Contractor embezzled 37 million rubles, CEO arrested

Police have opened a criminal case of fraud involving more than 37 million rubles (approximately $418,000 at current rates) in the reconstruction of tram depots in Nizhny Novgorod. The CEO of a construction company from St. Petersburg was detained on suspicion of committing the crime, the regional department of the Ministry of Internal Affairs (MVD) reported.

According to investigators, the head of the organization, which acted as a subcontractor, submitted false information about expenditures in documents and acceptance certificates. Meanwhile, the reconstruction of the depot was only partially completed. In total, from December 2023 to January 2024, the company illegally enriched itself by 37.6 million rubles (approximately $418,000 at current rates).

In early July, searches were conducted at the offices of the contractor and an affiliated company in St. Petersburg. During the process, documents important to the investigation were seized and witnesses were questioned. The 51-year-old company CEO was arrested. He faces up to ten years in prison.

In spring, the heads of the companies Liga and GK Proekt Stroygorod, which carried out repair work on a trolleybus depot in Nizhny Novgorod, were detained. Investigators believe they embezzled 79 million rubles (approximately $878,000 at current rates) while performing the work. NN.RU then managed to speak with one of the defendants in the criminal case. Details were reported in a separate article.