The former Minister of Finance of the Moscow region Valery Nosov has been sentenced to four years of imprisonment in a colony settlement.
Nosov is a suspect in the high-profile case on embezzlement of budget of the Moscow region. But the case, on which he was convicted, concerned another swindle. He was accused of extortion of more than 70 million rubles from businessman Valery Borodkin. Together with him, the former Adviser to the Mayor of Grozny Ruslan Khatsiyev and producer Albert Guchigov were convicted. The latter is known for having organized the visit to Russia of the world boxing legend Michael Tyson.
After retiring from the regional government, Nosov headed the Board of Directors of the Horizon Financial Company JSC. In 2008, his company loaned 60 million rubles to Borodkin's construction company Energokonsalt. Borodkin was not able to pay the money in time, and the Horizon filed a lawsuit in court. Then it turned out that all his property in Russia - the land in Chigasovo, apartments, and Rolls-Royce - Borodkin had re-regisrated on his wife Tatiana Lonskaya, having broken the marriage previously.
The Horizon assigned its interest on the Borodkin’s debt to the Rostorgservis company associated with Guchigov. Guchigov and Khatsiev demanded that Borodkin give to Nosov several buildings amounted to 80 million rubles and the Rolls - Royce car, threatening to plant drugs on businessman or to kidnap his son. Borodin addressed in the law enforcement bodies, and in February 2010, Nosov, Guchigov, and Khatsiev were detained.
The hearings on the case in the Presnensky court were accompanied by curious details. Borodkin went to the court on the Rolls-Royce and with bodyguards and claimed that he was working in the Ryabinushka shopping centre and received a salary of 5.5 thousand rubles. A specialist from the North Caucasus invited by Borodkin as an expert to determine the price of the Rolls-Royce, compared it to Chevrolet NIVA of the same year and the “similar configuration”.
Lanskaya, telling about the threats to kidnap her child, said that they came by the phone. She specified the exact time of the call and the number of the caller. However, the listing of telephone connections testified that at the time, specified by Lanskaya, no one called.
As a result, the Prosecutor's office asked to reclassify the charge from the Art. 163 of the Criminal code of the Russian Federation (extortion) to the Art. 330 of the Criminal Code (arbitrariness) and to sentence each defendant to four years imprisonment.
Valery Nosov was arrested on charges of extortion, but he much more interested the investigation in connection with the investigation of the large-scale embezzlement of funds from the budget of the Moscow region. According to the investigation, more than 27 billion rubles were stolen with the participation of Valery Nosov, ex-Minister of Finance of the government of the Moscow region Alexey Kuznetsov, and his wife Janna Bullock.
In 2010 Investigation Committee of the Interior Ministry made a decisive step while investigating one of the largest corruption crimes in nowadays Russia. On August, 5 the offices of the group of companies Orsi (Open Market of Building Investments) were searched and several other locations in Moscow and Moscow region associated with this firm, led by Andrey Pashkovsky and Georgy Kopylenko.
Participation of Kuznetsov in financial frauds surfaced in 1996. Kuznetsov served as vice president of “Inkombank”. American shareholders started to sue the bank.
In 1993, Americans discovered the disappearance of money from the accounts and through their lawyers began internal reviews. It was found out that the methods of keeping bank accounts allowed stealing to everyone – starting from operator up to the president. Some frauds had been swung by middle managers, others - by top managers, including President Vladimir Vinogradov and his deputy Alexei Kuznetsov. The latter transferred the money to bank accounts of offshore companies through a network of Global Custody. Thus they took 60 million dollars. Subsequently, the officers who had been caught stealing - gave the money back, but shareholders had quarreled with the president completely. They had been judging with the bank for several years in the U.S. courts, and then some details of the frauds became known.
In many respects Russians got caught because of their own ignorance. Thus, vice-president Alexei Kuznetsov owned a gold card American Express, designed exclusively for corporate spending. The same "Gold" card was issued to his girlfriend in the States Janna Bullock; in 1993 she spent $ 29 thousand within six months just on underwear and shoes. In 1996 Kuznetsov bought a house for $ 575 thousand in the South Hampton - the New York area.
In 1993, Kuznetsov on behalf of the bank signed the deal guarantee, which later turned out to be a "refundable" credit of $ 15 million. Formally it was a purchase of copper wire party for $ 15 million of Samara company “Rosskat" from the American firm Southwire. "Rosskat" paid to the company with bills guaranteed by "Inkombank. The amount was debited from the accounts of shareholders of American Bank, which promised a refund with interest. But according to the documents, the guarantor appeared to be "Incombank. Money was never returned to the shareholders.
Source: "Kommersant", № 152 (1110) on 13/09/1996.
In 1998, "Inkombank” started bankrupting, and its top people created then a new structure called ZAO “IK Russian Investment Company”. In August 1998, on a wave of defaults the investment company in alliance with affiliated "Russobank" began buying debts of commercial banks. This is called creating a "trading platform for dealing with debts of banks and large corporations."
Kuznetsov was one of the founders and the president. Co-sponsors were those associated with “Inkombank": the former senior vice president S.A. Gusher, the former vice-president Sergei Mitrofanovich Migulya, and ZAO "IK "Intrastkom” headed by general direktor E.V. Semin. Migulya headed the board of directors "Rio". The vice-president’ post was taken by the former judge of the Board "Inkombank" Andrey Vyacheslavovich Mazurov. In 2000 Mazurov became a chairman.
In March 2000, Kuznetsov applied for resignation from the presidency. His post was taken by Migulya, while chairman of the board of directors post was obtained by Mazurov (general director of “Russian Aircraft Corporation MiG”, since 2001 - Adviser to Deputy Prime Minister Klebanov). In March 2000, Kuznetsov was appointed acting Minister of Finance, Government of the Moscow Region, since 2004 - Minister and Deputy Prime Minister of Defense.
In July 2008, the Investigation Committee of the Prosecutor's Office of the RF (ICP) filed criminal charges of abuse of office against Kuznetsov. Being an official, he seized the land of 20 billion dollars near Moscow; and he had been hiding his dual citizenship status - Russia and the United States - over the whole period of service. Immediately after the start of the investigation Kuznetsov resigned on his own volition, and emigrated to the United States.
Source: "The Case of the Week" on 16/10/2008
Kuznetsov was declared wanted. However it did not prevent him from having a rest in Courchevel in January 2009 together with the head of the FSO Yevgeny Murov and executive office to the President, Kozhin.
Source: "Kommersant", № 1 (4056) on 11/01/2009
Investigation of the theft schemes of budgetary funds of the Moscow region, unprecedented in size and audacity, revealed more and more shocking details. The amount of stolen goods and an exceptional organization level together with a high level of administrative and legal support of the fraudsters were extremely impressing. Thanks to the latter the plotters, led by former members of the Moscow area government had been ruining with impunity one of the most successful regions of Russia for many years.
In fact, the fraudsters turned the System of the off-budget financing of investment programs in the Moscow region into a "milch cow". The system was established by the Government of the Moscow Area in early 2000’s to attract investment and to protect the property interests of the region. The system consisted of a group of commercial entities - subsidiaries and "granddaughter" companies of the MA. Key roles were allotted to three of them:
- OAO "Moscow Regional Investment Trust Company (MOITK) - 100% subsidiary of the Moscow region, established to invest in construction of dwelling, municipal and public buildings in the Moscow region under the investment programs approved by the Government of the Moscow region;
- OAO “Moscow Region Mortgage Corporation” (IKMO) - belonged to MOITK (66%) and to the Moscow region; was created for the refinancing of mortgages and loans, and for work as an investor-developer of dwelling buildings in the Moscow Region Mortgage Program.
- OAO "Moscow Regional Mortgage Agency” (MOIA) 100% subsidiary of the Moscow Area, appealed borrowed funds on the market to finance investment programs of the MA which was implemented by IKMO.
These companies were actively involving on the market and investing borrowed funds in construction projects in the Moscow region. It has been estimated that by 2008 they gained credit for 70 billion rubles. In those years, investments in construction projects could bring good profits, and borrowers were first-rated - the structures of one of the leading regions in Russia. Moreover, for a variety of loans the Area acted as a guarantor.
As commercial entities, those companies were free to choose their contractors, they were not obliged to carry out tenders as well as to negotiate estimates of the investment projects with government officials. They could be engaged in construction of commercial housing, office, retail and entertainment centers.
The simplest "construction" scheme of theft, which ideology was attributed to Kuznetsov: the estimates which had been approved annually by MOITK on dozens of investment projects - contained "extra" millions attributed, and in the most egregious cases, there were even billions. On obvious reasons MOITK produced payments forward and in full. Sometimes there were no estimates yet, but the money had been already listed. Therefore, they built a lot and at a very high price in the Moscow region (not to be mixed with "high quality").
Cost of building schools, kindergartens, hospitals, sports facilities and other facilities was inflated by 50-75%.Taking into account the magnitude of developed budgets, on this point the MA budget had overpaid (i.e., had been robbed) at least 20 billion rubles.
Thus, MOITK (and in the end - the regional budget) paid 2 billion rubles in the entire cost for the construction of stadium "Arena Khimki” with a capacity of 18 thousand people. Assessment of work and materials (the stadium was built of inexpensive light structures) showed a two-fold excess of the estimated cost over the market one.
Another striking story was about the business center "Two Captains" which was located at the Moscow Ring Road on the site of 2.4 hectares literally right under the prestigious shopping complex "Crocus Mall”, and the Government House of the Moscow region. In 2006 MOITK retained the customer ZAO “Stroyinvest” for the construction works of the center, and contributed to the project 9.55 billion rubles. This crazy amount was transferred to “Stroyinvest” in advance without any estimates of the project ready. Actually they spent about 2 billion rubles for the construction. And on the rest of funds “Stroyinvest bought a 40% stake in OAO “ROSWEB" (owner of telecommunications companies and high yield commercial real estate objects in Moscow and Moscow region) through the front companies. It was bought from MOITK. In such a cynical was a very profitable asset was acquired from MOITK for the MOITK money. By the way, "Stroyinvest" is a 100 percent subsidiary of "RIGroup”.
In 2005 IKMO, MOIA and the Government of MA initiated issue of MOIA bonds to finance the programs which implementation was entrusted by the Government to IKMO. Organizer of the bond issues was the company "RIGroup Finance”.
IKMO transferred more than 1 billion rubles from the obtained of the bonds 4.4 billion rubles to the company “RIGroup Finance" at the expense of buying the company which owned the land for a dwelling district construction in the suburban Klin, and belonged to "RIGroup Finance. However, the company never became the property of IKMO, and "RIGroup Finance never returned the money: it was withdrawn on account of offshore companies.
In late 2008, the Central Investigation Department in the Moscow region police department opened a criminal case on the grounds of a crime under Part 4 of Art. 159 of the Criminal Code (fraud). As part of this investigation CEO of “RIGroup Finance” Ludmila Bezdel was arrested, who was also engaged in the Audit Commission of the Moscow Mortgage Bank. Member of the Board of Directors of the bank was Vladislav Telepnev.
This bank served the majority of debtors’ accounts of the Moscow region subsidiaries including the structures of "RIGroup”. When the MBZ became fevering due to the lack of liquidity, from the order of Kuznetsov came to support the bank at the expense of MOITK. Then the company was still in the money and promptly provided short-term borrowing patterns to "RIGroup" structures by transferring on their accounts in the MZB more than 2 billion rubles. The Bank "died on feet" - the money got disappeared. They said it had been "taken out", but it was impossible to follow those operations.
As part of this criminal case, three issues of MOIA bonds were arrested by regulations of Odintsovo City Court of Moscow region. MICEX suspended all operations in the issuance of bonds for 5.2 billion rubles in total; a technical default was declared. Accordingly, the regional administration could not meet its obligations and promptly redeem the bonds.
As the Moscow government acted as a guarantor of redemption, Standard & Poor `s lowered the long-term credit ratings of MOIA and the Moscow region to the level of selective default.
In April 2009, FAS of Russia declared that IKMO in violation of the antimonopoly legislation acquired the exclusive right on state guarantees for 750 million rubles in the framework of the regional program for the resettlement of dilapidated housing. As a result, the Moscow Region Duma was prosecuted for breaching Part 1 Article 15 of the Federal Law "On Protection of Competition" (the prohibition of authorities’ acts restricting competition). It turned out that Duma members made amendments to the regional budget, in accordance with which the state guarantees could be used not by any organization involved in the implementation of housing programs on a competitive basis, but only by IKMO.
As a result, for the period October 2007 to July 2008 IKMO had become the winner of more than three auctions in various suburban municipalities, and acquired rights to tens of hectares of urban land for peanuts. Those areas were badly needed by the structures of "RIGroup" for the implementation of new commercial projects of Kuznetsov family. The damage caused to the area, has not been quantified yet, but clearly it will be hundreds of millions of rubles.
Source: «Solomin» on 31.08.2009
At the end of 2009 a corpse appeared in the case Kuznetsov. At least, journalists referring to law enforcement sources linked the murder of the top manager of “VTB Bank” Oleg Zhukovsky with this case. In 2007 His body was found bound at the bottom of the pool in a suburban cottage. As “Rosbalt” learnt, Oleg Zhukovsky appeared in the case of theft from the budget of the Moscow region for more than 3 billion rubles.
Oleg Zhukovsky held in VTB a post of managing director of department on work with large clients. His death left aroused many questions, causing a great resonance in the media. On the rim of the pool next to the corpse of a banker a suicide note laid in which Zhukovsky wrote,"In my death no one is to blame”. The first version was proposed that the top manager of VTB committed suicide in such a strange way. An assistant to Zhukovsky, employee of VTB Timur Valeryevich Telepnev told reporters that the death of the banker was not of a criminal nature.
However, forensic experts questioned then the possibility of such a suicide. Moreover, on the doors of the cottage were seen signs of tampering. As a result, bodies of the Investigative Division of UPC RF, Moscow region opened a criminal case under article 105 of the Criminal Code (murder).
Zhukovsky's name became involved in the case of a large-scale embezzlement from the budget of the Moscow region, in which the charges were brought against the former general director of the Moscow Regional Investment Trust Company (MOITK) Vladislav V. Telepnev (correspondent Rosbalt did not manage to determine whether he was a relative to Timur Telepnev).
By the time that message came, Investigation Committee of the RF Prosecutor's Office investigated three criminal cases of frauds with the billions of state funds including those under Art. 210 of the Criminal Code (organization of a criminal community).
Witnesses testified that Oleg Zhukovsky was aware of the credit schemes development which later became used for stealing billions of rubles from the budget of the Moscow area, the source of “Rosbalt” said. Many of the decisions had been taken with his approval. The evidence shows that the death of Zhukovsky had not been not accidental, and it was possibly linked to the events, which were under investigation that time.
As the source Rosbalt noted, primarily those were loans obtained from the banks of VTB24. "We suspect that the money could have never left the banks, and their receipt by the municipal utilities existed only on paper; in connection with that we have got serious questions to certain representatives of the VTB 24", said interlocutor of the agency. The government of the Moscow region guaranteed the return of those loans.
Then MUP (with the permission of the local legislative assembly), suddenly began to conclude contracts passing the right to claim debts of housing and communal services to various companies. Those firms were faked and were registered on the names of alcoholics, prisoners, other people who had lost their documents, etc. Despite the apparent doubtful character of those structures, the regional government regularly transferred the budget money to them, paying for non-existent debts to the housing and public utilities. Then the funds were laundered and derived abroad. There is a sum of 3 billion rubles (plus interest which came running for the use of those funds) appeared in the materials of the investigation.
On November 10, 2009 Telepnev was presented the charges in a final form under art. 159 of the Criminal Code (fraud). The record shows that investigation considers Alexei Kuznetsov to be an organizer of crime schemes of embezzlement. On November 12 a criminal case directly against the former Minister of Finance in the Moscow region was separated from the case against the former leaders of MOITK; he was declared wanted. Telepnev refused to familiarize himself with the case, but already on November 25 he suddenly was already charged under Art. 210 of the Criminal Code.
Source: "Rosbalt-Moscow" from 01.12.2009
In February 2010, Dmitry Demidov was arrested. He was the former head of the largest subsidiaries of the Moscow region government - OAO Moscow Region Mortgage Corporation (IKMO) and OAO "Moscow Regional Mortgage Agency (MOIA), launched an international search. He was accused of stealing a billion of rubles from the regional budget. The money was earmarked for implementation of the program "Development of residential mortgage Moscow region in 2005-2010"
Source: Gazeta.ru was dated 12/02/2010
On March 4, 2010 they arrested the former First Deputy Minister of Finance of the Moscow area, the owner of the financial company "Horizon" and the publishing house Ltd. "Artmedia Group” Valery Nosov. He is suspected of damaging the budget of the Moscow region for 25 billion rubles by fraud; along with the launched in the international wanted list former Finance Minister Alexei Kuznetsov of the Moscow region, his wife, the president of JSC "RIGroup" Janna Bullock, and CEO of OOO “Russian Investment Group" Dmitry Kotlyarenko.
Mr. Kuznetsov, Mr. Nosov, Ms. Bullock and Mr. Kotlyarenko are suspected pf issuing budgetary credits to the organizations controlled by the same Jeanne Bullock and Dmitry Kotlyarenko through MOITK. Mr. Kuznetsov and Mrs. Bullock are not available for the investigation - they are hiding abroad. Dmitry Kotlyarenko was detained in Cyprus a year ago, but it refused to extradite him to Russia. Thus, the only direct figurant of the new trials may happen to be Valery Nosov.
Source: "Kommersant» № 37 (4337) on 04/03/2010
Janna Bullock and her husband, the ex-Minister of Finance of Moscow Region Alexey Kuznetsov got involved in a scandal first in the end of 1990. Kuznetsov was the Vice President of “Inkombank” then and appeared as the person involved in the The Bank of New York cause celebre. Native of BelarusZhanna Bullakh also figured in the case. However the case was closed after all and didn’t entail any consequenses for Kuznetsov and Bullakh – Bullock. The Media didn’t attend the case accordingly.
magazine «Secret firmi» № 3(284) from 02.03.2009
Janna Bullock and her company RIGroup for the first time seriously got to the Media criminal reports in summer 2008. The messages came up on a law machinery investigations of the criminal cases about illegal registration of tens of hectares of land plots in Moscow Region by the companies connected with the RIGroup. The initiator was the Ministry of Nature. The Rosprirodnadzor was committed in the network of investigation to organize cooperation with Ministry of Internal Affairs Investigating committee and Prosecutor General’s Office. It was talked of criminal cases, where the ex – Minister of Finance Alexey Kuznetsov appeared. Janna Bullock was referred to the case only as his wife and the first person in the company within eyeshot of the law machinery. According to Ministry of Nature the plots of land in Moscow Region were illegally in companies connected with RIGroup.
newspaper «Commersant», № 146 (3963) from 19.08.2008
Janna Bullock became widely known amidst the reading audience in the end of 2008 in connection with the statement made by the representatives of the rating agency Standard & Poor's. They announced about Moscow Region long-term credit rating decrease from B – to SD (selective default), which meant selective default on debtor’s obligations. In connection with this it was announced about Moscow Region rating decrease by the national scale from ruBBB- to ruSD. The credit rating decrease has been connected with the technical default of Moscow regional mortgage agency (MOIA) belonging to Moscow Region. Thereby that region of Federation, earlier considered to be a leader Regional budget salary debts increase, became the first Russian region the term “default” was officially applied to. In a fact the image of the Moscow Region governor Boris Gromov was seriously stroke. However the scandals connected with the Regional government had only started at that.
The main point of the default had been described as follows:
December 15, 2008 MOIA had to fulfill the offer in the amount of 5,2 billion rubles,but refused to do it in reference to the Moscow Region Odintsovo city court decision from the 5-th and 15-th of December about seizure of all MOIA obligations. The court decision was made in the framework of an action brought in accordance with the article “Fraud” versus to “RIGroup – Finance” CEO Ludmila Bezdel – the initiator of MOIA obligations issue. The spouse of Moscow Region ex –Minister of Finance Alexey Kuznetsov, Janna Bullock, the Head of RIGroup - the mother company of "RIGroup - Finance". According to Rosbalt agency Mrs Bezdel was arrested in December 2008.
For that moment there had not been officially informed about Janna Bullok’s part in the criminal cases.
newspaper «Commersant», № 233 (4050) from 20.12.2008
In January 2009 it has been already announced about the possibility of transferring developer company RIGroup assets to OJSC “Moscow regional investment trust company”(MOITC) owned by Moscow Region government.
OJSC “Moscow regional investment trust company” (MOITC) was founded December 22, 2000. 100 % owned by Moscow Region it had been dealing with the development and realization of regional investment programs. The most significant projects are the Government headquarters and the Moscow Region Court palace in Krasnogorsk, Odintsovo volleyball center, sledge-bobsledding complex “Paramonovo”and skating center “Kolomna”.
RIGroup, as it was informed that moment, owed MOITC 46 million dollars. At the same time the Moscow Region ex-Minister of Finance Alexey Kuznetsov, the husband of Janna Bullock, hided himself abroad from the law enforcement agencies. It had been suggested that the RIGroup property could be confiscated out of court: thenadays the market cost of the developer’s portfolio amounted to 400 million dollars. According to the site of Moscow arbitrage court on 19-th of December MOITC declared on RIGroup 1,5 billion rubles or 46 million dollars by the current rate.
"Janna Bullock is abroad at the present moment, and company’s projects on a large scale are not being realized, although the staff is still working",— stated in the interview one of Moscow developers familiar with the RIGroup situation. According to him Moscow regional authorities survayed the ways of finishing constructions at the expense of the Regional budget and other investors.
It was also informed, that in December 2009 RIGroup had to discharge the first issue of obligations in the amount of 1,2 billion rubles.
newspaper «Commersant», № 10 (4065) from 22.01.2009
Though in MOITC nothing was going smoothly. Running ahead it should be noted that on August 12, 2009 the regional government took a decision about MOITC termination. The company’s liability amounted to 50 billion rubles, including plain duty to banks – 24 billion rubles. On 29-th of September the company was declared bankrupt by the Arbitrage court.
newspaper «Commersant», № 209 (4264) from 10.11.2009
In what follows the financial position in RIGroup and affiliate companies worsened, which was not a surprise, because the business controlling person Janna Bullock didn’t appear in Russia. In connection with this in February 2009 it was already announced that three companies under control of Moscow Region government, including OJSC “Moscow regional investment trust company” (MOITC), signed an agreement with “ORSI Group” LLC entrusting it the functions of RIGroup developer’s executive board. The liability of RIGroup by that moment came to 29,6 billion rubles, including 23 billion — due to Moscow regional government. "ORSI Group" had to schedule the liability restructuring plan.
"ORSI Group" for that moment was known as an affiliate of CJSC “ Open market of construction investments” (ORSI), working out the exchange system for buying and selling developers’ liabilities, and affiliate to “Rostechnologies” corporation.
The details of RIGroup liability structure announced as follows: 29,6 billion rubles, including 22,86 billion rubles due to Regional government structures - MOITC, also OJSC “Moscow regional mortgage agency” (MOIA) and OJSC “ Mortgage corporation of Moscow Region”(ICMO). According to ORSI Group these companies owed to creditors 68 billion rubles. As announced by ORSI Group press department in February 2009, the first RIGroup payments under loans were supposed to be transferred already in February.
It was also announced that RIGroup bankrupcy could be extremely disadvantageous for Moscow regional government structures: 22,86 billion rubles of liability was due to affiliate companies - “Moscow regional investment trust company” (MOITC), “Moscow regional mortgage agency” (MOIA) and “Mortgage corporation of Moscow Region” (ICMO). Govermental companies (owed to their creditors 68 billion rubles) allocated that money to private company “due to family circumstances”: Janna Bullock – the wife of Alexey Kuznetsov who had been a Moscow Region Minister of Finance from 2000 to 2008. In connection with this the situation around the company was personally controlled by the governor Boris Gromov. As in a legal case the claims of tax officials and banks – creditors would be satisfied first of all. Svyaz – bank (the total amount of three loans – 1,7 billion rubles with discharge in July and September 2009 and May 2010) and bank “Vozrozhdeniye”(1,5 billion rubles till October 2009) were among the major creditors of RIGroup that moment.
newspaper «Commersant», № 22/П (4077) from 09.02.2009
In August 2009 FCSM canceled the IFC «Rigroup-finance» broker, dealer, depositary licenses and licence for handling the capital issues. The reason was the numerous violations of capital issue legislation during one year, as stated in the Service message. For example, the “Rigroup – finance”, particularly, didn’t provide the information about structure of property, accountability, information about relocation. The “Rigroup – finance” CEO Alexander Pozdnyakov was deprived of his qualification certification. He was appointed to this position in November 2008 after an action was brought against his predecessor Ludmila Bezdel.
newspaper «Vedomosti», 24.08.2009
Together with RIGroup, which had about 60 construction sites with the total area of 850 thousand square meters on balance, it was supposed to hand over to the Moscow Region the alternative operators “Arktel” and “Radionet” owned by RIGroup.
newspaper «Commersant», № 176 (4231) from 23.09.2009
In November 2009 the messages came up in media that the Investigating Committee of RF Prosecutor’s Office conclusively accused the ex-CEO of OJSC “Moscow regional investment trust company” Vladislav Telepnev and the Head of structure Government programs financing department Svetlana Shatalina. They were incriminated of more than 3 billion rubles embezzlement from the budget of Moscow Region. The regional government allocated the money for the offset of the housing and communal services debt, but instead of that the money flew to the substitute companies’ accounts and off shores. The organizer of the crime according to the investigation was considered to be the ex-Minister of Finance of Moscow Region Alexey Kuznetsov.
In the final edition Vladislav Telepnev and Svetlana Shatalina were accused of serious fraud committed by the group of persons in accordance with the article 159 part 4 of the Criminal Code of Russian Federation. That crime investigation was initiated after disclosure of the theft of 600 million rubles allocated for housing and communal services in Pushkin area of Moscow Region in the end of 2008. In December 2008 the ex-Deputy Head of Investment administration of the Moscow Region Ministery of Finance was arrested on suspicion of participle in fraud (afterwards, from 2005 till October 2008 the Head of MOITC) Vladislav Telepnev. As to the ex-Head of structure Government programs financing department Svetlana Shatalina, the court restrained her from leaving the country.
According to the investigation release the content of the frauds disclosed in Pushkin and other areas of Moscow Region was the following. Since 2006 the municipal unitary organizations (MUP) began to create the imitation of Moscow Region debts for the fulfilled housing and communal services. After that the municipal unitary organizations reassigned the liability claim rights to the short-lived companies that received money for the fictive debts from Moscow Region government. In total the damage caused to Moscow Region budget estimated at 3 billion rubles.
At that moment the organizer of the crime was supposed to be the Moscow Region ex-Minister of Finance Alexey Kuznetsov, being at the background of MOITC origin. But it was failed to bring a charge against him – he left abroad. Later on there came up an information about existing materials regarding the commercial activities of Janna Bullock in this criminal case.
newspaper «Commersant», № 209 (4264) from 10.11.2009
In December 2009 turned up a new movement in the case with Russian business of Janna Bullock. The messages came up in media about the fact that the companies controlled by Bullock earlier are transferred to the balance of Moscow regional government. The first asset – “SC “Spetsstroy-2” LLC (owning almost all the sport facilities in Moscow Region) – was granted to the region. It was done by “ORSI Group” restructured the liabilities of Janna Bullok’s companies. The credits of “SC “Spetsstroy-2” estimated at 14 billion rubles.
The Moscow Region government got as property 99,7282 % shares of “SC “Spetsstroy – 2”” from OJSC “Rosveb”. As it was stated in the Moscow Region Governor, Boris Gromov’s, resolution (N 945/49 from November 11, 2009), the government got the company “as a gift”. SC “Spetsstroy – 2” ordered the construction of more than 70 social and sports projects in Moscow Region at the budget expenses, including the stadiums “Novator” in Khimki, “Meteor” – in Zhukovsky and “Trud” – in Podolsk (at the time being on the balance of SC “Spetsstroy – 2”). Together with SC “Spetsstroy – 2” it’s daughter companies OJSC “ Communal investments and technologies” (CIT; owns 37 boiler houses in the region) and CJSC "Stroyinvest" (on the balance business center “Dva Kapitana” under construction with total area of 96 thousand square meters in Krasnogorsk).
OJSC "Rosveb" was also under control of ZhannaBullok. Except for "Rosveb" she controlled “RIGroup” LLC (developer projects) and telecommunication assets – “Radionet” and “Arktel”. "Rosveb" was founded in 2007 together with MOITC. Janna Bullock announced in the journalist interview that she deposited in the joint venture several real estate objects, the companies “Radionet” and “RIGroup- Finance” (financing the developer projects). At the moment of foundation MOITC owned 42% of “Rosveb” shares, RIGroup – 46%, the Swiss Trivalent Advisors — 12%. "In August 2008 МОITC refused the shares of "Rosveb", the holding of stock of the regional company and debt of 7,2 billion rubles due to MOITC was transferred to RIGroup, according to media with reference to Janna Bullock.
In addition, in the end of 2009 Janna Bullock accused “ORSI Group” LLC of her assets seizure. "ORSI Group" didn’t comment on this accusation. The representative of “ORSI Group” informed the journalists that SC “Spetsstroy – 2” – the first Janna Bullok’s company tobe transferred to Moscow Region government, other assets are in process of hand over.
newspaper «Commersant», № 228/П (4283) from 07.12.2009
In December 2009 Janna Bullock began to actively defend herself from the accusations against her. Particularly, Boris Kuznetsov, American lawyer of her husband Alexey Kuznetsov, stated: "It seems to me that from the beginning the criminal case was a kind of operation to cover the seizure of “RIGroup” LLC assets owned by Janna Bullock. The "RIGroup" companies owned the portfolio of 60 construction sites with the total area of 2 million square meters, and the amount of investments to Moscow Region came to around 1,5 billion dollars. At the same time when criminal case was initiated the company suffered the raider attack by ORSI, acted in collusion with ex-managers of “RIGroup”, under the pretext of companies’ property structure reorganization”.
Seating abroad Janna Bullock started to make similar statements.
At the same time another figure of the criminal case, the ex-CEO of MOITC Vladislav Telepnev was incriminated for the third time a fraud and money laundering.
newspaper «Commersant», № 240 (4295) from 23.12.2009
In the beginning of February 2010 it was announced about the arrest of Dmitriy Demidov, the ex-Head of the biggest daughter companies of the Regional government — OJSC «Mortgage corporation of Moscow Region» (ICMO) and OJSC «Moscow regional mortgage agency» (МОIA). He was accused of billion rubles theft from the regional budget. The money was allocated for the realization of program «The Moscow Region housing mortgage system development in 2005 – 2010”. Earlier Demidov was arrested in December 2008, then in spring 2009 he was released on bail of 1,5 million rubles because of unwell level of health. In the beginning of 2010 the millionaires stated that Demidov didn’t accept calls from investigators. Afterwards he was declared to be wanted by the police.
Demidov has been positioned as an important figure in fraud schemes within the frameworks of the criminal case against Janna Bullock and Alexey Kuznetsov. It was supposed that after this arrest the criminal case would broaden and be filled up with new accused persons, but still unclear which way. In any case it would not concern Janna Bullock, at least because she is not under Russian jurisdiction.
«Gazeta.ru» from 18.02.2010