The SSU dismantled a conversion center in Poltava region. Since the beginning of 2021, the offenders have converted nearly UAH 500 m (USD 19 m) into cash helping businesses to evade taxes. 

The center was organized by former tax officials from Poltava. To convert funds into cash, they used fictitious transactions.

Their ‘customers’ included agricultural, oil and gas, chemical and transport enterprises. Through bogus firms, the fraudsters concluded contracts with companies. However, no works or services under contracts were performed or provided.

The law enforcement exposed one of the perpetrators ‘red-handed’ while handing over UAH 1.5 m (USD 56,652) in cash to a customer.

18 simultaneous searches at banking institutions, offenders’ offices and homes resulted in the seizure of:

• cash (over USD 353,000, EUR 54,000 (USD 61,200) and UAH 1.7 m (USD 64,200);
• 660 g of gold in coins and ingots;
• seals of bogus firms, financial records, electronic storage devices, documents with evidence of illegal activity.

The investigation into money laundering, tax evasion and abuse of office is ongoing.

The SSU Office in Poltava region conducted the operation with the coordination of the SSU Main Directorate for CI Protection of Economic Security, jointly with the SBI investigators and under the supervision of the Prosecutor General’s Office.