Agreed to become a company director for 200 dollars: a "nominal" head of an agricultural company will stand trial in the Odesa region

 A 33-year-old native of the Lviv region, who agreed to become the formal founder and director of an enterprise for a monetary reward, will stand trial.

Detectives of the Territorial Office of the ESBU in the Odesa region established that in October 2023, the man, having no intention of actually conducting business activity, agreed to register a firm in his name for 200 US dollars. He was to formally figure as the founder and director of the company, while actual control over its financial and economic activity was to be exercised by other persons.

To register the enterprise, the suspect provided his personal documents and signed registration documents prepared by other persons with knowingly false information. On their basis, the company was registered in Odesa. The growing of grain, legumes, and oilseed crops was indicated as its main activity.

At the same time, the man did not plan to actually manage the enterprise. He did not conduct financial and economic activity, did not rent an office, did not conclude agreements with counterparties, did not manage bank accounts, did not keep accounting records, and did not submit tax reports. For performing his role, he received the promised 200 US dollars.

The registration of the enterprise to a straw person enabled other individuals (materials regarding whom are being investigated in separate criminal proceedings) to use the company in illegal activities aimed at tax evasion. Through the agricultural company, the conversion of non-cash funds into cash for enterprises of the real sector of the economy took place.

The suspect was notified of suspicion under Part 2 of Article 205-1 of the Criminal Code of Ukraine—knowingly entering false information into documents submitted for the state registration of a legal entity and their intentional submission, committed by prior conspiracy by a group of persons.

The sanction of the article provides for a fine of eight thousand to ten thousand tax-free minimum incomes of citizens or imprisonment for a term of three to five years, with deprivation of the right to hold certain positions or engage in certain activities for a term of up to three years or without it.

Procedural guidance was carried out by prosecutors of the Odesa Regional Prosecutor's Office.

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.