Probiznesbank branch ex-CEO sentenced to 3.5 years in prison over $41.6m embezzlement

Probiznesbank branch ex-CEO sentenced to 3.5 years in prison over $41.6m embezzlement
Probiznesbank top-managers stole several billion rubles by issuing deliberately non-performing loans to shell companies Photo: Petr Kassin / Kommersant

Marina Krylova has been found guilty of complicity in misappropriation and embezzlement of funds.

Probiznesbank branch ex-CEO Marina Krylova has been found guilty of complicity in misappropriation and embezzlement of funds from the financial institution. Ostankinsky Court of Moscow sentenced the woman to 3.5 years in a colony of general regime.

Marina Krylova confessed to the offense. After the verdict was announced, she was taken into custody from the courtroom.

Meanwhile, the party to the defense filed an appeal against the verdict.

The investigation and the court found that between September 2014 and July 2015 Krylova, being a part of an organized group consisting of the officials and other employees of the bank, as well as other persons (more than 15 people overall), assisted her accomplices in misappropriation of bank funds in the amount of over 2.4 billion rubles ($41.6m). The criminal group took several billion rubles from Probiznesbank by issuing deliberately non-performing loans to one-day firms. For this purpose the management used both its direct subordinates and employees of Life financial group controlled by the bank and the general directors of fictitious companies called Alliance, Tsentr Torgovli (lit. “Trade Center”), Engineering-royalty, as well as a number of other commercial structures. The organizations provided false information to Probiznesbank, and the bank issued multimillion-ruble loans to them, after which the money was transferred to accounts of companies controlled by the bank's management as “payment” for various services or obviously illiquid securities. Further, the rubles were converted into dollars and withdrawn to offshore companies.

The key persons of interest in the high-profile case are the former President of the bank Sergei Leontiev, the bank's Chairman of the Board Alexander Zheleznyak and the Vice-President Alexander Lomov. All of them have been on the run, so they were arrested in absentia and put on the international wanted list. According to Life, Zheleznyak and Leontiev are hiding in the United States. Russian law enforcement bodies want to have the suspects extradited.

Discuss

Recommended

1 / 3