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In Saint-Petersburg searches ongoing under investigation in stealing huge budget funds by illegal VAT compensation

Saint-Petersburg Main Investigations Directorate of the Russia’s Investigative Committee has opened a criminal investigation in a crime under part 4 of article 159 of the RF Penal Code (fraud) based on the records gathered in cooperation with the Federal Tax Service and Ministry of the Interior.

According to investigators, a stable organized criminal group headed by Igor Korniyenko, former official of the tax police, operated in Saint-Petersburg and Leningrad Region in the period between 2009 and 2015. The group consisted of about 30 people specializing in illegal VAT compensation. Igor Korniyenko devised scams of illegal VAT compensation, coordination the actions of units, and distributed the illegally gained money between the accomplices using for that his acquaintances in tax authorities, who consulted the swindlers as to appropriateness of this or that scheme and kept them informed concerning the interest shown to them by law enforcement bodies.

The accomplices on behalf of legal persons forged and filed necessary reports, statements and balance shits as well as documents on office tax audits with tax inspectorates.

In most cases the members of the group used a scheme involving transportation of goods over the Russian border for export and in execution of deals with real estate organizing so that the ownership of one and the same property was passed between legal entities controlled by the group.

The investigators believe that the swindlers are responsible for about 50 counts of illegal VAT compensation totaling to at least 500 million rubles and using over 70 controlled companies.

On 11 March 2015, investigators of Saint-Petersburg Main Investigations Directorate in cooperation with the officers of the Ministry of the Interior conducted over 70 searches in swindlers’ residences, offices and tax authorities and confiscated documents and data carriers containing information about the activity of the gang.

At present 10 members of the group are detained on suspicions of the said crimes. Charges and custodial restraint are expected. The investigation is ongoing.