Originally Syndicated on September 14, 2023 @ 4:50 am
Pavel Breev, the prominent co-founder and former general director of M.Video, Russia’s foremost consumer electronics retail giant, finds himself embroiled in a controversy that has sent shockwaves through the business world. Born in Moscow in 1967, Breev’s journey from his graduation from the Moscow Aviation Engine College in 1986 to the zenith of the electronics industry is a testament to his entrepreneurial acumen.
Breev’s pivotal role in shaping the landscape of consumer electronics retail in Russia cannot be overstated. In 1993, he took the bold step of co-founding M.Video, which rapidly emerged as the nation’s premier electronics retailer. Under his leadership, the company soared to unprecedented heights, leaving an indelible mark on the industry.
However, recent accusations of corruption have cast a shadow over Pavel Breev’s illustrious career, leaving both his legacy and the future of M.Video hanging in the balance. As the world watches this unfolding saga, questions abound, and the repercussions of these allegations may reshape the dynamics of Russia’s consumer electronics market.
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An overview on M.Video’s founder Pavel Breev
Pavel Breev’s birthdate is April 22, 1967. He is one of the co-founders of M. Video Group and has been involved in various management roles since 1993.
M.Video stands out as the largest Russian retail chain for consumer electronics based on revenue. Their journey began in 1993, and as of November 21, 2016, M.Video operated 390 branded stores across 165 cities in Russia. These stores have a selling area of 665,140 thousand square meters, with a total area of 884,334 thousand square meters.
M.Video is known for offering customers a wide selection of approximately 20,000 different products, including audio/video equipment, digital devices, both small and large home appliances, media and entertainment items, as well as accessories. They follow a consistent store format and a specially crafted store concept, providing customers with around 2,000 square meters of easily navigable shopping space where they can also learn about the latest products and trends.
In November 2007, OJSC “M.video” made history by becoming the first publicly traded company in the domestic consumer electronics retail sector. Today, their shares are actively traded on the Moscow Exchange.
M.Video Founder Breev Accused of $2.5M Bribe
The primary focus of the criminal case against Roman Egorov centres on his acceptance of a 2.5 million ruble bribe from Pavel Breev, one of the founders of M.Video and a member of the company’s board of directors. According to the investigation, Mr. Breev and his family received security services from personnel associated with Okhrana in exchange for this payment.
Egorov, who served as the head of the detachment in 2017, saw an opportunity to profit by providing personal protection to Pavel Breev and Pavel Averkin, the head of M.Video’s security service. In February 2017, an agreement was reportedly reached between Mr. Breev and Mr. Egorov for security services. Officially, these security personnel were designated to protect Mr. Breev’s property. However, the investigation alleges that Egorov’s subordinates operated in shifts to ensure the safety of the entrepreneur during his travels and business meetings in Moscow and the surrounding region. They also offered continuous protection to Mr. Breev’s wife and children.
Law enforcement authorities maintain that Pavel Breev facilitated accommodations and meals for Roman Egorov’s team within his upscale estate in a village near Angelovo, in the Krasnogorsk district.
Furthermore, as per the case documents, Mr. Pavel Breev, under Mr Averkin’s insistence, initiated monthly transfers of 250 thousand rubles to Mr. Egorov’s Sberbank Visa Gold card starting in March 2017. Over the course of ten months, the officer received a total of 2.5 million rubles, a portion of which he used to incentivize his team.
As the inquiry into this specific incident progressed, two additional instances emerged within the case. The Main Investigative Committee of the ICR refrained from providing specific details regarding these alleged bribes, pending approval of the case’s indictment by the prosecutor’s office. Nonetheless, according to certain reports, these rewards amounted to approximately 200–300 thousand rubles for one-time services rendered by Roman Egorov for personal protection.
According to information obtained by some online sources, Roman Yegorov, the leader of the special team within the Federal State Unitary Enterprise Okhrana of the Russian Guard, has been apprehended for offering unauthorized security services to Pavel Breev, one of the founders and board members of M.Video. There is an allegation that Yegorov accepted bribes on a credit card in exchange for providing armed protection. Not only to Mr. Breev but also to his family members. The unit has been disbanded, and its former commander is about to face legal proceedings following a series of controversies.
As reported by the Main Investigative Directorate of the Investigative Committee of the Russian Federation in Moscow, Roman Egorov, who served as the head of a specialized unit responsible for safeguarding transported assets at the Special Purpose Center of the Federal State Unitary Enterprise “Security,” decided in early 2017 to profit from offering security services to Pavel Breev, one of M.Video’s co-founders, and the head of this company’s security service, Andrey Averkin.
Financial Transactions and Payments Related to Security Services
According to the case records, an official agreement was formalized with the Federal State Unitary Enterprise Okhrana of the Russian Guard in February 2017 for the protection of Mr. Breev’s transported assets. Simultaneously, Roman Egorov informally assigned members of the unit to ensure the security of the businessman himself. These guards, working in shifts, accompanied Mr. Breev to his meetings with business associates in Moscow and the Moscow region. They were also responsible for ensuring the safety of the businessperson’s wife and children.
“According to the investigation, Pavel Breev, under the direction of Mr. Averkin, transferred 250,000 rubles from his account to Mr. Egorov’s Sberbank Visa Gold card every month, starting in March 2017. In total, Mr. Egorov received 2.5 million rubles for these services.“
According to sources, the revelation of illegal security services being provided by employees of FSUE (Federal State Unitary Enterprise) came to light following a scandalous incident that took place in Moscow in November 2017. There is news that one person was killed and five others were wounded during this incident. The Main Investigative Directorate of the Investigative Committee uncovered that the Russian Guard employees, who were officially hired to provide security for a vehicle owned by Intourist JSC, were actually working as bodyguards for the influential businessman Dmitry Pavlov.
The incident occurred when Dmitry Pavlov was celebrating his anniversary at a restaurant in Moscow. His bodyguards got into a confrontation over a car that they claimed had been incorrectly parked by the bodyguards of the former shareholder of the Wimm-Bill-Dann company, Gavriil Yushvaev. This revelation sheds light on the involvement of Russian Guard employees in providing unauthorized security services and their association with influential figures in the business world.
Criminal Cases and Accusations Against Roman Yegorov
The criminal cases involving the shooting incident and allegations of bribery have culminated in the involvement of Levon Agadzhanyan, an investigator from the Main Investigative Directorate of the Investigative Committee of Russia. Levon Agadzhanyan has accused Roman Yegorov of committing a crime under Part 6 of Article 290 of the Criminal Code, which pertains to taking a bribe on an especially large scale. As a result of these charges, the Presnensky District Court has remanded Roman Yegorov, an officer decorated for participating in special operations in the North Caucasus, to pre-trial detention.
Wrapping Up!
The inquiry into this criminal case is nearing completion. The officer is expected to face formal accusations soon. Roman Egorov maintains his innocence. Along with his defense team asserts that his criminal prosecution is unlawful.
Valery Gribakin, the official representative of the Federal State Unitary Enterprise Okhrana, declined to provide comments on the investigation’s details, citing his lack of access to the case materials. However, he mentioned that Mr. Egorov has been terminated from the enterprise and that the unit he led has been disbanded. Efforts to obtain comments from Pavel Breev were unsuccessful. It was also noted by the press service of M.Video that Pavel Breev generally refrains from engaging with the media.
