Magomed Bilalov was indicted in absentia in the case of a 45.5 million-ruble bank loan scam. In the near future he may be declared wanted by federal and international authorities. – Ed.
The Interior Ministry Investigative Department brought charges in absentia against Magomed Bilalov, the former shareholder and deputy chairman of the board of directors of Krasnaya Polyana OJSC and the brother of the former head of North Caucasus Resources OJSC. He is charged with abuse of his position in a commercial organization (Art.201, part 1 of the Russian Criminal Code) and faces a prison sentence of up to four years.
At the present time, the investigation has received a statement from Bilalov of his inability to come to Russia for medical reasons and the need for treatment in Great Britain. However, as a source told Interfax, no medical documents proving his illnesses have been provided.
Given Bilalov’s failure to appear in response to an investigator’s summons, the charging document was presented to him in his lawyer’s presence. In the near future the question will be decided as to the declaration of Bilalov as wanted by federal and international authorities, and also as to the selection of the measures of restraint.
According to the investigation’s information, Bilalov, making use of his management functions at Krasnaya Polyana, instead of investing funds received from Russia’s Sberbank to build Olympic facilities, he put them in the National Bank for Business Development at 4.7% annual interest, and then got the money back through companies affiliated with him in the form of loans, but now with 12.5% annual interest. As a result, exploiting the difference in interest rates, according to the investigation from May 2001 to September 2012, the leadership of Krasnaya Polyana unlawfully received 45.5 million rubles.
Furthermore, as political analyst Oleg Mitvol told Izvestiya in an interview, among law-enforcement’s claims against Bilalov, the issue of the restoration of the Bolshoi Theater may surface. According to Mitvol, Bilalov had a connection to this process, as a result of which large sums of state budget funds went missing.
Citing a source in the Interior Ministry, Izvestiya reported that Magomed Bilalov went abroad immediately after a criminal case was opened up against his brother, Akhmed Bilalov. It is difficult to say where he is now, Mitvol commented, noting Magomed Bilalov’s real estate holdings in England, France, and Switzerland.
Magomed Bilalov himself told Interfax on 5 July by telephone that he is not hiding from the investigation. He described as false the media reports that investigators couldn’t get in touch with him. Last Friday, Bilalov reported that he had been summoned to an interrogation by the Interior Ministry. In an interview with TV Rain, he confirmed that he planned to come to Russia to give testimony to the Interior Ministry on Wednesday. “My feelings are not very good,” said Bilalov.