LARGE SCALE COMMERCIAL BRIBERY HAS BEEN PREVENTED

A recent case has seen several public officials convicted of bribery offences. The business company Inprom LLC applied to the authorities with the view to acquiring a building in Moscow. The building was state property and was managed by the FT-Centre, a federal state company. During the consultations with the authorities, Vladimir Pinigin, deputy head of the Information Policy Department of the Ministry for State Property Management of Russia, explained to the company that he was well acquainted with the officials in FT-Centre and may help them to win the auction. In return for making the deal, he required RUB 17 million (approximately US$485,000) to be illegally paid to him and his accomplices at FT-Centre - highly ranked officials Timur Kashapov and Anvar Rustamov.

All further communications between the company and the officials were monitored by policemen and investigators. All three officials were charged with attempted commercial bribery. Timur Kashapov was sentenced to a 5 years' imprisonment with a RUB 130 million (approximately US$3.7 million) fine. Vladimir Pinigin made a pre-trial agreement with the investigators and, because of his contribution to the investigation, was sentenced to 1.5 years' imprisonment. Anvar Rustamov has gone into hiding and is wanted by the authorities.   

AUTHORITIES PREVENTED A SERIES OF FRAUDS

In 2008, Arthur Gelolayev, Anzor Umarkhadzhiyev, Ibraghim Bekov and their business partners developed a scheme allowing them to illegally obtain money from the state budget. They filed an action against the state claiming compensation for their hotel business in the city of Grozny which was allegedly destroyed during tactical operations in the 1990s. On the basis of the documents submitted by the plaintiffs, the court awarded RUB 360 million (approximately US$10.3 million) of damages. On the same day the awarded damages were received, the money was transferred to numerous short-lived companies and cashed through a number of commercial banks.

After the successful implementation of the scheme, Arthur Galolayev and his accomplices made another attempt to obtain compensation, this time a much higher amount—RUB 4.5 billion (approximately US$128.4 million), for the broken up sale of oil product in 1992. The fraud was prevented by the criminal proceedings commenced by the public authorities.

The state prosecution has charged Arthur Gelolayev and his partners with fraud, forgery and money laundering. Arthur Gelolayev made a pre-trial agreement with the investigators and was sentenced to a 5 years' imprisonment with the RUB 100,000 (approximately US$2,855) fine. Criminal proceedings in relation to his partners are currently pending.