Former CEO of main Russian investment team charged with scam
(MENAFN) A former president of AFK Sistema, Evgeny Novitsky, has been placed under house arrest until August 20 by a Moscow court, facing accusations of large-scale fraud related to the 'Ural FD' private pension fund. The charges allege that Novitsky, along with accomplices, orchestrated a scheme to unlawfully acquire funds from the pension fund by purportedly investing in securities on the stock exchange.
The Ural FD pension fund ceased operations in 2016 after losing its state license, impacting approximately 19,000 clients who had entrusted their pension savings. At the time of its closure, the fund held pension reserves totaling 117 million rubles (USD1.31 million), with total entrusted savings amounting to 890 million rubles (USD10 million) by the end of 2015.
Alongside Novitsky, two other suspects, Oleg Mezentsev and Olga Illarionova, have also been placed under house arrest in connection with the case. Mezentsev faces allegations of fraud related to securities administration, while Illarionova is accused of a deliberate breach of contract. The specific roles of Mezentsev and Illarionova in the alleged fraud scheme have not been detailed by the court.
Sources from the Russian business news outlet RBK suggest that Novitsky may also be implicated in another fraud investigation involving businessman Aleksey Taicher. Taicher, formerly associated with the Transfin-M leasing company, is accused of engaging in fraudulent loan agreements where he allegedly had no intention of repaying borrowed funds, resulting in damages exceeding 710 million rubles (USD7.98 million) according to investigators.
The developments underscore ongoing legal scrutiny and allegations surrounding financial improprieties involving prominent figures in Russian business circles, highlighting concerns over corporate governance and financial integrity within the country's investment sector.
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