TOMSK, May 14 - RAPSI. A Tomsk regional official is suspected of being involved in a case of fraud in an investment project, which resulted in large-scale damage to Binbank.

Binbank is a major investor of the construction of a chip board production company. The bank reportedly allocated 320 million rubles ($10.6 million) for the project.

In attempt to conceal their embezzlement of the funds, the criminals began constructing several production facilities, which were later sold on. They did not inform the bank about the sale and instead secured another 75 million ruble ($2.5 million) loan from it, so as to complete the alleged construction although they knew that the enterprise would not be capable to operate without the sold facilities.

The criminals then initiated bankruptcy proceedings for the head company to which the loans had been issued. Investigators suspect the involvement of a Tomsk regional MP in the fraud case. He has not yet been named publically.

Binbank expects to complete the construction of the chip board production company after the debtor's bankruptcy is finalized.