As announced by the Russian Investigation Committee, criminal proceedings have been brought against the CEO of the "Managing Company of Apartment Buildings in Oktyabr District" CJSC, located in the city of Kaluga, and the CEO of one of the business companies.
Reportedly, the managing company received a subsidy from a special housing maintenance fund and then transferred RUB 7,600,000 (about USD 240,000) to the contractor company. According to the conspiracy between the CEOs, the contractor was supposed to create only an appearance of performance of repair work. As a result, only a small part of the work was performed and the remaining RUB 5,900,000 (almost USD 190,000) was stolen via a shell company.
The CEOs may be sentenced to a maximum of 10 years' imprisonment for committing a fraud.