A court in Kostanay has handed down a sentence in a case involving illegal microfinance activities and the laundering of criminal proceeds. According to the prosecution's version of events, a local resident issued loans secured against property without a licence, and the court sentenced him to 2 years and 8 months in prison. The verdict has not yet come into legal force.
WHAT THE CASE INVOLVED
According to the Agency for Financial Monitoring (AFM), the AFM department for Kostanay Region established that a local resident had organised the issuing of loans secured against property without holding the licence required by law.
Advertisements were used to find clients on the OLX and Instagram platforms, as the AFM reported. According to the prosecution, loans were provided at interest rates of up to 120% per annum.
WHAT VIOLATIONS THE INVESTIGATION ESTABLISHED
According to the AFM, the notarised contracts stated amounts exceeding the funds actually handed over to borrowers. The prosecution alleges that interest, administrative costs and other payments were included in advance.
According to the agency, one victim actually received 9 million tenge, while the contract stated an amount of 14 million tenge. A further contract was later drawn up with a liability of 18 million tenge, though it is alleged that no money was ever provided under it.
Subsequently, a court ordered 26 million tenge to be recovered from the victim.
WHAT DAMAGES ARE CITED IN THE CASE MATERIALS
According to the AFM, more than 50 citizens were drawn into debt obligations on deliberately unfavourable terms as a result of the unlawful activity.
The investigation also believes that the amount of criminal income exceeded 1 billion tenge.
WHAT DECISION THE COURT MADE
The court found the defendant guilty and imposed a sentence of 2 years and 8 months in prison.
In addition, the court ordered the confiscation of property which, according to the case materials, had been acquired with criminal proceeds. The list includes four flats, two land plots, as well as a Mercedes-Benz G500, a Dodge RAM 1500 and a Hyundai Santa Fe.
The verdict has not yet come into legal force.
