Police detained consumer cooperative head accused of fraud

“Officers of the Administration for Economic Security and Combating the Corruption in collaboration with colleagues from the criminal investigation unit of the MIA of Russia Administration for the Novgorod Region detained a former head of a consumer cooperative accused of especially large-scale fraud.

According to available information, the offender, with the intention of theft of citizens’ money, organized the activities of a credit consumer cooperative on the principle of a financial pyramid, where investors received income only on account of contributions from new participants. Moreover, in the last years of the organization’s activities, its shareholders were misguided about its stability. In fact, the financial status did not allow to completely fulfill the assumed obligations on deposits. In addition, facts of “withdrawal” of funds received from citizens on false grounds, including through the issuance of deliberately bad loans, were established.

The Investigative Administration of the MIA of Russia Administration for the Novgorod Region initiated a criminal case on the grounds of a crime under part 4 of Article 159 of the Criminal Code of the Russian Federation.

The suspect was detained by the police at the M.V. Lomonosov Domodedovo Airport of Moscow. The defendant was charged with committing the incriminated act and a preventive measure in the form of detention was chosen against him.

It should be noted that the unlawful activities of the former head of the consumer cooperative was revealed in the framework of the investigation of another criminal case initiated in April 2014 against the chief accountant and deputy chairman of that organization. More than 93 million rubles were stolen by them by way of changing information on borrowers and issuing falsified expenditure cash orders for receiving funds under loan agreements from the cooperative’s cash desk. In November 2014, a preventive measure in the form of remand in custody was taken in absentia with respect to the defendants, and they were put on the international wanted list. Their property has been arrested.

Currently, operational-search measures and investigative actions are being conducted aimed at establishing all the circumstances of the incident,” said the official representative of the Russian MIA Irina Volk.

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