LEGION VS ZAITSEV: INSOLVENT BANK WILL BANKRUPT ITS EX-HEAD

The joint-stock commercial bank (AKB) Legion filed for bankruptcy in arbitration. The credit institution, deprived of its license in 2017, demands that Georgy Zaitsev be declared insolvent. The banker in the past headed the board of directors and was one of the shareholders of the bank.

The application was filed on October 20 and has not yet been accepted by the court for consideration.

As you know, the bank's license was revoked for fairly standard reasons. The organization systematically avoided fulfilling the requirements of the regulator. In particular, the Central Bank of the Russian Federation blamed Legion for an inadequate risk assessment when issuing loans. The bank also did not create the reserves necessary from the point of view of the Central Bank to cover losses on low-quality assets.

After the bank was declared bankrupt, it turned out that its debts to depositors exceeded 13.5 billion. The credit institution turned out to have over 2.6 thousand creditors. A number of bank executives received criminal records and were imprisoned for 7.5 years. In total, as the court found, they spent about 122 million rubles.

Georgy Zaitsev was officially one of the shareholders of the bank in 2016. Its share slightly exceeded 3%.

Zaitsev was also known as the owner of the construction company NPO Cosmos. This organization was also included in the agenda of economic crimes in connection with the activities of the former director of the construction company Andrey Chernyakov. In particular, he was suspected of embezzling a loan of 30 billion rubles allocated by the Bank of Moscow to complete the construction of the Alabyan-Baltic tunnel.

The bank's current lawsuit against its former top manager is far from the first attempt to declare him bankrupt. In April 2022, the credit institution already applied to arbitration with a similar application, but the claim was returned back. Then Zaitsev was saved from the bankruptcy process by the moratorium established by the government of the Russian Federation.