Case initiated against Spurt Bank management over $17.6mln hole in budget

Case initiated against Spurt Bank management over $17.6mln hole in budget

The Central Bank of Russia has revoked the license of the credit and financial organization in July 2017. In December, the Deposit Insurance Agency of Russia appealed to the Prosecutor General's Office and the ICR with a request to initiate criminal cases into the abuses revealed.

In Tatarstan, the republic’s MIA Main Investigations Directorate has initiated a criminal case under Art. 201 of the Russian Criminal Code for abuse of authority in the bankrupt Spurt Bank, as the press service of the MIA Main Investigations Directorate in Tatarstan reported.

ProKazan.ru notes that the bank management is suspected of violating the law, in particular, funds that were subsequently used to save the KZSK-Silikon plant, which nevertheless was declared bankrupt in January, had been withdrawn from the credit and financial organization.

In December 2017, the Deposit Insurance Agency suspected the bank’s top manager of illegal actions. The regulator submitted applications to the Prosecutor General's Office and the ICR for the crimes envisioned in articles 159 (Swindling), 160 (Misappropriation or Embezzlement), 165 (Infliction of Property Damage Through Abuse of Confidence), and 196 (Deliberate Bankruptcy). In January 2018, the Deposit Insurance Agency discovered a shortfall of 1.1 billion rubles ($19.3 million) in the bank.

As of July 1, 2017, Spurt Bank ranked 183th in terms of assets in the banking system of the Russian Federation. However, in late July 2017, the Central Bank revoked its license. As the Bank of Russia explained, the bank had not adequately assessed its risks with the unsatisfactory quality of its assets. Soon the bank was declared bankrupt.

In late 2017, the bank’s main shareholders included former Chairman of the Board Evgeniya Dautova (30%), European Bank for Reconstruction and Development (28.25%), Deputy General Director of TAIF OJSC Vladimir Busygin (14%), Nizhnekamskneftekhim (5%), and Gazprombank (3%).

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