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

2 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

3 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.

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