A Female Ostap Bender? Pensioner on Trial for Financial Pyramid Scheme in Yakutsk

A criminal case has been initiated against a 70-year-old resident of Yakutsk on charges of fraud. According to the investigation, she created a cooperative and for nine years embezzled money from its members. This was reported on January 27 by the press service of the republic«s Ministry of Internal Affairs (MVD).

The story began in May 2015, when the pensioner created a cooperative that allegedly engaged in charitable and investment activities, and also provided assistance in repaying loan obligations. Her organization promised residents of Yakutia dividends from their deposits.

The member «worked» in five areas: legal, financial, and medical services, wholesale trade of poultry meat products, and agricultural cultivation. In addition, she handed out fake certificates to members of her cooperative for apartments in a building under construction in the 203rd microdistrict. For this, she demanded about one million rubles (approximately $10,000 at current rates) as a one-time membership fee.

«However, in reality, the perpetrator did not intend to fulfill her obligations: she misappropriated shareholders» contributions and spent them on personal needs,« the press service of the regional MVD reported.

The pensioner traveled to nearby districts, organized meetings with the population, held lotteries and prize draws, and urged residents to bring their relatives into the society. Simulating active public activity, the accused encouraged regular clients with certificates and gifts, and issued so-called «Good Cards» with privileges for dividend payments.

Ironically, at the beginning of 2024, the perpetrator herself fell victim to telephone scammers, losing a large sum of money obtained from clients. However, she used this fact to her advantage: she forged documents stating that she had transferred these funds to a «safe account» at the Central Bank. She then presented the fake documents to members to convince them of the security of their investments.

The investigation established that 33 residents of various districts of Yakutia suffered from the accused«s unlawful actions. The total damage amounted to about 17 million rubles (approximately $170,000 at current rates).

The materials of the criminal case, initiated under signs of a crime provided for by Part 4 of Article 159 of the Russian Criminal Code (fraud on an especially large scale), together with the indictment, have been sent to the Yakutsk City Court for consideration on the merits. The defendant is under a written pledge not to leave and to behave properly. For the crime committed, she faces up to 10 years of imprisonment.