Not embezzled but appropriated: charges revised for former head of RusHydro

Not embezzled but appropriated: charges revised for former head of RusHydro
Evgeny Dod

Evgeny Dod is accused of embezzling company’s money. According to the Investigative Committee of the Russian Federation, he added 73 million rubles to the bonus amount he was supposed to get.

Charges have been revised for the former Chairman of RusHydro Board Evgeniy Dod, who was arrested on June 22. Now he is accused of Misappropriation or Defalcation on an especially large scale (part 4 of Art. 160 of the Russian Criminal Code). Initially, he had been charged with Swindling on an especially large scale (part 4 of Art. 159 of the Russian Criminal Code). However, the investigation failed to prove the fraudulent behavior in respect of the affected party, as reported by RBC. Nevertheless, the maximum penalty for both articles is 10 years.

The charges against RusHydro’s Chief Accountant Dmitry Finkel have been changed in the same fashion.

The investigation suggests that Dod illegally awarded himself a bonus in 2013 using Finkel, overstating the amount by more than 73 million rubles. This was made possible by alterating the financial statements provided to the members of the annual RusHydro shareholders meeting. 

According to papers, the company’s net profit amounted to 35 billion rubles, so Dod awarded himself a bonus of 1% of net profit at the year results. In reality, the amount of profit did not exceed 28 billion rubles, as the investigation reports. This discrepancy is explained by the falling value of certain shares of the companies owned by RusHydro. Therefore, 73 million were paid illegally.

None of the defendants has pleaded guilty. In Dod and Finkel’s opinion, they provided objective data. In their explanations, they refer to the РriceWaterhouseCoopers auditor's report. According to it, as compared to the reporting, the decline in market value of shares owned by RusHydro’s subsidiary companies does not affect its credibility.

June 23 the Basmanny Court of Moscow decided to remand Dod in custody until August 22. Later on, he was removed from his post in the board of directors of Quadra heat generating company, controlled by Mikhail Prokhorov.

It should be noted, that Dod has already repaid the disputed 73 million rubles to RusHydro.

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