In games, they will look for a crime

The bankruptcy case of Game Insight, once a major Russian game developer, has taken an unexpected turn. The arbitration manager found signs of deliberate bankruptcy and sent an appeal to the prosecutor’s office. The beneficiaries of Game Insight may face criminal cases under several articles of the Criminal Code of the Russian Federation, lawyers warn. Among the co-owners, in addition to the former vice president of Mail.ru Group Igor Matsanyuk, are also the founders of the Internet holding Mikhail Vinchel and Grigory Finger.

The arbitration manager of Game Insight LLC Denis Kachura found signs of deliberate bankruptcy of the company, follows from a message dated February 7, published in the Unified Federal Register of Bankruptcy Information (EFRSB). Mr. Kachura himself explained to Kommersant that he had already sent an appeal to the prosecutor’s office, where he outlined the identified signs. He also plans to bring to subsidiary liability “a wide range of persons controlling the company.”

As Denis Kachura explained to Kommersant, Game Insight LLC is a subsidiary of the Lithuanian Game Insight Group UAB, which was also the main counterparty of the Russian legal entity: “Russian Game Insight developed games commissioned by the Lithuanian structure and received funds from it. The Lithuanian Game Insight Group UAB owned trademarks and intellectual rights to the studio’s games, the Russian company was engaged in custom development and had no rights to the games.

Both the Lithuanian and Russian companies were controlled by Igor Matsanyuk, Grigory Finger and Mikhail Vinchel, Mr. Kachura claims, referring to internal Game Insight documentation: “To date, Game Insight Group UAB owes Game Insight €1.4 million. the company does not transfer funds, citing sanctions.”

Grigory Finger and Mikhail Vinchel, along with Yuri Milner, were co-founders of Mail.ru Group (now VK). In March 2012, two years after the company’s IPO, Mr. Vinchel withdrew from the shareholders by selling 1.5% of the shares. In September of the same year, Grigory Finger also sold his 5.7% stake. Kommersant sent questions to Messrs. Matsanyuk, Vinchel and Finger.

If the persons controlling the company, Game Insight Group UAB and the actual beneficiaries, withdrew the assets of the Russian LLC, deliberately evaded payment of the license fee and did not take reasonable steps to keep the company afloat, there is an intentional bankruptcy, says Aram Grigoryan, senior lawyer, NSP lawyer.

If the investigating authorities reveal signs of a crime under Art. 196 of the Criminal Code of the Russian Federation (deliberate bankruptcy), a criminal case will be initiated on this fact, says Pavel Kirsanov, head of the Restructuring and Bankruptcy practice at Regionservis. Investigators “do not really like to investigate cases of fictitious and deliberate bankruptcy, and even a few years ago the Ministry of Internal Affairs of the Russian Federation took the initiative to exclude these articles from the Criminal Code of the Russian Federation,” the lawyer adds. However, an analysis of court decisions suggests an increase in the number of sentences under these articles, he believes.

Precisely according to Art. 196 of the Criminal Code of the Russian Federation, cases are initiated infrequently, says Marina Morozova, partner of ProLegals, but the actions of the accused can be qualified under other articles of the Criminal Code of the Russian Federation related to theft of funds, fraud and abuse of power.

Nikita Korolev, Ekaterina Volkova, Timofey Kornev