The SSU and the SBI have collected evidence on top managers of Poltava Mining and Processing Plant, which is controlled by the sanctioned billionaire Kostiantyn Zhevago.

Six company officials, who created an organized criminal group, have now been exposed. They set up a scheme to embezzle almost UAH 400 mln (USD 10.6 mln) of budget funds during extraction and sale of mineral resources.

During 2019-2022, the suspects supplied wholesale batches of crushed stone to an affiliated commercial entity at an artificially low cost.

As the investigation established, the company sold the rock without having the appropriate special permit. They sold 1 ton of it to ‘their companies’ for UAH 30-50. Then, the rock was sold at the market price, almost ten times higher.

To carry out the fraudulent transactions, the organizers entered false information in reporting and financial documentation.

The SSU-initiated expert examination confirmed the facts of the offence and budgetary losses.

During the searches at the suspects’ homes, offices and production facilities, the law enforcement found documents and other material evidence of the fraud.

Based on the evidence collected, the director of Poltava Mining and Processing Plant, his trustee, the chief accountant and the head of the company’s sales department, as well as the ex-director, ex-chief accountant and the current director of the controlled affiliated entity have been notified of suspicion under two Articles of the CCU:

• 191.5 (misappropriation, embezzlement or seizure of property through abuse of office, committed by an organized group);
• 209.3 (legalization (laundering) of proceeds of crime).

Court is to decide on measures of restraint. The offenders are facing up to 12 years in prison.

The SSU carried out the investigation jointly with the State Bureau of Investigation under the procedural supervision of the Prosecutor General’s Office.