's start-up energy company. In his reply to the affidavit filed in Singapore, Mr Mazzagatti strenuously denied any wrongdoing and said the issue of the misappropriated funds has 'not yet been determined by the UK court'. An earlier defence submitted to the High Court in England also attacked the 'false' fraud claims, as he stressed that he was 'not responsible for any unlawful payments'. According to his defence, 'it is denied that Mr Mazzagatti misappropriated any sums from API' or that he 'made any false representations to the board of API'. His defence also claims that he 'was not responsible for overseeing or making payments, and did not control API's affairs'. In the months after his takeover of RockRose, Mr Mazzagatti rapidly expanded his assets in the North Sea, notably purchasing SSE's portfolio of gas exploration and production assets for £120m. Shell is proceeding with its plans to sell 11 gas fields to Mr Mazzagatti's Viaro Energy despite the fraud allegations. Viaro said the deal would hand it control of 'the backbone of the UK's energy production and security'. A source close to Mr Mazzagatti has said the lawsuits will have no bearing on the North Sea deal with Shell. They also claimed that 'there is not a single piece of credible evidence' to support the claims. Joe Robertson, Conservative MP, urged the Energy Secretary to scrutinise the deal. He said: 'Ed Miliband should look very carefully at these proposed plans to offload 5pc of Britain's North Sea gas production to a man currently accused of fraud in the High Court.' Lawyers for Mr Mazzagatti pointed to a recent court ruling in the UAE where there was no finding against him regarding claims of embezzlement. An allegation of forgery was also dismissed. A Shell spokesman said: 'The sale of Shell's offshore gas assets in the UK Southern North Sea to Viaro Energy has received a number of regulatory approvals and is expected to complete this year. 'We have a well-established due diligence process and continue to work with all relevant regulators, including the North Sea Transition Authority.'
Yahoo
08-02-2025
- Business
- Yahoo
Shell to pursue £400m North Sea sale despite fraud claims against buyer
Shell is forging ahead with plans to offload 5pc of Britain's North Sea gas production to an energy tycoon battling claims of fraud. The London-listed energy company has confirmed it hopes to complete the $500m (£403m) sale of 11 gas fields to Francesco Mazzagatti's start-up, Viaro Energy, by the end of this year, despite the intended buyer battling legal allegations about his conduct. Mr Mazzagatti is facing claims in the High Court that he faked bank statements, forged documents and misappropriated €143m of funds. The entrepreneur denies the allegations and has claimed they are part of a 'vexatious campaign of defamation, harassment, and extortion'. He was sued for fraud late last year by a Singaporean trading company that he previously worked for. Alliance Petrochemical Investment (API) lodged its claim against the entrepreneur in October, just three months after Shell announced the sale of its Southern North Sea assets to Viaro. The planned acquisition of Shell's oil fields, which are jointly owned by Exxon, will make Mr Mazzagatti a significant player in the North Sea. After the deal was announced last year, Viaro – which currently produces 25,000 barrels of oil a day – said it would soon control the 'backbone of the UK's energy production and security'. Mr Mazzagatti has been building a portfolio of assets in the area in recent years, including through the £250m acquisition of UK-based RockRose Energy in 2020. API has claimed in that Mr Mazzagatti misappropriated funds from the company to help finance the acquisition of RockRose. The lawsuit, which also lists Viaro's chief financial officer Dixit Dominus as a defendant, has pitted Mr Mazzagatti against API, where he was chief executive between 2018 and 2020. Mr Dominus also denies the allegations. Separately, questions have also been raised over Mr Mazzagatti's ties to an Abu Dhabi Sheikh. The Viaro boss has previously said he completed the RockRose deal with the help of a $250m facility from Sheikh Zayed bin Mohammed al Nahyan. However, the Sheikh has since claimed to have never heard of Mr Mazzagatti, as first reported by Bloomberg. A spokesman for the Sheikh last month said: 'Sheikh Zayed has no relationship whatsoever with Mr Francesco Mazzagatti, with whom he has never met, corresponded or spoken.' Mr Mazzagatti has stressed the financing is valid and repeatedly denied the allegations of fraud from API. Sources close to the businessman, who is also bringing a counter-claim against API, said the lawsuit will have no bearing on the North Sea deal with Shell. A spokesman for Viaro said: 'The API Claim, and the allegations levelled against Mr Mazzagatti, are part of a vexatious campaign of defamation, harassment, and extortion aimed at damaging his reputation. 'Mr Mazzagatti himself denies any and all accusations of wrongdoing, and there is not a single piece of credible evidence backing these allegations. 'Viaro's acquisition of Shell and ExxonMobil Southern North Sea assets is on track to be completed in 2025 as planned. It is unaffected by API's allegations and is subject to regulatory approvals.' A Shell spokesman added: 'For acquisitions and divestments we have a well-established due diligence process, including the use of external advisers. 'The sale of Shell's offshore gas assets in the UK Southern North Sea to Viaro Energy is subject to regulatory approvals and expected to complete in 2025.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
