MOSCOW, February 1 - RAPSI. The Moscow City Court has affirmed the dismissal of former Bank of Moscow president Andrei Borodin's claim for $4.88 million in compensation for the early termination of his employment contract, his lawyer told the Russian Legal Information Agency (RAPSI/rapsinews.com).

The Investigative Department opened a criminal case against Borodin and his deputy Akulinin in late 2010. Borodin and Akulinin were charged with embezzling 12.5 billion rubles ($398.5 million) from the Moscow budget through a loan to the Premier Estate company.

Prior to granting the loan to Premier Estate, the bank issued new shares worth 15 billion rubles ($478.2). The stake was purchased by the Moscow government, the bank's majority shareholder.

Premier Estate used the funds to purchase a 58 hectare land plot on the west of Moscow. Investigators say the bank's personnel were aware the borrower submitted false information about the pledge to secure the loan.