In city of Dnipro, the SBU blocked activity of an illegal conversion center. The turnover of the center is several hundred million UAH. The organizers reduced taxes for a number of enterprises in the region. The illegal activity caused losses to the state budget in particularly large amounts.

Allegedly, a businessman from the city of Dnipro organized the scheme. Among his clients were almost 30 local enterprises, including state-owned ones.

Via bogus firms, the offenders entered false information into the Unified Register of Tax Invoices. Thus, a number of artificial non-commodity transactions were conducted.

In order to establish the exact amount of damage caused to the state, the economic examination will take place.

The law enforcement officers conducted 11 searches of the offenders’ offices, residences and vehicles. During the investigation, the law enforcement seized:

• over UAH 1 m (USD 35,000);
• accounting documents;
• seals of bogus and state firms;
• computer equipment with black accounting.

The seized evidence of illegal activity is attached to the case file.

The investigation is ongoing in order to identify and prosecute all those involved.

The exposure of illegal activity was carried out within the instructions of the President of Ukraine to counteract the “shadowing” of the state economy. The operation was conducted by the SBU Office in Dnipropetrovsk region jointly with the SBU Main Department for Counterintelligence Protection of the State’s Interests in the Sphere of Economic Security under the supervision of Dnipropetrovsk Region Prosecutor’s Office.