A U.N. Official's Payments: Zero Interest Loans, a Mercedes and a Tennis Sponsorship

Source: New York Times

A U.N. Official's Payments: Zero Interest Loans, a Mercedes and a Tennis Sponsorship
The official secretly took $3 million in gifts from a businessman to whom he steered the organization's funds, a court ruled. The U.N. got a song about the ocean.


A U.N. court found last week that Vitaly Vanshelboim had committed fraud and "blatant misconduct" by failing to disclose gifts from a British businessman. Eugene Gologursky/Getty Images

By David A. Fahrenthold and Farnaz Fassihi
David A. Fahrenthold reported from Washington, and Farnaz Fassihi from the United Nations.

Oct. 8, 2024, 9:36 a.m. ET

A high-ranking United Nations official secretly took $3 million in gifts from a British businessman while he steered more than $58 million of the organization's money to the man's companies, according to a ruling from an internal U.N. court. ... The decision provided a potential answer to a question that has baffled the organization since news broke in 2022 of Vitaly Vanshelboim's disastrous investments: Why did a 20-year veteran of the United Nations defy auditors and common sense by entrusting his agency's entire investment portfolio to a man he purportedly met at a party?

The court found last week that Mr. Vanshelboim, a Ukrainian, had committed fraud and "blatant misconduct" by failing to disclose the gifts from the businessman, David Kendrick. It said Mr. Vanshelboim had received interest-free loans, home repairs, a new Mercedes and a $1.2 million sponsorship for his teenage son, who was a tennis player.

"This is insane, how is this possible," the son wrote back to his father at the time, according to an email cited in the court ruling. "I'm not even a good tennis player yet." ... "Part of my job is to make insane things happen," Mr. Vanshelboim replied, the court said.

The United Nations now says that all $58 million that Mr. Vanshelboim's agency entrusted to Mr. Kendrick has been lost. Mr. Vanshelboim was fired last year, fined a year's pay and ordered to repay all the money lost through the United Nations' dealing with Mr. Kendrick.

{snip}

David A. Fahrenthold is an investigative reporter writing about nonprofit organizations. He has been a reporter for two decades. More about David A. Fahrenthold

Farnaz Fassihi is the United Nations bureau chief for The Times, leading coverage of the organization, and also covers Iran and the shadow war between Iran and Israel. She is based in New York. More about Farnaz Fassihi

Read more: https://www.nytimes.com/2024/10/08/us/un-official-gifts-fraud.html