The SSU exposed Kyiv businessmen on misappropriation of funds allocated for protection of classified information in state institutions and law enforcement of Ukraine. The losses to the state are estimated to be UAH 20 m (USD 755,600).

The SSU established that the perpetrators deliberately overstated the prices for their services, and laundered money through fictitious entities.

The organizer of the scam was a Kyiv private company that had the relevant license and was certified by the State Service of Special Communication and Information Protection.

Under the contracts, the task of the said company was technical and cryptographic protection of information circulating in government agencies.

Over 2018-2019, the following entities were their clients:

• National Police of Ukraine;
• National Guard of Ukraine;
• JSC Ukrzaliznytsia;
• Ministry of Youth and Sports of Ukraine;
• UkSATSE;
• SE Ukrenergo;
• District Administrative Court of Ukraine, etc.

Two persons involved in this unlawful activity, the directors of fictitious enterprises, were notified of suspicion of forgery.

During the searches, the law enforcement seized financial and economic documents and computer equipment.

The investigators also documented facts of storing secret information on unregistered devices by the company officials, which is against state secrets regulations.

Currently, forensic examination in relation to breaching state secret regulations as well as economic and computer examinations are underway to confirm the losses to the state and proceed with the investigation.

The SSU Cyber Security Department and the National Police carried out the operation under the supervision of Kyiv City Prosecutor’s Office.