MOSCOW, September 9 (RAPSI) – The prosecution demanded to sentence former head of the Mostovik construction firm Oleg Shishov, charged with 500 million rubles tax evasion ($7.8 million), to 5.5 years in prison, the Omsk City Prosecutor’s Office reported on Friday.

Besides, the prosecutor asked the court to make Shishov pay 500 million rubles ($7.8 million) as compensation for damages, citing the seriousness of his crime. At the same time, the prosecution noted Shishov’s admittance of guilt, his repentance, health condition, and partial repair of the damages as mitigating circustances. The defense insisted on a shorter term and dismissal of the civil suit against Shishov.

The next hearing of the case is set on September 16.

According to investigators, in 2009-2011 Shishov forged financial documents and tax declarations of Mostovik, falsely reporting completion of construction works in Vladivostok and other cities by side contractors. Investigators claim that these contractors did not do any works and the projects were completed by employees of “Mostovik” itself. As a result, investigators believe that Shishov evaded paying over 478 million rubles ($7.4 mln) in taxes.

Additionally investigators allege that Shishov embezzled 526 million rubles ($8.2 mln) received as advance payment for construction of the Omsk ring road.

Shishov fully admitted his guilt and requested his case is reviewed under a special procedure.

Yet on March 21 Shishov was sentenced to three years in a penal company for complicity in embezzlement of entrusted property. Investigators alleged that he helped executive of the government company “Direction on construction management in the Far Eastern Federal District”, Andrei Poplavsky, to embezzle more than one billion rubles ($14.2 million) allocated for the construction of the Primorye Oceanarium.

Shishov made a pre-trial agreement on cooperation and testified against Poplavsky.