The Vneshprombank Scandal: Inside Russia's 156 Billion Ruble Banking Conspiracy

by Claire Preston

Updated July 25, 2025

The Vneshprombank Scandal: Inside Russia's 156 Billion Ruble Banking Conspiracy

Introduction

A Moscow court has delivered a 14-year sentence to fugitive banker Georgy Bedzhamov, former co-owner of Vneshprombank, for orchestrating one of Russia's most devastating financial frauds1 2. The Khamovnichesky Court's in absentia ruling on July 14, 2025, marks the culmination of a decade-long investigation into the systematic plundering of 156 billion rubles ($1.7 billion) from the now-defunct bank3 4.

The Criminal Enterprise: A Family Affair

The conspiracy began in April 2009 when Bedzhamov and his sister Larisa Markus, who served as the bank's president, established what prosecutors describe as an organized criminal group specifically designed to drain Vneshprombank's assets5. This wasn't merely opportunistic theft—it was a calculated, long-term operation that would span nearly seven years4.

The criminal organization extended far beyond the Bedzhamov siblings, encompassing Vneshprombank's senior management structure. Larisa Markus served as Bank President and co-conspirator, receiving a 13-year sentence6, while Elena Glushakova, the bank's Vice-President, received 4 years in 20177. Ali Odey Ajin, who held the position of First Vice-President, was sentenced to 9 years7, and Maria Klyueva, Head of Credit Department, received a 4.5-year sentence7.

The scope of complicity reached into the bank's money laundering operations, with several individuals convicted for cash conversion schemes. Olga Mulina, Evgeny Oras, and Genrikh Maloy each received sentences of 5-7 years imprisonment7, while Ekaterina Berlin was given a 3-year suspended sentence and was later amnestied7.

The Trillion-Ruble Deception: Three Pillars of Fraud

Russian investigators uncovered a sophisticated multi-pronged approach to the massive theft, operating through three distinct but interconnected schemes5:

The criminals first employed a phantom loan network, issuing fictitious loans to dozens of individuals, many of whom were completely unaware they had been listed as borrowers. Through this method, the group extracted 5.4 billion rubles2. The loans were designed to appear legitimate on paper while directing funds to accounts controlled by the conspirators.

Perhaps the most insidious aspect involved the silent drainage of client accounts through unauthorized withdrawals of 7 billion rubles from legitimate customer accounts2. Victims remained oblivious to the theft because the criminals systematically falsified account statements, creating an elaborate illusion that their deposits remained intact.

The bulk of the stolen funds—101.1 billion rubles—flowed through an extensive network of more than 200 shell companies that received "technical" loans with no intention of repayment8. These firms existed solely on paper, serving as conduits for the massive financial drain. According to updated investigations, the total scope expanded to involve 427 organizations and 86 individuals who received non-returnable loans on accounts controlled by the criminal network5 9.

High-Profile Victims and Political Connections

The Vneshprombank collapse devastated not only ordinary depositors but also struck at the heart of Russia's political and religious establishments. Among the bank's VIP clients were relatives of government ministers and officials from state corporations, as well as the Russian Orthodox Church10. Some reports suggest these high-profile deposits totaled several tens of billions of rubles, adding a political dimension to the financial catastrophe.

The Legal Labyrinth: Double Sentencing and Appeals

Bedzhamov's case has followed an unusual legal trajectory. The July 2025 sentence represents the second time he has received exactly 14 years imprisonment1. The Khamovnichesky Court initially sentenced him to 14 years in December 2024, but the Moscow City Court overturned that verdict in April 2025 and ordered a retrial1 4. The new proceedings have now confirmed the original sentence.

Meanwhile, his sister Larisa Markus has faced her own complex legal journey. Initially sentenced to 8.5 years in 2017 for her role in the earlier discovered aspects of the fraud6, she received an additional 13-year sentence in January 2024 when the full scope of the conspiracy became clear11 6. Her case is currently under appeal at the Supreme Court level12.

International Manhunt: From Monaco to London

Bedzhamov's escape from Russian justice reads like an international thriller spanning multiple European jurisdictions. Shortly after fleeing Russia in 2015, Bedzhamov was detained in Monaco in April 2016 following a Russian extradition request12 13. However, Monaco authorities released him on bail and ultimately refused extradition, allowing him to continue his flight13.

Bedzhamov eventually settled in London, where Russian authorities and creditors pursued him through civil courts. In 2019, London's High Court froze assets worth £1.34 billion13. The legal pressure culminated in October 2022 when a London court declared Bedzhamov bankrupt on UK territory13. As of April 2025, the High Court of Justice of England and Wales resumed proceedings for recovery of damages totaling 116.6 billion rubles.

His London real estate portfolio alone was valued at £35 million when arrested by Tversky Court in 2021. Additional assets have been blocked across multiple jurisdictions, including France, Italy, and Switzerland14.

The Staggering Scale of Financial Destruction

The Vneshprombank collapse created financial devastation that extended far beyond the direct theft. The direct theft amounted to 156 billion rubles through fraudulent schemes1 4, while the total bank debt exceeded 215 billion rubles when it collapsed in 20166. The Central Bank assessments revealed an asset-liability gap of 187.4 billion rubles8, with civil damages ordered totaling approximately 130 billion rubles to be paid by convicted defendants11.

The Russian Deposit Insurance Agency estimated that recoverable assets from Bedzhamov and his sister totaled only $100 million as of July 2021—a fraction of the massive losses15.

Banking Career and Sports Connections

Before his criminal notoriety, Bedzhamov maintained a public profile in Russian sports. He served as president of the Russian Bobsled and Skeleton Federation12, adding an Olympic dimension to his fall from grace. This position provided him with international connections that may have facilitated his eventual escape from Russia.

Modus Operandi: The Psychology of Long-Term Fraud

What makes the Vneshprombank case particularly striking is its duration—the criminal enterprise operated for six years and eight months without detection by regulators5. From April 2009 to December 2015, the conspirators maintained the facade of a legitimate banking operation while systematically draining its assets1 5.

The scheme's longevity raises questions about regulatory oversight and the effectiveness of Russian banking supervision during this period. The Central Bank only revoked Vneshprombank's license in January 2016, after the damage was already complete7 10.

Current Status and Ongoing Proceedings

As of July 2025, Bedzhamov remains in the United Kingdom, which has refused his extradition to Russia, citing political considerations9. He continues to be the subject of an international manhunt, with Russian authorities maintaining that his 14-year sentence will only begin if and when he returns to Russian territory4.

The case has established several legal precedents in Russian banking law, particularly regarding the prosecution of bank owners who systematically loot their own institutions. The four separate charges under Article 160, Part 4 of the Russian Criminal Code (embezzlement on an especially large scale) demonstrate the prosecution's approach to complex, multi-faceted financial crimes1 4.

Larisa Markus, meanwhile, remains in Russian custody serving her sentence, though her legal team continues to challenge the conviction at the highest judicial levels12. Her case has raised questions about double jeopardy protections in Russian law, as she was convicted twice for what defense attorneys argue constitutes the same continuous criminal enterprise.

The Vneshprombank scandal stands as a watershed moment in Russian banking history, demonstrating both the vulnerability of the financial system to insider fraud and the challenges of pursuing justice across international boundaries. As Bedzhamov continues his life in exile, the case serves as a stark reminder that in the modern era, even the most sophisticated financial crimes cannot guarantee permanent escape from accountability.

by Claire Preston

Updated July 25, 2025

Subscribe to Our Newsletter

The Vneshprombank Scandal: Inside Russia's 156 Billion Ruble Banking Conspiracy

Introduction

The Criminal Enterprise: A Family Affair

The Trillion-Ruble Deception: Three Pillars of Fraud

High-Profile Victims and Political Connections

The Legal Labyrinth: Double Sentencing and Appeals

International Manhunt: From Monaco to London

The Staggering Scale of Financial Destruction

Banking Career and Sports Connections

Modus Operandi: The Psychology of Long-Term Fraud

Current Status and Ongoing Proceedings

Subscribe to New Posts

Read More

Victims' Reckoning: The Human Cost of Vneshprombank's Collapse and Bedzhamov's Unfettered Luxury

The 14-Year Verdict: Why a Russian Banker's Conviction Changes Nothing for His London Lifestyle

Hidden in Plain Sight: Mapping Georgy Bedzhamov’s Post-Vneshprombank Offshore Empire

Justice Deferred: Russian Banker's 14-Year Sentence Highlights Global Asset Recovery Failures