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Two Detained In Fraud Case Involving Russia Defense Contractor

Russian legal authorities have detained two people in connection with fraud at the country's Oboronservis company, which oversees manufacturing contracts for the Defense Ministry.

Moscow's Khamovnicehsky Court ordered the arrest of Yekaterina Smetanova, the head of the Ekspert legal support center, who is suspected of aiding the former director of the Defense Ministry's property department in the fraud.

Also ordered to be arrested was Maksim Zakutailo, Smetanova's husband.

Investigators believe the suspects illegally sold real estate, land, and company shares that belonged to Oboronservis.

Investigators say the sale of eight Oboronservis real estate facilities netted the suspects some $100 million.

Oboronservis is a state-owned military contractor that oversees companies making a wide variety of products for the Russian military ranging from weapons and war machines to housing and uniforms.

Based on reporting by ITAR-TASS and Interfax

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