Criminal case on building financial pyramid was initiated in Primorsky Territory

Source: Russian Federation Ministry of Internal Affairs in English

“Based on the materials of the check performed by the Administration for Economic Security and Corruption Control, investigators of the Investigation Unit of the Investigation Administration of the Russian MIA Administration for the Primorsky Territory initiated a criminal case against executives of a consumer credit cooperative subject to Part 2 Article 172.2 of the Criminal Code of the Russian Federation,” said the official representative of the Russian MIA Irina Volk.
That entity’s activity was organized according to the financial pyramid principle: citizens’ funds were raised by concluding loan agreements with an interest rate ranging from 15 to 24 percent per annum. Later, those funds were used to pay interest and repay money earlier raised from other sharers.
The cooperative’s branches operated in the Primorsky Territory. Defrauded citizens filed the largest number of complaints in Vladivostok, Ussuriysk, Artem, Nakhodka and Partizansk.
As was ascertained, over 200 citizens had become victims as a result of the unlawful activity. According to the information available, the damage inflicted to them exceeded 30 million rubles.
The preliminary investigation of the criminal case is ongoing.