Russian law enforcement authorities launched a criminal investigation into an alleged $12 million fraud scheme tied to border defense construction in the Belgorod region, the Kommersant business newspaper reported Friday, citing anonymous sources familiar with the case.

Former Belgorod region Deputy Governor Rustem Zainullin, four businessmen and two construction firms have been named as defendants in the case, according to the sources.

Zainullin and three businessmen were said to have been placed in custody in Moscow on large-scale fraud charges, while one suspect remains at large. The head of the Belgorod region’s department of construction, Alexei Soshnikov, is reportedly a witness in the case.

Investigators claim that Zainullin and Soshnikov awarded 26 contracts between 2022 and 2024 worth more than 1.1 billion rubles ($14.6 million) to the two firms. The contracts are alleged to have involved kickbacks, shell companies and misappropriated funds.