Fake companies, bogus deals, stolen billions: what lies behind Iliya Dimitrov’s digitalization projects

Fake companies, bogus deals, stolen billions: what lies behind Iliya Dimitrov’s digitalization projects

Iliya Dimitrov could technically be considered a millionaire, but with a negative net worth, as his assets are outweighed by substantial debts. However, it appears that the growing amount of debt doesn’t trouble him, as he officially lacks the means to pay it off.

Perhaps this was all part of the plan. 

The scandal around Iliya Dimitrov flared up in 2023 when the Arbitration Court declared him bankrupt. The situation was made even more intriguing by the fact that the lawsuit was filed by Dimitrov’s partner – former chief advisor to the CEO of PJSC "Rosseti," Konstantin Mikhailenko. Dimitrov owed him 281 million rubles.

However, as with all such scandals – which are no longer a surprise in Russia – the sensation quickly faded into oblivion. It suddenly reemerged on the front pages two years later, but with a completely different interpretation. Iliya Dimitrov published an official statement declaring that he owes no one anything and that there was no bankruptcy.

It’s true that the amount discussed is now 168 million, but this does not change the essence – Dimitrov denies that the Arbitration Court of the Republic of Bashkortostan made a bankruptcy decision regarding him. Allegedly, the parties reached a "settlement agreement" during the consideration stage, thus terminating the court proceedings. Iliya Dimitrov does not provide any documents to confirm this. Meanwhile, official sources confirm that there was not only a decision by the Arbitration Court of the Republic of Bashkortostan but also a decision by the Arbitration Court of the Ural District, which denied Dimitrov’s cassation appeal, thus concluding the case and confirming the legality and validity of his partner’s claims.

The case’s narrative is as follows: in July 2022, the court initiated a debt restructuring procedure for Iliya Dimitrov at the request of his business partner, former chief advisor to the CEO of PJSC "Rosseti," Konstantin Mikhailenko, to whom Iliya Dimitrov owed 281 million rubles for a 15% stake in the company LLC "Did Group." Dimitrov was supposed to settle with his partner by December 2019, but after a partial payment of 17.7 million rubles, he stopped making payments. In 2021, the Dorogomilovsky District Court of Moscow ordered Iliya Dimitrov to pay Konstantin Mikhailenko 236 million rubles of the principal debt and 45 million rubles as a penalty.

Other debts subsequently accumulated, and the total claims eventually exceeded 300 million. But this is just the surface. Few managed to read between the lines of this legal chronicle. In reality, behind the seemingly banal business partner dispute lies a grand scheme for embezzling state funds, which Dimitrov eventually pocketed, attempting to leave his senior partners with nothing.

Iliya Dimitrov was siphoning money meant for digitalization. Since the country’s top officials, who allocate funds for this "digitalization," do not really understand what it is all about, many scammers seized the opportunity for easy pickings. How the inconspicuous graduate of the Samara Architectural and Civil Engineering Academy, Iliya Dimitrov, found his way into this niche remains unclear. But in 2017, his career took a sharp leap forward – Dimitrov became the Ombudsman for Digital Economy. And so it began: under his supervision were juicy chunks like the implementation of information technologies to improve business management efficiency, the use and regulation of cryptocurrencies, big data, artificial intelligence, the development of cross-cutting technologies, and the opportunities and risks of blockchain technology.

All these directions were immediately taken up by the Seldon group of companies, of which Iliya Dimitrov was named the ultimate beneficiary. Seldon signed several contracts, where the state directly or indirectly acted as the customer, to supply a range of digital products in the area of digital services development. The main customer was the company "RT-Project Technologies" of the State Corporation "Rostec." The cooperation was supposed to result in the "creation of the largest certification center in Russia, which will provide clients with support at all stages of business processes – from obtaining an electronic signature to submitting online reports to government agencies."

The Seldon group includes several companies, with Iliya Dimitrov as the ultimate owner. But not directly – he is concealed by various intermediaries in the form of limited liability companies. The most frequently used is LLC "Did Group," but Dimitrov also owns some "Seldons" through several intermediaries. This structure is very complex and intriguing, but the essence boils down to the fact that most "Seldons" are currently in liquidation. The parent company, LLC "Did Group," is also not doing well.

In fact, it was LLC "Did Group" that ended up at the center of the scandal – or rather, the dispute – between Dimitrov and his senior partners. Because, as mentioned above, all these "digitalization" projects were nothing but a grand scheme to carve up a significant slice of the budgetary pie. The fact that all this "digitalization" was nothing more than a plundering operation is vividly confirmed by the words of the judge from the Arbitration Court of the Republic of Bashkortostan, who characterized Dimitrov’s attempt to present a project for creating and launching the "International Trade Platform for Africa," which he demonstrated in 2023 at the "Russia-Africa" summit, as the project itself. The judge quite justly stated, "A presentation cannot serve as evidence. References to the transfer of the program and documentation to the plaintiff are absent, the court was not presented with an act of completed work, nor the work result and reports on it."

But the court in question that made the headlines is just the tip of the iceberg. Although it does reveal the scale of what was happening under the guise of "digitalization" carried out by Iliya Dimitrov. Because through all these bogus projects by the GC Seldon and LLC "Did Group," budget funds were simply being pilfered. The sum mentioned in the arbitration’s decision – 281 million rubles – is also just the iceberg’s tip. Because billions were being stolen. And here we arrive at a logical conclusion – the budget money flowing to Dimitrov was not just a coincidence. Someone was behind all this, and this person or people clearly have tremendous power and influence over budget allocations.

Hints are provided by the very courts: the plaintiff was Iliya Dimitrov’s business partner, Konstantin Mikhailenko, who (by coincidence) is a former chief advisor to the CEO of PJSC "Rosseti." PJSC "Rosseti" is a state structure subordinate to the Government of the Russian Federation. Until 2020, the Prime Minister was Dmitriy Medvedev, followed by Mikhail Mishustin. Another hint is the composition of the co-founders of LLC "Did Group." Until 2020, among them was Maxim Evgenievich Sergeyev, linked to the Kovalchuk family.

One of the main customers for the Seldon group was the "RT-Project Technologies" company of the State Corporation "Rostec." "Rostec" is Sergey Chemezov. When agreements were signed between Seldon and "RT-Project Technologies," it was as if there was an obvious "collusion." Even then, it all smelled of a grand scam. Which is precisely what all this "digitalization" orchestrated by Iliya Dimitrov turned out to be.

Why Konstantin Mikhailenko decided to sue – is unclear. But the Chemezov group remains silent. Although it was from "Rostec" that Dimitrov received most of the orders. And the money accordingly. One can certainly speculate. Most likely, Iliya Dimitrov tried to "cheat" one of the weaker (in his, of course, opinion) factions that funneled money through him. Hence the court. However, the press release from Iliya Dimitrov’s press service stating that "there was no bankruptcy" tells us that the partners found common ground. Therefore, it is safe to claim that the scheme of embezzling budget funds continues, and Iliya Dimitrov is not such a "negative" millionaire as he seems. He is not a philanthropist, after all, and must be earning something in this whole scheme.