On October 6, 2017, Zamoskvoretskiy District Court of Moscow sentenced the former owner of Eurotrust Andey Krysin to 8 years in penal colony for embezzlement of RUB 2.6 bn from the bank’s depositors. Another 5 top managers will spend four to six years behind bars.
The criminal case was initiated and investigated by the Investigative Department of the Russian Ministry of Internal Affairs based on the information provided by the Deposit Insurance Agency, which was appointed as a bankruptcy manager following the revocation of the bank’s license on 11.02.2014. Quorum (Attorneys-at-Law) represented the injured party in this case.
Bankruptcy proceedings initiated against the bank revealed a large-scale embezzlement of its assets. The owner used in this respect a special-purpose investment company – Omega Investment Financial Company – and created indebtedness to this company using fake (fraudulent) documents.
Mr. Krysin and his accomplices enjoyed their impunity and didn’t try to flee the country, as this was usually the case in other bankruptcy cases involving banks.
Mr. Krysin claimed that sham transactions found by the injured party and the prosecution have not caused any damage to the bank since the funds remained within the bank and the transactions under investigation served as a cover for other losses incurred by the bank.
However, a Quorum’s attorney Yulia Privalova has convinced the court that the funds were embezzled and successfully sough harsh sentences for the six defendants.
Eurotrust, which was ranked No. 201 based on its total assets, owned Migom, a payment service provider, and actively cooperated with the Housing Mortgage Finance Agency of Russia. Its register of creditors claims includes 2465 claims for the total amount of RUB 10.9 bn.
Quorum (Attorneys-at-Law) is a large law firm licensed by the DIA with more than 120 lawyers in 7 offices representing its clients. Zamoskvoretskiy District Court of Moscow issued a judgement on October 6, 2017 finding the following persons guilty of embezzlement of Eurotrust’s funds and sentencing them to the following terms:
Krysin Andrey Victorovich – 8 years in general security penal colony with a fine of RUB 800,000
Zhurin Petr Olegovich – 6 years in general security penal colony with a fine of RUB 500,000
Esakov Aleksander Servgeevich – 5 years and 6 months in general security penal colony with a fine of RUB 500,000
Aivaz Svetlana Igorevna – suspended (conditional) sentence of 5 years with probation period of 5 years, with a fine of RUB 500,000
Sizov Ilya Borisovich – 4 years in general security penal colony with a fine of RUB 400,000
Bocharova Olga Pavlovna – 5 years and 6 months in general security penal colony with a fine of RUB 500,000