Former Ekaterininsky Bank CEO helped to steal funds from VIP clients

Former Ekaterininsky Bank CEO helped to steal funds from VIP clients
Ekaterininsky Bank

Eduard Budishevsky has been charged with fraud.

The Tverskoy District Court arrested Eduard Budishevsky, the former Ekaterininsky Bank CEO. He has become another defendant in the case of a 1-billion-ruble embezzlement ($17m), masterminded by the bank ex-owner Pavel Goldman, who is now on an international wanted list. Earlier, the investigators had arrested bank’s former deputy CEO Alelsandr Bakhmatov and head of Financial Analysis and Business Planning Dept. Yakov Kreynin.

According to Kommersant, previously Budishevsky had been just a witness in the case. However, eventually, the investigation decided that the former banker had also been involved in the fraudulent scheme of stealing money from VIP clients who initially had been offered special conditions of deposits at a higher interest rate. In particular, Budishevsky promised 10% per annum to businessman and his friend Vladimir Fisyuk provided he placed 50 million rubles in the bank, which he did in 2014. The money was passed over in Goldman’s office. A similar scheme was employed to get money from at least two more "preferred" clients. In total, there were about 30 of them, it is reported. No contracts are to be found in the banking register and the investors were not even considered bank's clients. So, the money they gave would simply be plundered. Yet, Budishevsky pleaded not guilty.

In March 2016, the Central Bank revoked the bank's license on the grounds of high-risk credit policy "related to the placement of funds in low-quality assets." In addition, Ekaterininsky Bank "failed to comply with the legislation against legalization of proceeds from crime and financing of terrorism" and was involved in "dubious transit operations," according to the regulator. As the investigation revealed, shortly before the license was revoked, the bank started withdrawing assets disguised as loans to affiliated companies and dummy parties. It turned out that the bank's liabilities to depositors amounted to more than 2.1 billion rubles ($36m), including the liabilities to individuals and individual entrepreneurs of more than 875 million rubles ($15m), with the bank’s asset value not exceeding million rubles ($12.5m).

The criminal case was filed under article Swindling committed on an especially large scale (part 4, Art. 159 of the Criminal Code). The investigation found that the bank’s top managers Bakhmatov and Kreynin would give loans to nominees. They also signed fictitious bank deposit agreements with their clients.

Discuss

Recommended

1 / 3