As a result of operational and investigative actions in Kyiv, the SSU cyber specialists exposed a scheme of misappropriation of budget funds allocated for digital transformation in the field of real estate registration.

According to forensic economic examination, the fraudsters stole almost UAH 10 mln (USD 280,000) allocated for digitization of technical documentation of real estate.

The unlawful activity was organized by the management of Kyiv City Bureau of Technical Inventory together with representatives of an affiliated IT company. The officials created artificial conditions for the company to win the bid for digital adaptation of the Bureau’s accounting systems for a total of UAH 30 mln (USD 840,000).

At the same time, the officials deliberately overestimated the budget for the services and withdrew part of the money through a conversion center to bank accounts of controlled commercial entities.

During the searches in the offices of the involved entities and at the suspects’ homes, the law enforcement found:

• seals and documents of over 30 fictitious companies,
• documentation, server equipment, computers, mobile phones and false accounting records with evidence of criminal activity.

Currently, the deputy head of Kyiv City Bureau of Technical Inventory and his accomplice, head of a private company, have been notified of suspicion of committing crimes under Article 191.5, Article 366.2 and Article 367.2 of the Criminal Code of Ukraine. The court is to choose the measure of restraint.

Pre-trial investigation is underway to identify and prosecute all those involved in the scheme.

The operation and investigation were carried out by the SSU under the procedural supervision of Kyiv Shevchenkivsky District Prosecutor’s Office.