Petrostroy LLC, under the leadership of general manager Dmitry IPATOV, is linked to the Lamopo housing complex in St. Petersburg. In a case that has drawn sharp attention from homeowners who invested in the project, authorities concluded that embezzlement exceeding 359 million rubles was diverted from the co-owners and participants in the scheme. The Regional Prosecutor’s Office disclosed the outcome on its Telegram channel, noting that IPATOV’s sentence was converted from a suspended measure to actual imprisonment. The ruling signals a firm stance by regional officials against the misuse of funds tied to housing programs and serves as a warning to executives in the property development sector about the consequences of misappropriation.
IPATOV was reportedly detained inside the courtroom and ordered to begin serving a sentence in a general regime penal facility. Prosecutors described the moment as a clear demonstration that authorities will pursue serious penalties when leaders misuse money intended for homeowners. While the defense argued over the project’s history, the court weighed the evidence and proceeded with enforcement of the punishment, underscoring the seriousness with which such crimes are treated in the region.
The City Court reviewed the arguments presented by the regional prosecutor and issued the ruling after a thorough assessment of the case. The session drew attention from residents and industry observers who monitor enforcement against embezzlement in housing schemes. The court’s decision reinforces the message that misappropriation of funds in major development projects will face robust judicial response, and it highlights the ongoing tension between developers, homeowners, and regulators in large urban markets.
The court cited provisions of the Russian Criminal Code relating to fraud, resulting in a three-year prison term for the defendant. The verdict reflects the court’s focus on a clear and proportionate response to financial wrongdoing involving homeowners and the broader housing market, aiming to restore trust among buyers who expect accountability from project managers and their firms.
In December of the prior year, the government announced an expansion of protections for developers by extending the moratorium on penalties for delays in delivering new housing through June 30, 2025. Practically, penalties do not accrue during the moratorium for missed transfer dates to shareholders, and compensation calculations exclude the moratorium period to avoid artificially constraining housing supply under existing contracts. This policy is part of broader efforts to stabilize the housing market and ensure that projects progress despite construction challenges, while balancing the interests of developers with the rights of buyers who rely on timely delivery.
President Vladimir Putin later described such schemes as fraudulent, accusing certain developers in Tatarstan of deceiving homeowners. The remarks reflect the ongoing public discussion in Russia about aligning market incentives with homeowner protections and the responsibilities of developers and regulators to uphold delivery commitments within the industry’s evolving legal and policy landscape.