In St. Petersburg CEOs of large management companies are detained for illegal actions
In St. Petersburg, the police arrested CEOs of two management companies in the context of 600 mln rubles embezzlement case.
According to the General Administration of the MIA in St. Petersburg, the detainees were involved the restriction of competition in the sphere of Housing and Public Utilities.
According to the official representative of the Russian MIA, Irina Volk, the police arrested four people. All of them are suspects in a criminal case over receiving illegal income in the amount of 600 million rubles as a result of apartment buildings management.
The main investigation department of the General Administration of the MIA in St. Petersburg and Leningrad region opened a criminal case against the detainees under P.2, Art. 178 of the Russian Criminal Code (Restriction of Competition). They are suspected in cartel agreement between the two management companies in order to restrict competition in the market of Housing and Public Utilities.
The fundament for a criminal case was the mass applications of apartment owners, as well as of one of the management companies in the area, to the law enforcement agencies with complaints about mass falsification of minutes of owners meetings in the Vasileostrovsky District.
During the investigation, law enforcement officials have revealed their involvement in the cartel agreement: they intended to divide the commodity market and to restrict competition on it.
Also, the investigation found out that these managers falsified minutes of the meetings of apartment owners and restricted the access to the market of several companies working in the field. As a result of these activities, suspects illegally received more than 600 million rubles.
As a part of the investigation numerous searches have been carried out in the houses, offices and institutions, which resulted in detaining two CEOs of management companies, as well as the Deputy Director General of one of them, a lawyer of these organizations.
The police added that now all four of them are under house arrest. The investigation of the case continues.
The prosecutors want the former Russian Federation Council member to go to prison for 14 years instead of 9 and pay a 500-million-ruble ($8.8 million) fine instead of 70 million rubles ($1.2 million).