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Transaero receiver sentenced to 5.5 years in $15 million embezzlement case

Christian Fernsby ▼ | August 20, 2020
The former court-appointed receiver of Transaero air carrier Mikhail Kotov was convicted and sentenced to 5.5 years in jail in a case over 1-billion-ruble embezzlement (about $15 million) and abuse of office, the spokesperson of Moscow’s Savelovsky District Court Maria Mikhailova told RAPSI.
Transaero
Embezzlement   Transaero
He was also banned from holding positions related to managing, organizational and administrative functions for 3 years.

Topics: Transaero

According to investigation, Kotov’s action resulted in embezzlement of the airline’s property worth over 1 billion rubles ($15.3 million). Moreover, he forged some documents to suppress crimes allegedly committed in conspiracy with the former Transaero CEO Alexander Burdin, the statement reads.

Transaero found itself unable to pay its debts valued at 250 billion rubles (about $4 billion) in 2015. The government-approved plan of transferring 75% of company’s shares to Aeroflot failed. Its problems resulted in a large number of flight cancels and delays.

In October 2015, Sberbank and Alfa Bank filed bankruptcy petitions against the troubled airline. The Commercial Court of St. Petersburg and Leningrad Region initiated bankruptcy procedure against Transaero on December 16. The Commercial Court of St. Petersburg and Leningrad Region declared Transaero air carrier bankrupt in September 2017.


 

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