Ex-deputy suspected of embezzling billions in farm subsidies for casinos and stock market

Authorities in Kazakhstan are investigating a former deputy of the Karasay District Maslikhat for allegedly orchestrating a large-scale embezzlement scheme, defrauding the state of over 2.6 billion tenge (approximately $6 million) in agricultural subsidies. The former official, who reportedly leveraged his experience in the agricultural sector, is accused of establishing a network of controlled enterprises and farms across three regions to facilitate the illegal acquisition of budget payments.

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Leveraging his experience in the agricultural sector and knowledge of state subsidy mechanisms, he established a scheme for the illegal receipt of budget payments.

Investigators claim the scheme involved submitting fictitious documents for the purchase of elite raspberry saplings, intended for industrial berry plantations. Forged sales contracts, electronic invoices, and certification documents were allegedly created to support these claims. However, the Financial Monitoring Agency (FMA) reported that no actual delivery of seedlings occurred in the volumes claimed, and some of the listed farms lacked the capacity for industrial raspberry cultivation.

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However, no actual delivery of seedlings took place in the reported volumes, and certain farms listed in the documents lacked the capacity to grow raspberries on an industrial scale.

Further complicating the case, a portion of the illicitly obtained funds, amounting to 491 million tenge, was allegedly directed towards stock market operations through a brokerage account opened in the suspect's wife's name. Another 400 million tenge was transferred to an affiliated microfinance organization, iSolutions Capital, as temporary financial assistance, before being withdrawn in cash. Additionally, 170 million tenge was reportedly spent on gambling at a casino in Konayev.

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As a result, subsidies were illegally obtained from the budget totaling more than 2.6 billion tenge.

With court authorization, authorities have seized property belonging to the suspects, including four apartments, three vehicles, a private house, and securities. Three individuals have been remanded in custody, and the criminal case has been referred to court. This case follows a previous detailing of similar embezzlement and money laundering allegations involving the same former deputy and others.

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To facilitate this, a brokerage account was opened in his wife's name, through which securities of Kazakhstani and foreign companies were purchased.