The SSU and the National Police have exposed a scheme of embezzling funds from Dnipro city budget that caused at least UAH 34 million (USD 819,000) in losses to the state.

As established by the investigation, such amount was embezzled by three owners of local advertising agencies, who acted in collusion with city council officials.

According to the scheme, the tenders for SMM, advertising, and coverage of Dnipro City Council’s activities were won by the entrepreneurs under the officials’ control.

In this way, they embezzled almost a third of the total amount of UAH 123 mln that the city council had allocated for its promotion during 2021-2023.

The tenders were won by individual entrepreneurs with inflated prices, and they had nothing to do with marketing.

To operate the scheme, the council officials entered false information into financial and reporting documentation.

After the money was transferred to the accounts of the entrepreneurs, the participants of the scheme cashed it and divided it among themselves, buying real advertising services at a minimal cost.

During the searches of the suspects’ homes and offices, the SSU seized mobile phones, equipment, bank cards and draft documents with evidence of the crime.

Ten persons involved have been notified of suspicion (in accordance with the crimes they are suspected of) under two Articles of the CCU:

• 255.1, 255.2 (creation, management of a criminal community or criminal organization, participation in it);
• 28.4, 191.5 (misappropriation, embezzlement or seizure of property through abuse of office, on a particularly large scale committed by a criminal organization).

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

The pre-trial investigation is ongoing.

The operation was carried out under the procedural supervision of the Prosecutor General’s Office.