The court turned Fesco shares into state income

On the night of January 10-11, the Khamovnichesky Court of Moscow satisfied the claims of the Prosecutor General’s Office for the conversion of ordinary book-entry shares of PJSC “Far Eastern Shipping Company» (Fesco), which belong, among other things, to convicted businessmen Ziyavudin and Magomed Magomedov. This was reported to Vedomosti by lawyer Mikhail Osherov.

The supervisory authority filed such demands with the court, justifying it by the fact that the company’s shares were acquired at the expense of the corruption proceeds of the Magomedovs.

As the correspondent of Vedomosti reports, the court session began on January 10 at 11 am and lasted until two in the morning on January 11. By the time the final decision was announced, all defendants had left the courtroom. Only judge Tatyana Perepelkova and three representatives of the prosecutor’s office remained at the hearing.

In total, according to the court decision, more than 92% of PJSC shares are subject to confiscation FESCO).

In addition to the Magomedov brothers, who, according to the verdict of the Meshchansky Court, had their share of 32.5% of their shares confiscated, the defendants in the lawsuit are Smattilicious Consulting LTd, Calamita Trading Limited, Noubelius Ltd, Enviartia Consulting Limited, Vovosa Co Limited, Rikima Holdings Limited, Mirihia Holdings Limited, Nautilius LLC and Novatorinvest LLC and individuals – Mikhail Rabinovich (17.45% of PJSC FESCO), Andrey Severilov (23.8%) Sergey Bazylev (9.5%).

At the same time, on December 2, 2022, the Meshchansky Court of Moscow, announcing the verdict on the Magomedov brothers, already confiscated the shares.

The defense has repeatedly filed motions to suspend the proceedings in the Khamovnichesky court, since the demands of the prosecutor’s office, in their opinion, do not make sense and cannot be executed after the verdict of the Meshchansky court comes into force.

According to the position of the prosecutor’s office, the corruption proceeds of Ziyavudin Magomedov’s brothers Magomed Magomedov were used to acquire the shares of PJSC FESCO. The agency insisted that the income was received in the period from 2002-2009, when Magomed Magomedov was a member of the Federation Council from the Smolensk region. The prosecutor’s office believes that it was these incomes that were legalized by businessmen through the acquisition in 2012 of a stake in PJSC “Far Eastern Shipping Company“.

On December 2, the Meshchansky Court of Moscow sentenced the brothers Ziyavudin and Magomed Magomedov to 19 and 18 years in a strict regime colony, respectively. The court found them guilty of committing crimes under Parts 1, 2, 3 of Art. 210 of the Criminal Code (organization of a criminal community or participation in it), part 4 of Art. 159 of the Criminal Code (fraud), part 4 of Art. 160 of the Criminal Code (misappropriation or embezzlement) and part 1 of Art. 222 of the Criminal Code (illegal acquisition, transfer, sale, storage, transportation, transfer or carrying of weapons, main parts of firearms, ammunition).

The court, in particular, found that no later than 2010, the Magomedov brothers, seeking illegal enrichment by embezzling budget funds and property of commercial organizations, created an organized criminal group in Moscow. And the Summa controlled by Magomedov, the court believes, has become the basis of the organized criminal group. The Magomedovs used legal entities affiliated with them as the material base of the community. According to the prosecutor’s office, from 2010 to 2016, members of the organized crime group led by the Magomedov brothers stole funds from the state and commercial organizations in the amount of more than 15 billion rubles.