The Russian tax authorities are $230 million down after a fraud involving forgery, impersonation and the theft of three investment companies, according to Hermitage Capital Management and reported in the FT.

HSBC is supporting Hermitage in its legal action in its role as Hermitage Fund's investment manager and trustee-owner of the three Moscow-based investment companies, Rilend, Parfenion and Makhaon.

The ownership of the companies was fraudulently re-registered before using them to make false tax rebate claims, the fund manager alleges in criminal complaints recently filed.

In April 2008, the report continues, Hermitage and HSBC claimed to Russian prosecutors that in late 2007 they lost control of the three investment companies through frauds involving "the falsification of evidence in court proceedings and manipulation of data". The three companies were later used to claim tax back against fake losses.