An oil trader has been given a 21 month prison sentence for failing to pay millions of pounds to his ex-wife which was agreed in the divorce settlement.
Wade Cherwayko, former chief executive of Mart Resources, Canada, was accused of being in contempt of court by his former wife Moya.
The lawyer representing Ms Cherwayko told the judge that her former husband had agreed to pay more than £5 million, but had paid nothing. He also revealed to the judge that he had not produced documentation about his financial circumstances nor informed Ms Cherwayko about his worldwide assets. Therefore, Mr Cherwayko was in contempt of the court and should sentenced to prison.
Mr Cherwayko was not at the hearing. His lawyer, contesting the application, revealed that he was in Dubai.
His lawyer said that Mr Cherwayko’s financial situation had changed since the divorce settlement was agreed in 2014 due to the collapse of oil prices. He said he had little cash resorce with most assets being tied up in companies and shares that were hard to sell.
Mrs Justice Parker ruled in favour of Moya Cherwayko at the hearing in the Family Division of the High Court in London in July – ruling that Mr Cherwayko was in breach of an order to attend court, in breach of an order to provide information and in breach of an order to lodge five million shares pending payment of lump sums to Moya Cherwayko.
She outlined her decision in writing and ruled that the oil trader’s behaviour merited a ‘term of immediate imprisonment’. He had shown ‘contempt for this court’ and had demonstrated that he was ‘untrustworthy’.
The judge also said, “The fact that (he) may escape implementation of a custodial sentence by remaining outside the jurisdiction is no reason not to impose an immediate custodial sentence. He may not be able to remain outside for all time.”
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