MOSCOW, March 5 -RAPSI. The Interior Ministry confirmed that Vnesheconombank (VEB) deputy head is a suspect in a loan fraud case.

Earlier, some media distributed information about the acts of fraud at VEB with reference to unofficial sources in law enforcement services.

Earlier, a source in the Interior Ministry's press service told RIA Novosti that the Moscow police investigative department initiated on March 1, 2012, the criminal case on loan fraud charges. The maximum punishment for the crime is up to ten years in prison.

"VEB Deputy Head Anatoly Ballo, who is one of the suspects in the case, was released on the 5 million ruble ($170.670) bail. Another two suspects in the case - the co-founder and the director of the firm which obtained the loan, are under their own recognizance," the source said.

The press-service's representative said that Ballo also takes the position of the Deputy Board Chairman, and is involved in the bank's major investment projects in shipbuilding, auto industry and resorts at the North Caucasus. He has been the VEB Deputy Head since 2007.

VEB has a legal status of a state corporation and aims to boost Russia's economic competitiveness, to diversify it and stimulate investments.

RAPSI has yet to obtain comments from the bank.