In the Belgorod Region, by Court’s decision, three defendants in a criminal case related to real estate fraud were remanded in custody. According to preliminary data, they account for 17 episodes of illegal activity. The total damage caused to the owners of residential premises is estimated at more than 30 million rubles.

According to investigators, in order to give an appearance of legitimacy to the illegal business, the offenders registered a commercial organization. Using its bank details, they distributed advertisements for loans secured by real estate. The deception scheme was designed for citizens in financial difficulties who were denied loans for reasons of insolvency.

The offenders misled customers by informing them that to obtain a loan secured with real estate, it was necessary to re-register the ownership of the property and sign a purchase and sale contract. In fact, the defendants acquired for themselves an opportunity to freely dispose of other people's property. After signing the documents, the victims received loans. However, part of the amount was immediately withheld allegedly as a down payment. Subsequently, the offenders created onerous conditions for customers. By accruing all kinds of fines, penalties and interest, they forced the victims to refuse from loan repayment. After that, the offenders evicted citizens from their homes, motivating that by non-payment of debt and convincing them of the legality of those actions.

The Inquiry unit of the MIA of Russia Administration for the Belgorod Region prosecuted the suspects on the features of crimes stipulated by part 4 of Article 159 of the Criminal Code of the Russian Federation “Fraud committed on an especially large scale, entailing the deprivation of a citizen’s right to premises”, which are currently combined in one proceeding. The sanctions of this article stipulate a term of up to ten years in prison.