Photo: ukrinform.
The National Anti-Corruption Bureau of Ukraine (NACB) and the Specialised Anti-Corruption Prosecutor’s Office (SAP) have brought to court a case against a former MP who, together with others, organised a scheme to seize assets and cause over UAH 160 million in losses to a private bank, Timeukraineisrael reports, citing the NABU press service .
Case in point: unlawful acquisition of loan claims
According to the information provided by the NACB and the SAPO, the case was brought to court following a detailed investigation into the actions of the former MP and six other individuals. Their actions were classified under several articles of the Criminal Code of Ukraine, including misappropriation of property, forgery and obtaining undue advantage.
The criminal scheme began in 2012, when the then deputy of the Kyiv Regional Council, being the actual owner of several companies, started construction of a residential complex on the outskirts of Kyiv. For this purpose, he received a loan of over UAH 200 million, secured by a pledge of the future complex and land plots. During the construction period, the companies owned by the MP received more than a billion hryvnias from the sale of real estate.
Abuse and manipulation of claims
Subsequently, the bank that issued the loan was declared insolvent by the NBU. In order to avoid repayment of the loan and continue construction, the former MP organised a scheme to manipulate the rights of claim. With the help of his accomplices, including officials of the SSU, ARMA and SE SETAM, he managed to seize the loan claims and then illegally sell them through electronic auctions.
Interestingly, the rights of claim were sold for UAH 160 million less than their real value – only UAH 16.5 million. In addition, the auction at which this transaction took place was held without the relevant court decisions and without the necessary consent of the asset owner. After the company acquired the rights of claim at a low price, they cancelled all mortgages and resold these rights to a company owned by the MP himself.
Funding and employee participation
The MP not only organised the entire process, but also financed it at every stage – from the acquisition of the company to the payment for the services of appraisers. He also gave instructions to all members of the criminal group, facilitating the forgery of documents and falsification of property valuations. With the assistance of one of the SSU officers, the MP received an unlawful benefit in the amount of USD 32 thousand and real estate.
Losses for the bank
Based on the results of the investigation and examinations, the banking institution suffered losses of over UAH 160 million as a result of the actions of the organisers of the scheme. All participants in the criminal scheme were brought to court, and the trial is currently underway.
This case is a vivid example of how abuse of power and manipulation of claims can cause significant losses not only to banks but also to the state as a whole. Each step taken by these individuals demonstrates the scale of corruption schemes that have become a reality in the Ukrainian business environment.
