The Fraud Case Against Berezovsky

Berezovsky defrauded Aeroflot through a scheme in which the air carrier essentially loaned money to itself through a series of intermediaries and then paid interest on it, the court ruled.

Berezovsky benefited by pocketing the interest and penalties received by Swiss company Andava from Aeroflot through intermediary firms registered in Russia and Ireland, the court said.

The Russian intermediary firm, FOK, had a contract with then cash-strapped Aeroflot to service its debts and payments under a guarantee that the carrier would compensate the expenses at a later time, the court found.

FOK passed its commitment on to Irish-registered firm Grangeland Holdings, which drew money from Andava. Andava, which managed Aeroflot's foreign account, was majority-owned by Berezovsky and Glushkov.

To compensate FOK, Glushkov gave it three promissory notes with a huge annual interest rate of 65 percent. On another occasion, Glushkov intentionally delayed Aeroflot's payment to FOK, prompting the carrier to pay a 15 percent penalty later, the court said.

Revenues from the interest and penalties went to Andava that later paid them as dividends and bonuses to Berezovsky, Glushkov and several other Aeroflot executives involved in the scam, the court said.

Berezovsky has denied the charges.