Restaurateur Accused Of Skipping Out On Loans, Wanted In Court

KIEV, Ukraine -- German native Eric Aigner, among Ukraine’s best known restaurateurs and club managers, is being accused of defrauding business partners of more than $300,000.

Eric Aigner
One of the accusers, New Zealander Ken Carter, filed a civil lawsuit last November in the Pechersk District Court to recover $42,500 Aigner allegedly owes him and filed a police report accusing fraud.

Aigner, currently developing a business in Odesa, denies the charges and said his good name is being smeared.

Aigner established himself in the late 1990’s as the manager of a group of more than 18 successful restaurants and night spots in Kyiv, and is credited as the main driving force behind Kyiv’s emerging dining and music scene.

But in recent years, he has bounced from project to project after falling out with owners and financiers.

Igor Cherezov, Carter’s lawyer and partner with the Astapov Lawyers International Law Group, said his client first asked local police in October 2007 to pursue criminal charges of fraud and embezzlement.

He provided the Post with police documents indicating criminal proceedings were halted in November, with the recommendation that the case be taken to a civil court as law enforcement officials could not establish Aigner’s whereabouts.

Since then, Aigner, whose name on his German passport is Eckhardt Aigner, has missed two court summons, the last one on Feb. 1, leading some to speculate he is hiding.

Reached by the Post on Feb. 5, Aigner said he is not fleeing Kyiv.

“I have been in Odesa, ever since things didn’t work out in 2007, to pursue business partnerships, and to do what I do best,” he said.

“People know where to find me here.”

Carter, who has no prior restaurant experience, said the two met in June 2007 to discuss investment opportunities in two bars facing financial trouble at the time.

Based on Aigner’s good name and reputation in Kyiv’s expatriate community, they signed agreements and agreed to split profit evenly, forming a company called Eric & Ken Ltd., he said.

“I began issuing monthly cash advances not only to cover business expenses, but also to cover Aigner’s personal obligations such as rent, to fund his daughter’s vacations, and other costs,” Carter said.

Aigner said Carter destroyed their business partnership by being too authoritative, causing problems with a landlord, and not giving him the freedom to develop the business.

After conducting a personal investigation, Carter said he learned of Aigner’s outstanding debts to landlords, contractors, and staff.

In response, Aigner said none of the money in question went to personal use.

“I didn’t use the money to buy a car or something,” Aigner said. “I invested into the business. Carter must assume the risk he made into our business. It is a part of life.”

Carter said he found six other lenders, two Ukrainians and four expatriates who lent Aigner a sum of $280,000, of which three provided documents to Astapov lawyers.

“They were all asked for personal loans of up to $50,000 and have not gotten any money back,” Carter said.

They are afraid to pursue lawsuits because the invested funds are not declared with authorities, particularly the State Tax Administration, Cherezov said.

Aigner said he owes $60,000 to three people in Kyiv who are his friends and added that he has every intention of paying them back “as soon as things get moving above water.”

The Post spoke with six other foreigners who did not wish to have their names printed but claim to have lent Aigner large sums of money. The amounts varied from $5,000 to $50,000.

Aigner faces a maximum sentence of eight years in jail if he’s criminally convicted of fraud, or up to five years if he can’t pay back the amount he owes Carter in the civil case, Cherezov said.

“We will pursue criminal charges again with the new evidence we’ve gathered since November 2007,” said Cherezov.

The next court date is at the end of this month.

“I will be there for the court case and will have a lawyer with me if I make enough money to afford one,” Aigner said. “Otherwise, I’ll represent myself.”

Source: Kyiv Post