Registration of fictitious farms: agricultural company director to stand trial in Odesa following ESBU investigation

 Detectives of the Territorial Office of the Economic Security Bureau of Ukraine in the Odesa region have exposed an Odesa resident who submitted documents for the state registration of a legal entity containing deliberately false information. The woman registered three companies in various regions of Ukraine in her name. These companies specialized in the wholesale trade of grain, seeds, and animal feed.

During the investigation, detectives established that the corporate details were used to minimize the tax burden. Agricultural companies were utilized to convert non-cash funds into cash for businesses in the real sector of the economy.

In turn, the individual involved in the criminal proceedings performed no actual functions at the enterprises. All documents were drawn up and signed by other individuals, whose cases are being investigated in separate criminal proceedings.

The woman was served with a notice of suspicion of committing a criminal offense under Article 205-1, Part 2 of the Criminal Code of Ukraine (falsification of documents submitted for the state registration of legal entities and individual entrepreneurs). The indictment has been sent to court.

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

Procedural guidance was provided by prosecutors of the Odesa Regional Prosecutor’s Office.

Note: According to Article 62 of the Constitution of Ukraine, a person is presumed 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's verdict of conviction.