Moscow, Starovatutinsky pr. 17.
In the 90s resulting from activities of certain entrepreneurs using corrupt ties Moscow government officials and law-enforcement officials committed the following unlawful actions:
- damaging to the budget of the city of Moscow in the form of non-payment of taxes on the commercial sale of flats in the house;
- people’s deprivation of their expected flats by law in North-eastern administrative district;
- appropriation of 70 % grants provided for the people in North-eastern administrative district ;
- appropriation of the fully paid 3 flats belonging to common people on the basis of orders of Municipal Housing Department of the city of Moscow;
- appropriation of all uninhabited facilities of the whole house;
- appropriation of a land plot allocated for common people for construction of the house of Housing Cooperative Society «GAMA»;
- appropriation of money assets of the Housing Complex spent by the shareholding members on project technical documentation of technical economical grounding of engineering technical networks of the living house.

On the basis of Resolution of the Russian government No. 595 dated 20.06.1993 «On state purpose program «Housing» the prefecture of North-eastern administrative district in 1994 approved of the program of a new form of organization investing in housing construction as realization of a purpose program of assistance to people in improvement of their living conditions. Common people of North-eastern administrative district of the city of Moscow founded Housing Cooperative Society «GAMA».
During 1994 Housing Cooperative Society «GAMA» prepared all project technical documentation of technical economical grounding of engineering technical networks of the living house with the common people’s money. Offered by the prefecture of North-eastern administrative district a contract of investment project realization of building a house was concluded between Housing Cooperative Society «GAMA» and investor, LLC EESO «VEL».
To interest the investor which was to compensate the expenses of payment of indemnification to the shareholding members (55% flats) of the house of HCS «GAMA» to 70% of the whole construction value, Department of municipal living was to transfer in the investor’s property 45% flats of the house for the made investments. Because of absence of control of realization of the investment project by the leaders of DMH of Moscow and Prefecture of NEAD, the investor managed to register the property of 70% of the living area in the house without submission of the financial report without giving a grant to the shareholding members of HCS «GAMA».

Director general of the investor, company «VEL» and chairman of HCS «GAMA» violating resolution No. 2527-РП dated 28.12.1994 substituted the contract for subsequent liquidation of HCS «GAMA», appropriation of all the living facilities in the house and lands. The provisions of money volume of investments were excluded from the text of the contract which contradicted the administrative document Directive of Premier of Moscow government No. 2527-РП dated 25.12.1994 and exemplary contract of realization of the investment project approved of Рас Directive of Moscow government No. 88-РП dated 19.01.1994,   the share of investments by HCS «GAMA»  was artificially expanded by $ 1 967 771.

In conformance with Directive of Mayor of Moscow No. 935-РМ dated 28.11.1997 the contract was subject to accounting registration at the Municipal housing committee before March 1, 1998. With the purpose of concealment of non-execution Luzhkov’s directive No. 2527-РП dated 25.12.1994 the investor, under the arrangement with certaion officials of the Prefecture of NEAD of Moscow and head of DMH of NEAD of Moscow, violating Directive of Moscow Mayor Мэра No. 935-РМ dated 28.11.1997,  did not register the contract at DMH of Moscow, leaving the matter of distribution of flats without the city’s authorities’ control. The contract between HCS «GAMA» nd investor LLC EESO «VEL» as of August 3, 2005 was not under accounting registration at the Department of housing politics and housing fund of Moscow which made it possible to conceal the ruse violation of law.

Later HCS «GAMA» was liquidated trough Court of Arbitration of Moscow with considerable violations of law without the primary accounting documents under the forged circumstances.

As a result, the investor, instead of 45% of the flat areas received 12 850,9 sq.m. which makes 69,22 % of the house’s living area.

The common people of NEAD of Moscow of HCS «GAMA» received 5 715,1 sq.m. which makes 30,7% of the living area (75 flats). By the way, 184 flats are under the act of the State commission, but actually 183.

Absence of control of realization of the directives of Moscow government aimed at improvement of living conditions of common people, resulted in the living house becoming the investor’s private property. Actually, under cover of construction of social housing a raider seizure of the personal property of the shareholding members of HCS «GAMA» and city’s housing fund was undertaken.

As early as in 1999 the first appeal against the persons concerned in this fraud was filed (Annex No.1). However, up to the present time nobody has undergone a deserved punishment.
In February 2007 IPO «Spravedlivost» ppealed to the First Deputy Chairman of the Russian Government asking assistance in restoring the violated rights of the shareholders of HCS «GAMA» (Annex No.2). Following this appeal officials of Board of Struggle against Organized Crime of the Main Board of Internal Affairs of Moscow undertook a check-up resulting in initiating by Board of Internal Affairs of NEAD of Moscow criminal case No.299181 under the article «Large-scale fraud» (Annex No.3).
During the investigation of the criminal case the officials of BIA of NAD faced strong confrontation which ended in withdrawal of the criminal case. It was transferred for further investigation a the State Investigation Committee of MBIA of Moscow (Annex No. 4). By the way, at the first sight, there was quite an innocent wording: «In connection with a large volume of investigation actions and  much work under way in criminal cases of the investigators in the named unit (BIA of NAD – «Spravedlivost»), with the purpose of settling capacity and using operative units of MBIA of Moscow». However, the result of «involving extra forces» was not activiztion of the investigation, but its full termination (Annex No.5).
The reasons of the applicants of necessity to transfer the case for investigation to the Investigation Board of the Investigation Committee of the Prosecutor’s Board of Moscow are fully ignored (Annex No. 6).
IPO «Spravedlivost» has every ground to believe that the persons who had committed the crime in the late 1990s concerning illegal actions of appropriation of municipal housing and personal property of the shareholders of HCS «GAMA» continue to influence the legal and objective investigation.
Since January 2007 up to the present time our organization has collected a great deal of informational and analytical materials confirming participation in the scandal concerning HCS «GAMA» of the folloeeing high-ranking officials of Moscow:
- Kharchenko V.N. – deputy prefect of NEAD of Moscow,
- Naumenkov S.M.- deputy prefect of NEAD of Moscow,
- Reykhanov I.S. - deputy prefect of NEAD of Moscow,
- Pushkina O.P. – Babushkinsky interdistrict prosecutor,
- Saprykin P.V. – head of DMH and HF of Moscow.

To be continued…
We ask you to consider this publication as appeal to the General Prosecutor’s Office of the Russian Federation concerning  verification of the stated facts and taking necessary measures of the prosecutor’s reaction.