SBU uncovers managers of Kyiv construction firm and several affiliated investment funds on money laundering and moving it offshore.

During the pre-trial investigation, SBU operatives found that the offenders illegally used tax benefits and raised money for their investment fund from buyers of real estate. They concluded the usual apartment sale and purchase agreement with investors. The offenders, avoiding established tax procedure, transferred funds to the accounts of subsidiary foreign companies under the guise of investment recovery.

Furthermore, they artificially overestimated the cost of these fund shares for the further redemption from an affiliated non-resident company. They transferred the laundered funds abroad via related banking institutions. The state suffered losses in the amount of over UAH 500 million (circa USD 17.9 million).

Within the criminal proceedings upon the fact of tax evasion, duties or other compulsory payments, law enforcement officers conducted 10 searches in the suspects’ offices, apartments and house. Documents, computer equipment, drafts and staff records on fraud, as well as unaccounted cash were seized during the investigation.

Investigations are ongoing.