In Novocherkassk, director of managing company detained on fraud suspicion

Police officers of Rostov Region have detained a CEO of a managing company in the city of Novocherkassk on suspicion of fraud with utilities payments for the amount of 13.5 million roubles.

The "Caucasian Knot" reported that on November 9 the supply of electric power to the companies engaged in water and heat supply of the city of Novocherkassk was to be limited, if they failed to cover their debts. However, energy companies continued supply of heat and water to Novocherkassk under guarantees of the government of the Rostov Region.

"According to the Ministry of Internal Affairs (MIA), the Limited Liability Company (LLC) was engaged in activities in the field of housing and public utility, and it acted as an intermediary between the organizations engaged in supply of resources and the residents of the city," Ekaterina Danova, an officer of the press service of the Russian MIA for the region, told the "Caucasian Knot" correspondent.

"We received information that the head of the managing company embezzled the funds in the amount of 13.5 million roubles," said Sergey Basov, the head of the operational search unit of the department for economic security and anti-corruption No. 1 of the Russian MIA in Rostov Region. He added that the police officers had revealed that the director of the managing company from the very beginning of the company's existence had never intended to pay to the suppliers of water and energy to apartment buildings of the Novocherkassk residents.

"Half a year ago, to create the appearance of his honesty, the businessman made partial payments to the current accounts of the organizations engaged in supply of resources for their services rendered. However, since that time, no supplier had ever received from the CEO of the managing company even a cent. All money received from the population on the company's current account, the CEO cashed by means of a plastic cash card and spent on his own needs," Sergey Basov has concluded.

According to Ekaterina Danova, the officer of the press service of the Russian MIA for the region, at present, the criminal case has been instituted against the entrepreneur for "fraud committed on a large scale."