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MOSCOW, March 20 (Itar-Tass) – Moscow's Khamovniki court on Wednesday left former head of Defense Ministry's property department Yevgenia Vasilyeva, a suspect in the Oboronservis case, under house arrest.
"The court's conclusion is that the investigator's petition to extend Vasilyeva's house arrest as the measure of restraint, to May 23 has to be granted," judge Olesya Ustinova said in a resolution.
The Oboronservis case pools 15 different probes with deadline on June 8.
Vasilyeva was placed under house arrest on November 23, 2012. On December 12, the Moscow City Court upheld this measure of restraint.
However, the house arrest conditions were softened.
Whereas the Khamovniki court banned other suspects or witnesses in the criminal case from visiting her without the investigation's permission, the Moscow City Court overrode that decision. Also, an appeals board allowed her to use means of communication to handle issues not related to the criminal case.
At the Wednesday hearing, the investigator claimed that Vasilyeva was continuing to control some of her former subordinates.
"The investigators have information that Vasilyeva is continuing to control some of her former subordinates, one of whom is in hiding," investigator Igor Pavlovsky said.
In his opinion, the suspect attempted and might attempt to conceal or destroy evidence in the future.
Vasilyeva's lawyer Khasan-Ali Borokov asked the court to allow Vasilyeva to take one-hour walks "to let her exercise her constitutional right to health." Lawyer Alexander Gofshtein dismissed as nonsense the investigator's remarks that Vasilyeva might escape or that she had been running a business in Germany.
She travelled abroad repeatedly and always returned, which shows she has no intention to escape, Gofshtein said.
The SK main military investigation department /GVSU/ opened more than ten criminal cases against Defense Ministry officials who performed executive functions in the Oboronservis holding, and commercial firms' personnel whose actions caused damage to the state.
The GVSU said Defense Ministry officials selected the most liquid and prestigious assets belonging to the Ministry, including Moscow-based property. As a rule, tremendous budget funds were injected into the property before it was sold at understated prices to commercial bodies affiliated with Oboronservis, the SK reported earlier.
Also, many facilities were purchased with the money stolen from Oboronservis.
The damage within the case is estimated at over four billion roubles.
Former head of the "Expert" legal support center Yekaterina Smetanova is on recognizance and her husband, former director general of a Moscow Military District warehouse Maxim Zakutailo is in custody on charges of fraud.
Charges of fraud were brought against head of the defense ministry’s economic department Nikolai Ryabykh.
Vasilyeva denies her guilt.