Bank of Moscow at center of embezzlement action

A reinvestigation has been ordered into a case of suspected embezzlement of funds raised by the Moscow city government from selling stock in the Bank of Moscow and the Capital Insurance Group (Stolichnaya Strakhovaya Gruppa) insurance company.

The probe follows an appeal from lawyers of Bank of Moscow's former chief executive Andrei Borodin, who is under prosecution in Russia and is living in London.

In their appeal, the lawyers expressed suspicion of "possible misuse of funds totaling 103 billion rubles" raised via the sales.

The case was taken up by a detective who quashed it. However, a Moscow deputy chief prosecutor ordered a reinvestigation, according to a letter a copy of which has been obtained by Interfax. The Interior Ministry's economic security department confirmed to Interfax that "the case is being investigated." The Moscow prosecutor's office declined to comment.

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