Tuesday, January 29, 2013

Russian Governor's Office Searched in Alleged Privatization Fraud

Russian Governor, Nikita Belykh's office was searched recently in connection with suspected embezzlement of a local distillery that was privatized in 2010. The distillery in question, Urzhum Distillery Company, was reportedly sold for 98 million roubles (less than 3.3 million dollars in U.S. currency) while the stock's market price was valued at over 197 million roubles (over 6.5 million dollars in U.S. currency).

The primary suspect in the case is the former Head of the State Property Department of the Regional Administration, Konstantin Arzamastsev. He is currently in hiding, and his whereabouts are unknown by the local authorities. Others suspected of taking part in the fraud, including a securities appraiser and the director of the company that bought the stock, are already in custody. As more facts continue to come to light in the investigation, more will be known about the alleged frauds committed. For more information on the investigation, click here.

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