MOSCOW, September 26 - RAPSI. Former Sovcomflot subsidiary head Yuri Privalov has contested the sentence of 4.5 years in prison he received after being convicted of defrauding the company of over $67 million, his defense attorney Vladimir Yemelyanov told the Russian Legal Information Agency (RAPSI/rapsinews.com) Wednesday.
Privalov has asked the court to replace the custodial sentence with a probationary one.
Earlier, Yemelyanov said he considered the sentence to be unjust because the court overlooked mitigating circumstances, such as Privalov's role in helping the company to receive $150 million in damages.
The sentence was handed down on September 17 in the defendant's absence.
Earlier, Privalov had been hospitalized. He was declared guilty of the large-scale embezzlement of funds as part of an organized crime group, and of aiding and abetting in the crime.
In addition to his prison sentence, he was fined one million rubles ($32,000).
Investigators claimed that Privalov and other members of an organized crime group embezzled funds from Sovcomflot and Novoship subsidiaries between 2000 and 2005.
The Investigative Committee said the funds were misappropriated by overstating the commissions payable to foreign brokerage companies for concluding purchase and sales transactions for Novoship and Sovcomflot ships. After the payments were received, the margin was transferred to the accounts of the companies controlled by the accused.
The total sum embezzled was over $67 million.
As Privalov entered into a plea bargain, his case was considered without the full examination of the evidence or witness interrogations.
Sovcomflot and its subsidiaries were in a legal battle with former Sovcomflot CEO Dmitry Skarga, former CEO of the SCF British subsidiary Fiona Maritime Agencies Yuri Privalov, former Novoship President Tagir Izmailov, and businessman Yuri Nikitin for over five years until 2010. The claims amounted to over $800 million. Sovcomflot won $150 million following the litigation.
With a fleet of over 150 ships, Sovcomflot is Russia's largest fully state owned shipping company.
