A criminal inquiry has been launched over LLC Stroyindustria-S salary debts to builders of the Vostochny spaceport in the Amur region, the regional prosecution service said.
"The organization received an upfront payment of 48 million rubles ($916,000) for building spaceport facilities, but its executives spent the money on other financial and economic activity, unrelated to the construction works," the report said.
Criminal charges have been brought against LLC Stroyindustria-S executives under part 4, article 160 of the Russian Criminal Code (embezzlement of another's entrusted property in especially large amounts).
LLC Stroyindustria-S CEO Sergei Terentyev has been arrested under part 3, article 145.1 of the Russian Criminal Code (failure to pay salaries for over two months with severe consequences). The detectives said he intentionally withheld all salaries of the workers in January, February and the first half of March 2015.
The Russian Investigative Committee said that the debts topped 14 million rubles ($267,000).
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