Moscow broker arrests followed an FSB case against executives of a Cyprus-based broker over alleged fraud worth more than 7 billion rubles.
Russian authorities said they stopped the group’s alleged illegal activity. Three suspects were placed in custody, while two others were put under house arrest. Finance Magnates first reported the case through its Russian-language edition.
Authorities searched homes and offices in Moscow and St Petersburg. They seized communications equipment, documents, seals of Russian and foreign legal entities, digital media with cryptocurrency wallets, and cash totaling more than 100 million rubles.
Moscow Broker Arrests in FSB Case
The FSB Public Relations Centre said the accused took part in a fraud tied to shares in Russian telecommunications and fuel and energy companies. The alleged value of those shares exceeded 7 billion rubles.
Russian authorities also accused the suspects of breaking anti-sanctions laws. Those rules ban the issuance and circulation of foreign depositary receipts tied to shares in Russian issuers.
According to the allegations, the broker obtained rights to shares in public Russian companies that had traded on foreign stock markets before the ban. Authorities further said the suspects worked with the management of another company.
Allegations Focus on Share Exchanges
Russian authorities alleged the group used forged documents. They also said the suspects exchanged frozen American depositary receipts for shares in Russian companies. As a result, authorities said the actions caused significant damage.
The source article did not name the broker or the detained individuals. However, it said the case involved executives of a Cyprus-based broker and their alleged accomplices.
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