Sanctioned oil trader sues US law firm over alleged fake CIA program

An oil trading company that was sanctioned earlier this year for allegedly skirting sanctions on Russia has sued its former U.S. law firm BakerHostetler, claiming to be the victim of a plot involving the firm and a phony U.S. intelligence agent.

The company, controlled by Dutch oil trader Niels Troost, claims BakerHostetler partner Jeffrey Berg committed legal malpractice by vouching for Gaurav Srivastava, who had convinced Troost — and perhaps Berg — that he was a CIA operative.

In reality, according to the lawsuit filed Monday in Los Angeles County Superior Court, Srivastava was a con man bent on acquiring Troost's Swiss company, Paramount Energy and Commodities SA (PECSA), which traded mainly in Russian oil before the invasion of Ukraine sparked international sanctions.

Srivastava, who is not a defendant in the lawsuit, did not respond to multiple requests for comment through his foundation.

Berg and a spokesperson at BakerHostetler also did not respond to requests for comment.

According to the lawsuit, Srivastava persuaded Troost that he was part of an "operation on behalf of the CIA that required the use, operation, and expansion of PECSA's business activities," and Troost agreed to transfer a 50% stake in the company to Srivastava for that purpose.

Srivastava allegedly introduced Berg and BakerHostetler to Troost, who hired them on the understanding that they could obtain regulatory clearances needed for Paramount to become a U.S. company and join the purported "CIA-FBI" program.

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.

A U.S. Justice Department spokesperson did not immediately respond to a request for comment on the claims involving Srivastava and Troost.

Ryan Saba, a lawyer representing Troost's company, declined to comment.

Paramount finally fired BakerHostetler in May 2023, after Troost hired other lawyers and investigators who discovered that Srivastava was not what he claimed, the lawsuit said.

BakerHostetler then committed professional misconduct by refusing to return confidential client files to Paramount, according to the lawsuit, which asked for unspecified monetary damages.

Paramount said it traded in Russian oil and petroleum products until October 2022, as Western sanctions followed Russia's invasion of Ukraine.

Troost and the company were sanctioned in February 2024 by the United Kingdom for allegedly facilitating "unfettered" Russian oil trade. Troost's UK assets were frozen and he is now banned from entering the country.

Saba said Troost and his companies "are in the process of challenging the U.K. sanctions designation."

Troost also hired a U.S. firm in March to lobby for him in connection with potential U.S. sanctions, according to Justice Department records.

The case is Paramount Energy & Commodities SA v. Baker & Hostetler LLP, et al., Los Angeles County Superior Court, 24STCV11278

For plaintiff: Ryan Saba and Allison Owens, of Rosen Saba LLP