Four Accused in Novosibirsk House Construction Fraud

In Novosibirsk, four people will stand trial for fraud in the construction of low-rise houses. Details were reported by the regional prosecutor«s office and the Investigative Committee.

According to TASS, the suspects are employees of the companies Megadom and RSU-Gis. From July 2023 to October 2024, the defendants, who were part of an organized group, entered into 114 construction contracts for residential houses on behalf of this organization.

«Despite the victims having made full payments, the construction of the buildings has not been completed to date. In this criminal case, 123 people have been recognized as victims, with damages totaling about 450 million rubles (about $4.5 million at current rates),» said the Investigative Committee for the Novosibirsk Region.

Three defendants have been remanded in custody, while one was placed under a prohibition of certain actions. Investigators have interrogated about 150 people as victims and witnesses, and conducted more than 100 crime scene examinations — the volume of the criminal case exceeds 50 volumes.

According to the press service of the regional prosecutor«s office, the criminal case has been sent to court. It is clarified that at the request of the investigation, assets of the defendants have been seized to compensate for the damages. The defendants are charged under Part 4 of Article 159 of the Criminal Code of the Russian Federation (»Fraud«). The maximum penalty under this article is up to 10 years of imprisonment.

Earlier it was reported that the head of a company was charged with fraud in the Novosibirsk region. The defendant«s criminal case was sent to court.