Paramount Energy & Commodities SA (PECSA) filed a lawsuit against Biglaw firm Baker Hostetler and partner Jeffrey Berg alleging malpractice and breach of fiduciary duty. The Swiss-based energy company says a con man tried to steal control of the company and that the Biglaw firm vouched for his legitimacy.
At the heart of the allegations is businessman Gaurav Srivastava. Srivastava told Niels Troost, Paramount Energy’s sole shareholder, he was a CIA operative working on an “operation on behalf of the CIA that required the use, operation, and expansion of PECSA’s business activities.” That led to Troost’s agreement to transfer 50% of the company to a holding company — which would financially benefit Srivastava. The complaint alleges Berg told Troost he “knew of Mr. Srivastava’s power, influence, and position with the U.S. government.” The complaint continues, “For example, during one telephone call, Mr. Berg told Mr. Troost that Mr. Srivastava had ‘friends in very high places’ which enabled Mr. Srivastava to get things done. He said this to provide credibility to Mr. Srivastava and encourage the inversion transaction to be completed.”
Paramount hired BakerHostetler to complete that transfer in November 2022. The lawsuit alleges at the time of the conflict check Troost/PECSA was not informed Berg and Srivastava were partners in an African business venture called Himmelhoch Petroleum and Gas.
As reported by Reuters:
The lawsuit accused Berg of “regurgitating Mr. Srivastava’s fraudulent story” and endorsing his false pedigree.
For example, Los Angeles-based Berg allegedly told Troost in 2023 that Srivastava had “friends in high places” and had stopped an FBI investigation into Troost. The lawsuit said the FBI investigation was a fiction.
“Mr. Berg was either a conspirator in the scheme perpetrated by Mr. Srivastava, or like Mr. Troost and others, had been fooled by Mr. Srivastava,” the lawsuit said.
Paramount fired BakerHostetler in May 2023 — after they hired investigators and discovered holes in Srivastava’s story. The complaint also alleges BakerHostetler refused to return confidential client files at that time.
Earlier this year, Paramount and Troost were sanctioned by the United Kingdom for trading in Russian oil after their invasion of Ukraine. Troost’s attorney said they “are in the process of challenging the U.K. sanctions designation.”
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Mastodon @Kathryn1@mastodon.social.
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