Mechel, one of the leading Russian mining and steel groups, has warned about possible fraudulent operations through third parties illegally acting on behalf of its sales subsidiary Mechel Service.
Accordingly, a third party's sale of steel products based on fake documents in Mechel Service's name was prevented on March 22, 2010. The fraudsters, who presented themselves as official representatives of the company, attempted to conclude a fake contract to deliver rolled products. The contract's total value was over Ruble 13 million (approximately $440,000). The steel products were offered at low prices and on terms of 100 percent prepayment, using fake letters of attorney and agency agreement to make the fake delivery contract, where they specified bank details at a ProBank Moscow branch and Mechel Service's headquarters as their effective postal address.
"Mechel Service is well-known as a reliable partner and supplier and this fact attracts fraudsters attempting to deceive customers and enjoy illegal benefit through application of the name and unique logos of the company as well as the Mechel-registered trademark to fake specifications and contracts," reads the company's statement.