OREANDA-NEWS. March 25, 2010. Mechel OAO (NYSE: MTL), a leading Russian mining and steel company, warns about fraud operations possible through third parties’ illegally acting on behalf of its Mechel Service OOO sales subsidiary with no authorization for that.

Third party’s sale of steel products based on fake documents using Mechel Service’ name was prevented on March 22, 2010. Fraudsters who presented themselves as official representatives of the company attempted to make a fake contract to deliver rolled products. The contract’s total value was over than 13 million rubles (approximately USD 440,000*). They offered steel products at lower prices and on the terms of 100% prepayment. The fraudsters used fake letters of attorney and agency agreement to make the fake delivery contract where they specified their bank details in ProBank Moscow branch and effective post address of Mechel Service’ headquarters. Mechel’s corporate security service together with law-enforcement authorities are currently taking measures to bring the fraudsters to justice.

The events of fraud have not been unusual in the recent past. Mechel Service is one of the largest sales and service companies in the Russian steel market with a wide regional sales network. Mechel Service is well-known as a reliable partner and supplier and this fact attracts fraudsters attempting to deceive customers and enjoy the illegal benefit through application of the name and unique logos of the company as well as Mechel registered trademark to fake specifications and contracts.

Mechel Service asks its customers to be careful when making contracts for rolled products supplies and pays much attention to all events of fraud. We recommend performing a thorough examination of key details, such as a taxpayer’s identification number, principal state registration number and registered address, and validity of representatives’ authorities to prevent fraud operations. Mechel Service’ contact details are available on the Sales page of Mechel’s website. The details may also be received by phone at Mechel’s headquarters and from sales managers of Mechel Service’ corporate branches.