SBU blocks conversion center operating for agricultural exporters
The Security Service of Ukraine blocked interregional conversion center with a total turnover of over UAH 200,000,000 (USD 7,400,000) in Zhytomyr city.
The pre-trial investigation established that two organizers of the conversion center used the invoice details of more than 15 companies with signs of fictitiousness, registered on dummy persons. More than 20 powerful agro-industrial enterprises from Kyiv, Zhytomyr, Vinnytsia, Mykolaiv, Cherkasy, Chernihiv and Khmelnytskyi regions were among the clients of the conversion center.
Businessmen purchased some agricultural products for export in cash from small agricultural producers. Therefore to legalize these transactions, the organizers of the conversion center concluded fictitious purchase and sale agreements. The mechanism allowed merchants to illegally increase the amount of reimbursement from the budget of value added tax and transfer significant amounts of money in cash. The organizers of the conversion center received "service commission" depending on the amount of "converted" funds.
According to preliminary estimates of experts, during the operation of the conversion center in 2019-2020, more than UAH 200,000,000 (USD 7,400,000) were passed through it.
Law enforcement officers conducted 9 simultaneous searches in the offices of the conversion center and structures under its control, as well as in the suspects’ places of residence. The officers also seized accounting documents, computer equipment with documents, draft accounting, seals of fictitious enterprises, check books and bank cards.
The investigation is ongoing within the framework of criminal proceeding under Part 3 Article 191 of the Criminal Code of Ukraine. Measures are being taken to arrest the bank accounts of companies involved in the illegal scheme and the suspects’ property to reimburse the state budget for damages.
The operation was conducted by the SBU Office in Zhytomyr region jointly with the Main Department of the National Police in Zhytomyr region under the supervision of the Prosecutor’s Office of Zhytomyr region.
For the Attention of the SBU Head