The SBU exposed former senior officials of Kyiv Regional State Administration.

The offenders caused damage to the state budget amounting to UAH 230 m (USD 8,2 m). They set up a real estate scheme.

The operatives established that the scheme was organized by four ex-chiefs of a department of Kyiv Regional State Administration. They acted by prior conspiracy with other officials of the Administration. The perpetrators leased a house in the center of Kyiv with an area of almost 2,000 square meters. Since 2000, the cost of rent was 1 UAH (USD 0,03) per year.

Then the offenders subleased the real estate to businessmen at market value and misappropriated the “margin”. Initiated by the SBU audits, inspections and examinations of documents testified the illegal activity.

Four offenders were served a notice of suspicion of neglect of official duty. Two of them were found guilty of committing a crime. The cases of another two perpetrators are being tried.

As part of the criminal proceedings, the SBU exposed public utility ex-head on embezzlement. He transferred the utility funds to accounts of bogus firms for ostensibly performed services.

As of now, the offender is a current deputy of Zhytomyr City Council. He was served a notice of suspicion of misappropriation, embezzlement or conversion of property by abuse of office.

The investigation is ongoing.

The operation was conducted by the SBU Main Department for Counterintelligence Protection of the State’s Interests in the Sphere of Economic Security jointly with the Territorial Department of the State Bureau of Investigation in the city of Kyiv under supervision of Kyiv City Prosecutor’s Office.