Investigators of the Main Investigation Department and operatives of the National Police exposed more than 40 fictitious companies that served a large-scale «conversion centre». The organisers of the scheme included Ukrainian citizens from the so-called "Donetsk People's Republic" and fictitious persons identified as Polish citizens.
Exposing a large-scale «conversion centre» scheme»
National Police of Ukraine said. on the exposure of more than 40 fictitious companies acting in the interests of a criminal organisation. These companies were part of a «conversion centre» engaged in tax minimisation and large-scale money laundering. Investigators found that the structure of the scheme included fictitious suppliers, organisers and intermediaries, and the group's activities caused losses to the state of more than UAH 100 million.
Among the directors of the exposed companies are citizens of Ukraine who have been living in the so-called «Donetsk People's Republic» since 2014. They openly support the Russian government and its aggression against Ukraine. One of the directors works as a teacher and has received the "Teacher of Russia" award, which highlights the political context of the group's activities.
Fictitious founders and an international footprint
The founders of the fictitious companies were listed in official documents as persons who were allegedly Polish citizens. However, as Ukrainian law enforcement officers, together with their Polish colleagues, found out, these individuals do not exist in reality. This fact indicates an attempt by the criminal organisation to conceal the true beneficiaries and complicate the investigation by using fake international connections.
The police established all the details of the hierarchical structure and operation of the so-called «conversion group», which allowed them to identify the key participants in the scheme. In December last year, three individuals - the head of the centre, a co-organiser and an accountant - were served with a notice of suspicion of committing economic offences.
Pressure on the investigation and attempts to intimidate
After the announcement of suspicions, the participants of the criminal scheme tried to put pressure on the investigation. The police documented that the organisers were looking for perpetrators for provocative actions, including setting fire to the investigator's car. They offered $2000 for such a «job», which indicates attempts to obstruct justice and intimidate law enforcement officers.
Such actions demonstrate the high level of organisation and danger of the criminal group, which not only caused significant damage to the state, but also attempts to influence the course of the investigation by threatening and putting pressure on officials.
Why it matters
The exposure of this «conversion centre» has a significant impact on Ukraine's economic security. According to the results of forensic economic examinations, tax minimisation resulted in budget losses of about UAH 100 million. Particularly dangerous is the fact that a defence contractor laundered almost UAH 580 million through these companies, which could have a negative impact on the state's defence capability.
The use of fictitious directors from the so-called DPR, who support Russian aggression, underscores the threat of not only economic but also national character. Involvement of fictitious Polish citizens in the registration of companies complicates international cooperation and investigation of such crimes.
The disclosure of this scheme demonstrates the effective work of Ukrainian law enforcement agencies in combating economic crimes that undermine the country's financial stability and support forces hostile to Ukraine.
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