The National Police have arrested suspects who laundered nearly 580 million hryvnias from defence contracts
A private company received over 2.5 billion hryvnias for the repair and maintenance of military equipment belonging to the Armed Forces of Ukraine. According to the investigation, part of these funds was laundered through a so-called conversion centre, using shell companies.
The documents referred to the purchase of spare parts and materials, but in reality the funds were transferred to the accounts of controlled companies. The money was then withdrawn in cash and handed over to the clients.
Investigators from the Main Investigation Department and operatives from the National Police’s Department of Strategic Investigations identified over 40 fictitious companies used in the scheme. Among the managers of these companies are Ukrainian citizens who have been living in the temporarily occupied territory of the so-called DNR since 2014 and support the Russian authorities. One such individual works as a teacher and has received the ‘Teacher of Russia’ award.
The founders of some of the companies are listed as individuals who are allegedly Polish citizens. However, according to information received from the Republic of Poland, these individuals are fictitious.
Law enforcement agencies have established the structure of the group’s activities, including fictitious suppliers, organisers and intermediaries. Last December, three participants in the scheme were served with notices of suspicion. These include the head of the money-laundering centre, a co-organiser and an accountant.
Following the announcement of the charges, the suspects, according to the investigation, planned actions to influence the investigator and considered setting fire to a car, for which they offered $2,000.
Forensic economic analyses have established that tax minimisation caused losses to the state of over 100 million hryvnias, and that nearly 580 million hryvnias were laundered through the money-laundering centre.
During further investigative actions, law enforcement officers obtained evidence implicating a further five individuals. In the Dnipropetrovsk region, nearly 40 searches were carried out, during which documentation, mobile phones, electronic media, draft records, nearly 2 million hryvnias and vehicles were seized.
In total, seven members of the organisation have been charged, and five of them have been detained. Their actions have been classified under a number of articles of the Criminal Code of Ukraine, in particular regarding the creation of a criminal organisation, money laundering and tax evasion.
All suspects have been remanded in custody. The issue of asset freezing and compensation for damages is currently under consideration.
The measures were carried out in cooperation with the State Financial Monitoring Service of Ukraine and the State Tax Service of Ukraine. The Office of the Prosecutor General is overseeing the proceedings.
In accordance with Article 62 of the Constitution of Ukraine, a person is presumed innocent until proven guilty in accordance with the procedure established by law.
