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January 22, 2025

King & Spalding Secures Landmark Win in Decade-Long Fraud Case


King & Spalding successfully represented client Steven Kelbrick and Attock Oil International Limited on the dismissal of all claims related to fraud proceedings first issued almost ten years ago over an alleged $325 million oil trading fraud.

In a Judgment of over 400 pages handed down on 22 January, and following a three-month trial in London's Commercial Court, all claims against King & Spalding's clients were dismissed by Mr Justice Henshaw, the Judge in Charge of the Commercial Court. Mr Kelbrick, a then high net worth individual, and Attock Oil, his company, were the fifth and ninth defendants respectively in claims brought in February 2015 by companies in the Farahead Holdings group, beneficially owned by John Fredriksen, the Norwegian-born shipowner billionaire.

Mr Fredriksen and his former partner Mr Tor Olav Trøim both gave witness evidence for the Claimants. Both were criticised in the Judgment by Mr Justice Henshaw. Mr Fredriksen gave “implausible” evidence and was found to have “seemingly regardless of the facts, apparently convinced himself that he had been the victim of a fraud”. Mr Trøim was found to have made an “unfortunate omission” as regards a central aspect of the case, such that his evidence was rendered “unsatisfactory”.

The Judge also noted that former CEO of Arcadia, Paul Henry Adams, declined to appear to be cross examined, despite having given the evidence for Mr Fredriksen's Claimant entities when seeking the injunction in 2015. Mr Justice Henshaw determined it was “entirely unclear, given the documentary records and the evidence given at trial, how Mr Adams could have been in a position” to give his evidence. The claimants had alleged that individuals who were the former de facto CEO and CFO of companies owned by Farahead (the first and second defendants respectively) had conspired with the other defendants (including our clients Mr Kelbrick and Attock Oil) to cause the Claimants loss via the companies' trading of West African crude oil. Mr Kelbrick and the other Defendants had denied throughout that there had been any conspiracy. The Court found for Mr Kelbrick and the other Defendants on each point of their defences, exonerating Mr Kelbrick and his company completely. The Court had "no doubt" that Mr Kelbrick had given his evidence honestly, and was "fully satisfied" that Mr Kelbrick "acted honestly in relation to the transactions he was involved in.”

Mr Kelbrick has been subject to a worldwide freezing injunction since the beginning of the proceedings in 2015, during which ten year period Mr Kelbrick has been unable to carry on with his work. To our knowledge, it is the longest a freezing injunction – the court's "nuclear weapon" – has been in place pre-judgment over an individual and money alone cannot compensate Mr Kelbrick and his family for the stress and damage caused to them, endured for all of that time. The Claimants having given the usual undertaking in damages required by the court in exchange for putting a pre-judgment freezing injunction in place, Mr Kelbrick will now call on that undertaking, and pursue an immediate inquiry as to the very substantial damages for the loss he has suffered as a result of the freezing injunction during the course of the proceedings.

The King & Spalding team representing Mr Kelbrick and Attock Oil at trial comprised Tom Sprange KC, Sarah Walker, Charity Kirby, Liam Petch, Kate Williamson, Nadine Soliman and Lisa Wong. Freddie Popplewell of Essex Court was instructed as Junior Counsel.