Oil Trader Gets 21 Months in Prison Over U.K. Divorce Suit

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An oil trader in Dubai has been sentenced to almost two years in prison by a U.K. judge for failing to comply with court orders in a more than five million-pound ($7.9 million) divorce case.

Wade Cherwayko, the former chief executive officer of Mart Resources Inc., has shown “contempt” and is “untrustworthy” after breaking promises to appear in court and hand over 5 million shares in the company as collateral for his financial obligations, Judge Judith Parker said Monday in London.

The fact that Cherwayko “may escape implementation of a custodial sentence by remaining outside the jurisdiction is no reason not to impose an immediate custodial sentence,” Judge Parker said. “He may not be able to remain outside it for all time.”

Another oil trader, Michael Prest, was threatened with four weeks in jail in July if he failed to pay 360,200 pounds by a High Court judge in a multi-million pound divorce battle that dates back to 2008.

An employee who answered the phone at Mart Resources’ London office said Cherwayko was now a consultant to the Calgary-based company. He left his role as CEO in February, according to Bloomberg data.

A voicemail left at the Calgary office wasn’t immediately returned. Duncan Watson, Cherwayko’s lawyer, declined to comment.

Another London judge had ordered Cherwayko to pay more than 5 million pounds in three lump sums over three years to his wife and their two children.

Stewarts Law, the firm representing Cherwayko’s wife Moya, didn’t immediately reply to a voice mail asking for comment.

(Updates with Cherwayko lawyer declining to comment in sixth paragraph.)
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