Former KIZHK head detained for 2 months over fraud allegations

Sergei Botov, the former head of the Kurgan Mortgage and Housing Corporation (KIZHK), has been detained on fraud charges and will remain in custody until March 26.

Feb 28, 2026

Sergei Botov, former head of KIZHK, is accused of fraud in a land deal involving an unfinished construction project.
Source:
Natalya Laptsevich / 74.RU

Former KIZHK head Sergei Botov has been detained for two months (until March 26). This was reported by 45.RU citing the press service of the Kurgan City Court.

The detention of former KIZHK director Sergei Botov became known on January 28. According to the Investigative Committee, Botov, together with the head of one of the company«s departments and two representatives of LLC »In-Stroy« (a Chelyabinsk company that failed to build houses for large families in Kolesnikovo and Bolshoy Chausovo), persuaded a Trans-Urals resident to purchase a land plot with an unfinished construction object for 2.5 million rubles (approximately $25,000 at current rates).

«Moreover, having financial problems at that time, the company had no intention of completing the construction. Furthermore, when signing the purchase and sale agreement with the client, the former director of the corporation knew for certain that the organization he headed did not have ownership rights to the land plot, and the transaction was initially fictitious,» the Investigative Committee said.

A criminal case has been initiated against the individuals involved under Part 4 of Article 159 of the Russian Criminal Code.