VEFK-Ural former Chair to be extradited to Russia

December 12, 2013. Austria’s law-enforcement authorities are going to extradite a banker named Alexander Gitelison, who is on the international ‘wanted’ list, upon the demand of the Russian Federation General Prosecutor’s Office. The man was placed on this list because of charges relating to nearly 2bn RUR embezzlement of Leningrad Region Government’s funds, the spokesperson for the authorities reports.

Gitelson was BOD Chairman of Inkasbank (a member enterprise of East European Financial Corporation (VEFK)). He was also BOD Chairman of Bank VEFK-Ural that went bankrupt in 2009.

The man is accused of organized large-scale group fraud (Article 159 (Part 4)) of the Russian Federation Criminal Code.

It is claimed that Gitelson used forged documents to obtain 2.5bn RUR from Bank VEFK’s cash depository in May 2007-October 2008; he spent the money as he saw fit.

Allegedly, Gitelson colluded with Inkasbank Chair of the Supervisory Board L.; together, they signed a contract with Leningrad Region Finance Committee to have 1.88bn RUR worth of bank deposits transferred to Bank VEFK in the form of a loan; the money is claimed to have been stolen by Gitelson later.

The accomplices’ actions did 1.88bn RUR worth of damage to Leningrad Region Finance Committee.

According to the Austrian division of Interpol, Gitelson was arrested in Austria in April 2013.


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