MOSCOW, August 27 (RAPSI) – The Moscow City Court has extended house arrest of ex-first deputy director of the Federal Agency for Special Construction (Spetsstroy) Alexander Zagorulko charged with embezzling budget funds allocated for construction and reconstruction of the Defense Ministry’s facilities, the court’s press service has told RAPSI.

The defendant will stay under house arrest for more 3 months, until December 1. 

Earlier, businessman Kadyr Karakhanov and ex-deputy of Spetsstroy director Alexander Buryakov were detained as part of this case. Buryakov was sentenced to five years in prison and a 600,000-ruble fine ($900,000) in July.

Investigators believe that Buryakov conspired with unidentified persons to conclude contracts with subcontractors on construction and reconstruction of nine facilities for the Defense Ministry of Russia. According to preliminary data, the defendants embezzled over 1 billion rubles (about $15 million).

Zagurolko began working in Spetsstroy from 2013.  He was appointed as the first deputy for the organization’s head in August 2014. In the spring of 2016, Zagorulko resigned.