A Nizhny Novgorod businessman was sentenced to 4 years for multimillion-dollar loan fraud.

      May 25, 2026 15:40 Incidents In Nizhny Novgorod, a verdict was delivered against a 55-year-old head of LLC "Consulting Group Phoenix." He was found guilty of fraud on a particularly large scale and illegal entrepreneurship, the regional court's press service reported. It was established that from 2014 to 2020, the man organized two fraudulent schemes, with more than 40 victims. The first scheme was related to issuing loans to citizens who found themselves in a difficult financial situation due to large debts to banks. The defendant entered into contracts with them for legal assistance, supposedly to reduce their debt burden, and then formalized loan agreements at 72% per annum with real estate collateral and the signing of mortgage agreements. At the same time, borrowers were misled about the terms of the contracts and repayment periods. Their debt burden was artificially increased, and then the entrepreneur went to court to recover money and enforce the collateral on the mortgaged property. The loan amounts were significantly lower than the actual market value of the real estate. A total of 13 such contracts were concluded with 19 victims. The damage exceeded 14 million rubles. The second scheme involved attracting funds from citizens wishing to invest their savings at a high interest rate. Effectively managing another organization, the defendant entered into targeted loan agreements with investors on knowingly false terms. From November 2015 to February 2022, in this way, he embezzled more than 17 million rubles from 22 people. The money obtained was spent on personal needs. The court found him guilty on two counts of fraud and sentenced him to 4 years in prison to be served in a general regime correctional colony. Under the article on illegal entrepreneurship, he was also found guilty but was released from punishment due to the expiration of the statute of limitations. The convicted man was taken into custody in the courtroom. It was previously reported that 15 employees of the MaryWay modeling agency would be tried in Nizhny Novgorod for fraud amounting to 65 million rubles. NIA "Nizhny Novgorod" has channels on Telegram and MAX. Subscribe to stay updated on major events, exclusive materials, and operational information. Copyright © 1999—2025 NIA "Nizhny Novgorod." When reprinting, a hyperlink to NIA "Nizhny Novgorod" is mandatory. This resource may contain materials 18+