Tuesday, May 22, 2018

Former AMUR car factory head found guilty of fraud

On Monday, the Chief Investigative Committee of the regional Internal Affairs Ministry completed its criminal investigation of the former head of AMUR Car Factory and ruled that the executive is guilty of receiving illegal loans and large-scale fraud during his tenure.

The committee determined that the former head of AMUR, now bankrupt, allegedly submitted inaccurate accounting data to private banks in order to secure more than $10 million in loans during the period of 2007-2008. To date, none of the allegedly falsely-obtained loans have been repaid, Ural Business Consulting reports.

Investigators also uncovered that the executive allegedly issued more than $35 million in unlawful promissory notes under his own name to lenders when AMUR first began bankruptcy proceedings in 2009. At the time the notes were issued, the director was worried that he would lose control of the company during bankruptcy.

As a result of the director's alleged actions, the car factory appeared on paper to be in debt to him as he falsified documents to list him as the company's primary creditor. The accused could face up to 10 years in prison. Sentencing will be carried out by the Leninsky District Court, according to Ural Business Consulting.