Conversion Center Network With UAH 23.5bn Turnover Exposed
The Bureau of Economic Security (BES) reported the exposure of a network of conversion centers through which funds from enterprises were transferred into the shadows. According to detectives, such centers operated in Kyiv and six regions of Ukraine. And the total volume of conversion was 23.5 billion hryvnias. The investigation established that the scheme had been operating since 2023.
Over 40 people from Kyiv and six regions of Ukraine were involved in its work at different periods. To conduct illegal financial transactions, they used the details of 97 controlled enterprises with signs of fictitiousness and created without the purpose of economic activity. Also, over 8 thousand individual entrepreneurs were involved in the scheme
It is noted that the conversion centers provided services to real sector enterprises to minimize tax liabilities and withdraw funds into the shadows. The amount of unpaid taxes amounted to 3 billion hryvnias.
According to the investigation, the enterprises transferred funds to the accounts of controlled companies allegedly for the purchase of goods, performance of work, or provision of services. However, in fact, such transactions were not carried out, and the financial transactions were not reflected in accounting and tax reporting.
The funds were then transferred to the accounts of other controlled enterprises and individual entrepreneurs. Part of the money was used to purchase cryptocurrency, after which it was converted into cash through a network of points of its acceptance and issuance. The funds received were distributed between the participants of the scheme and representatives of the beneficiary enterprises.
Detectives of the Bureau conducted 50 searches in Kyiv, Kharkiv and Odessa. As a result of the investigative actions, cash worth over UAH 130 million in various currencies in the hryvnia equivalent was seized. As well as mobile phones, computer equipment, company seals and accounting documentation on financial and economic transactions involving controlled companies and individuals. All this may indicate criminal activity, the Bureau of Economic Security emphasized.
Currently, six suspects have been notified of suspicion under the following Criminal Code articles:
· Part 1, 2 of Article 255 - creation, leadership of a criminal organization and participation in it;
· Part 3 of Article 209 — legalization (laundering) of property obtained by criminal means;
· Part 2 of Article 205-1 — forgery of documents submitted for state registration of a legal entity;
· Part 2 of Article 200 — illegal actions with transfer documents and other means of access to bank accounts;
· Part 1 of Article 366 - official forgery.
We previously reported that the former head of the Sambir RTCP, Bohdan Semenyn, was found to have hidden assets worth over UAH 4.5 million. He was suspected of making false declarations .
Also in the Odessa region, an official of the State Service for Food and Consumer Protection was detained, suspected of receiving a $5,000 bribe from an entrepreneur.
