Wednesday, August 23, 2017

City administration to monitor long-term construction projects for fraud

The city administration of Yekaterinburg announced that it will continue to monitor long-term construction projects in the area to prevent investor fraud.

Officials hope that by closely monitoring residential development projects, they will deter further fundraising abuses by construction companies-- an issue which plagued the city throughout the 2000s, according to Ekburg.ru.

In the last 10 years, there have been at least 15 large-scale pyramid schemes perpetuated by residential developers in Yekaterinburg, affecting approximately 1,500 defrauded investors. Most recently, a developer collected deposits from 436 families for units in a proposed apartment complex before abandoning the project and leaving the area.

Monitoring of ongoing residential construction projects in Yekaterinburg will be overseen by the city administration, as well as members of the Department of Architecture and the Urban Planning and Land Regulation Administration of Yekaterinburg, Ekburg.ru reports.