LCD “Quadro”: victims of scammers' self-interest and supervisors' slow response
The scandalous history of the LCD “Quadro” in the Central District is coming to an end after five years. Construction has finally started, but the previous construction had to be dismantled before continuing.
In 2022, four unfinished buildings were transferred to the regional Fund for the Protection of Shareholders' Rights. This followed the bankruptcy of the contractor, Sibinvest LLC. Completion of the long-term construction is expected by December 2023.
In fall 2022, the Fund announced that illegal structures and partitions had been dismantled. The process was marked by a large amount of debris being spread around the neighborhood by the wind, and workers dropping bricks from a height. Officials from the regional Ministry of Construction had to intervene with the contractor.
Recent reports indicate that the outer walls of the buildings have been re-installed, 50% of the glazing has been completed, and the heating, water supply, and sanitation system is 70% ready.
Babr previously reported on the shareholders of this residential complex who were victims of a fraudulent scheme involving subcontracting agreements. Sibinvest LLC was the contractor for the construction of the Kvadro residential complex. A criminal case was launched against the firm's director, Anatoly Vorobyov, for “Fraud”. He was suspected of embezzling funds from the construction participants.
Equity investors were supposed to receive their apartment keys in 2018, but in 2019 a fraudulent scheme was uncovered. The issue of deceived equity holders was taken under control by the regional Stroynadzor and Ministry of Construction, with meetings involving the prosecutor’s office. It became evident that the officials' oversight was weak, as the developer delayed the construction with empty promises. The supervisory authorities naively trusted the contractor's assurances that they could finish the houses on their own. While regional officials were being misled, equity holders continued to pay mortgages and rent, having invested in apartments that were never delivered. The prosecutor’s office advised initiating the developer’s bankruptcy proceedings promptly and transferring the completion of construction to the Fund for the Protection of Shareholders' Rights.
It wasn't until 2022 that progress was made – the developer went bankrupt, and the buildings were transferred to the regional Fund for the Protection of Shareholders' Rights.
Initially, it was decided to complete the construction of the houses, but the examination showed that all four houses do not comply with the project and construction standards. Therefore, they decided to demolish and rebuild. The contractor was selected during the tender.
Completion rates are extremely low
Recall that the Fund for the Protection of Shareholders was established in the Krasnoyarsk Territory in 2019. Its task is to settle the obligations of developers declared bankrupt to deceived citizens. After the bankruptcy of the developer, the Fund is given the rights to complete the construction of apartment buildings. There are two scenarios: to finish building the house or to pay cash compensation to equity holders.
In November 2022, the Krasnoyarsk Territory was named among the regions where the Federal Territorial Development Fund recorded a lag behind the completion schedules for troubled houses. In total, with the participation of the regional fund in the Krasnoyarsk Territory, 17 problematic houses should be completed. Of the 17 facilities, contractors have begun construction work on only four. This is a residential complex “Quadro”, LCD “Neuland Cheryomushki” on the street. Shevchenko, the house of the company “Emelyanovskaya Sloboda” on the street. 1st Khabarovsk and the object of the company “Stroyindustriya” in Sosnovoborsk.
