MOSCOW, December 7 (RAPSI) – Yury Pirogov, former president of now insolvent MAST-bank, has been arrested in Moscow on charges he participated in a scheme to cash 8.8 billion rubles ($138 mln), Kommersant newspaper reported on Wednesday. 

Pirogov was arrested after he was questioned in relation to a criminal case over illegal banking activities, which was launched in March 2015, according to Kommersant.

Pirogov pleaded not guilty, Alexander Karabanov, his lawyer, told TASS news agency.  

Investigators claim that in 2010-2015 an organized group, which included managers of MAST-bank, was was siphoning money out of the bank and cashing them.

Three individuals admitted their guilt in the case. They were reportedly sentenced in May to probation.

Charges against two other suspects, including Evgeny Rostovtsev, member of the board of directors at MAST-bank, were reportedly dropped.

Criminal investigation in the case is underway.

In the meantime, former top managers of the bank, including Alexander Chemetov, former chairman of the board of directors, and Natalya Zhelobayeva, now chief credit officer at Arsenal bank, are implicated in another criminal case. It was launched in January at the request of the Russian central bank which claims the money deposited at MAST-bank were embezzled. 

MAST-bank lost its license in July 2015. The bank was declared bankrupt in August.