Russian official held in $300 million fraud

Last Updated: Thu, Dec 27, 2012 02:52 hrs

Moscow: A Russian official has been held for his suspected involvement in the embezzlement of state property worth over 10 billion rubles (about $300 million).

Police detained a former director of the Federal Property Management Agency for the Moscow region, the interior ministry said.

The case involves the illegal seizure and sell-off of over 100 state-owned real estate properties.

Other suspects in the case include bank officials, arbitration court representatives, state property managers, and commercial company representatives.

The criminals used a sophisticated multi-stage scheme to take control of a state firm, bring in its own managers, bankrupt the company, take it over and then sell it, the ministry said.

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