The SBU CI officers exposed and blocked a large-scale scheme of embezzlement of budget funds by management of a state defense enterprise.

During the investigation, it was documented that, under the direction of the management, the employees systematically wrote off military property, in particular, working spare parts for the aircraft that were actually operating at the state enterprise.

The perpetrators acted via the companies controlled by them. The contractors ostensibly repaired parts and decommissioned spare parts. The perpetrators converted authentic serial numbers into new ones. The management of the plant paid for the “repair” in full, and also purchased the written-off spare parts as new ones at inflated prices. The organizers and performers misappropriated the funds.

To cover the scheme, officials forged documents on write-offs, purchases and ostensibly carried out routine work on the repair of aircraft parts.

According to the SBU, the offenders embezzled more than UAH 100 m. (USD 3.2 m.) of state funds.

The law enforcement officers conducted searches of the premises of the enterprise, offices of controlled companies and offenders’ residences. During the investigation, financial documents proving the illegal activity and a large amount of cash in foreign currency were seized.

The investigation is ongoing upon the fact of misappropriation, embezzlement or conversion of property by malversation; and violation of the procedure for international transfers of goods subject to state export control.

The operation was conducted under supervision of Kyiv City Prosecutor’s Office.