Two more suspects identified in attempted VAT grand fraud case in Saint Petersburg

The Saint Petersburg Main Investigations Directorate of the Russia’s Investigative Committee continues investigating a case opened in a crime under part 3 of article 30, part 4 of article 159 of the RF Penal Code (attempted fraud).

It has been reported earlier that investigators of the Investigative Committee detained CEO of ZAO Bazis Vladislav Glumov on suspicion of the said crime, who was placed in custody. In addition, by now the investigators have held Olga Cherkes, who has double citizenship in Russia and Israel, she also was remanded in custody and soon she and Glumov are going to be charged. It is now being decided whether to prosecute Alexander Tseitlin, one of organizers of the criminal group, who is the citizen of Israel and is now there.

According to investigators, in 2014, Glumov, Cherkes, Tseitlin and other members of the group committed an attempted fraud by illegal compensation of over 180 million rubles of VAT on a grand scale. According to their criminal scheme, they bought metal scrap in Saint Petersburg, Moscow and in the towns that had metal scrap works – Samara and Saransk, on behalf of ZAO Bazis, and transported it abroad disguised as high-tech alloy at overstate price and using forged documents. Then the accomplices filed a TAT report containing false information on compensation of over 180 million rubles of VAT, being aware that the Russian budget compensates for VAT for export of high-tech alloys, while metal scrap is liable to 18% VAT and no compensation whatsoever. An audit revealed that there was no reason for the tax deduction, so the VAT compensation was denied and the records of the audit were sent to law-enforcement bodies.

According to preliminary information, the accomplices have used the scheme since 2010, and the investigators assess the damage done to the budget at over 3 billion rubles at the moment.

At present, a number of operations are continued to detain all members of the criminal group, the suspects are being checked on having been involved in similar crimes investigated by different bodies of Russia.

Head of Media Relations                                                                                                                                 V.I. Markin