Bank real estate fraud scheme defrauded investors of 90 million – police

Law enforcement officers exposed a criminal organization that embezzled over 90 million hryvnias from bank depositors. Business projects for the construction of factories and thermal power plants, the operational activities of a coal mine, the acquisition of luxury cars and real estate were financed with the illegally obtained funds. This is reported by the National Police of Ukraine, writes UNN.

Details 

“The perpetrator specifically acquired a financial institution to implement his criminal intent. In the deal, he involved the head and members of the bank’s board, the head of the supervisory board, private entrepreneurs, appraisers and state registrars. Under the organizer’s leadership, they registered large-scale real estate in the state register of property rights, allegedly located in the central districts of Kyiv and Kharkiv”, the police report states.

According to the information, “these non-existent objects became the subject of collateral for the issuance of loans in the total amount of over 90 million hryvnias”.

The depositors’ funds received, as reported, were directed to their own business projects – the construction of factories, thermal power plants, the financing of a mine, as well as the acquisition of elite real estate and vehicles. At the same time, the employees of the banking security department annually drew up acts of verification of the presence and liquidity of the non-existent collateral property, the police reported.

The result of such activities, as indicated, was that in 2021 the bank was declared insolvent because it did not ensure payments to its own clients and did not settle on payment orders. 

The investigation has established that the criminal organization included 27 perpetrators. Seven of them were previously notified of suspicion of misappropriation of property and official forgery.

In January 2025, the police gathered enough evidence to announce suspicions against the key members of the criminal organization. Among the suspects is the owner of the bankrupt bank.

As reported by the Office of the Prosecutor General, “27 members of the criminal organization, who, led by the owner of the bankrupt bank – a former MP, embezzled 90 million hryvnias from depositors, were notified of suspicion”.

According to the investigation, “a People’s Deputy of Ukraine of the IV-VI convocations, a former Minister of the Coal Industry, in 2016 acquired a financial institution with the aim of seizing the funds of depositors”.

The suspects are charged with the creation, management of a criminal organization and participation in it, misappropriation, embezzlement and seizure of property, official forgery and money laundering obtained through criminal means (Part 1 of Art. 255, Part 5 of Art. 191, Part 1 of Art. 366, Part 3 of Art. 209 of the Criminal Code of Ukraine).

The police have seized 12 apartments of the perpetrators in Kyiv, 5 private houses in the city center with a total area of over 2000 square meters, land plots, 12 luxury cars, 12 parking spaces and corporate rights in the authorized capital of companies affiliated with the perpetrators.

The suspects may face up to 12 years in prison with confiscation of property.

Reminder 

A 60-year-old woman from Ivano-Frankivsk is suspected of deceiving about ten people for a total of over $420,000 and €160,000. She asked for money for fictitious business projects, promising to return it with a reward.