Aeroflot Russian Airlines’ Deputy CEO and three of his colleagues have been arrested for fraud and embezzlement. The details will leave you shaking your head.
Vladimir Alexandrov and three Aeroflot employees in the legal department have been charged with stealing 250 million Russian Rubles ($3.2MN). Earlier this week, the Federal Security Service (FSB, the successor to the KGB) raidede the offices of Alexandrov, seizing computers and files. Before Alexandrov could even be placed on administrative leave, he was arrested.
During 2016 and 2017, Alexandrov hired an external legal entity, Konsors Bar Association, to reform legal work on behalf of Aeroflot. Investigators believe that the Konsors Bar Association was simply used as a pass-thru entity to push money to the charged employees. All work was done in-house, making the 400EUR/hour billing a fraud. The association billed about 10 million Rubles per month over the two-year period.
The ironic part of this story is that before coming Deputy CEO and General Counsel, Alexandrov worked in the Russian Prosecutor General’s Office.
Aeroflot has refused to comment.
CONCLUSION
Fraud at Aeroflot is nothing new. And fraud is hardly unique to Aeroflot…rogue employees can be found at most airlines. And yet I continue to be amazed at how some can be so bold for so long. This alleged fraud scheme went on for two years! Are there no auditors or controllers at Aeroflot, or might the net of suspects soon widen?
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image: Aeroflot
He must’ve either spoken out against the gov.’t or otherwise angered someone in power.
I agree. As much as I know Russia it’s a serious possibility…
No, Billiken, he must’ve embezzled some $3 mil… And PWC, KPMG, or whoever provides assurance services to Aeroflot nowadays, have either turned a blind eye, or couldn’t tell their arse from their elbow.