Microcreditbank employees in Karakalpakstan accused of embezzling nearly UZS 10 billion in client deposits

Bank employees accused of misappropriating client funds

According to investigation materials reviewed by Kun.uz, 14 employees of the Microcreditbank ATB Turtkul branch service center have been charged, ranging from the branch manager to cashiers. Preventive measures were applied: three of the suspects were placed in custody, while the others were released on recognizance.

An internal audit conducted by Microcreditbank’s head office examined the receipt, storage, and repayment of deposits at the Turtkul service center from 1 January 2022 to 1 July 2024. The investigation revealed that the employees, acting in collusion, embezzled UZS 9.58 billion from 17 depositors.

How the embezzlement was carried out

According to the indictment, the organized group led by the branch manager misappropriated clients’ deposits following a detailed criminal plan:

• New and existing clients were encouraged to open long-term deposit accounts with promises of attractive returns.

• When processing official deposit agreements, passbooks, and related documents, the employees entered smaller amounts than what clients actually deposited. The difference was not credited to the bank’s cash register. Clients were given documents reflecting the correct (full) deposit amount.

• Later, based on falsified information, the funds were withdrawn in cash from depositors’ accounts using electronic signatures of cashiers, and the accounts were prematurely closed.

• To prevent deposit accounts from appearing inactive or deleted, new accounts were opened under the clients’ names without their knowledge. Various amounts were credited to these accounts through the cash office to conceal the embezzlement and simulate ongoing transactions.

• The stolen funds were handed over to the leader of the criminal group and later distributed among four of its members. As a result, the depositors’ funds were never returned to their bank accounts.

One of the accused, who temporarily headed the Turtkul branch service center in 2023–2024, fully admitted guilt during the investigation, confirming that depositors’ funds had been withdrawn from their accounts. The other two suspects held in custody denied the charges.

Victims express concern over compensation

“I have been working seasonally in Russia for nearly 20 years. I trusted Microcreditbank because it is a state bank and deposited my savings there. It has been a year and a half, and we still can’t get our money back. I earned that money through hard work abroad,” one of the victims told Kun.uz.

A criminal case was opened under Article 167 (embezzlement or misappropriation) part 3, paragraphs “a” and “v”, and Article 209 (official forgery) part 2, paragraphs “a” and “b” of the Criminal Code. The investigation has been completed, and the case is now under trial. Victims say they are worried the court might hold the defendants personally liable instead of the bank.

Bank response

Kun.uz contacted the press service of Microcreditbank ATB regarding the case. The bank’s spokesperson said the verdict is pending and confirmed that if the court determines the deposits were indeed embezzled and orders compensation to be paid by the bank, the losses will be fully covered without issue.

Kun.uz will return to the topic once the court’s verdict is announced.