Three detained in St Petersburg subsidised mortgage fraud investigation

Police detained two men and a woman suspected of fraud involving subsidised mortgages for private-house construction, the regional Interior Ministry department said on October 12.

Investigators believe that from April to December 2023 the group recruited nominee borrowers and used false documents to obtain loans in their names.

According to the police account, construction then either stopped or continued using the cheapest materials. Investigators allege that this allowed the group to take most of the borrowed funds.

The department reported at least 13 subsidised mortgage loans worth more than 154.8 million roubles, approximately 155 million. That figure describes the value of loans issued rather than a court-established total loss.

Operations took place in St Petersburg and the Leningrad region, the Moscow metropolitan region and the Samara region. Fraud cases have been combined into a single investigation.

Police are checking for similar alleged offences and looking for other possible participants. The arrests and investigators’ account do not establish the suspects’ guilt.