JYSAN HOLDINGS FILES FEDERAL LAWSUIT AGAINST KAZAKH GOVERNMENT IN NEVADA TO HALT CAMPAIGN TO EXPROPRIATE EDUCATION FUNDS

•  Lawsuit asserts that the Government of Kazakhstan has resorted to the same unlawful tools – confiscation, expropriation, threats, and intimidation – favoured by the world's most repressive dictators and authoritarian regimes.
• The lawless behavior by the Government of Kazakhstan, which is attempting to seize control of assets worth more than USD$1.5 billion, should concern all who wish to see the rule of law and international norms upheld in the former Soviet states.

LAS VEGAS, Feb. 16, 2023 /PRNewswire/ -- Nevada corporation Jysan Holding, LLC ("Jysan Holding") and its English subsidiary Jusan Technologies, Ltd, have today filed a lawsuit in Nevada federal district court against the Republic of Kazakhstan and others.

Jysan Holding accuses the Kazakhstan Government of engaging in a campaign of fear and intimidation in order to seize control of the companies' Kazakhstan-based assets, worth more than USD$1.5 billion, for its own benefit as well as for the benefit of associated individuals.

The Nevada lawsuit asserts claims of expropriation under international law, violations of the federal RICO statute as well as claims under Nevada state law for wrongful tortious conduct and civil conspiracy. The lawsuit seeks injunctive and declaratory relief as well as compensatory and punitive damages for the defendants' illegal conduct. 

As detailed in the lawsuit, the Kazakhstan Government has tried to wrongfully seize the assets of Jysan Holding, the New Generation Foundation ("NGF") and its direct and indirect subsidiaries (together, the "Jusan Group") by any means necessary, including threats, intimidation, criminal and civil investigations, trumped up litigation, lawless asset freezes and blocking USD $387 million in dividends lawfully slated for distribution by the Jusan Group's privately owned bank, First Heartland Jusan Bank (the "Bank"). 

The lawsuit details the history of corruption and intimidation by Kazakh government agencies against Nevada and English entities, further showing that the conduct against the Jusan Group is a timeworn tactic against the international investor community.  The lawsuit asserts that Kazakhstan has leveled threats of violence and imprisonment against United States residents who have material economic interests in the Jusan Group if Kazakhstan's commercial demands are not met.  These acts are in line with the Government of Kazakhstan's history of rampant corruption, which according to public reporting has worsened since 2022. In sum, the Government of Kazakhstan has resorted to the same unlawful tools—confiscation, expropriation, threats, and intimidation—favored by the world's most repressive dictators and authoritarian regimes.

NGF is a Nevada not-for-profit entity that was founded to ensure the sustainability of two flagship academic institutions in Kazakhstan: Nazarbayev University—a modern, English-language research university located in Astana; and Nazarbayev Intellectual Schools, a nationwide network of 21 secondary schools that teach in English, Kazakh and Russian. 

If allowed to continue, the Kazakhstan Government's conduct will prevent the Jusan Group from fulfilling their commitment to ensuring educational excellence to the schools; before the campaign began, NGF and the Jusan Group have provided millions of dollars in grants to Nazarbayev University and Nazarbayev Intellectual Schools.

This lawsuit will not affect the daily business activities or finances of Jusan Bank, which continues to have strong financial and business results.

A spokesman for Jysan Holding LLC said:

"We are deeply concerned by the Government of Kazakhstan's attempts to expropriate funds from Western-oriented educational institutions. If the Jusan Group's funds are frozen, schools tasked with teaching principles of educational freedom will be deprived of necessary financial support, which will negatively affect their students, researchers, and educators by obstructing an education that emphasizes the values of academic rigor, evidence-based research, and innovation. We are filing this lawsuit to be able to continue to support these schools and their beneficiaries.

"We are also concerned about the history of corruption in Kazakhstan and have uncovered a number of illicit transactions by individuals seeking to unwind lawful transactions involving the Jusan Group that were done with the express approval of the Kazakhstan government.  Our investigation will shine a light on the lawless behavior of the Soviet-styled government in Kazakhstan which is wrongfully targeting the Jusan Group.

"The conduct of the Kazakhstan Government – and its breathtaking disregard for rule of law – forms a pattern of racketeering and corruption which is in potential violation of the U.S. Global Magnitsky Human Rights Accountability Act. International investors, the US Government, and others should be concerned with the conduct against the Jusan Group. Attempted asset seizure, intimidation, and breaching settled obligations shows an absolute disdain for international norms which should cause any international investor to think twice about investing in Kazakhstan."

NOTES TO EDITORS

Jysan Holding and JTL are represented in these proceedings by Tariq Mundiya, Michael Gottlieb and Jeffrey B. Korn of Willkie Farr & Gallagher LLP and J. Stephen Peek and Erica Medley of Holland & Hart LLP

The case JYSAN HOLDING, LLC, a Nevada Limited Liability Company; JUSAN TECHNOLOGIES LTD, an England and Wales Limited Company v REPUBLIC OF KAZAKHSTAN, et al. (D. Nevada)

New Generation Foundation (NGF) is the sole owner of Jysan Holding, LLC (JH), a Nevada limited liability company. Jusan Technologies Ltd is a company incorporated in United Kingdom with business interest in various sectors of banking, e-commerce, telecommunications, logistics and retail and other financial sectors such as brokerage, insurance, and assets management, which are primarily located in the Republic of Kazakhstan.

Media requiring more information should contact [email protected]

SOURCE Jysan Holding, LLC