Fraud Trial Starts for Ex-CEO Accused of Misrepresenting Chinese Radios as Russian for Police Tender

The former CEO of a Russian electronics supplier for the government is preparing to go to trial for allegedly defrauding the federal police by supplying hundreds of radios from China that were misrepresented as Russian-made, as reported by media outlets on Thursday.

As per the Kommersant business newspaper, Vasily Musin’s firm, Ural Factories, was the only contestant in a tender held in June 2023 to supply 843 units of “Erika” radios for 50.5 million rubles (approximately $636,000) to the Interior Ministry of Russia.

An assessment conducted by a research institute in May 2024 revealed that a majority of the radio components originated in China and that the radios bore a strong resemblance to devices manufactured by the Chinese company Hytera.

Musin has been accused of deliberately deceiving the government regarding the radios’ country-of-origin specifications, resulting in financial harm and hindering the execution of the defense contract.

He was arrested in June 2024 and maintains his innocence regarding the accusations.

Ural Factories has previously faced similar allegations but has managed to demonstrate that its products were indeed made in Russia in each instance, according to Kommersant.

On Thursday, the Zamoskvoretsky District Court in Moscow commenced proceedings related to the large-scale fraud charges against Musin.

Kommersant reports that the case indicates other individuals associated with Ural Factories were aware of Musin’s alleged misconduct, yet no charges have been filed against them.

If convicted, the 54-year-old Musin could face a prison sentence of up to 10 years.