A money conveyor of 23.5 billion: ESBU stopped a large-scale network of conversion centers

 Over 3 billion UAH in unpaid taxes, 23.5 billion UAH in turnover, 200 client enterprises, 97 controlled fictitious enterprises, and more than 8 thousand IEs were involved in the scheme. Detectives of the Economic Security Bureau of Ukraine exposed a large-scale network of conversion centers through which funds of enterprises of the real sector of the economy were withdrawn into the shadow. Based on the results of 50 searches, over 130 million UAH in various currencies, in hryvnia equivalent, was seized.

"The scheme worked according to plan. The ESBU worked on the scheme," noted the Director of the ESBU, Oleksandr Tsyvinskyi, on his Telegram channel, reporting on the results of the operation.

The investigation established that the scheme had been operating since 2023. More than 40 persons from Kyiv and six regions of Ukraine were involved in its operation at various periods. To conduct illegal financial transactions, they used the details of 97 controlled enterprises with signs of fictitiousness and created without the purpose of economic activity. Also, over 8 thousand individual entrepreneurs were involved in the scheme.

The conversion centers provided services to enterprises of the real sector of the economy to minimize tax obligations and withdraw funds into the shadow.

The mechanism consisted of the fact that enterprises transferred funds to the accounts of controlled companies allegedly for the purchase of goods, performance of works, or provision of services. In fact, such operations were not carried out, and the corresponding financial transactions were not reflected in accounting and tax reporting.

Subsequently, the funds were transferred to the accounts of other controlled enterprises and individual entrepreneurs. A part of the money was used to purchase cryptocurrency, after which it was converted into cash through a network of its reception and issuance points. The received funds were distributed among the participants of the scheme and representatives of the beneficiary enterprises.

The total volume of conversion amounts to 23.5 billion UAH.

To stop the activity of the network, ESBU detectives conducted 50 searches in Kyiv, Kharkiv, and Odesa. Based on the results of the investigative actions, cash worth over 130 million UAH in various currencies, in hryvnia equivalent, was seized.

Mobile phones, computer equipment, company seals, and accounting documentation regarding financial and economic operations involving controlled companies and individuals, which may indicate criminal activity, were also seized.

Currently, six participants of the scheme have been notified of suspicion under Part 1, 2 of Article 255 (creation, management of a criminal organization, and participation in it), Part 4 of Article 28 (commission of a criminal offense by a criminal organization), Part 3 of Article 209 (legalization (laundering) of property obtained by criminal means), Part 2 of Article 205-1 (forgery of documents submitted for the state registration of a legal entity), Part 2 of Article 200 (illegal actions with transfer documents and other means of access to bank accounts), and Part 1 of Article 366 of the Criminal Code of Ukraine (official forgery). The pretrial investigation is ongoing.

Procedural guidance is carried out by prosecutors of the Office of the General Prosecutor. Operational support was provided by employees of the Territorial Office of the ESBU in the city of Kyiv, the State Border Guard Service of Ukraine, and the Cyberpolice Department of the National Police of Ukraine.

Note: According to Article 62 of the Constitution of Ukraine, a person is considered innocent of committing a crime and cannot be subjected to criminal punishment until their guilt is proven in accordance with the law and established by a court verdict.