Astana, 23 October. The Astana prosecutor's office announced the completion of an investigation into seven people accused of belonging to an organised criminal group: according to investigators, for four years they promised citizens help in buying housing under preferential programmes and in obtaining favourable loans.
Fifty-one people have been recognised as victims, the damage exceeds 413m tenge, and the case has been sent to court.
To create the appearance of legitimate business, the defendants rented offices, registered commercial companies, signed service contracts and issued letters of guarantee. Clients were assured that the group had connections in state and quasi-state bodies, but no loans were actually issued. The defendants are charged with fraud committed by a criminal group on a large and especially large scale, and with creating, leading and participating in an organised group.
What it means: Seven defendants will be tried over a scheme that for years sold people non-existent access to preferential loans and mortgages. Guilt is for the court to establish; for now this is the investigators' version.
Who benefits: Apart from the defendants, according to investigators, the sources name no beneficiaries. The 51 people who hoped for preferential housing suffered.
Background: Experts had warned of such risks as lending rules for individuals were tightened; the Financial Monitoring Agency noted that after being refused by banks and microfinance organisations people turn to loan sharks and sign predatory contracts at triple-digit interest rates.
List of sources used: Astana Prosecutor's Office, Za nami vyekhali, Nationalbusiness
Artificial intelligence was used in preparing this material.
