Employee of Moscow defense sector enterprise detained over fraud - FSB branch

MOSCOW. Sept 13 (Interfax) - A manager at a defense industry enterprise has been detained on suspicion of devising a fraudulent scheme for delivering counterfeit products under a state contract for manufacturing military-purpose items, the Russian Federal Security Service (FSB)'s branch for Moscow and the Moscow region said.

"The Russian FSB's department for the city of Moscow and the Moscow region together with the Russian Interior Ministry's department for the city of Moscow have thwarted the unlawful activities of a Russian citizen who organized a fraudulent scheme for delivering counterfeit goods under a state contract for producing military-purpose products," it said.

The suspect worked at a Moscow defense industry enterprise as a manager, the FSB said.

The man "abused his position and, acting with mercenary intent and with the aim of illegal personal enrichment through the mediation of other individuals, was involved in misappropriating funds allocated for work under the state defense order to produce components for enhanced-accuracy weapon systems for the Russian Armed Forces," it said.

The Russian Investigative Committee's Moscow department opened a criminal case on commercial bribery charges in late June.

"Investigative measures are in progress to establish all the circumstances as part of this criminal case," the FSB said.