Leonid Filanovskiy has discussed with RBC the prospects of a criminal case against the owner of the failed retail chains SPAR and Narodnaya 7ya Semya

A number of suppliers for the now-defunct SPAR and Narodnaya 7ya Semya stores have turned to the Ministry of Internal Affairs of Russia with a request to conduct an investigation against Mikhail Abdullaev, Head of Intertorg. The results of an investigation may be criminal proceedings for fraud, which can result in up to 10 years imprisonment. The total amount of financial claims against Intertorg exceeds 15 billion roubles, according to the commercial court with almost 400 claims have already been filed against the company.

“Regardless of the number of statements, the police are obliged to conduct an investigation and, based on its results, make a decision whether to initiate criminal proceedings”, explained Leonid Filanovskiy, Partner and Head of criminal law practice at Maxima Legal to RBC Petersburg.

According to Leonid, an appeal to law enforcement agencies increases the chances that the companies will receive funds. “Although the criminal process, if initiated, and the commercial courts will proceed in parallel, people who have applied to the Ministry of Internal Affairs and sought to initiate a criminal case can expect to recover damages from Mr Abdullaev’s personal property as part of the criminal process”, Leonid emphasised. According to a court order, an investigator may seize personal property, which can subsequently be used to cover damages, Leonid explained.

In addition, Leonid noted that if Intertorg is declared insolvent and Mikhail Abdullaev is brought to subsidiary liability, he can be personally liable for damages to creditors and in the framework commercial court proceedings.

To read the full article (in Russian), please see the RBC Petersburg website >>>