A verdict has been handed down for defendants in a 170 million ruble embezzlement case in Dagestan.

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The Supreme Court of Dagestan sentenced seven defendants to terms ranging from 6 to 17 years in prison for the embezzlement of 170 million rubles from the state microfinance fund for small and medium businesses.

As reported by the "Caucasian Knot," in 2018, 180 million rubles in funds intended for lending to small and medium businesses were stolen in Dagestan. The embezzlement scheme was orchestrated by the head of a microfinance fund for business owners.

The Supreme Court of Dagestan sentenced seven members of a criminal group that stole more than 170 million rubles from a state microfinance fund for small and medium-sized businesses, Kommersant reported on November 18, citing the joint press service of the republic's courts.

According to investigators, the group, led by the former head of the fund, illegally transferred borrowed funds to the accounts of 82 individuals unaware of the fraud between September 2013 and October 2014. Fictitious individual entrepreneurs and inflated or non-existent collateral were used as cover.

District courts sentenced the defendants to prison terms ranging from four to 10 years, depending on their roles. However, both the defense and the prosecutor appealed the verdict. Ultimately, the appellate court increased the punishment, and the defendants were sentenced to terms ranging from six to 17 years in a maximum-security penal colony. In addition, the court upheld the fund's civil claim for damages.