Fake companies allegedly used in swindle

MOSCOW, Oct. 15 (UPI) -- Investigators say Russian Defense Ministry officials swindled the government out of millions of rubles by creating fictitious contractors.

The alleged thieves were employed at the 26th Central Scientific Research Institute, a Defense Ministry agency, Kommersant reported. They allegedly granted a 9 million ruble ($343,000) contract in 2006 to the Association for the Business Cooperative of Specialists, while doing the work themselves and transferring the money to accounts set up in the name of fake companies.

The group allegedly stole 11 million rubles ($419,000) more through subcontracts with fictitious firms.

At least one person has been arrested.