Kyrgyzstan Asks to Join SEC’s Global Industries Lawsuit

The Kyrgyz Republic seeks to join a U.S. regulator’s insider-trading lawsuit, claiming trades in Global Industries Ltd. were directed by the son of the Central Asian country’s former leader.

Lawyers for the country filed a request today in federal court in Manhattan asking to intervene in the Securities and Exchange Commission lawsuit in an effort to recover public funds allegedly stolen by Maksim Bakiyev. He is the son of Kyrgyzstan’s former president, Kurmanbek Bakiyev, who was ousted in an April 2010 coup.

The SEC said in a complaint filed in September 2011 that unknown buyers made more than $1.7 million in profit that month by trading on non-public information about Global Industries, a Sulphur, Lousiana-based oil-field construction company. A Moscow-based investment firm, Ergoport Experts Ltd., identified itself as the trader and denied acting on inside information. The case was dismissed last month after the agency dropped it without explanation.

A former financial adviser to the Bakiyevs, Eugene Gourevitch, was charged in an indictment unsealed last month in federal court in Brooklyn, New York, with conspiracy and obstruction of justice in the SEC case. He has pleaded not guilty to those charges.

Both Gourevitch and Maksim Bakiyev have been accused by the new Kyrgyz government of theft of public assets, money laundering and other crimes “arising from corruption in the deposed regime,” lawyers for the country said in today’s filing.

‘Complete Record’

“The intervention of the of the Kyrgyz Republic will assist the court by providing a more complete record, contributing to the full development of the underlying factual issues, assisting with the just and equitable adjudication of the legal questions facing this court” and support the mandate of the SEC, lawyers for the country said.

The case is Securities and Exchange Commission v. One or More Unknown Purchasers Of Securities Of Global Industries Ltd., 1:11-cv-06500, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Christie Smythe in federal court in Brooklyn, New York, at

csmythe1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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