MOSCOW, December 4 (RAPSI) – Investigators closed a tax evasion case against former CEO of Russia’s Internet retailer Ulmart, Sergey Fedorinov, who had fully covered loss caused to the budget, the Investigative Committee’s St. Petersburg directorate announced on Monday.

Fedorinov have paid out over 188.5 million rubles (about $3.2 million) including tax owing, penalties and fines, the statement reads.

According to case papers, in 2012 and in the first nine months of 2013, Fedorinov avoided paying taxes by providing tax authorities with knowingly false information on Ulmart’s right to VAT offset.  Investigators claimed that he had caused damage valued at more than 116 million rubles (about $2 million) to the state.

Currently, a co-owner of Ulmart, Dmitry Kostygin, is under investigation in credit fraud case. According to case papers, Kostygin acting as the Board Chairman of Ulmart provided false information on the company’s financial position to Sberbank for signing a loan agreement. In April, Sberbank transferred 1 billion rubles (about $17 million at the current exchange rate) to the company’s account. The accused allegedly managed the money in his discretion. The defendant pleaded not guilty, his lawyer Konstantin Dobrynin told RAPSI earlier.

Ulmart group of companies is the largest Russian private Internet holding focusing on e-commerce segment. The company’s distribution network consists of over 400 sales outlets across more than 240 Russian cities and towns.