Authorities expose UAH 576M laundering scheme in defense contracts
The Prosecutor General's Office and the Department of Strategic Investigations have exposed and dismantled a large-scale money laundering scheme on defense contracts. The criminal group legalized over UAH 576 million, the press services of the Democratic Party of Ukraine and the United Democratic Party of Ukraine reported on Monday, April 27.
According to the investigation, one of the private enterprises that performed contracts for the Ministry of Defense and the National Guard during 2023-2025 used the services of a criminal organization that created a so-called "conversion center" to assist enterprises in money laundering and tax evasion. Thus, out of UAH 2.5 billion allocated from the state budget, enterprise officials and businessmen laundered more than UAH 576 million.
The organizers of the “conversion center” created and controlled shell companies to which officials of the defense contractor transferred funds for fictitious goods and services. The fictitious suppliers existed only on paper – without people, without production, with dummy managers from temporarily occupied territories and fictitious foreign beneficiaries.
Through transit companies, the money was legalized and returned to customers in cash. "Convertcenter" in turn received a percentage of the transferred amounts for services. According to the investigation, at the same time, the company's management created artificial losses for the enterprise in order not to pay taxes. The estimated amount of losses for the state was 100 million UAH.
Law enforcement officers have identified more than 40 fictitious companies through which money was legalized. It is noted that among the directors of the companies are Ukrainians who have been living in the territory of the unrecognized pseudo-republic "DPR" since 2014 and support Russian aggression. The press service of the DPR reported that one of the defendants works as a teacher in the occupation and has received the award "Teacher of Russia".
More than 40 searches were conducted. Cash, vehicles, equipment, seals and "black" accounting were seized. Seven people were reported suspicious. They are being held without bail
The defendants were informed of suspicions under: Part 1 and 2 of Article 255 of the Criminal Code of Ukraine (creation and participation in a criminal organization); Part 3 of Article 27 of the Criminal Code of Ukraine, Part 3 of Article 209 of the Criminal Code of Ukraine (legalization (laundering) of funds obtained by criminal means); Part 5 of Article 27 of the Criminal Code of Ukraine, Part 3 of Article 212 of the Criminal Code of Ukraine (tax evasion).
The Department of Strategic Investigations added that last year, three participants in the scheme had already been suspected. After that, the businessmen tried to influence and intimidate the investigator - in particular, they planned provocative actions and looked for those who could burn the car. They offered $2,000 for the job. The investigation is currently ongoing. Law enforcement officers are identifying all those involved in the large-scale transaction.
We will remind, the HACC extended the duties of the former head of the MSEC Krupa.
We also reported that the HACC extended the duties of the former head of the State Administrative Service of Ukraine Deinek.
