Officials raid Deutsche Bank’s Moscow office in hotel fraud probe

MOSCOW The local offices of Deutsche Bank AG were raided Wednesday in connection with an investigation into an alleged US$87.5 million fraud related to the reconstruction of Moscow’s Hotel Moskva.

Deutsche Bank itself is not suspected of any wrongdoing, but one of its major clients—businessman and parliamentary deputy Ashot Yegiazaryan—is under investigation for allegedly helping to steal from a company controlled by the city government that was taking part in the hotel’s reconstruction, Financial Times reports.

The reconstruction of Moscow’s Hotel Moskva has been under way since 2003 and has encountered numerous project delays.