MOSCOW, February 7 (RAPSI) – The Basmanny District Court of Moscow has extended the detention of ex-Deputy chief of the Federal Penitentiary Service (FSIN) Oleg Korshunov, charged with embezzlement of 160 million rubles (about $2.8), until May 4, the court’s press-service told RAPSI.

Initially Korshunov was charged with two counts of embezzlement; however, this February two fraud cases were launched against him as well.

According to investigators, Korshunov conspired with the head of Russian footwear company Datse Group, Smbat Arutyunyan, and the head of state-run production company FSIN Russia, Vitaly Morusov. Allegedly, Korshunov had ordered to use prisoner labor to manufacture footwear from cheap materials provided by Datse Group. Later, he allegedly facilitated signing of a state contract with FSIN Russia.

Allegedly, Morusov was aware of the criminal scheme and did not plan to actually supply the goods. As a result, FSIN employees were deceived about the price and transferred over 90 million rubles (about $1.5 million) to FSIN Russia.

Investigators also claim that Korshunov organized signing of two government contracts on delivery of fuels and lubricants and food products at an overvalued price between 2015 and 2016. Actions of Korshunov and his accomplices allegedly caused a 160-million-ruble damage (about $2.8 million at current exchange rate) to the FSIN. He pleaded not guilty. Korshunov was appointed to the post of FSIN deputy head in March 2014. He has been bestowed the rank of Full State Counsellor 2nd Class of the Russian Federation.