United States v. All Funds on Deposit At

District Court, District of Columbia·Decided December 19, 2025·No. Civil Action No. 2004-0798·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

)

UNITED STATES OF AMERICA, )

)

Plaintiff, )

)

v. )

)

ALL ASSETS HELD AT BANK JULIUS, ) Civil Action No. 04-0798 (PLF) Baer & Company, Ltd., Guernsey ) Branch, account number 121128, in the ) name of Pavlo Lazarenko et al., )

)

Defendants In Rem. )

____________________________________)

OPINION AND ORDER

On September 25, 2025, this Court issued its Final Judgment and Final Order of Forfeiture (“Final Judgment”) [Dkt. No. 1523]. Then, on October 10, 2025, Mr. Lazarenko moved to dismiss this action for lack of in rem jurisdiction (“Lazarenko MTD”) [Dkt. No. 1527], and on October 23, 2025, he moved for reconsideration of the Court’s final judgment pursuant to Rule 59(e) of the Federal Rules of Civil Procedure (“Lazarenko Mot. Recon.”) [Dkt. No. 1534]. The motions have been fully briefed.

Upon careful consideration of the parties’ filings and the relevant legal authorities, the Court denies Mr. Lazarenko’s motion to dismiss and his motion for reconsideration.

I. FACTUAL AND PROCEDURAL BACKGROUND The Court’s prior opinions summarize the history of this case, starting with the criminal prosecution and conviction of Mr. Lazarenko and continuing through this long-running

in rem civil forfeiture proceeding. See United States v. All Assets Held at Bank Julius Baer & Co., Ltd., Civil Action No. 04-0798, 2020 WL 7640213, at *2 (D.D.C. Dec. 23, 2020) (summarizing prior opinions). What follows is an overview of facts relevant to Mr. Lazarenko’s pending motions.

In this action, the government has sought forfeiture of over $250 million in “property traceable to a series of criminal fraud, extortion, bribery, misappropriation, embezzlement, and money laundering activities of former Ukrainian Prime Minister Pavlo Ivanovich Lazarenko and his associates.” First Amended Verified Complaint for Forfeiture In Rem (“Am. Compl.”) [Dkt. No. 20] ¶ 1. On August 1, 2024, this Court entered default judgment in favor of the United States against the following groups of defendant assets and all assets traceable thereto: (1) the assets held at Credit Suisse (Guernsey) Limited in the name of Samante Limited as Trustees of the Balford Trust and those held in the same bank in a related escrow account in the name of Credit Suisse Trust Limited—Escrow Account Re: BT Trust (the “Balford Trust Assets”), see id. ¶¶ 5(b), (c), (j); (2) the assets held in the name of Beranco Engineering Establishments, Ylorex Establishments, and Tanas AG at multiple banks in Liechtenstein (the “Liechtenstein Accounts”), see id. ¶¶ 5(i)(i)-(iii), (j); (3) the assets held in correspondent bank accounts in the name of European Federal Credit Bank Limited in Switzerland and Lithuania (the “Correspondent Assets”), see id. ¶¶ 5(f)-(h), (j); and (4) the assets formerly on deposit in an account at Eurofed Bank Limited of Antigua & Barbuda for the benefit of Alexander Milchenko (the “Milchenko Account Assets”). See id. ¶¶ 5(e), (j); see also Order of August 1, 2024 [Dkt. No. 1511]; Opinion of August 1, 2024 [Dkt. No. 1512].

Following entry of the Court’s judgment, only three groups of defendant assets remained to be determined: (1) the defendant assets and all assets traceable thereto held in the

name of Pavlo Lazarenko at Bank Julius Baer (Guernsey) Ltd., see Am. Compl. ¶¶ 5(a), (j) (the “BJB Account”); (2) the defendant assets and all assets traceable thereto that remained in the Registrar’s Account after the U.S.-Eurofed Settlement, see id. ¶¶ 5(d), (j) (the “Antiguan Res”); and (3) the defendant assets and all assets traceable thereto held in the name of NRKTO 7541 at Liechtensteinishce Landesbank AG. See id. ¶¶ 5(i), (j) (the “NRKTO Account Assets”).

On September 22, 2025, the government moved for voluntary dismissal without prejudice of the three remaining defendant assets: the BJB Account, the NRKTO Account Assets, and the Antiguan Res. See United States’ Motion for Voluntary Dismissal Without Prejudice of the BJB Account, the NRKTO Account, and the Antiguan Res, and for Entry of Final Judgment and Final Order of Forfeiture (“Govt. Mot.”) [Dkt. No. 1522]. The government explained that because each of these three defendants in rem “has been forfeited in other proceedings or is believed to have been dissipated or both,” the government “no longer seeks determination of its claims to these assets through this civil forfeiture action.” Govt. Mot. at 1. The government further moved for entry of final judgment and a final order of forfeiture since dismissal of these three defendant assets “would resolve all remaining claims” in this action. Id.

On September 25, 2025, this Court granted the government’s motion for voluntary dismissal and dismissed the BJB Account, the NRKTO Account Assets, and the Antiguan Res without prejudice. See Final Judgment [Dkt. No. 1523] at 5. Because these three assets were the only ones remaining in the litigation, the Court also issued its final judgment and final order of forfeiture as to the defaulted assets disposed of through the Court’s 2024 default judgment. See id. at 5-7. Then the Court denied as moot all pending motions. See id. at 7.

The next day, on September 26, 2025, Mr. Lazarenko’s counsel submitted a letter advising the Court that they had been preparing a response to the government’s motion for

voluntary dismissal when the Court issued its final judgment. See Letter to Judge Friedman [Dkt. No. 1524] at 1. The Court granted Mr. Lazarenko time to respond to the government’s motion, see Minute Order of October 3, 2025, and he responded on October 10, 2025. See Pavel Lazarenko’s Response to the Motion of the United States For Voluntary Dismissal [Dkt. No. 1528]. In his response, Mr. Lazarenko explained that while he “does not oppose the dismissal of the Government’s last three claims”—that is, the dismissal of the BJB Account, the NRKTO Account Assets, and the Antiguan Res —“dismissing them without prejudice should not be permitted because of the irreparable harm it would inflict on Mr. Lazarenko.” Id. at 2.

Specifically, Mr. Lazarenko argues that dismissal of the three remaining assets without prejudice would “render substantial sums spent in this litigation defending the assets unnecessary and not subject to use in any subsequent litigation,” and “would potentially impact Mr. Lazarenko’s ability to seek or obtain attorney’s fees.” Lazarenko’s Response [Dkt. No. 1528] at 2-3. The government replied on October 17, 2025, see United States’ Reply to Lazarenko Response to United States Motion For Voluntary Dismissal of Three Assets [Dkt. No. 1530], and Mr. Lazarenko filed a surreply on October 23, 2025. See Pavel Lazarenko’s Surreply To The Government’s Motion To Dismiss Without Prejudice [Dkt. No. 1533].

On October 10, 2025—the same day that Mr. Lazarenko responded to the government’s motion for voluntary dismissal—Mr. Lazarenko moved to dismiss this action for lack of in rem jurisdiction. See Lazarenko MTD [Dkt. No. 1527]. Mr. Lazarenko argues that this Court does not have “control, constructive or otherwise of the in rem defendants.” Id. at 1. The government filed its opposition to Mr. Lazarenko’s motion to dismiss on November 6, 2025. See United States’ Opposition to Claimant Lazarenko’s Motion to Dismiss For Lack of In Rem Jurisdiction and Motion to Reconsider/Alter/Amend Pursuant to Rule 59(e) [Dkt. No. 1541].

Mr. Lazarenko replied on December 2, 2025. See Claimant Pavel Lazarenko’s Reply in Support of His Motion to Dismiss and Motion to Reconsider, Alter, or Amend [Dkt. No. 1548].

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