Kazakhstan has uncovered a car fraud scheme involving vehicles pledged as collateral using straw borrowers, with 56 cars smuggled abroad, the website infohub.kz reports.
The Ministry of Internal Affairs has shut down a group suspected of large-scale car fraud. Under the case, 48 people were brought to police, and six alleged organizers are being held in a temporary detention facility.
According to Polisia.kz, members of the scheme pledged cars through second-tier banks and microcredit organizations, using straw borrowers to do so.
“The perpetrators pledged cars in the names of straw borrowers through second-tier banks and microcredit organizations. After receiving the vehicles, they smuggled them out of Kazakhstan for resale. According to preliminary data, 56 cars were taken abroad this way,” the statement said.
To stop the criminal activity, the Ministry of Internal Affairs carried out operations simultaneously in ten regions of the country. As a result, 48 people were brought to police. Among them were 6 alleged organizers of the criminal group, who have been placed in a temporary detention facility.
Police said the group's further activities were stopped and new fraud episodes were prevented.
According to the Ministry of Internal Affairs, investigators are now establishing all the circumstances of the case and taking measures to trace the smuggled cars. The investigation is under the ministry's supervision.